More from the Emeritus Newsroom- Federal investigators announced today they had traced the salmonella outbreak to hen feed at one of the farm suspected of supplying contaminated eggs. And an additional retailer, Cardenas Market in California, was added to the list of retailers in the expanded recall (Cardenas announcement, click here).
According to the CDC, epidemiologic investigations conducted by public health officials in 10 states since April have identified 26 restaurants or event clusters where more than one ill person with the outbreak strain has eaten. Data from these investigations suggest that shell eggs are a likely source of infections in many of these restaurants or event clusters. Preliminary information indicates that Wright County Egg, in Galt, Iowa, was an egg supplier in 15 of these 26 restaurants or event clusters. To date, no new restaurant or event clusters have been reported to CDC. A formal trace back was conducted by state partners in California, Colorado, and Minnesota, in collaboration with FDA and CDC, to find a common source of shell eggs. Wright County Egg in Iowa was found as the common source of the shell eggs associated with three of the clusters. Through trace back and FDA investigational findings, Hillandale Farms of Iowa, Inc. was identified as another potential source of contaminated shell eggs contributing to this outbreak. FDA is currently conducting extensive investigations at both of these firms in Iowa. The investigations involve sampling, records review and looking for potential sources of contamination, such as feed.
Although no one is reported to have died from the outbreak, at least 2,403 people have come down with symptoms matching those of salmonella contamination.
Congressman Henry Waxman has requested the owners of the facilities involved with the recall to testify before his committee next month as the House gears up to investigate. The U-S House has already passed a bill to increase federal control of food inspections.
An inspector general's report, released this spring, pointed to the decreasing number of inspections of food processing facilities in the US and the increasing number of foodborne illnesses. Click here for PDF copy of Inspector General's report. The U-S Senate has not acted on their version of the bill. CDC press release, copy click here. 08/26/201
ENGINE PROBLEMS FORCE TOYOTA'S 15TH RECALL THIS YEAR
More from the Emeritus Newsroom- Complaints from car owners about stalling have prompted Toyota to recall more than 1.13 million cars. The latest recall involves the 2005-2008 Corolla and Matrix hatchback. This problem, according to officials with the National Highway traffic Safety Administration, is not related to the accelerator pedal sticking incidents. In a statement released today by Toyota, the company admits,
"On vehicles equipped with the 1ZZ-FE engine and two-wheel drive, there is a possibility that a crack may develop at certain solder points or on the electronic component used to protect circuits against excessive voltage (varistor), on the ECM’s circuit board. In most cases, if a crack occurs at certain solder points or on certain varistors, the check engine may illuminate, harsh shifting could result, or the engine may not start. In limited instances, if cracking occurs on particular solder points or varistors, the engine could stop while the vehicle is being driven".
"There are three unconfirmed accidents alleged to be related to this condition, one of which reported a minor injury", according to the Toyota statement.
The NHTSA had informed the company, November 30th 2009, that it was investigating complaints related to the problem. NHTSA officials say that probe of 2005-2007 models has widened to include other Toyota models during the same production period.
Owners can expect recall notices in the mail next month with more details and instructions on repairs.
More from the Emeritus Newsroom- Because of the number of related illnesses, the United States Department of Agriculture has sounded more warnings about salmonella contamination in shell eggs. The most recent recall involved Wright County Egg of Galt, Iowa. The company ordered a nationwide voluntary recall of shell eggs that it had shipped since May 19, 2010 to food wholesalers, distribution centers and food service companies in California, Illinois, Missouri, Colorado, Nebraska, Minnesota, Wisconsin and Iowa. The company distributes its product nationwide under various product labels. The recalled shell eggs are packaged under the following brand names: Lucerne, Albertson, Mountain Dairy, Ralph’s, Boomsma’s, Sunshine, Hillandale, Trafficanda, Farm Fresh, Shoreland, Lund, Dutch Farms and Kemps. State and local partners are also investigating human Salmonella infections in Arizona, Connecticut, Massachusetts, Maryland, North Carolina, Nevada, Oregon, Pennsylvania, Tennessee and Texas.
CDC received reports of approximately 200 SE (Salmonella Enteritidis) cases every week during late June and early July. Normally, CDC has received an average of some 50 reports of SE illness each week for the past five years. Many states have also reported increases of this pattern since May 2010. Epidemiologic investigations conducted by public health officials in California, Colorado, and Minnesota have revealed several restaurants or events where more than one person ill with this type of SE has eaten. Preliminary information from these investigations suggests that shell eggs are the likely source of infections in many of these restaurants or events.
GM RECALLS 243,000 TRAVERSE, ENCLAVE, ACADIA AND OUTLOOK CROSSOVER S-U-Vs
More from the Emeritus Newsroom- More than 243,000 models of the , so called, "crossover SUV" 2009 and 2010 models; the Chevrolet Traverse, Buick Enclave, GMC Acadia and Saturn Outlook, have been recalled to check second row seatbelts which may not latch. Owners will likely be covered for the repair, if needed, through warranties or other still pending arrangements. According to a company statement, released today, some vehicles may have a condition where the second-row seat side trim shield restricts the upward rotation of the seat belt buckle when the seat back is returned to a seating position after being folded flat. If the buckle makes contact with the seat frame, the buckle may receive cosmetic damage as the seat back is being returned to its upright position. When this occurs, the customer may notice that additional effort is required to return the seat to a seating position.
But if sufficient force is applied, the buckle cover could be pushed down the strap, exposing and partially depressing the red release button. The seat belt release button may not travel as much as designed when depressed. The buckle may not latch or unlatch and may appear to be jammed. In rare instances, the buckle may appear to latch when the latch mechanism is not fully engaged.
“Because of the potential for a false-latch condition, we want customers to return their vehicles to have the recall repair performed as soon as possible,” said Jeff Boyer, GM executive director of safety.
MASSIVE GROUND BEEF RECALL EXPANDS / RETAIL OUTLETS NAMED IN RECALL OF MORE THAN 1 MILLION POUNDS
More from the Emeritus Newsroom- A recall of more than an estimated one million pounds of ground beef, with potential e coli contamination, has been expanded to include names of retail establishments which may have sold it. The meat came from Valley Meat Company of Modesto, California. The U-S Department of Agriculture today released this list of retailers.
1
Best Deal Food Company Inc.
widely distributed in CA
2
Del Sol Market
widely distributed in AZ
3
El Sol Market
widely distributed in CA
4
Erickson Supermarket
widely distributed in OR
5
Fairway Stores
widely distributed in CA
6
IGA
widely distributed in AZ, OR, and WA
7
J. Solanki Meat
widely distributed in CA
8
McKays
widely distributed in OR
9
Mi Pueblo San Jose Inc.
widely distributed in CA
10
Safeway
widely distributed in CA, NV, HI
11
Select Markets
widely distributed in WA
12
Super A Foods, Inc.
widely distributed in CA
13
Super Center Concepts, Inc
widely distributed in CA
14
Ukas Big Saver Foods
widely distributed in CA
15
Vons
widely distributed in CA, NV
USDA's Food Safety and Inspection Service (FSIS) became aware of the problem on July 15 when the agency was notified by the California Department of Public Health (CDPH) of a small E. coli O157:H7 cluster of illnesses with a rare strain as determined by PFGE subtyping. A total of six patients with illness onset dates between April 8 and June 18, 2010 were reported at that time. After further review, CDPH added another patient from February to the case count, bringing the count to seven. FSIS is continuing to work with the CDPH and the company on the investigation. Anyone with signs or symptoms of foodborne illness should contact a health care provider.
More from the Emeritus Newsroom- The Federal Trade Commission has settled its case against Canadian con artists involved with internet domain registration scams. According to the FTC, scores of small businesses, individuals and non-profits were instructed pay bogus bills, leading them to believe they would lose their web site addresses unless they paid. Settlement and default judgment orders signed by the court will bar the deceptive practices in the future.In June 2008, the FTC charged Toronto-based Internet Listing Service with sending fake invoices to small businesses and others, listing the existing domain name of the consumer’s Web site or a slight variation on the domain name, such as substituting “.org” for “.com.” The invoices appeared to come from the businesses’ existing domain name registrar and instructed them to pay for an annual “WEBSITE ADDRESS LISTING.” The invoices also claimed to include a search engine optimization service. Most consumers who received the “invoices” were led to believe that they had to pay them to maintain their registrations of domain names. Other consumers were induced to pay based on Internet Listing Service’s claims that its “Search Optimization” service would “direct mass traffic” to their sites and that their “proven search engine listing service” would result in “a substantial increase in traffic.”
The FTC’s complaint charged that most consumers who paid the defendants’ invoices did not receive any domain name registration services and that the “search optimization” service did not result in increased traffic to the consumers’ Web sites.
A federal district court judge in Chicago, Robert M. Dow, Jr., ordered a temporary halt to the deceptive claims and froze the defendants’ assets, pending trial. The settlement and default judgment orders announced today end that litigation. FTC press release on internet scam, click here. 08/11/2010
NO NEW INFO IN FED PROBE OF TOYOTA SUDDEN ACCELERATION CASES
More from the Emeritus Newsroom- Floor mat entrapment and sticking accelerator pedals are the preliminary findings of a probe conducted by the US Department of Transportation and NASA into sudden acceleration cases. The probe rev lead no other mechanical of electrical problems which may have contributed. Sudden acceleration and other issues have contributed to the recall of more than 10 million Toyota and Lexus models since last fall. Several high profile sudden acceleration cases had fueled speculation that electronic problems were also to blame. The complete investigation including a thorough probe of the, "Black Boxes", of suspected problem vehicles will be completed later this fall. In April, the company agreed to pay a $16.375 million fine – the largest fine permitted by law – for failing to notify The National Highway Traffic Safety Administration of a dangerous pedal defect for almost four months, putting owners at risk, according to NHTSA officials.
FDA SAYS DISPERSANT USED IN GULF OIL DISASTER "SAFER THAN THE OIL" / LINK TO LETTER FROM FDA
More from the Emeritus Newsroom- Responding to a request from Rep. Ed Markey (D) MA, the FDA says the dispersant which has been used to break up oil from the Deepwater Horizon disaster in the Gulf of Mexico, is "safer than the oil" which leaked from the blown well. The FDA gave a conditional clearance to seafood which may have come in contact with the dispersant, stating,
"...when closed federal and state harvest waters are reopened, FDA is confident that, when followed, this protocol (See link to copy of letter at bottom of story) will ensure that seafood harvested from the reopened areas will be fit for consumption".
The FDA also explained this is contingent on harvest areas being reopened when no active oil contamination is present.
39,000 LEXUS MODELS RECALLED FOR STEERING SHAFT DEFECT
More from the Emeritus Newsroom- In a company press release from parent company Toyota today,
"Lexus intends to conduct a voluntary safety recall of approximately 39,000 2003-2007 Model Year LX 470 vehicles to address a steering shaft condition. No other Toyota or Lexus vehicles are involved in this safety recall.This action follows an announcement made by Toyota Motor Corporation in Japan on July 29, 2010.Lexus has determined that the construction of the steering shaft on involved LX 470s is such that the snap ring on the shaft may disengage when the vehicle experiences an unusually severe impact to the front wheels, such as striking a deep pothole. If the snap ring becomes disengaged and the steering wheel is then repeatedly turned to the full locked position, the steering shaft may disengage over time. Lexus is not aware of any accidents related to this condition".
"The remedy for this condition involves replacing the snap ring with a newly designed one and the installation of an additional component to prevent separation of the steering shaft. Lexus will begin sending out notification to owners of involved vehicles by first class mail beginning in mid-August 2010, advising them to bring their vehicles to their local Lexus dealer to have this remedy performed at no charge".
GAO CLAIMS SOME AIRLINES NOT FULLY DISCLOSING FEES / FEES CUT TAXES TO SUPPORT AIRPORT INFRASTRUCTURE
More from the Emeritus Newsroom-The Governmental Accounting Office released a report showing some airline fees for optional services are not fully disclosed to passengers at the time of booking. The GAO report says with the exception of fees for security services, it is not clear if and how these various government-imposed fees are refundable to passengers who do not use their non refundable tickets. The US Department of Transportation, last month, proposed new rules for compensation when passengers are bumped, refunds for bags not delivered on time, and timely notifications for flight changes (see links at story's end). The GAO claims the airlines' increasing reliance on fee revenues reduces the proportion of total passenger revenue that is taxed to help fund FAA. The IRS has determined that many airline-imposed fees are not related to the transportation of a person--the basis for imposing the 7.5 percent excise tax on domestic air transportation--according to applicable Treasury regulations and IRS guidance--and, thus, only a proportion of the total fee revenue is subject to taxation. (3) The imposition of checked baggage fees has contributed to declines in the amount of checked baggage and the rate of mishandled bags per thousand passengers as well as an increase in the amount of carry-on baggage. Since airlines first imposed checked baggage fees, the number of checked bags per passenger has declined, contributing to a decline in the rate of mishandled bags. However, it is unknown whether baggage fees have had an effect on the rate of mishandled bags per thousand passengers as this information is not available. IN A SEPARATE DEVELOPMENT, THE U-S COURT OF APPEALS IN WASHINGTON DEALT ANOTHER BLOW TO THE AIRLINES ON TUESDAY, UPHOLDING A FEDERAL LAW THAT GIVES AIRPORTS AUTHORITY TO CHARGE MORE FOR AIRLINE USAGE FEES DURING PEAK TIMES. GAO report on airline pricing, click here. LA Times review of proposed rules from the US Department of Transportation, click here. Official DOT press release on proposed rules which could go into effect by year's end, click here. US Court of Appeals ruling upholding law allowing airports to charge more for airline use during peak times, click here. 07/15/2010
DRUG "AVANDIA" ESCAPES RECALL DURING BIG WEEK FOR OTHER PRODUCT RECALLS / MAKER OF "AVANDIA" AGREES TO $460 MILLION SETTLEMENT / FTC SETTLES TWO MAJOR FALSE CLAIMS CASES
More from the Emeritus Newsroom- GlaxoSmithKline has reached an out of court settlement to pay nearly a half billion dollars over alleged side effects from the drug, "Avandia". The settlement comes after a decision today by the Food and Drug Administration to ONLY ISSUE NEW WARNINGS FOR the diabetes drug, "Avandia", capped an unusually active seven day period full of recalls. The FDA announcement today will force the manufacturer, GlaxoSmithKline to attach additional warnings when selling Avandia, due to concerns over potential heart side effects. A total of 17 members of the FDA panel voting today, voted for the new warnings, while 12 voted for suspending sales of the drug. Studies revealed a potential 43% increase in the risk for a heart attack related event tied to use of the drug. The FDA agreed to reconsider the safety of the drug after several studies indicated increased risks associated with its use. GlaxoSmithKline responded the research results are nothing new but disagreed with concerns over long term effects. A company statement claims, ' long-term effects have been studied in ADOPT and RECORD; these studies have not shown any effect on cardiovascular mortality".Attorneys representing clients suing GlaxoSmithKline say at least 13,000 patients have suffered from heart failure and heart attacks due to side effects of the drug. GlaxoSmithKline press release, click here. FDA decision press release (when available), click here. Press release from Johnson law firm representing clients suing drug maker, click here. ARTICLE ON AVANDIA SETTLEMENT, CLICK HERE.
Yesterday the FDA issued new requirements for the recall of Baxter Infusion Pumps. The FDA says required Baxter Healthcare Corp. to take specific steps to carry out the April 2010 recall of all Colleague Volumetric Infusion Pumps (CVIP) and to provide customers with a refund, a replacement pump, or lease termination. Baxter is responsible for recalling as many as 200,000 CVIP currently in use in the United States. Under the FDA’s requirements, Baxter will also provide a transition guide to assist customers affected by the recall. The guide will include a list of FDA-cleared or approved pump alternatives, suggestions to help minimize disruption and patient risk during the transition period, and detailed information on the refund, replacement, and lease termination programs. FDA Baxter press release, click here.
The agency also issued new regulations for egg production, saying that as many as 79,000 illnesses and 30 deaths due to consumption of eggs contaminated with the bacterium Salmonella Enteritidis may be avoided each year with new food safety requirements for large-scale egg producers.The new food safety requirements will become effective on July 9, 2010, through a rule for egg producers having 50,000 or more laying hens – about 80 percent of production. Among other things, it requires them to adopt preventive measures and to use refrigeration during egg storage and transportation. Large-scale egg producers that produce shell eggs for human consumption and that do not sell all of their eggs directly to consumers must comply with the refrigeration requirements under the rule; this includes producers whose eggs receive treatments such as pasteurization. Similarly, those who transport or hold shell eggs must also comply with the refrigeration requirements by the same effective date.Egg-associated illness caused by Salmonella is a serious public health problem. Infected individuals may suffer mild to severe gastrointestinal illness, short-term or chronic arthritis, or even death. Implementing the preventive measures would reduce the number of Salmonella Enteritidis infections from eggs by nearly 60 percent. FDA press release on new egg production regulations, click here“.FDA is requiring Baxter to provide replacements or refunds for these recalled devices,” said Jeffrey Shuren, M.D., director of the FDA’s Center for Devices and Radiological Health. “This action reflects the agency’s commitment to protect patients by removing unsafe infusion pumps and to promote public health through assuring the availability of safe and effective alternatives.”
A day before the Baxter announcement, the FDA warned against the UNAPPROVED use of a malaria drug to treat LEG CRAMPS. The FDA said in an announcement that unapproved use of the malaria drug Qualaquin (quinine sulfate) to treat night time leg cramps has resulted in serious side effects and prompted the manufacturer to develop a risk management plan aimed at educating health care professionals and patients about the potential risks.Qualaquin is not FDA-approved to treat or prevent night time leg cramps. A review of reports submitted to the FDA’s Adverse Event Reporting System (AERS) between April 2005 and Oct. 1, 2008, found 38 U.S. cases of serious side effects associated with the use of quinine, the active drug in Qualaquin.Quinine use resulted in serious and life-threatening reactions in 24 cases, including low level of platelets in the blood (thrombocytopenia), and hemolytic uremic syndrome/thrombotic thrombocytopenic purpura, a blood disorder that results in clots in small blood vessels around the body that can be accompanied by kidney impairment.In some patients, these side effects resulted in permanent kidney impairment and hospitalization. Two patients died. Most of those reporting serious side effects took the drug to prevent or treat leg cramps or restless leg syndrome. FDA press release on unauthorized use of quinine drug for leg cramps, click here.
ALSO, THE PAST WEEK, THE CONSUMER PRODUCT SAFETY COMMISSION ANNOUNCED 82,000 POTTERY BARN DROP SIDE CRIBS WERE RECALLED DUE TO POTENTIAL SAFETY HAZARDS. Pottery Barn Kids drop-side cribs can detach when hardware breaks, creating a space into which a young child can become entrapped, which can lead to suffocation. A child can also fall out of the crib. Drop side incidents also occur due to incorrect assembly and with age-related wear and tear. Consumer Product Safety Commission press release on Pottery Barn cribs , click here. TODAY, THE CPSC ANNOUNCED CHANGES TO RULES INVOLVING CRIBS. The U.S. Consumer Product Safety Commission (CPSC) voted (5 to 0) today to approve proposed new mandatory standards to address the hazards posed by full-size and non-full-size cribs.Serious safety hazards with cribs have ranged from drop-side hardware or other drop-side entrapment issues to failures of the mattress support and detachment or breakage of the crib slats. All of these defects can create hazardous gaps allowing a baby to become entrapped and suffocate or fall out of the crib.The Consumer Product Safety Improvement Act of 2008 (CPSIA) directs CPSC to issue mandatory safety standards for durable infant or toddler products. CPSC’s notice of proposed rulemaking ("NPR") for cribs includes:
a standard for full-size cribs that is substantially the same as ASTM F 1169-10, Standard Consumer Safety Specification for Full-Size Baby Cribs, with one modification . The one modification that CPSC is proposing to the ASTM full-size crib standard would require cribs to be tested without the re-tightening of screws between tests in order to ensure that the tests reflect the lifetime use of the crib; and
a standard for non-full-size cribs that is substantially the same as ASTM F 406-10, Standard Consumer Safety Specification for Non-Full-Size Baby Cribs/Play Yards, with certain modifications. These modifications include adding certain requirements that apply to full-size cribs, such as the mattress support performance requirement, the side-impact test, and the order in which performance tests are to be done, applicable to non-full-size cribs so that the new standard for non-full-size cribs is more stringent. The proposal also would restore movable side latch tests to the non-full-size crib standard and would clarify that the proposal does not extend to play yards.
Through close collaboration with ASTM International, consumer groups, industry and other juvenile product experts, improved consensus standards were approved June 1, 2010, that incorporated key safety requirements recommended by CPSC staff. The ASTM standards and the proposed CPSC standards contain design requirements that essentially prohibit traditional drop sides (up and down movement of an entire side of the crib).
CPSC staff is working to finalize the proposed mandatory crib standards in 2010.
MEANWHILE, THE FEDERAL TRADE COMMISSION TODAY ANNOUNCED THE SETTLEMENT OF TWO MAJOR FALSE CLAIMS CASES. The agency saysA subsidiary of Nestlé S.A., the world’s largest food and nutrition company, has agreed to drop allegedly deceptive advertising claims about the health benefits of its children’s drink BOOST Kid Essentials, as part of a settlement resolving the Federal Trade Commission’s first case challenging advertising for probiotics.The FTC complaint charges that from fall 2008 to fall 2009, Nestlé HealthCare Nutrition, Inc. made deceptive claims in television, magazine, and print ads that BOOST Kid Essentials prevents upper respiratory tract infections in children, protects against colds and flu by strengthening the immune system, and reduces absences from daycare or school due to illness.The ads falsely claimed that BOOST Kid Essentials is clinically shown to reduce illness in children, to protect from colds and flu by strengthening the immune system, and to help children up to age 13 recover more quickly from diarrhea, the FTC charged. FTC press release on Boost Kid, click here. The FTC also announced it had reached a $5.5 million settlement with the maker of Accelis dietary suppliment products. The agency says the $5.5 million settlement will be used for refunds to consumers who purchased Accelis, nanoSLIM, and any Cold MD, Germ MD, and Allergy MD product. These supplements were sold over the Internet and were widely available at retail stores. In addition, the settlement requires the marketer to stop making deceptive health claims about the products.The FTC charged Iovate Health Sciences U.S.A. and two affiliated Canadian
companies with deceptively advertising their supplements using television ads, Internet websites, and print ads in national magazines. Using photos of white-coated individuals depicted as medical doctors, Iovate’s ads claimed that dietary supplements Cold MD and Germ MD treat or prevent colds and flu, and that Allergy MD treats or prevents allergies and hay fever, according to the FTC complaint. Some ads also proclaimed that the products’ effectiveness was clinically proven. The FTC complaint alleges that these claims were false and unsubstantiated.The FTC also charged that Iovate falsely advertised that one of the supplements – Allergy MD Rapid-Tabs – was homeopathic. The Iovate companies also ran ads with deceptive claims that their weight-loss supplements Accelis and nanoSLIM caused weight loss, and were clinically proven to do so, according to the FTC complaint. The ads said consumers could “Lose 32 lbs. FAST” using nanoSLIM, or one to two pounds per week using Accelis. The ads falsely claimed that Accelis was scientifically proven to increase the body’s metabolism, and featured testimonials from users claiming they had lost significant amounts of weight, according to the FTC.The settlement bars the Iovate companies from:
claiming that any drug or dietary supplement they advertise or sell is effective for diagnosing, curing, mitigating, treating, or preventing any disease unless the claim is approved by the Food and Drug Administration;
claiming that Allergy MD Rapid-Tabs is homeopathic unless the claim is truthful, and unless the product is recognized under the Federal Food, Drug, and Cosmetic Act as homeopathic;
representing that their products cause weight loss or rapid weight loss unless the claims are truthful and backed by at least two adequate and well-controlled human clinical studies;
claiming that their products provide any other health-related benefit unless the claim is supported by competent and reliable scientific evidence; and
misrepresenting the results of any test or study.
Although FDA approval of health-related claims generally is not required for compliance with the FTC Act, in this case, the FTC determined that requiring FDA pre-approval before the defendants make disease claims for dietary supplements and drugs will provide clearer guidance that will facilitate the defendants’ compliance with the FTC order and make the order easier to enforce.
The complaint against Iovate Health Sciences USA also names its Canadian parent company, Iovate Health Science Group, Inc. (now known as Kerr Investment Holding Corp.), and a Canadian subsidiary of that company, Iovate Health Sciences, Inc., as defendants in this case.
The Commission vote to authorize the staff to file the complaint and stipulated final order was 5-0. The FTC will file its complaint and stipulated final order in the U.S. District Court for the Western District of New York. FTC Accelis announcement, click here. 07/14/2010
NO CLEAR EVIDENCE YET SHOWING MECHANICAL DEFECTS IN TOYOTA ACCELERATION CASES
More from the Emeritus Newsroom- More than 138,000 Lexus models have been recalled for a problem which may cause the engine to fail while in motion, increasing the potential for a crash. The announcement July 6 2010 from the National Highway Traffic Safety Administration explains the problem is related to particles which may cause engine valve springs to malfunction. See NHTSA press release for details on affected models , click here and SCROLL TO JULY 6 2010 ANNOUNCEMENT ON LEXUS. 07/07/2010
POTENTIAL FUEL LEAKS FORCE RECALL OF LEXUS HYBRID H-S 250
More from the Emeritus Newsroom- The potential for fuel leaks during rear end collisions has forced Toyota to recall 17,000 of the 2010 model Lexus H-S 250 hybrid vehicles. An estimated 4,000 of are still at dealerships, which will not be sold until repaired. The plan for the repairs has not yet been completed. The recall came from the National Highway Traffic Safety Administration today, which stated the problem could "result in a fire". Company officials were not sure yet when the recall of the vehicles would begin. Toyota press release, click here. NHTSA Office of Defects Investigation press release, click here. 06/25/2010
SALMONELLA FORCES FROZEN FOOD & DOG FOOD RECALLS
More from the Emeritus Newsroom-The US Department of Agriculture has announced that ConAgra Foods Packaged Foods, LLC, a Council Bluffs, Iowa establishment is recalling Marie Callender's brand Cheesy Chicken and Rice frozen meals.
The company is recalling all Marie Callender's brand Cheesy Chicken and Rice frozen meals in commerce, regardless of production date. These products are being recalled after the company was informed by the U.S. Centers for Disease Control and Prevention (CDC) of an investigation involving 29 people in 14 states who have been diagnosed with salmonellosis linked to Salmonella serotype Chester. Eight of the case-patients specifically reported eating this product in April and May, 2010, prior to illness onset; the last reported illness was reported on May 22.
FSIS became aware of the problem during the course of an ongoing investigation of a multi-state outbreak of Salmonella serotype Chester illnesses. CDC, the Food and Drug Administration (FDA), FSIS, and state health and agriculture departments are cooperating in this ongoing investigation. FDA Press Release, click here.
SALMONELLA IS ALSO A FACTOR IN THE RECALL OF DOG FOOD FROM NATURAL BALANCE. According to a press release from the company, the voluntary recall involves Natural Balance Sweet Potato & Chicken Dry Dog Food with the "Best By" date of June 17, 2011, in 5-lb. and 28-lb. bags . The company claims the product has the potential to be contaminated with Salmonella.
No illnesses have been reported to date, according to the company. The recall notification is being issued out of an abundance of caution based on an isolated instance in which a product sample with a "Best By" date of June 17, 2011, had a positive result for Salmonella in a random sample test conducted by the U.S.s though anonymous purchases from the company or its dealerships. In its review, Cowers and our partners and are doing everything we can to help protect our borrowers’ identity and personal information,” said Richard Boyle, president and CEO, ECMC Group, Inc.
OVER A MILLION BABY SLINGS RECALLED / THREE INFANT DEATHS REPORTED / BIG WEEK FOR PRODUCT RECALLS
More from the Emeritus Newsroom-A virtual avalanche of product recalls this week from the Consumer Product Safety Commission . Among the most notable, today's recall of Infantino LLC, of San Diego, Calif. are announcing a free replacement program for the Infantino “SlingRider” and “Wendy Bellissimo” infant slings. One million of these infant slings are being recalled in the United States and 15,000 are being recalled in Canada. CPSC advises consumers to immediately stop using these slings for infants younger than four months of age due to a risk of suffocation and contact Infantino for a free replacement product.
CPSC is aware of three reports of deaths that occurred in these slings in 2009; a 7-week-old infant in Philadelphia, Pa.; a 6-day-old infant in Salem, Ore.; and a 3-month-old infant in Cincinnati, Ohio.
The CPSC says the Infantino “SlingRider,” is a soft fabric baby carrier with a padded shoulder strap that is worn by parents and caregivers to carry an infant weighing up to 20 lbs. “Infantino” is printed on the plastic slider located on the strap. “Infantino,” “SlingRider” and the item number are printed on the instruction/warning label inside the baby sling carrier. “Wendy Bellissimo” branded sling carriers were sold exclusively at Babies “R” Us and have a sewn-in label on the inside of the sling strap that says in part "Wendy Bellissimo Media, Inc." and lists Item numbers 3937500H7 and 3937501H7.
Infantino LLC sold the slings in the United States and Canada from January 2003 through March 2010 at Walmart, Burlington Coat Factory, Target, Babies “R” Us, BJ’s Wholesale, various baby and children’s stores and other retailers nationwide, and on the Web at Amazon.com, for between $25 and $30.
The product was manufactured in China and Thailand.
Consumers should stop using the recalled slings immediately and contact Infantino to receive a free replacement product, with a choice of a Wrap & Tie infant carrier, or a 2 in 1 Shopping Cart Cover, or a 3 in 1 Grow & Play Activity Gym. A Jittery Pals Rattle will also be provided. Contact Infantino toll-free at (866) 860-1361 between 8 a.m. and 4 p.m. PT Monday through Friday, or visit the firm’s Web site at www.infantino.com
Do not attempt to fix these carriers. Full text of Consumer Product Safety Commsion press release, click here.
There were other notable product recalls, from fireplace dampers with a carbon monoxide hazard audio recievers suspected of being fire hazards, and girls hooded sweatshirts with strangulation hazards. Full text of CPSC announcements, click here.03/24/2010
WHAT DOES THE NEW BROADBAND INTERNET PLAN MEAN FOR THE AVERAGE GEEK AND NON-GEEK?
ALLEGED COVER UP IN LATEST SALMONELLA FOOD PRODUCT CONTAMINATION / FDA INVESTIGATING
More from the Emeritus Newsroom - At least 101 products ahve been recalled by the manufacturers after one food company and federal investigators traced salmonella contaminated food flavoring from a Nevada company.The FDA today released a growing list of products which may have been contaminated by Hydrolyzed Vegetable Protein used for flavoring everything from snacks to gravy. the flavoring was manufactured by Basic Food Flavors, Inc., in Las Vegas, NV. FDA officials held a news conference today to discuss the incident. Investigators also claimed that the company knew its product was contaminated in January but still shipped it anyway.
Dr. Joshua Sharfstein, Principal Deputy Commissioner for the US Food and Drug Administration told those attending the news conference,
"We became aware of this in February. The report I believe was in the first, end of the first week of February. And then FDA went in and inspected.
And the inspection identified that there was contamination in the facility. So it wasn't just one report from a company. We went in and we found contamination in the facility. And we also understood that the company then identified contamination in that lot"..
OVERDRAFT FEES TO END ON BANK OF AMERICA DEBIT CARDS / CUSTOMERS CAN COMPLETE BUYS WITH OVERDRAFTS
More from the Emeritus Newsroom- With new laws set to take effect in August and pressure from customers to stop charging overdraft fees on debt cards, major publications are reporting Bank of America will end charges on debit and ATM withdrawals, effective June 19th for new accounts, and in August for existing customers. The announcement was reported today to the The New York Times and other major publications. It is not available, as of this posting, on the company's own website. B of A says this means that debit card charges will be denied when a customer has insufficient funds. Customers can still choose to allow charges to be honored, with the understanding they will be charged overdraft fees for each transaction. B of A is the first bank to announce its new overdraft policy in advance of the third stage of the Federal Reserve's implementation of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit Card Act), which was enacted in May 2009. The provisions in the third stage of the Credit Card Act will go into effect on August 22, 2010. New York Times Story, click here. Full text of Federal Reserve press release on third stage of the Credit Card Act, copy click here. 03/09/2010
ID THEFT FIRM PAYS $12 MILLION SETTLEMENT / FTC SAYS LIFELOCK USED FALSE CLAIMS TO SELL IDENTITY THEFT PROTECTION SERVICE
More from the Emeritus Newsroom - Lifelock, the ID theft protection service, widely advertised the quality of their service by displaying the CEO’s Social Security number on the side of a truck. But, FTC Chairman Jon Leibowitz says, “While LifeLock promised consumers complete protection against all types of identity theft, in truth, the protection it actually provided left enough holes that you could drive a truck through it”. Lifelock agreed to pay the FTC $11 million and another $1 million to be shared by 35 state attorneys general. Since 2006, LifeLock’s ads have claimed that it could prevent identity theft for consumers willing to sign up for its $10-a-month service. According to the FTC’s complaint, LifeLock has claimed:
“By now you’ve heard about individuals whose identities have been stolen by identity thieves . . . LifeLock protects against this ever happening to you. Guaranteed.”
“Please know that we are the first company to prevent identity theft from occurring.”
“Do you ever worry about identity theft? If so, it’s time you got to know LifeLock. We work to stop identity theft before it happens.”
The FTC’s complaint charged that the fraud alerts that LifeLock placed on customers’ credit files protected only against certain forms of identity theft and gave them no protection against the misuse of existing accounts, the most common type of identity theft. It also allegedly provided no protection against medical identity theft or employment identity theft, in which thieves use personal information to get medical care or apply for jobs. And even for types of identity theft for which fraud alerts are most effective, they do not provide absolute protection. They alert creditors opening new accounts to take reasonable measures to verify that the individual applying for credit actually is who he or she claims to be, but in some instances, identity thieves can thwart even reasonable precautions.
New account fraud, the type of identity theft for which fraud alerts are most effective, comprised only 17 percent of identity theft incidents, according to an FTC survey released in 2007.
The FTC’s complaint further alleged that LifeLock also claimed that it would prevent unauthorized changes to customers’ address information, that it constantly monitored activity on customer credit reports, and that it would ensure that a customer always would receive a telephone call from a potential creditor before a new account was opened. The FTC charged that those claims were false.
In addition to its deceptive identity theft protection claims, LifeLock allegedly made claims about its own data security that were not true. According to the FTC, LifeLock routinely collected sensitive information from its customers, including their social security numbers and credit card numbers. The company claimed:
“Only authorized employees of LifeLock will have access to the data that you provide to us, and that access is granted only on a ‘need to know’ basis.”
“All stored personal data is electronically encrypted.”
“LifeLock uses highly secure physical, electronic, and managerial procedures to safeguard the confidentiality and security of the data you provide to us.”
The FTC charged that LifeLock’s data was not encrypted, and sensitive consumer information was not shared only on a “need to know” basis. In fact, the agency charged, the company’s data system was vulnerable and could have been exploited by those seeking access to customer information.
The FTC and state settlements with LifeLock bar deceptive claims, and prohibit the company from misrepresenting the “means, methods, procedures, effects, effectiveness, coverage, or scope of any identity theft protection service.” They also bar misrepresentations about the risk of identity theft, and the manner and extent to which LifeLock protects consumers’ personal information. In addition, the settlements require LifeLock to establish a comprehensive data security program and obtain biennial independent third-party assessments of that program for twenty years.
TOYOTA CONFRONTS RESEARCH BLAMING ELECTRONIC PROBLEMS IN SUDDEN ACCELERATION CASES
More from the Emeritus Newsroom - In a drive to diffuse research showing sudden acceleration problems are due to electrical/ electronic malfunctions, Toyota executives and engineering experts held a news conference detailing why, in their view, the research is flawed. Toyota concentrated on research performed by researcher Dave Gilbert from Southern Illinois University who had used a Toyota Avalon to simulate the type of failure he believes may be taking place when sudden uncontrolled acceleration takes place. Gilbert testified last week during a Committee on Energy and Commerce,Sub-Committee on Oversight Investigation hearing on the issue. Today, Toyota countered that Gilbert had rewired the vehicle in a fashion which cannot create the problem Gilbert describes. Toyota's problems are deeper than just an Gilbert's research. The National Highway Traffic Safety Administration is in the middle of a probe of what the company knew about the problems and when. NHTSA also announced last week that it will be examining some of the cars involved in reported sudden acceleration incidents, including one owned by a Tennessee couple, which raced out of control at speeds of 100 miles an hour, before the owner was finally able to stop it. Debate over the issue was amplified after Toyota first addressed the problem as "accelerator entrapment" involving mats and carpet. Toyota press release from today's news conference . Toyota PDF download from today's news conference, click here. More in this article from the Washington Post, click here. Full text of Gilbert testimony before House committee on Feb. 23 2010, click here. 03/08/2010
NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION SAYS TOYOTA OWNERS CLAIM SUDDEN ACCELERATION FIXES ARE NOT WORKING
More from the Emeritus Newsroom- The National Highway Traffic Safety Administration has received more
than 60 complaints from Toyota owners who report they are still
experiencing sudden unintended acceleration despite having their vehicle
repaired by a Toyota dealer. The agency says that it will contact each and every consumer to learn more about
what they say is happening. NHTSA has also asked Toyota to provide
information about any complaints it has received from customers.
NHTSA says that if the fix by the company is not helping, the agency has the authority to order Toyota to provide a different solution.
"We are determined to get to the bottom of this," said David Strickland,
administrator of the auto safety agency.
MEAT INSPECTORS CLAIM THEY WERE BULLIED AND THREATENED WITH REPRISALS OVER BAD REPORTS
More from the Emeritus Newsroom- Inspectors claim that under the Bush administration, slaughterhouse violations went without punishment. Dr. Dean Wyatt
FSIS Supervisory Public Health Veterinarian, told the Domestic Policy
MINORITIES ARE DISPROPORTIONATE SHARE OF FORECLOSURES
More from the Emeritus Newsroom- A study released today by the Center for Responsible Lending found minorities had a higher rate of foreclosure than white mortgage holders between 2007 to 2009. White mortgage holders had a 4.5% default rate, while blacks had 7.7% and Latinos had a rate of 7.9% rate. A more detailed breakdown of the figures shows blacks and latinos were 70% more likely to lles have been sold since December 2009.
LOUISIANA MOST EXPENSIVE STATE FOR CAR INSURANCE / "MAZDA TRIBUTE 1" IS CHEAPEST VEHICLE TO INSURE / LATEST INSURANCE SURVEY RESULTS
More from the Emeritus Newsroom - A survey released today by Insure.com shows some of the states you might think to be cheapest for insurance, are not and the same with insuring vehicles. The most costly state for insuring vehicles is Louisiana. Not for the reasons you may think. It is due to the high costs of accident litigation, not Hurricane Katrina or weather, according to the survey. As for the cheapest vehicles to insure, the Mazda Tribute 1 came in first with the average cost at $1,070 per year. Of course, the exact cost for each insured driver depends on their driving record and other factors. Below is a graph of insurance costs ranking by states.Full text of state survey, click here. Full text of vehicle insurance cost survey, click here.
04/12/2010
FCC LOSES TO COMCAST IN APPEALS COURT DECISION / ISSUE STEMMED FROM CUSTOMER COMPLAINTS OVER BANDWIDTH RESTRICTIONS
More from the Emeritus Newsroom- In a decision handed down today by the U-S District Court of Appeals in Washington DC, the Federal Communications Commission was dealt a setback to control internet service providers and public internet access. Comcast had sued the commission claiming it had no authority restrict Comcast's practices of restricting use of Bikes Recalls Bicycle Frame Due to Crash Hazard. Details click here.
The Children's Place Recalls Denim Shorts Due to Choking Hazard; Metal Snaps Could Detach. More details, click here. 05/13/2010
FDA SOUNDS ALARM FOR E. COLI CONTAMINATED LETTUCE
More from the Emeritus Newsroom- Romaine lettuce marketed under the brands "Freshway" and "Imperial Sysco" have been linked to an outbreak of illnesses related to e. coli bacteria. The Romaine lettuce, distributed by Freshway Foods of Sidney, Ohio, has been recalled after being suspected in at least 20 illnesses, three of them with life threatening conditions, with more illnesses expected. Most of the illnesses were reported at Ohio State University, University of Michigan, and Daemon college in Amherst, New York. Although the company distributing the lettuce is in Ohio, the lettuce was grown in Arizona and sold in more than 23 states.
A Freshway Foods press release says the recalled shredded romaine lettuce was sold to wholesalers, food service outlets, and some in-store salad bars and delis in the following areas: Alabama, Connecticut, District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, West Virginia, and Wisconsin.
Symptoms of infection with harmful E. coli may range from none to mild diarrhea to severe complications. The acute symptoms include severe abdominal cramps and diarrhea, which may be bloody. Patients may progress to serious complications, such as kidney damage. FDA and CDC encourage anyone with the symptoms listed to contact his or her health care provider immediately.
The recalled shredded romaine lettuce has a “best if used by” date of May 12 or earlier. The Freshway Foods press release advises restaurants, distributors, and retailers to throw out or refrain from using shredded romaine lettuce from Freshway Foods with these “use by” dates. Additionally, Freshway Foods is advising consumers not to eat “grab and go” salads sold in-store salad bars and delis at Kroger, Giant Eagle, Ingles Markets, and Marsh stores.
Shredded romaine lettuce from Freshway Foods with “use by” dates after May 12 are not involved in this voluntary recall. Romaine lettuce and other types of lettuce and leafy greens from other producers are also not affected by this recall. FDA press release, click here. 05/07/2010
UNITED CONTINENTAL MERGER / WHAT WOULD IT MEAN FOR TICKET PRICES?
More from the Emeritus Newsroom- Untied and Continental Airlines have announced plans to merge the two. If the merger is completed, the Continental name would go into aviation history and the merged airline would be called, "United", the nation's largest airline. What it means for hub operations owned by Continental remains to be settled. Two cities with the most to lose in the merger would be Houston, where Continental is now based, and Cleveland, which serves as the airline's major midwest/eastern hub. As for how the proposed merger would impact passengers, it's safe to say that Continental which has strength in Mexico and Latin America, would be added to United, which has strong Domestic and international flight schedules to Europe and Asia. But, those flying from smaller cities served by those airlines could find themselves paying more. During an interview on National Public Radio, Tom Parsons of bestfares.com said,
"The combination means "you'll be able to fly the new United from almost anywhere you live in America. But there will be some downsizing of routes, and fewer opportunities to get premium seats. It's going to be tougher and tougher to cash in on frequent-flier miles."And you better believe that an airport like Chicago where United and Continental have 20 flights between them won't need as many. Where consumers may be most affected could be in places like Eugene, Ore., or Fargo, N.D., or Roanoke, Va. They're already paying a premium today, and, if anything, they'll see fares go higher".
"I think the lower-cost airlines will be increasingly approached by these huge legacy carriers to be feeders into their international gateways," Trippler says. "Already American has cut a deal with JetBlue in New York City. I see us reverting to the way carriers operated in the 1970s before airline deregulation: with the low-cost airlines serving as feeder airlines, bringing passengers to the trunk carriers for the longer flights". Full text of NPR story, click here. 05/03/2010
MORE PROBLEMS FOR JOHNSON & JOHNSON AS RECALL ORDERED FOR CHILDRENS TYLENOL, MOTRIN, ZYRTEC AND BENEDRYL
More from the Emeritus Newsroom- The Food and Drug Administration says McNeill Consumer Health Care has ordered the recall several of its brands of Johnson & Johnson childrens and infants, Tylenol, Motrin, Zyrtec and Benedryl. Some of the products included in the recall may contain a higher concentration of active ingredient than specified; others contain inactive ingredients that may not meet internal testing requirements; and others may contain tiny particles. While the potential for serious medical events is remote, FDA advises consumers who have purchased these recalled products to discontinue use. “We want to be certain that consumers discontinue using these products and that they know what to do if they have concerns about a specific product,” said Commissioner of Food and Drugs Margaret A. Hamburg, M.D. “While the potential for serious health problems is remote, Americans deserve medications that are safe, effective and of the highest quality. We are investigating the products and facilities associated with this recall and will provide updates as we learn more”. Earlier this week, Johnson & Johnson pharmaceutical subsidiaries agreed to an $81 million settlement for illegal marketing of the drug "Topamax" for unapproved uses. See illegal marketing story on Emeritus News Health Care Page from April 29, 2010. Full text of recall announcement for children's and infants medications, click here. 05/01/2010
LATEST MANFACTURER RECALLS: ACURA RECALLS 167,000 TSX CARS / COMARCO POWER ADAPTER FOR LAPTOPS
More from the Emeritus Newsroom- Two major recalls announced today by Acura and computer equipment maker Co marco. First, Acura today announced a recall of approximately 167,000 Acura TSX vehicles to replace a power steering hose. Affected TSX vehicles are 2004-2008 models sold in the United States with the 2.4L inline 4-cylinder engine. The repair involves installing a new power steering hose, o-ring gasket and fluid-- all done at no cost to the vehicle owner.The recall is being conducted due to the potential for premature deterioration of the exterior surface of the hose as a result of prolonged exposure to high under-hood temperatures. In the event of excessive deterioration, a crack in the hose could develop, which could allow power steering fluid to leak or spray on a hot exhaust component potentially generating smoke or a fire. Acura has only received notice of one incident resulting in a fire. Owners of affected vehicles will be informed by mail starting at the end of May. In addition, TSX owners can go to owners.acura.com/recalls or may call (800) 382-2238 for more information.
ALSO, The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed.
Name of product: Targus Universal Wall Power Adapters for Laptops
Units: About 507,000
Manufacturer: Comarco Inc. of Lake Forest, Calif.
Hazard: Faulty wiring can cause the connector tips to heat and melt the plastic encasing the connector tips, posing a burn hazard to consumers.
Incidents/Injuries: The firm has received 518 incidents of the connector tips heating, 53 of which resulted in the melting of the plastic casings. Eight consumers have reported a finger tip or hand burn. No reports of medical attention were received.
Description: This recall involves the Targus Universal Wall Power Adapters for Laptops. Only models with the following SKU numbers are affected by this recall: APA23US-02, APA23US-03, APA23US-04, APA63US-03, APA63US-04, APM62US-03 and APM62US-04. The SKU number can be found on the underside of the adapter unit.
Sold at: WalMart, Best Buy, Office Depot, Staples, Amazon.com and other retailers nationwide from June 2009 through March 2010 for between $89 and $109 for adapters for wall outlets only and for between $129 and $149 for adapters for both wall outlets and car/airplane use.
TOY RECALL: STEP 2 RIDING TOYS DUE TO RISK OF INJURY
More from the Emeritus Newsroom- An estimated 2.5 million Push Around and Whisper Ride Buggies are being recalled by Children's toy maker Step 2. An announcement today from the Consumer Product Safety Commission says a pin attaching to the yellow knob on the handle of the buggy can loosen, causing the handle to detach from the buggy. This poses a serious risk of injury to young children. The Streetsboro Ohio company has received 28 reports of the handle detaching; two incidents required professional medical treatment and 26 resulted in minor scrapes and scratches. The recall involves:
The Step2® Push Around Buggy™ and Whisper Ride Buggy™ are ride-on toys. The buggy comes in various colors; such as, orange, red, blue, pink and green. The buggies have a red “Step2” logo on the handle of the buggy. Buggies that have a handle attached by a bolt with a plastic white or black head and nut are not included in this recall.
The toys were sold in the U-S at major retailers and specialty stores from August 1999 through March 2010 for between $29 and $59.CPSC press release, click here.
Some other recent toy recalls include:
46,000“Fly Dragonfly” (also called “Queen Bee”) Remote-Controlled Helicopters, which can catch fire. More details, click here.
Niner aying their creditors, including accounts that were still current. GAO also found that some debt settlement companies provided fraudulent, deceptive, or questionable information to its fictitious consumers, such as claiming unusually high success rates for their programs--as high as 100 percent. FTC and state investigations have typically found that less than 10 percent of consumers successfully complete these programs".
The GAO gave specific examples of how these companies violate the law, adding, "Nearly all of the companies advised GAO's fictitious consumers to stop paying their creditors, including accounts that were still current. GAO also found that some debt settlement companies provided fraudulent, deceptive, or questionable information to its fictitious consumers, such as claiming unusually high success rates for their programs--as high as 100 percent. FTC and state investigations have typically found that less than 10 percent of consumers successfully complete these programs. Other companies made claims linking their services to government programs and offering to pay $100 to consumers if they could not get them out of debt in 24 hours. GAO found the experiences of its fictitious consumers to be consistent with widespread complaints and charges made by federal and state investigators on behalf of real consumers against debt settlement companies engaged in fraudulent, abusive, or deceptive practices. Allegations identified by GAO involve hundreds of thousands of consumers across the country. Federal and state agencies have taken a growing number of legal actions against these companies in recent years".
Chairman Rockefeller told the committee, "This is a serious and growing problem, and I am pleased to report that our state attorneys general and the Federal Trade Commission are fighting these fraudulent companies".
John
Ansbach
Legislative
Director
United
States
Organizations
of
Bankruptcy
Alternatives, told the committee that much of the information which comes from consumer advocacy groups claims that the services the debt settlement companies performs are not as promised. But, Ansbach claims, member companies have collected more than $1.4 billion dollars in unsecured debt over the past few years, and the customers have settled debts through those companies for 47 cents on the dollar. Ansbach also spoke out against what he claims is the Federal Trade Commission attempt to force compliance with a "Telemarketing Sales Rule", which would ban these companies from charging an advance fee for their services, effectively killing it and costing thousands of jobs. Full text of Ansbach statement click here.
SUPREME COURT DEALS BLOW TO ATTORNEYS REPRESENTING DEBT COLLECTORS / COURT SAYS THEY ARE LIABLE FOR MISINTERPRETING THE FAIR DEBT COLLECTION PRACTICES ACT
More from the Emeritus Newsroom- Good news for consumers who find themselves victims of overzealous and illegal debt collection practices. The U-S Supreme Court today ruled that debt collectors and their attorneys do not have a "good faith defense" if they misinterpret the federal Fair Debt Collection Practices Act and are liable for damages payable to victims of those practices. Debt collectors and their attorneys have previously used misinterpretations of statues to shield themselves from lawsuits. The case, KAREN L. JERMAN, PETITIONER v. CARLISLE, MC-
NELLIE, RINI, KRAMER & ULRICH LPA, actually involved Countrywide Mortgage which had filed for a foreclosure auction on a home owned by Karen Jerman of Ashtabula, Ohio. Problem was, Jerman had already paid off the home and Countrywide's Cleveland attorneys, Carlisle, McNellie, Rini, Kramer and Ulrich demanded that if she wanted to contest the foreclosure, she had to do so in writing. As a result, Jerman and her attorneys from the consumer advocate firm, Incove, filed a class action lawsuit, contesting the mistake and that the Fair Debt Collection Practices Act sets no requirement that anyone contesting foreclosure had to do so in writing. Facing bad press and knowing it had made mistakes, Countrywide essentially ran from the lawsuit, but the question over debt collectors defenses continued through the courts. Now that the Supreme Court has ruled on the question, the class action part of the case will be settled in a Cleveland federal court. Full text of the U-S Supreme Court decision, click here. 04/21/2010
YEARLY PER HOUSEHOLD COSTS $90 BY 2012, $550 BY 2030 / PROJECTION BY CONGRESSIONAL BUDGET OFFICE FOR ENVIRONMENTAL CAP AND TRADE LAWS / WOULD BE .4% OF U-S GDP 2012-2050
More from the Emeritus Newsroom- Part of the battle over cap and trade legislation, to limit carbon emissions throughout the world, is the cost for the average household. That equation was addressed by the Congressional Budget Office today in analysis on potential legislation. The CBO says it estimated the loss in households’ purchasing power that would result from
the primary cap-and-trade program that would be established by H.R. 2454. CBO projects the loss would
equal about 0.1 percent of GDP in 2012, about 0.5 percent in 2030, and about
0.8 percent in 2050, CBO estimates; the average loss per year over the entire 2012–
2050 period would be about 0.4 percent. Measured in terms of the 2010 economy,
the average loss per household would be $90 for 2012, $550 for 2030, and $930 for
2050; it would average about $460 per year over the 2012–2050 period. As for household income during much of the same period, the CBO estimates compliance costs would tend to increase faster than GDP over time. In contrast,
compensation to households would rise faster than GDP during the next decade, level
off as a share of GDP for the following several decades, and then decline relative to
GDP in the 2040s. As a result, more than 85 percent of compliance costs would be
offset by compensation in 2012, but only 35 percent would be offset by compensation
in 2050.
In CBO’s estimation, the loss in households’ purchasing power under H.R. 2454
would rise steadily between 2012 and 2031, would then fall slightly for a few years,
and would begin to rise again in 2035. Full text of CBO cap and trade per household cost projections, click here. 04/20/2010
TOYOTA AGREES TO $16 MILLION FINE FOR LATE RECALLS ON ACCELERATION PROBLEMS / WILL RECALL 2010 LEXUS GX 460 LABELED 'UNSAFE' BY CONSUEMR REPORTS
More from the Emeritus Newsroom- Toyota has agreed to pay a more than $16 million dollar fine proposed by the Department of Transportation for late recalls on vehicles with accelerator problems. The company's agreement to pay $16.375 million, to settle the claim, represents the maximum Civil Penalty allowed by law. In a statement released today by the Department of Transportation, Secretary Ray LaHood said, “By failing to report known safety problems as it is required to do under the law, Toyota put consumers at risk”. LaHood added . “I am pleased that Toyota has accepted responsibility for violating its legal obligations to report any defects promptly. We are continuing to investigate whether the company has lived up to all its disclosure obligations”. The company also announced today it was recalling the Luxus GX
460 S-U-V after the vehicle was labeled "unsafe" last week by Consumer Reports magazine. Consumer Reports claimed the 2010 Lexus GX 460 stability system did not react quickly enough as the back end skidded during a test (See the video at right) . The magazine claimed the failure of the stability system to compensate for the skid was among the worst examples of such performance they had found in any similar vehicle. Toyota press release, click here. Consumer Reports announcement AND VIDEO, click here. Dept. of Transportation press release, click here. 04/19/2010
TOYOTA RECALLS 600,000 SIENNA MINIVANS
More from the Emeritus Newsroom- The potential loss of a spare tire has prompted Toyota to recall 600,000 Sienna minivans in what has been a terrible week for the automaker. Earlier in the week the company endured an "Unsafe labeling of its luxury Lexus GX 460 SUV, followed by an announcement that a U-S House committee will hold a hearing next month on the runaway vehicle problem. In a press release today, Toyota explained the models affected by the recall are:
The 1998 through 2010 model year Siennas first- and second-generation Sienna 2WD minivans sold in the United States to address potential corrosion in the spare tire carrier cable.
The vehicles of concern have been operated in cold climate areas with high road salt use. Continued prolonged exposure to road salts may cause excessive corrosion of the carrier cable in some of these vehicles. In the worst case, the carrier cable may fail and the spare tire could become separated from the vehicle, a road hazard for following vehicles that increases the likelihood of a crash.
Toyota says it has not yet arranged for a specific repair procedure and will be contacting owners to bring their vehicles in for an inspection.
It was just last November when Toyota announced a recall of 110,000 Tundra Pickups for excessive corrosion, which could cause the spare tire to release. Owners were asked to remove the tires from the underbody. Full text of NHTSA press release, click here.
LEXUS GX 460 LABELED AS "UNSAFE" BY CONSUMER REPORTS / TOYOTA RESPONDS BY HALTING SALES
More from the Emeritus Newsroom- Consumer Reports magazine claims their tests on the Lexus GX 460 shows the vehicle's stability control system, was not quick enough to prevent the type of rollovers for which it is designed. For that reason the magazine has listed the vehicle as a, "Don't Buy". In response, Toyota Motors, which makes Lexus, announced it was suspending sales of the vehicle until it investigated the magazine's claims. Consumer Reports regularly tests .Full text of Acura press release, click here. 04/30/2010
MAJOR RECALL OF TWO CRIB MODELS
More from the Emeritus Newsroom- The Consumer Product Safety Commission today announced recalls of two models of cribs. The CPSC says the recalls involve LaJobi-manufactured Graco® wood cribs and all Simplicity full-size cribs with tubular metal mattress-support frames.
The Graco full size cribs were sold in cherry, espresso, natural and white finishes. The production date, item number, purchase order number and finish name is printed on a label affixed to the footboard or headboard. "LaJobi" and the crib model name are printed on a product sticker located on the stabilizer bar or bottom rail of the crib.
TOYOTA RECALLS 2003 SEQUOIA S-U-V MODELS OVER STABILITY CONTROL SYSTEM
More from the Emeritus Newsroom- Stability control problems in some of the 2003 Toyota Sequoia models has prompted a recall from the company. The problem was part of an ongoing probe by the National Highway Transportation Safety Administration. The stability control system is designed to co-ordinate traction of front and back tires to prevent skidding and loss of traction. However, on some of the 2003 Sequoias, an estimated 50,000 of them, this system can engage at low speed for no reason, which can slow acceleration and complicate transmission functions. Toyota says it has already repaired the problem in some of the vehicles dating back to a technical bulletin in the fall of 2003. Toyota has already recalled more than 9 million vehicles since November 2009 and Subcommittee of the House Oversight Committee, that his reports of safety and product quality problems at Seaboard Farms in Guymon Oklahoma. He also found numerous violations of the Humane Slaughter Act by the establishment, in one case reporting the case of a pig on a conveyor belt, which was slaughtered while conscious. Dr. Wyatt told the subcommittee,
"As I continued to raise concerns about problems at the plant, Seaboard began appealing my decisions to both my immediate supervisor and to District Office officials in Springdale, Arkansas who had never met me. FSIS officials who were hundreds of miles away simply took company personnel at their word that the egregious events that I personally witnessed did not justify my actions. A high-ranking FSIS official even went so far as to write a letter to Chairman Kucinich claiming that I was “incompetent” when the Congressman’s office inquired into allegations I had raised". Several more incidents involving violations took place, according to Dr. Wyatt, which were ignored by his superiors. After being transferred to a slaughterhouse in Vermont, he discovered that many of the same violations were going on there. In fact, Dr. Wyatt claimed,
"The plant manager at Bushway Packing in Grand Isle Vermont found out about my experience at Oklahoma and wanted me kicked out of his plant. In the middle of all the humane handling suspension actions at Bushway that I’ve mentioned above, the owner filed formal complaints against me implying that I was harassing him, when I was only doing my job. Suddenly, I was ordered by my FSIS supervisors to go to training for new Public Health Veterinarians, which took me out of the plant for three weeks. Again – an effort at retaliation for doing my job. I strenuously objected to this ridiculous order that was not only an insult but a waste of taxpayer money.
The turning point for me was when The Humane Society of the United States (HSUS), unbeknownst to me, hired an undercover investigator to look into my allegations of wrong doing at Bushway Packing. The video documentation produced by this investigation confirmed the gruesome humane handling violations that I was witnessing and documenting by way of noncompliance reports at Bushway. In fact, the video showed even more egregious events than I had been aware of and, in fact, showed footage of one of my subordinates telling plant personnel to only engage in violations when I was not present because otherwise “Doc (referring to me) would shut the plant down.”Full text of Wyatt testimony, click here.
In defense of the USDA, Jerold R. Mande
Deputy Under Secretary for Food Safety told tech subcommittee,
"There are a variety of steps that FSIS has recently taken to ensure compliance with HMSA, as well as actions we will be taking in the near future to make our enforcement of HMSA as effective as possible. FSIS continues aggressive hiring and the maximum use of recruitment and retention authorities.
Recent Steps
Consistent with directives established in the fiscal year (FY) 2010 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, FSIS devoted approximately 140 full-time equivalent (FTE) staff years to the verification and in-plant enforcement of humane handling requirements at slaughter establishments in 2009.
In addition, FSIS recently added an additional 23 inspection positions, and assigned them to higher-risk establishments in order to boost humane handling oversight and verification inspection activities at those locations. FSIS is also working diligently to fill the newly created position of Humane Handling Enforcement Coordinator. The Coordinator is a headquarters-based position, primarily responsible for providing consistent oversight of the field level humane handling activities. In addition, this individual will play a key role in the various humane handling enforcement and verification activities".
03/04/2010
FEDERAL RESERVE ANNOUNCES MORE RULES SOON TO TAKE EFFECT ON CREDIT CARD COMPANIES
More from the Emeritus Newsroom- As the third stage in instituting the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit Card Act), which was enacted in May 2009, the Federal Reserve today released more rules that will be used to limit fees and charges. The new rules would, according to the Fed,
Prohibit credit card issuers from charging penalty fees (including late payment fees and fees for exceeding the credit limit) that exceed the dollar amount associated with the consumer's violation of the account terms. For example, card issuers would no longer be permitted to charge a $39 fee when a consumer is late making a $20 minimum payment. Instead, the fee could not exceed $20.
Ban inactivity fees, such as fees based on the consumer's failure to use the account to make new purchases.
Prevent issuers from charging multiple penalty fees based on a single late payment or other violation of the account terms.
Require credit card issuers to inform consumers of the reasons for increases in rates.
Require issuers that have increased rates since January 1, 2009 to evaluate whether the reasons for the increase have changed and, if appropriate, to reduce the rate.
The proposed rule represents the third stage of the Federal Reserve's implementation of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit Card Act), which was enacted in May 2009. The provisions of the Credit Card Act addressed in this proposal will go into effect on August 22, 2010. In July 2009, the Board issued a rule implementing the provisions of the Credit Card Act that went into effect on August 20, 2009. In January 2010, the Board issued a rule to implement the provisions of the Credit Card Act that went into effect on February 22, 2010. Full text of fed press release, copy click here. 03/03/2010
FOOD AND DRUG ADMINISTRATION TAKES AIM AT 18 FOOD COMPANIES FOR MISLEADING CLAIMS
More from the Emeritus Newsroom- The range of food companies getting warning letters from the FDA include well known names such as Nestle and lesser brands such as Want Want Foods. What they all have in common is that they have been warned by the Food and Drug Administration that the claims on their packaging are misleading. The FDA filed warning letters against the following companies regarding specific products. Click on the company names to get specifics involving each company.
Baby Mum-Mum Original Selected Superior Rice Rusks
Ken's Foods, according to the FDA, labels Ken's Healthy Options™ Parmesan & Peppercorn, Sweet Vidalia® Onion
Vinaigrette, and Raspberry Walnut Dressing products with a statement suggesting that the products,
because of their nutrient content, may be useful in maintaining healthy dietary practices, and
those statements are made in association with claims or statements about a nutrient.
Specifically, your product labels bear the brand name "Healthy Options™,, in association with
statements about the amounts of calories, fat, and sodium in the products. However, these
products do not meet the requirements for the use of the nutrient content claim "healthy" that
are set forth in 21 CFR 101.65(d)(2).
In Nestle's case,the FDA wrotensumer Reports claims,
"In real-world driving, lift-off over steer could occur when a driver enters a highway’s exit ramp or drives through a sweeping turn and encounters an unexpected obstacle or suddenly finds that the turn is too tight for the vehicle’s speed. A natural impulse is to quickly lift off the accelerator pedal. If that were to happen in the GX, the rear could slide around far enough that a wheel could strike a curb or slide off the pavement.
Either of those scenarios can cause a vehicle to roll over. And because the GX is a tall SUV with a high center of gravity, our concern for rollover safety is heightened".
Responding to the report, Toyota Vice President and General Manager, Mark Templin said,
"We are taking the situation with the GX 460 very seriously and are determined to identify and correct the issue Consumer Reports identified,"
The company estimated at least 6,000 of the vehicn="left">More from the Emeritus Newsroom- The National Highway Traffic Safety Administration today announced that Ford was recalling the following 2010 models for seat and headrest safety problems:
The Ford Explorer, Explorer Sport Trac, Fusion and the Mercury Milan and Mountaineer.
According to NHTSA, in the event of a crash, the seat back and head restraint may move rearward, increasing the risk of injury. Dealers will replace the manual recliners for both manual and power seats, free of charge. The recall is expected to begin on or before April 30, 2010. Full text of NHTSA press release, click here. Ford corporate personnel today stated the company would not issue a press release on the recall. 04/23/2010
SENATE COMMITTEE HEARS ILLEGAL ACTIVITIES OF DEBT SETTLEMENT COMPANIES
More from the Emeritus Newsroom - The Governmental Accounting Office was among those taking aim at the debt settlement industry in a hearing before the Senate Commerce Committee. The hearing was called by Committee Chairman Jay Rockefeller (D) W-VA, over complaints the debt settlement industry is illegally taking advantage of consumers and encouraging consumers to violate the law. The hearing included a report from the GAO, which found that,
"...some debt settlement companies engage in fraudulent, deceptive, and abusive practices that pose a risk to consumers. Seventeen of the 20 companies GAO called while posing as fictitious consumers say they collect fees before settling consumer debts--a practice FTC has labeled as harmful and proposed banning--while only 1 company said it collects most fees after it successfully settles consumer debt. (GAO was unable to obtain fee information from 2 companies.) In several cases, companies stated that monthly payments would go entirely to fees for up to 4 months before any money would be reserved to settle consumer debt. Nearly all of the companies advised GAO's fictitious consumers to stop p certain downloading and uploading software, sometimes referred to as "bandwidth hogs", such as BitTorrent and some You Tube applications. Specifically, the argument surrounds a dispute that arose under the Bush administration when internet users complained that Comcast was illegally blocking and/or limiting their use of software, such as, BitTorrent. The FCC ordered Comcast, in a 2008 decision, to stop interfering with such users. In 2007 several subscribers to Comcast’s high-speed
internet service discovered that the company was interfering
with their use of peer-to-peer networking applications. Full text of FCC press release on 2008 Comcast order, click here.
Peer-to-peer programs
allow users to share large files directly with one another
without going through a central server. Such programs also
consume significant amounts of bandwidth. Comcast challenged the 2008 decision by the commission, which did not change its position on the case as the Obama administration took over. The FCC argued that Comcast had “significantly impeded
consumers’ ability to access the content and use the
applications of their choice” and that their practices interfered with competing applications such as Vonage (VIOP) internet telephone services. Comcast said it had the right to limit customers using programs, which took too much bandwidth and made it more difficult to manage bandwidth for the rest of their customers. But, IN ANNOUCING TODAY'S DECISION, the Appeals Court found that the FCC's had no statutory foundation for its order.
"..... notwithstanding the “difficult regulatory problem of rapid
technological change” posed by the communications industry,
“the allowance of wide latitude in the exercise of delegated
powers is not the equivalent of untrammeled freedom to
regulate activities over which the statute fails to confer . . .
Commission authority.” NARUC II, 533 F.2d at 618 (internal
quotation marks and footnote omitted). Because the
Commission has failed to tie its assertion of ancillary
authority over Comcast’s Internet service to any “statutorily
mandated responsibility” Am. Library, 406 F.3d "at 692, we
grant the petition for review and vacate the Order". Full text of actual Appeals Court decision, click here.
Comcast issued the following statement from Sena Fitzmaurice, Vice President of Government Communications:
“We are gratified by the Court’s decision today to vacate the previous FCC’s order. Our primary goal was always to clear our name and reputation. We have always been focused on serving our customers and delivering the quality open-Internet experience consumers want. Comcast remains committed to the FCC’s existing open Internet principles, and we will continue to work constructively with this FCC as it determines how best to increase broadband adoption and preserve an open and vibrant Internet.” Full text of Comcast press release, click here.
Although the decision is a setback for the FCC, its clear the commission may take the case to the Supreme Court or seek a remedy from congress, where there is bipartisan support for internet neutrality. Federal Communications Commission Spokesperson Jen Howard said, in a statement released by the commission, “The FCC is firmly committed to promoting an open Internet and to policies that will bring the enormous benefits of broadband to all Americans. It will rest these policies -- all of which will be designed to foster innovation and investment while protecting and empowering consumers -- on a solid legal foundation.“Today’s court decision invalidated the prior Commission’s approach to preserving an open Internet. But the Court in no way disagreed with the importance of preserving a free and open Internet; nor did it close the door to other methods for achieving this important end.” Direct link to call commissioners statements (See April 6 2010 listings), click here. 04/06/2010
TOYOTA FACES $16 MILLION FINE FOR LATE NOTICE FOR STICKY ACCELERATOR PEDAL PROBLEM
More from the Emeritus Newsroom-In what has been called the largest single civil penalty against an automaker, the U-S Department of Transportation today announced Toyota Motor Company faces a $16.375 million fine. Transportation Secretary Ray LaHood says the agency found that Toyota failed to notify the auto safety agency of the dangerous “sticky pedal” defect for at least four months, despite knowing of the potential risk to consumers. Approximately 2.3 million vehicles in the U.S. were recalled in late January for the sticky pedal defect.
“We now have proof that Toyota failed to live up to its legal obligations,” said Secretary LaHood. “Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families. For those reasons, we are seeking the maximum penalty possible under current laws.”
Under NHTSA’s current authority, the maximum possible civil penalty for related violations is $16.375 million. The penalty announced today relates specifically to the “sticky pedal” defect and NHTSA is still investigating Toyota to determine if there are additional violations that warrant further penalties.
“Safety is our top priority and we will vigorously pursue companies that put consumers at risk,” said NHTSA Administrator David Strickland. “We will continue to hold Toyota accountable for any additional violations we find in our ongoing investigation.”
Because of the volume of product recalls, Emeritus News has established the following direct agency press release links. Just click on their respective underlined department names.
FEDS BOOST MILEAGE REQUIREMENTS ON CARMAKERS BY 40% / NEW REQUIREMENTS TAKE EFFECT 2016
More from the Emeritus Newsroom -EPA and U-S Transportation Department officials say the new rules will cut 1.8 billion barrels of oil consumption a day. The new rules are the combined EPA and NHTSA standards that apply to passenger cars, light-duty trucks, and medium-duty passenger vehicles, covering model years 2012 through 2016. They require these vehicles to meet an estimated combined average emissions level of 250 grams of carbon dioxide per mile, equivalent to 35.5 miles per gallon (MPG) if the automobile industry were to meet this carbon dioxide level solely through fuel economy improvements. Already this year, the EPA has implemented regulations to ensure that gasoline sold in the United States contains a minimum volume of renewable fuel. The Renewable Fuel Standard (RFS) program will increase the volume of renewable fuel required to be blended into gasoline from 9 billion gallons in 2008 to 36 billion gallons by 2022. The EPA and U-S DOT project estimate that the average cost increase for a model year 2016 vehicle due to the national program will be approximately $950. U.S. consumers who pay for their vehicle in cash will save enough in lower fuel costs over the first three years, on average, to offset these higher vehicle costs. However, most US consumers purchase a new vehicle using credit rather than paying cash. Consumers using an average 5-year, 60-month loan would see immediate savings due to their vehicle’s lower fuel consumption in the form of reduced annual costs of $130-$180 a year throughout the duration of the loan (that is, the fuel savings will outweigh the increase in loan payments by $130-$180 per year).
Whether a consumer takes out a loan or pays for their vehicle in cash, consumers would save more than $3,000 over the lifetime of a model year 2016 vehicle (that is, the $4,000 saved on fuel easily offsets the increased cost of the vehicle). To calculate these fuel savings, fuel prices (including taxes) were estimated to range from $2.61/gallon in 2012, to $3.60/gallon in 2030, to $4.49/gallon in 2050, based on Department of Energy projections. EPA and U-S DOT press release, click here. 04/01/2010
WAGE GARNISHMENTS UP / CREDITORS TAKE ADVANTAGE OF DEBTORS WHO DON'T RESPOND
JUSTICE DEPARTMENT INSPECTOR GENERAL SAYS FBI IDENTITY THEFT EFFORTS "SOMETIMES NON-EXISTANT" / SAYS AGENCY BOGGED DOWN OVER SYSTEM THAT IS OVER BUDGET AND DOESN'T WORK
More from the Emeritus Newsroom- Called the Sentinel Project, the FBI began efforts in 2007 to co-ordinate efforts to fight ID theft. According to a report released by the Justice Department Inspector General, "We have serious concerns about the progress" of the program. The review of the program cited lack of co-ordination, disagreements between the FBI and Lockheed Martin over software defects in the Sentinel data processing structure, and halting monthly progress reports which would reveal the extent of those problems. The Department of Justice Investment Review Board, according to the report, has not received an update on the project status in 6 months. In addition, there has been a 26% turnover rate among specialized technical personnel responsible for overseeing the project. The Inspector General concludes,
"After more than 3 years and $334 million expended on the development and maintenance of Sentinel, the cost to Sentinel is rising, the completion of Sentinel has been repeatedly delayed, and the FBI does not have a current schedule or cost estimate for completing the project". Full text of In spector General report on FBI Sentinel program, click here. 03/31/2010
3.3 MILLION SOCIAL SECURITY NUMBERS FROM COLLEGE LOAN CUSTOMERS LOST IN DATA THEFT
More from the Emeritus Newsroom- A non profit company, ECMC, based in St. Paul, Mn., has reported the theft of a portable data base with more than 3.3 million social security numbers belonging to customers. Their announcement today claims that no bank account or other financial account information was included in the data.
The theft involved data of ECMC guaranteed borrowers and occurred sometime during the weekend of March 20-21. ECMC discovered the theft on the afternoon of Sunday, March 21 and immediately contacted law enforcement officials. ECMC is cooperating fully with local, state and federal law enforcement agencies conducting the investigation.
ECMC has arranged with Experian, a leading national credit protection agency, to provide affected individuals with a full suite of credit monitoring and protection services at no charge. Affected individuals will be receiving a written notification from ECMC as soon as possible. This letter will provide information about how they can sign up for free credit monitoring and notification, gain access to a dedicated team of fraud resolution representatives and be provided identity theft insurance coverage.
“We deeply regret that this incident occurred and the stress it has caused our borro that, except for statements that describe the percentage of a vitamin or mineral in relation to a Reference Daily Intake (RDI), a nutrient content claim cannot be made for a food intended for use by infants and children less than 2 years of age unless the claim is specifically provided for in parts 101, 105, or 107 of FDA regulations. 21 CFR 101.13(b)(3). This product is marketed specifically for children under two years of age, as indicated by the claim "Helps support brain development***In children under two years old," which appears on the product label. The label also bears the nutrient content claim "no sugar added." The circumstances under which a "no sugar added" claim is permitted are defined in 21 CFR 101.60(c). That regulation does not allow the claim for conventional food products intended for use in children under age 2. 21 CFR 101.60(c)(4). Therefore, the claim "no sugar added" misbrands your product.
HOUSE COMMITTEE CHAIRMAN CLAIMS TOYOTA HID EVIDENCE ON DESIGN PROBLEMS / WANTS ANSWERS / COMPANY TO RESPOND
More from the Emeritus Newsroom -In a letter sent today to Toshimi Inaba, President, Toyota North America, House Committee on Oversight Chairman Edolphus Towns accused the company of hiding evidence which should have been presented in court cases related to rollover incidents. The documents were obtained by subpoena from the company's former product liability attorney, who is suing the company over his firing. Rep.Towns says the company's failure to produce a previously unknown database on design flaws was a "systematic disregard for the law" and he asked the company to provide more details. Toyota responded that it will co-operate with the request. Full text of Rep. Towns letter to Toyota, click here. Statement from Toyota, click here. 02/26/2010
TOYOTA PRESIDENT DENIES ELECTRONIC PROBLEM IN SUDDEN ACCELERATION CASES / CONSUMER ADVOCATES SAY COMPANY HID PROBLEM FROM REGULATORS
More from the Emeritus Newsroom- Toyota Motor Company President Akio Toyoda promised the company would fix the sudden acceleration problems suspected in several fatal accidents, including the best known case in San Diego, which killed eight members of one family. His assurances were little comfort to members of the House Committee on Oversight and Government Reform. Toyoda took the brunt of tough questions and accusations that the company did little about a problem it knew was potentially deadly. Rep. Marcy Kaptur (D) OH accused the company of conspiring to avoid fixing the problem by sending its lobbyists to Washington to limit the scope of a probe into the problem by the National Highway Traffic Safety Administration. Toyota North America President and COO Yoshimi Inanaba told the committee that when problems involving sudden acceleration were first reported in Europe, it was never fully communicated with corporate personnel in Japan. Kaptur suggested the company's position was a response given them by their attorneys and not out of genuine concern for the public. President Toyoda also denied that the sudden acceleration incidents were due to electronic problems, which are suspected by consumer advocates and researchers. Clarence Ditlow of the Center for Auto Safety said that when his group filed a FOIA (Freedom of Information Act) release for the test results and test procedure. NHTSA (National Highway Traffic Safety Administration) said it had no test data or any records of test procedure. NHTSA couldn’t say what it did, how it did it or what the results were. To make matters worse, according to Ditlow, Toyota agreed to only do an equipment recall of 55,000 all weather floor mats. That was a recall destined to fail. Ditlow told the committee notification letters to owners did not even require the vehicles be brought in for inspection to see what mats were in the vehicles or how they were secured, saving Toyota $100 million in recall costs. Full Text of Toyoda prepared statement, click here. Full text of statement by Clarence Ditlow, Center for Auto Safety, click here. Committee hearing page including copies of testimony from other witnesses and videos of each panel, click here. 02/24/2010
HOUSE COMMITTEE HEARING ON TOYOTA SAFETY DEFECTS REVEALS HARROWING ACCOUNT OF SUDDEN ACCELERATION / TOYOTA ADMITS RECALLS MAY NOT SOLVE PROBLEM /CONGRESS VOWS BETTER SUPERVISION OF AUTO SAFETY ISSUES
More from the Emeritus Newsroom- Testimony today from a Tennessee woman, whose luxury Toyota model, a Lexus, suddenly accelerated to 100 miles an hour, then tried to restart after it had been turned off. The account was revealed in a hearing held today by the House Energy and Commerce Committee concerning safety issues connected to millions of recalled vehicles. Rhonda Smith said she was driving her Lexus when it sped out of control on Interstate 40 in Tennessee. She was eventually able to shut the car off after it eventually stopped on its own. Smith explained the problem did not stop there. She testified,
"As the car went into neutral, the car actually tried to
start by itself with the engine turning over several times. This shocked my husband and he immediately
exited the vehicle. At that time the wrecker driver walked back and they were dumbfounded as to how
the vehicle could try to start on it own. We have a notarized statement from
Tommy Clayton, the driver with Baker’s Wrecker Service, stating this fact to be true. The vehicle was
then towed back to Sevierville and then to the dealership in Kingsport, TN".
Smith said she believed the problem was electrical and not due to floormats, which have been blamed in previous incidents, according to the company. Full text of Smith testimony, click here.
A defiant committee chairman Henry Waxman opened the hearing with a blistering attack on both Toyota and the National Highway Traffic Safety Administration. Waxman said,
"There is no evidence that Toyota or NHTSA took a serious look at the possibility that
electronic defects could be causing the problem.
Toyota did not initiate a study into possible electronic defects until just two months ago.
And NHTSA still does not have an electrical or software engineer on staff.
Our review indicates that Toyota received as many as 2,600 complaints of runaway
vehicles through its telephone hotline alone. Over 700 of these incidents resulted in accidents.
Toyota had three responses: First, blame the driver. Second, blame the floormat. Third,
blame a sticky gas pedal. And NHTSA – without doing any meaningful independent review –
accepted Toyota’s explanations.
Toyota’s U.S. President, Jim Lentz, will testify today and has cooperated in our
investigation, which I appreciate. He has said that Toyota was 'very confident that the fix in
place is going to stop what’s going on'.
As we will learn today, that seems unlikely". Full text of Waxman opening statement, click here.
Toyota USA President Jim Lentz defended the company's actions, explaining,
"We acknowledge these mistakes, we apologize for them and we have learned from them. We
now understand that we must think differently when investigating complaints and
communicate faster, better and more effectively with our customers and our regulators. Our
recent voluntary recalls of certain 2010 Prius and Lexus hybrids and of certain 2010 Tacoma
trucks illustrate this new approach.
We are also going further. Our President Akio Toyoda has announced a top‐to‐bottom review
of our operations that he will lead personally, with the support of new Chief Quality Officers for
North America and our other principal regions. We will ask independent, outside experts to
evaluate the findings to make sure we meet or exceed industry standards.
We are expanding our network of technical offices in the U.S. so we can gather information
faster and respond more aggressively to incident reports.
And, we will install advanced brake override systems in all our new models – making us one of
the first full‐line manufacturers to offer this customer confidence feature as standard
equipment. Additionally, we are announcing that we will install this system on an expanded
range of vehicles – including the Tacoma, Venza and Sequoia models – that are capable of
accepting the new software. We had previously announced that the system would be installed
onto the Camry, Avalon and Lexus ES 350, IS 350 and IS 250 models. These actions underscore
that Toyota is going above and beyond making the necessary vehicle modifications and repairs
to ensure that our customers can be completely confident in the safety and reliability of the
cars and trucks they drive".Full text of Lentz statement, click here. During questioning from Chairman Wasxman, Lentz admitted that the current recalls may not solve the problem. Because many experts believe the problem, such as the one discribed by Rhonda Smith, is electrical, the company has not admitted to such a problem, nor a plan to fix it.
And Transportation Secretary Ray LaHood admitted, that while the agency does need more staff to take on more complicated product investigations, the agency is taking the Toyota safety issues seriously, thoroughly examining solutions and considering possible punishment which could cost the company more than 16 million dollars in fines as a result. LaHood testimony, click here. Full committee hearing videos, click on desired hearing segment below.
More from the Emeritus Newsroom- In a statement released by the White House today President Obama announced:
"...major reforms of the Credit Card Accountability, Responsibility and Disclosure Act that I signed into law last spring take effect, marking a significant turning point for American consumers. For too long, credit card companies have had free rein to employ deceptive, unfair tactics that hit responsible consumers with unreasonable costs. But today, we are shifting the balance of power back to the consumer and we are holding the credit card companies accountable.
The new rules taking effect today mean that credit card companies can no longer retroactively increase rates or increase rates in the first year you open an account, charge misleading late fees or use over-limit fee traps. They’re now required to send ample notification if they plan to make changes to the terms of your card and they must employ clear, simple standard payment dates and times. There are new protections for underage consumers, restrictions on double billing and caps on high-fee cards. The new rules are an unprecedented step in my administration’s ongoing efforts to strengthen consumer protections and enact meaningful financial reform.
These new rules don’t absolve consumers of their obligation to pay their bills, but they finally level the playing field so that every family and small business using a credit card has the information they need to make responsible financial decisions". Story from USA Today, copy click here.
OBAMA SETS ASIDE $1.5 BILLION FROM TARP TO HELP HOMEOWNERS IN FIVE WORST HIT STATES
More from the Emeritus Newsroom - During a visit to Nevada to campaign for Senator Harry Reid, President Obama announced he was setting aside $1.5 billion from the Troubled Asset Relief Program to assist homeowners in five states, including Nevada to help out of work homeowners avoid foreclosure. Other states are: California, Florida, Arizona and Michigan. Foreclosures are still rising in most of the country and already established troubled homeowner programs have done little to stop the increase. This latest program is designed to help those whose homes have lost value since the housing bubble burst, putting homeowners in debt for more than their homes are worth. The President also held a town hall meeting in Henderson, Nevada to talk with residents about his proposal, as well as health insurance reform and other issues. Full text of staff press release on the new housing assistance program, copy click here. 02/19/2010
WHISTLEBLOWER SAYS TOYOTA CONCEALED EVIDENCE / HOUSE COMMITTEE HEARING SET FOR TUESDAY, FEBRUARY 23
More in this article from Reuters, copy click here. Also, Rep. Henry Waxman (D) CA, Chairman of the House Energy and Commerce Committee will be holding a hearing on the Toyota safety issues. 2/18/2010
FEDS WANT TO KNOW WHEN TOYOTA KNEW OF PROBLEMS / TOYOTA FACES POTENTIAL RECALL INVOLVING POWER STEERING ON COROLLAS
More from the Emeritus Newsroom- How much did Toyota know before it was forced to take action with the causes of sudden acceleration reports and brake problems? The question represents the beginning of the higher profile investigation into the company. In a statement from the National Highway Traffic Safety Administration. The agency says that it is using its statutory authority to obtain documents from Toyota to determine if the automaker conducted three of its recent recalls in a timely manner. Federal law requires all auto manufacturers to notify NHTSA within five days of determining that a safety defect exists and promptly conduct a recall.
"Safety recalls are very serious matters and automakers are required to quickly report defects," said U.S. Transportation Secretary Ray LaHood.
The auto safety agency is requiring Toyota to provide documents showing when and how it learned of the defects affecting approximately 6 million vehicles in the U.S. alone. The probe will examine how the manufacturer learned of these defects, such as through consumer complaints or factory testing. Investigators are also looking into whether Toyota discovered the problems during pre-production or post-production of the affected vehicles.
Officials are checking whether Toyota has covered all affected models in its recent recalls to ensure Toyota did not miss any problems. The agency will obtain information on production data, incidents, complaints, warranty complaints, copies of tests, dates of meetings, timelines, and supplier information.
The three recalls in question involve various Toyota and Lexus vehicles. Two of the recalls are related to the entrapment of gas pedals by floor mats. The first recall was announced on September 26, 2007, and was followed by a subsequent one on October 6, 2009. The October recall was expanded on January 29, 2010, to include additional vehicles. The third recall, involving sticking gas pedals, was announced on January 21, 2010. Click here for more information.
"Our top priority is safety and we expect that all manufacturers address automotive safety issues quickly and in a forthright manner," said David Strickland, Administrator for the National Highway Traffic Safety Administration.
NHTSA has the authority to seek civil penalties for a variety of violations by manufacturers, equipment suppliers, registered importers and vehicle customizers. If agency officials determine that an auto manufacturer violated its statutory obligations, the manufacturer could be liable for a maximum of $16.4 million in civil penalties.
"Toyota takes its responsibility to advance vehicle safety seriously and to alert government officials of any safety issue in a timely manner.We are reviewing NHTSA's request and will cooperate to provide all the information they have requested." Full text of Toyota response, click here.
In yet another potential recall from Toyota, the company is considering a recall of its popular Corolla subcompact following complaints regarding the car's power steering. As of this posting, no confirmation from the company.
Meanwhile, various media reports claim the company's President Akio Toyoda said he wouldn't be attending the US congressional hearing, and would instead leave it up to Toyota's US executives allowing him to focus his energy on improving car quality worldwide.
The executive in charge of quality controls, Shinichi Sasaki, said Toyota was taking seriously the complaints about power-steering problems in the Corolla, the world's best-selling car.
Speaking at Toyota's Tokyo office, Sasaki said the company was putting customers first in a renewed effort to salvage its reputation and would do whatever is necessary if a Corolla fix is needed.
He said it was still uncertain if a Corolla recall would be necessary, but it is an option the automaker is considering. He also stated the company is considering installing brake override systems in all vehicles produced worldwide.
He didn't disclose model years or regions that could be affected and said there have been fewer than 100 complaints. Toyota sold nearly 1.3 million Corolla cars worldwide last year.
Drivers may feel as though they were losing control over the steering, but it was unclear why, Sasaki said. He mentioned problems with the braking system or tires as possible underlying reasons for the steering problem.
U.S. federal safety officials have also said they are examining complaints from Corolla owners about steering problems.
Toyota has already recalled 8.5 million vehicles globally during the past four months because of problems with sticking gas pedals, floor mats trapping accelerators and faulty brake programming.
More from the Emeritus Newsroom-The U-S Department of Transportation has come out firing against Toyota Motor Company for the number of recent recalls and the slow reaction by the company for correction of those problems. Transportation Secretary Ray LaHood, in a statement released by the department said,
“Last Thursday, NHTSA opened a formal investigation of 2010 Toyota Prius hybrid vehicles in response to consumer complaints about braking difficulties, and today, Toyota has acknowledged a safety defect,” said U.S. Transportation Secretary Ray LaHood. “When I spoke with Toyota President Akio Toyoda last week, he assured me that his company takes U.S. safety concerns very seriously. The U.S. DOT will remain in constant communication with Toyota to hold them to that promise. In the meantime, if you are concerned about your car's braking performance, contact your Toyota dealer.”
LaHood's statement comes as a third Toyota recall was revealed by the company, involving 2010 Prius hybrids and Lexus HS 250h vehicles experiencing brake system problems. Some 2010 Camrys prone to brake fluid leaks have also been recalled.
The DOT’s National Highway Traffic Safety Administration (NHTSA) announced last week that the agency is opening a formal investigation of the 2010 Toyota Prius hybrid to look into allegations of momentary loss of braking capability while traveling over an uneven road surface, pothole or bump. The Office of Defects Investigation had received 124 reports from consumers, including four reports alleging that crashes occurred. Investigators have spoken with consumers and conducted pre-investigatory field work.
NHTSA recommends that owners contact Toyota dealers immediately if they notice changes in their braking performance.
Loss of braking is most likely to occur when traveling over an uneven road surface, pothole or bump. If this occurs, the agency advises owners to continue to firmly press on the brake to stop the vehicle. As an extra precaution, drivers can leave extra stopping distance while awaiting their recall notice.
NHTSA is continuing its formal investigation into the Prius braking problem and remains in constant communication with Toyota to ensure all possible defects in these vehicles are addressed and remedied as quickly as possible. Currently, NHTSA’s Office of Defects Investigation has received 124 reports from consumers, including four reports alleging that crashes occurred. Full text of Department of Transportation press release, copy click here.
AT TOYOTA, THE COMPANY HAS APOLOGIZED FOR THEIR HANDLING OF THE PROBLEMS. IN AN OP-ED PIECE PUBLISHED IN THE WASHINGTON POST ON TUESDAY, Toyota Motor President Akio Toyoda said,
"We are taking responsibility for our mistakes, learning from them and acting immediately to address the concerns of consumers and independent government regulators.
First, I have launched a top-to-bottom review of our global operations to ensure that problems of this magnitude do not happen again and that we not only meet but exceed the high safety standards that have defined our long history. As part of this, we will establish an Automotive Center of Quality Excellence in the United States, where a team of our top engineers will focus on strengthening our quality management and quality control across North America.
Second, to ensure that our quality-control operations are in line with best industry practices, we will ask a blue-ribbon safety advisory group composed of respected outside experts in quality management to independently review our operations and make sure that we have eliminated any deficiencies in our processes. The findings of these experts will be made available to the public, as will Toyota's responses to these findings.
Third, we fully understand that we need to more aggressively investigate complaints we hear directly from consumers and move more quickly to address any safety issues we identify. That is what we are doing by addressing customer concerns about the Prius and Lexus HS250h anti-lock brake systems".
CONSUMER ADVOCATES ISSUE WARNING ON INCOME TAX RAPID REFUND LOANS / GROUPS CLAIM LOANS TARGET THE POOR
More from the Emeritus Newsroom- The National Consumer Law Center and the Consumer Federation of America today issued a warning to taxpayers considering rapid refund loans or rapid anticipation loans (RALs) from tax preparers and other financial institutions. They cost more than they are worth. Consumer advocates say these loans carry steep interest rates and push taxpayers to borrow their own money instead of collecting their full refunds.
A refund-anticipation loan is a short-term loan secured by a taxpayer's anticipated income-tax refund. To obtain a tax-refund loan, taxpayers file electronically with a tax preparer who works directly with a bank to advance the refund as a loan- minus tax-preparation costs, a loan fee and other charges. The Internal Revenue Service (IRS) then sends the taxpayer's full refund to the bank.
According to NCLC and CFA, loan fees can range from $34 to $130 and other add-ons alternately referred to as application, administrative, e-filing, service bureau, transmission, or processing fees can range from $25 to several hundred dollars.
Tax refunds are available at no charge from the IRS. Taxpayers who file electronically and have their refund directly deposited by the IRS into their bank account will usually have their refunds in 8-15 days.
According to the IRS, refund-anticipation lenders often target low-income taxpayers, especially those who receive the Earned Income Tax Credit. Brown urges taxpayers who are considering tax-refund-anticipation loans to take advantage of the IRS's support programs. These include:
- The Volunteer Income Tax Assistance Program (VITA) Program, which offers free tax help to low to moderate-income people and members of the armed services; and
- The Tax Counseling for the Elderly (TCE) Program, which provides free tax help to people aged 60 and older.
The NCLC and the Consumer Federation say there is good news in the fight against RALs. Santa Barbara Bank & Trust, which is one of the
three biggest RAL lenders, was ordered out of the RAL business by its federal regulator. SBBT provided
the bulk of Jackson Hewitt’s RALs, leaving that company without a RAL source for over half of its
stores.
Another RAL lender, Republic Bank & Trust, has dropped the price of its RALs to the same
levels as H&R Block and JPMorgan Chase. This reduction means the vast majority of RALs now have
reduced prices. Even with lower prices, however, consumer advocates urged taxpayers to avoid RALs.
“Taxpayers can save themselves loan fees altogether by just saying ‘no’ to quick refund loans,”
advised NCLC Staff Attorney Chi Chi Wu. “Taxpayers shouldn’t forget that these are loans, and they
carry the risk of loans, including unmanageable debt if your refund doesn’t arrive as expected.”
Furthermore, consumer advocates pointed out that some tax preparers may charge extra “add-on”
fees for RALs, anywhere from $25 to several hundred dollars. The major chains generally do not charge
these add-on fees, but other preparers may, which can easily double or triple the price of a RAL.
More from the Emeritus Newsroom - It has been a bad week for Japanese automakers. Toyota with two recalls this week followed by today's announcement from Honda that is recalling three of its mini models worldwide. The worldwide recall involves 646,000 of the 2007 and 2008 City, Fit and Jazz models for a potential fire hazard that has resulted in at least one death in South Africa. In the U-S the recall amounts to an estimated 141,000 Fit model. Honda said extreme amounts of liquid, such as rain or melted snow, can flood the master power window switch on the driver's side, causing the vehicle to overheat. So far in the U-S there are at least 7 reports of the switch overheating with two of those cases involving fires. No reported injuries in any of the U-S cases. The 2009 and 2010 model are not included in the recall. In typical corporate PR fashion, the company issued no press releases on the recall, as of the writing of this article. It did send out e-mails to those who sign up to receive them, leaving questions as to how the company plans to notify owners of the problems. 01/28/2010
FEDERAL TRADE COMMISSION CRACKS DOWN ON DEBT COLLECTORS
More from the Emeritus Newsroom- It has been a bad month for unscrupulous debt collectors at the Federal Trade Commission. The commission this month completed a case that involved the single largest penalty ever against debt collectors. The FTC, in a press release, states that it settled with the two remaining individual defendants who allegedly misled, threatened, and harassed consumers; disclosed their debts to third parties; and deposited postdated checks early, in violation of federal law. The settlement order requires each of these senior managers to pay a civil penalty and bars them from future violations.
“The FTC wants to remind debt collectors of their responsibilities and obligations under the law. Abusive collection actions are illegal, and if debt collectors use abusive tactics they could face legal action,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “At the same time, we want consumers to understand their rights if their debts go into collection. Money matters, and the more people know about managing their debt and dealing with debt collectors, the better off they will be.”
According to the FTC’s complaint, filed by the Department of Justice on the FTC’s behalf, the defendants participated in, or controlled, the actions of debt collectors whose unlawful practices included false or deceptive threats of garnishment, arrest, and legal action; improper calls to consumers; frequent, harassing, threatening, and abusive calls; and unfair and unauthorized withdrawals from consumers’ bank accounts. The complaint also alleged that the defendants failed to adequately investigate consumer complaints or discipline collectors, and collectors who were terminated for violating the Fair Debt Collection Practices Act (FDCPA) often were rehired within a few months.
In 2008, Academy Collection Service, Inc. and its owner, Keith Dickstein, paid $2.25 million to settle FTC charges that Academy collectors violated the FTC Act and the FDCPA while collecting debts, and that Dickstein failed to stop the violations. The settlement order announced today, negotiated by DOJ and the FTC, imposed civil penalties of $375,000 and $300,000, respectively, on Albert S. Bastian and Edward Hurt, who oversaw Academy’s Las Vegas collection center. The judgments were suspended upon payment of $7,500 each, based on their ability to pay. The full judgments will become due immediately if the defendants are found to have misrepresented their financial condition.
The order bars Bastian and Hurt from making false, deceptive, or misleading representations in debt collection efforts, such as that nonpayment will result in garnishment of wages, seizure of property, or lawsuits, or that they or their agents are attorneys. They also are prohibited from withdrawing money from consumers’ bank accounts without their express informed consent, and from depositing or threatening to deposit postdated checks before the date on the check. In addition, the pair are barred from improperly communicating with third parties about a debt; communicating with a consumer at any unusual time or place; and harassing, oppressing, or abusing any person in connection with debt collection.
The Commission vote to authorize DOJ to file the consent decree was 4-0. The consent decree was entered in the U.S. District Court for the District of Nevada. FTC press release, copy click here.
01/28/2010
TOYOTA ADDS TO RECALLS
More from the Emeritus Newsroom- Just a day after announcing a recall and a production shutdown, Toyota has added to the recall list. The company, in a press release, is adding to the vehicles affected in their recall to include those with problem floor mat, which may contribute to potential sudden acceleration. Toyota sent a letter to the National Highway Traffic Safety Administration amending Toyota’s Defect Information Report of October 5, 2009 regarding the potential risk for floor mat entrapment of accelerator pedals in certain Toyota and Lexus models. Toyota has decided to include certain other models in the campaign. This action is separate from the recall of select Toyota vehicles for sticking accelerator pedals.
The specific model names and years associated with the newly-expanded population of subject vehicles for the pedal entrapment recall include:
As of January 26, 2010 the total vehicle population increased by approximately 1,093,000 vehicles.
Toyota's remedy plan is to modify or replace the accelerator pedals on the subject vehicles to address the risk of floor mat entrapment, even when an older-design all weather floor mat or other inappropriate mat is improperly attached, or is placed on top of another floor mat. Floor surface modifications are also being considered and will be included in the remedy plan for any model for which it is deemed appropriate. Toyota press release, copy click here. 01/28/2010
TOYOTA TO CLOSE PRODUCTION FOR A WEEK / TO FIX VEHICLES TARGETED IN SUDDEN ACCELERATION PROBLEM
More from the Emeritus Newsroom - Finally taking collective action on increasing pressure related to sudden acceleration complaints, Toyota will be closing down production at some production plants and fixing models suspected to have the problem. Toyota has announced it will be closing plants the week of February 1st, to correct assembly line probes related to installation of accelerator pedals that have been blamed for the problem. Dealers have also been instructed to stop sale of the following models until they have been fixed. The models, which are also subject to recall, are:
No Lexus Division or Scion vehicles are affected by these actions. Also not affected are Toyota Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser and select Camry models, including all Camry hybrids, which will remain for sale.
Due to the sales suspension, Toyota is expected to stop producing vehicles on the following production lines for the week of February 1 to assess and coordinate activities. The North America vehicle production facilities affected are:
• Toyota Motor Manufacturing, Canada (Corolla, Matrix, and RAV4)
• Toyota Motor Manufacturing, Indiana (Sequoia and Highlander)
• Toyota Motor Manufacturing, Kentucky – Line 1 (Camry and Avalon)
• Subaru of Indiana Automotive, Inc. (Camry)
• Toyota Motor Manufacturing, Texas (Tundra)
No other North American Toyota vehicle production facilities are affected by the decision to stop production.
The sticking accelerator pedal recall is separate from the on-going recall of Toyota and Lexus vehicles to reduce the risk of pedal entrapment by incorrect or out of place accessory floor mats. Approximately 1.7 million Toyota Division vehicles are subject to both separate recall actions.
BANK OF AMERICA SUED AFTER FORECLOSING ON WRONG HOUSES
More from the Emeritus Newsroom- Bank of America finds itself amid a growing number of lawsuits for foreclosing or taking over the wrong homes and properties. The latest case involves a couple who purchased a home in Springville, Florida and rented it to tenants who were evicted by Bank of America. The bank claims it is trying to deal with the issues and claims contractors and subcontractors handling foreclosed properties may be responsible. Two other similar cases have taken place in Kentucky and Texas. Full story from ABC news including video, click here. 01/25/2010
SUPREME COURT RULING DEALS TROUBLE FOR CONSUMER GROUP CHALLENGES TO POWER RATE INCREASES
More from the Emeritus Newsroom- Consumer advocacy group, Public Citizens says last week's Supreme Court ruling limiting powers of the Federal Energy Regulatory Commission on proposed rate increases will make it more difficult for consumer groups as well.In the case, NRG Power Marketing, LLC, et al. v. Maine Public Utilities Commission, the Supreme Court decided it was not enough to prove that a rate increase would bring, "not just of harm but of “serious” harm to consumers". Public Citizen says the ruling took a worrisome step toward deregulating wholesale electric contract rates and eliminating important consumer protections under the Federal Power Act. The Power Act was enacted to eliminate a regulatory gap and allow a federal body, the Federal Energy Regulatory Commission (FERC), to regulate electric rates for resale in interstate commerce because states cannot do so. But the court now has significantly limited FERC’s authority to review the reasonableness of energy rates set by contract. By doing so, it has hamstrung FERC and left consumers at the mercy of the whims of companies that are focused solely on their bottom lines.Full text of Public Citizen press release, copy click here. 01/19/2010
NEW REPORT FROM FEDERAL TRADE COMMISSION: PUBLIC GETS THE SHAFT AS DRUG MAKERS CUT DEALS TO KEEP MORE GENERICS OFF THE MARKET
More from the Emeritus Newsroom- Unless congress restricts deals cut between big pharma and generic drug makers, consumers are expected to pay $35 billion more over the next ten years. Federal Trade Commission Chairman Jon Leibowitz says the FTC staff has issued a new study, entitled “Pay-for-Delay: How Drug Company Pay-Offs Cost Consumers Billions,” that summarizes the savings lost to U.S. consumers during the past six years through such pay-for-delay deals in the drug industry, and found that the number of agreements with payment and delay has increased from zero in 2004 to a record 19 agreements in Fiscal Year 2009. the cost to consumers from pay-for-delay deals is an estimated $3.5 billion per year – or $35 billion over 10 years. The study also found that settlement deals featuring payments by branded drug firms to a generic competitor kept generics off the market for an average of 17 months longer than agreements that do not include a payment. Most of the agreements reached since 2005 are still in effect, according to the study, and they currently protect at least $20 billion in sales of brand-name drugs from generic competition. Senators on the Special Committee on Aging, earlier this year sponsored "The Preserve Access to Affordable Generic Drugs Act" (S. 369), which will reduce the anti-consumer practice of brand-name drug manufacturers using pay-off agreements to keep cheaper generic equivalents off the market by making the practice illegal. The compromise measure recently passed by the Senate Judiciary Committee reflects a change to the original bill that would allow settlement agreements between drug companies if they can prove with clear and convincing evidence that the deal will not harm competition. The bill also contains significant penalties to serve as a strong deterrent against these anti-consumer agreements. It still has to pass a vote of the full Senate and then in the House. Full Text of the FTC press release, copy click here. Full text of FTC report, copy click here.01/15/2010
NEW RULES TO PROTECT CREDIT CARD HOLDERS ISSUED BY FED
More from the Emeritus Newsroom - An update to the "Truth in Lending" regulations were released by the Federal Reserve Board today. Credit card issuers must comply with most aspects of the rule beginning on February 22.
"This rule marks an important milestone in the Federal Reserve's efforts to ensure that consumers who rely on credit cards are treated fairly," said Federal Reserve Governor Elizabeth A. Duke. "The rule bans several harmful practices and requires greater transparency in the disclosure of the terms and conditions of credit card accounts."
Among other things, the rule will:
Protect consumers from unexpected increases in credit card interest rates by generally prohibiting increases in a rate during the first year after an account is opened and increases in a rate that applies to an existing credit card balance.
Prohibit creditors from issuing a credit card to a consumer who is younger than the age of 21 unless the consumer has the ability to make the required payments or obtains the signature of a parent or other cosigner with the ability to do so.
Require creditors to obtain a consumer's consent before charging fees for transactions that exceed the credit limit.
Limit the high fees associated with subprime credit cards.
Ban creditors from using the "two-cycle" billing method to impose interest charges.
Prohibit creditors from allocating payments in ways that maximize interest charges.
In December 2008, the Federal Reserve adopted final regulations prohibiting unfair credit card practices and improving the disclosures consumers receive in connection with credit card accounts. This rule amends aspects of those regulations to implement provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit Card Act), which was enacted in May 2009.
The final rule represents the second stage of the Federal Reserve's implementation of the Credit Card Act. On July 15, 2009, the Board issued an interim rule implementing the provisions of the Credit Card Act that went into effect on August 20, 2009. In addition to finalizing that interim rule, this rule implements the provisions of the Credit Card Act that go into effect on February 22, 2010. The remaining provisions of the Credit Card Act go into effect on August 22, 2010 and will be implemented by the Federal Reserve at a later date.
TOP COMPANY ACCUSED IN MYSTERY ONLINE CHARGES AFTER TICKET PURCHASES SAYS IT WILL STOP PRACTICE
More from the Emeritus Newsroom - In a letter addressed to Senate Commerce Committee Chairman Sen. Jay Rockefeller, (D) WV, Affinion Group President & CEO Nathaniel Lipman announced the company would no longer sell memberships by using a method, known in the marketing trade as, "data pass marketing membership programs". Those programs have come under increasing condemnation from consumers who attempted to collect a so called "bonus" or other "award", but ended up agreeing to a membership that cost, on average, $15-$30 a month, automatically charged to a consumer's credit/debit card without their knowledge. The practice is best known for being offered after the sale of movie tickets online, with the ticket company passing the purchasers card numbers to the marketing firm offering the bonus or award at the end of a ticket purchase. Consumers are unaware this has been done, thinking that they are NOT being charged for the service, since the bonus or award program did not ask for their card numbers. But, they find on their bank account statements, charges have been taken out on a monthly basis for memberships with questionable benefits. The practice was the focus of a hearing in November in Rockefeller's committee. THERE ARE TWO OTHER MAJOR MARKETING COMPANIES, Vertrue, and Webloyalty—as well as hundreds of online websites and retailers that partner with these three companies in so called, " data pass marketing membership programs". Click here to see an edited video replay. Must see viewing!!!!. Full Text of letter from Affinion to Sen. Jay Rockefeller, copy click here. Committee staff report on problems connected to the data pass marketing programs, copy click here. 01/11/2010
TSA WORKERS AT BOSTON AIRPORT ARE IDENTITY THEFT VICTIMS / CONTRACT WORKER IN PERSONNEL STEALS DATA FOR PAY
More from the Emeritus Newsroom- The Boston Herald reported Sunday that two people have been charged in a scheme to steal identities of Transportation Security Administration workers at Logan International Airport in Boston. The pair reportedly gave personal data to another party in exchange for $40 for each name provided. Tina M. White, 46, and Michael J. Washington, 48, face charges larceny and ID theft charges in Lynn District Court according to the Essex District Attorney. Their next court date has been set for February 3d. Both were jailed with bail set at $20,000 for Washington and $10,000 White. As if that were not enough trouble for the TSA at Logan, a confidential TSA memo on screening procedures was posted on the internet, giving terrorists a preview of what methods were going to be used during the upcoming holiday travel season. More in this Article from the Lynn, MA Item, copy click here. Article from the Boston Herald, copy click here. 01/08/2010
CALIFORNIA COURT OF APPEALS REJECTS INSURANCE COMPANIES REQUEST TO THROW OUT CONSUMER CHALLENGES OF RATES
More from the Emeritus Newsroom- California Proposition 103, which passed back in 1988, requires insurance companies to pay the costs of consumer challenges to excessive insurance rates, through the states insurance regulations. The Association of California Insurance Companies had fought the rule for years which by some consumer advocates, has saved nearly $2 billion in unjustified premiums and other charges. Consumer Watchdog, an advocacy group, claims that companies have withdrawn or dramatically reduced their rate proposals only after a challenge and after substantial work has been done by consumer experts before the Department of Insurance has begun the process of conducting a formal hearing into those rate increases. Consumer Watchdog described these tactics as a “ ‘cat and mouse game’ played by insurance companies” in which a company would apply to charge more than it was entitled to, and hope that it wouldn't’t get caught, but if it’s application was challenged, would withdraw or agree to charge a more appropriate rate.
Hoping to discourage consumers from challenging rate applications, insurance companies argued that they were not required to pay the legal costs if they withdrew or settled challenges to rate applications before a formal hearing on their application was called. Seeking to preserve consumer participation, the Insurance Commissioner issued new rules confirming that the companies must pay if consumer representatives made a substantial contribution to his decisions whether or not there was a formal hearing. The insurance industry sued to invalidate the regulations. Insurance Commissioner Steve Poizner strongly defended the rules in court, as did Consumer Watchdog. The Appeals Court, in its ruling, rejected the insurance association claim that the Insurance Department should pay consumer advocates legal and accounting expenses in challenging insurance company rate increases. The court said the state law:
"...deals only with administrative and operational costs of the Department, not awards of compensation for expenses of interveners such as FTCR (Foundation for Taxpayer and Consumer Rights). As Insurance Companies fail to provide any authority that the statute is intended to shift liability for compensation from insurers to the Department, their assertion is without merit". Full text of Court opinion, copy click here. Consumer Watchdog press release, copy click here. 01/05/2010
OHIO APPEALS COURT THROWS OUT SETTLEMENT WITH CARFAX / PUBLIC CITIZEN CLAIMS COMPANY DECEIVES CUSTOMERS
More from the Emeritus Newsroom- On an appeal filed by Public Citizen, the 11th District Ohio Appeals Court has struck down a previously approved court settlement to a class action lawsuit brought against Carfax. Public Citizen, claims Carfax deceives consumers by representing that its reports are based on complete national accident data. Public Citizen represented 17 individual class members and the nonprofit Center for Auto Safety in objecting to the proposed deal in a lower court. Public Citizen opposed the deal saying individual notice of the proposed settlement was sent only by e-mail and only to customers who bought Carfax reports during the one year preceding the settlement. As a result, the majority of class members got no notice of the settlement, according to Public Citizen’s objections. The decision of the 11th District Court of Appeals in Ohio held that individual notice should have been sent to all class members. PC stated that as part of the settlement, consumers were offered a coupon for additional Carfax history reports. The time for claiming a coupon had expired before the trial court approved the settlement, yet the court had denied Public Citizen’s motion seeking disclosure of how many class members filed claims. The court of appeals found that the trial court erred in not requiring Carfax to disclose how many consumers had taken advantage of the coupon offer. Those numbers would show whether the coupons had actual value to the class members and, therefore, whether the settlement had value to the class, said Deepak Gupta, one of the Public Citizen attorneys who handled the case. Full text of Public Citizen press release, copy click here. 01/05/2010
HOW MAINSTREAM MEDIA IGNORES INTERESTS OF CONSUMERS WHEN DELIVERING ECONOMIC NEWS
More from the Emeritus Newsroom- Center for American Progress researcher David Madland says mainstream media are more apt to further the view of American corporations rather than consumers when covering stories about the economy. Madland details his reasons in a report released today which claims mainstream media's economic coverage is biased and consistently fails to live up to expectations of balance and fairness.
"On a range of economic issues, the perspective of workers is largely missing from media coverage, while the views of business are frequently presented".
The findings are based on analysis of coverage of four economic issues—employment, minimum wage, trade, and credit card debt—in the leading newspaper and television outlets in 2007. Other observations in the report:
Overall, representatives of business were quoted or cited nearly two-and-a-half times as frequently as were workers or their union representatives.
In coverage of both the minimum wage and trade, the views of businesses were sourced more than one-and-a-half times as frequently as those of workers.
In coverage about employment, businesses were quoted or cited over six times as frequently as were workers.
On only one issue that we examined, credit card debt, was coverage more balanced, presenting the perspectives of ordinary citizens in the same pro- portion as those of business.
Biased coverage matters for three primary reasons. Our belief in democratic debate demands informed citizens, and requires that different points of view are allowed to be heard. Journalistic standards of objectivity call for balanced coverage. And, perhaps most importantly, media coverage influences people’s opinions and behavior.
