You may be eligible for Kellogg settlement – WABI-TV

Russ and Joy discuss the Frosted Mini-wheat settlement

The Federal Trade Commission (FTC) filed it’s case against Kellogg in 2009. They charged them with unfair or deceptive advertising. The issue was a series of TV commercials telling moms the cereal could help their children in school. The ads even claimed that Frosted-Mini Wheats had been “clinically shown to
improve kids attentiveness by nearly 20%.

“When the FTC challenged Kellogg to back up their claim the company agreed to tone down their advertising claims, while they denied any wrongdoing.

Boxes of Frosted Mini-Wheats now claim to keep eaters “full and focused all morning.” The proposed settlement orders Kellogg to limit it’s claim to “clinical studies have shown that kids who eat a filling breakfast like Frosted Mini-Wheats have an 11% better attentiveness in school than kids who skip breakfast” or to have similar wording.

Consumers who feel they were misled by the ads that ran from January 2008 to October 2009 may file claims through a website Kellogg created cerealsettlement.com  Forms can be filled out online or printed and mailed. Consumers who file claims may receive up to $5 per box of Frosted Mini-Wheats they purchased up to a maximum of $15.

Kellogg proposes settlement in lawsuit over Mini-Wheats advertising claims

CONSUMER FORUM

By Russ Van Arsdale, Executive Director Northeast CONTACT

Posted June 08, 2013, at 12:52 p.m.

A proposed settlement was announced last week in the class-action lawsuit against Kellogg, the company that manufactures Frosted Mini-Wheats cereal.

The settlement was years in the making, and it could mean a few dollars back in the pockets of consumers. However, the settlement – if approved by a judge – fails to answer some basic questions about what kinds of claims advertisers can and should make about their products.

The Federal Trade Commission filed its case in 2009, charging Kellogg with unfair or deceptive advertising. At issue was a series of TV commercials designed to boost lagging sales of Mini-Wheats by telling moms the cereal could help their children in school.

The TV ads included the claim that Frosted Mini-Wheats had been “clinically shown to improve kids’ attentiveness by nearly 20 percent.” That seemed a stretch to federal watchdogs, at a time when many consumers had a healthy skepticism about sugary foods (a serving of “original” Mini-Wheats today contains 11 grams, or a little under a half ounce, of sugar).

Now, we all want students to do better in school. Kellogg had hoped mothers who saw their ads would buy Mini-Wheats to help their young scholars. When the FTC challenged Kellogg to back up its claim, the company agreed to tone down the rhetoric while denying any wrongdoing or liability. The company still says it stands by its advertising.

The backed-off ads were termed the “full and focused” campaign. A bowl of fiber-rich cereal will keep the little tummies full, the ads proclaimed, leading to “23 percent better quality of memory” than students who ate no breakfast. Washington Post blogger Jennifer LaRue Huget wrote in May 2009 there was no comparison between the 73 youngsters Kellogg fed and students who ate other kinds of breakfasts, nor was it clear how the company measured its results.

Some nutrition-oriented consumer websites are not all that critical of the content of Mini-Wheats. The Center for Science in the Public Interest says Mini-Wheats meet CSPI’s guidelines for marketing food to children (see www.cspinet.org/marketingguidelines.pdf). Caloriecount.com gives the cereal a nutrition rating of A-, pointing out that it’s high in niacin, phosphorous, riboflavin and vitamins B6 and B12, as well as fiber, and very high in iron. The bad point, according to the calorie counters, is the 11 grams of sugar per serving (21 biscuits).

Boxes of Mini-Wheats on the market now have the pledge to keep eaters “full and focused all morning.” The proposed settlement orders Kellogg to limit its claims to “Clinical studies have shown that kids who eat a filling breakfast like Frosted Mini-Wheats have an 11% better attentiveness in school than kids who skip breakfast,” or similar wording.

Consumers who feel they were misled by the earlier ads, which ran from January 2008 to October 2009, may file claims through a website Kellogg created, www.cerealsettlement.com. Forms can be completed online or printed and mailed. You may also exclude yourself from the settlement or object to the settlement. You can also do nothing.

Consumers who file claims may receive up to $5 per box of Mini-Wheats they purchased, up to a maximum of $15. If the $4 million Kellogg has set aside for these payouts isn’t used up in the first round of claims, it’s possible consumers could receive more.

The settlement should serve as a reminder to food manufacturers that their claims need to pass the straight-face test as well as clearing their lawyers’ desks. Until they do, we should all read food packaging with a healthy dose of skepticism.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

Seniors should be wary of medical alert device scam

CONSUMER FORUM

By Russ Van Arsdale, Executive Director, Northeast CONTACT

Posted June 02, 2013, at 3:35 p.m.

At first we thought we were out in front of the story: People posing as representatives of a medical alert company were cold calling Maine seniors and offering them free medical alert devices. All the seniors had to do was fork over some personal financial information (and, in the process, open their bank accounts to the callers).

Then, last Wednesday, Maine Attorney General Janet Mills issued a news release calling the whole thing a scam. She cautioned seniors not to give any personal or financial data to these frauds calling their company Life Watch, or anyone else who called out of the blue. Not only that, she said the officers of sound-alike Life Alert are suing a couple of outfits it says are misrepresenting themselves.

“Legitimate companies do not operate like this,” Mills said in the release. “This scam is particularly insidious because it trades on the well-known brand of Life Alert, which is intended for very vulnerable senior citizens.”

There are several tip-offs that the call is not on the level. First, as Mills pointed out, honest companies don’t make random robot calls, putting a sales person on once the phone is answered and turning up the heat. A second clue concerned the pitch itself.

When the first call came to our home, a heavily-accented seller needed prompting before revealing that, while the alert device itself is “free,” my service plan would cost about a dollar a day. The second flag went up when, asked about the cancellation policy, she said, “Just give us a call.” That’s scammer code for, “We’ll just ignore you.”

I asked to speak with a supervisor, and another thickly accented person (who told me his name was “Mr. Lennie Allen”) said his firm was the “only EMT-certified” provider of “the preferred medical alert monitor” (EMS officials we spoke with weren’t sure what those terms meant). “Lennie” added that his firm had “100 percent customer satisfaction” (probably the first ever in our notebook) and that it was “endorsed by the American Diabetes Association.” A call to that organization confirmed that it “does not test advertised products, does not conduct independent scientific reviews and does not ensure the safety and efficacy of their claims.” Pants on fire, Lennie.

A second caller to our home asked for my wife by her legal name, which she never uses. “Where did you get my name?” she asked.

“Uh, well, we make random calls…”

“But I’m on the National Do-Not-Call list.” A hurried apology, and away the caller went.

The people who really run Life Alert are so steamed they’re suing the folks they say are responsible for thousands of seniors nationwide being ripped off and their company’s reputation suffering “tremendous” damage. They’ll have lots of ammunition; the Better Business Bureau says in February 2011 it requested that Life Watch “cease and desist all unauthorized use of the BBB name and logo in its promotional materials.” During our conversation, “Lennie” told me his firm had an A-plus rating from the Bureau (pants now in ashes).

Maine seniors who believe they have been a target of this scam should call the A.G.’s Consumer Protection Division at 1-800-436-2131 or email consumer.mediation@Maine.gov.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

FTC Warns Consumers: Charity Scams Often Follow Disasters

Share Our Resources | Consumer Information.

In the wake of the devastating Tornado that hit suburban Oklahoma City on Monday, the Federal Trade Commission, the nation’s consumer protection agency, reminds consumers that scams often follow disasters. If you’re asked to make a charitable donation to help people in disaster-affected areas, before you give, be sure your donations are going to a reputable organization that will use the money as promised.

Unfortunately, legitimate charities face competition from scammers who either collect for a charity that doesn’t exist or aren’t honest about how their “charity” will use the money you give.  Like legitimate charities, they might appeal for donations in person, by phone or mail, by e-mail, on websites, or on social networking sites.  For more on the questions to ask and for a list of groups that can help you research a charity, go to Charity Scams.

If you’re asked to make a charitable donation to support victims of the recent tornado, remember:

• Donate to charities you know and trust. Be alert for charities that seem to have sprung up overnight in connection with current events, like a natural disaster.
• Ask if a caller is a paid fundraiser, who they work for, and what percentage of your donation goes to the charity and to the fundraiser. If you don’t get a clear answer — or if you don’t like the answer you get — consider donating to a different organization.
• Don’t give out personal or financial information — including your credit card or bank account number — unless you know the charity is reputable.
• Never send cash: you can’t be sure the organization will receive your donation, and you won’t have a record for tax purposes.
• Check out the charity with the Better Business Bureau’s (BBB) Wise Giving Alliance, Charity Navigator, Charity Watch, or GuideStar.
• Find out if the charity or fundraiser must be registered in your state by contacting the NationalAssociation of State Charity Officials.

From Maine Department of Professional and Financial Regulation:

[Information about charities can be obtained through the Department’s website (www.maine.gov/pfr), specifically at www.maine.gov/pfr/professionallicensing/professions/charitable. Links allow for the search of licensed charitable organizations, as well as disciplinary actions.  Questions and complaints can also be made by calling the Charitable Solicitations Program at 207-624-8525.]

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

 

Affordable Care Act Scam — WABI-TV

Watch Joy and Russ discuss the latest effort to steal your identity.

Scammers are trying to get people’s information by signing them up early for the Affordable Care Act.

Sign up for the Affordable Care Act or “Obamacare” doesn’t start until October 1st, 2013. If someone is calling to sign you up early, you are advised to just hang up the phone and to give them no information. Also please report the scam attempt if you have received a call.

Another scam associated with the Affordable Care Act is scammers are calling people telling them they can provide them with a government issued insurance card. People will need these cards when the Affordable Care Act kicks in but people calling about them now are just trying to get your account information. Again just hang up and give out no information if they are calling you about signing you up for a card.

Also always remember that government agencies already have your data and will not contact you for it.

The Federal Trade Commission has a website with a list of scams and where you can sign up for email notifications about new scams. The website is consumer.ftc.gov/scam-alerts…

 

Tax Return Fraud – WABI-TV, April 1, 2013

Russ and Joy discuss the possibility of your tax refund going to someone else. Watch Video

Maine’s Office of Securities Issues Consumer Alert

“Profitable Sunrise” is Unregistered, Questionable Scheme

GARDINER — Maine Office of Securities Administrator Judith Shaw has issued an alert to all Maine investors regarding a foreign-based company known as “Profitable Sunrise,” which has attempted to sell unregistered investment contracts through multiple online sources—prompting serious concern and action by securities officials throughout the country.

Profitable Sunrise claims that their investment model allows consumers to earn up to 2.7% interest per day.  Investments are purportedly used to provide short-term loans to companies at 3% interest per day.  The company’s website also states that investors may earn money by recruiting others through a referral program that pays 5% of deposits generated from recruits.

“Like many high-yield investment schemes, this company recruits investors by offering significant returns and claiming that there is no risk,” said Securities Administrator Shaw.  “These companies often make promises they have no intention of keeping.”

Shaw emphasized that neither Profitable Sunrise, nor its investment products, is registered in Maine as required by the Maine Uniform Securities Act.

“Increasingly, scams rely on the internet as a forum for perpetuating fraud,” Shaw noted.  “Online sources provide a quick way for criminals to access millions of people and to prey upon members of identifiable groups, such as religious communities, retirees, and those who are desperate for quick income.”

High-yield investment programs often have common red flags of fraud that consumers should be looking for—unusual, unsustainable yields; lack of information regarding the investment operator; unclear methodology for achieving returns; off-shore operations; incentives to recruit new investors; and online advertisements containing typographical errors and grammatical mistakes.

Consumers who have invested with Profitable Sunrise are encouraged to contact the Office of Securities at (877) 624-8551 (toll-free in Maine) or (207) 624-8551.  Shaw also urged consumers to contact Maine’s Office of Securities before investing to obtain general information about investment professionals and products, including online investment or business opportunities.  More information is available at www.investors.maine.gov.

The Office of Securities is part of the Department of Professional and Financial Regulation, which encourages sound business practices through oversight of insurers, financial institutions, creditors, investment providers, and numerous professions.  More information is available at www.maine.gov/pfr.  

 

 

Maine Insurance Superintendent Alerts Consumers and Businesses to Flood-damaged Vehicles in Aftermath of Superstorm Sandy

 GARDINER – Insurance Superintendent Eric Cioppa cautioned consumers and businesses on Monday to be alert for the possibility of flood-damaged autos in the aftermath of Hurricane Sandy. Although the October superstorm did not result in significant damage in Maine, many Northeastern states experienced wide-spread storm surges and flooding.

“According to the National Insurance Crime Bureau’s estimate, more than 250,000 vehicles were damaged by the storm,” Superintendent Cioppa said. “This estimate includes only insured losses, so many more autos may have been impacted. Damaged vehicles could be for sale in Maine right now.”

The Superintendent emphasized that it’s more important than ever to do research when buying a car or truck. Vehicles suffering storm damage, even after repairs and cleaning, can pose safety risks and may require substantial repairs down the road.

If the damage is great enough, an insurance company will “total” the vehicle and pay for its actual cash value, less the policy’s deductible. Alternatively, if the insurance company agrees, a vehicle owner may choose to keep the auto and receive its value less the salvage value.

Maine law requires an insurer to obtain a salvage title when it declares a vehicle a total loss, and the vehicle may not be operated on the road until it has been repaired, inspected, and rebranded with a title indicating “rebuilt salvage,” “rebuilt,” or “repaired” by the Maine Bureau of Motor Vehicles. However, sellers can sometimes conceal damage by moving a vehicle and its title to other states, a practice known as “title washing.”

“Severely damaged vehicles may appear for sale in Maine without any indication that they were affected by Sandy,” added Cioppa. “Even new cars could have sustained flood damage.”

Cioppa offers the following tips for consumers to reduce the risk of unknowingly purchasing a flood-damaged vehicle:

 * Thoroughly inspect the vehicle for signs of water damage. Look for mud, stains, or musty odors in the interior, the trunk and the spare tire storage compartment.

 * Check the undercarriage for rust or flaking metal.

 * Always test drive a vehicle and have it carefully inspected by a mechanic you trust.

 * Contact the Maine Bureau of Motor Vehicles (BMV) to request a title search. For additional information on titles and title searches, including applicable fees, contact BMV at (207) 624-9000 or visit www.maine.gov/sos/bmv.

* View a detailed title history and damage report from a national database such as CarFax, Autocheck, or Consumer Guide Automotive. There may be a fee to view these reports.

Additionally, consumers can download useful checklists and learn more about flood and salvage vehicle scams, and post-disaster contractor repair schemes, by visiting the National Insurance Crime Bureau (NICB) website (www.NICB.org). The site’s VINCheck allows free consumer access to the vehicle salvage records of participating NICB member insurance companies, which collectively provide 88 percent of the auto insurance in force today.

Maine consumers and business operators with questions about auto, home, business or other lines of insurance are encouraged to contact the Bureau of Insurance by calling 1-800-300-5000 or sending an e-mail to Insurance.PFR@maine.gov.

The Bureau of Insurance is part of the Department of Professional and Financial Regulation (www.maine.gov/pfr) which encourages sound business practices through high quality, impartial and efficient oversight of insurers, financial institutions, creditors, investment providers, and numerous occupations to protect the public.

 

 

Watch out for the scammers poaching veterans’ pensions

CONSUMER FORUM

By Russ Van Arsdale, Northeast CONTACT
Posted March 03, 2013, at 9:46 a.m.
Last modified March 03, 2013, at 11:27 a.m.

Consumer watchdogs are warning veterans and their families of scam attempts centered on pensions. The Federal Trade Commission issued a warning recently about one scheme urging veterans over age 65 to convert their assets to a trust or to put their money in insurance products.

The pitch is that veterans who do so can qualify for Aid and Attendance benefits; those payments cover expenses for veterans and family members who need in-home care. The FTC warns that the transactions might mean the veteran loses eligibility for Medicaid services or that their money could be tied up for an extended period of time.

And, in spite of the scammers’ claim that they’re offering “free” advice and help with paperwork, they charge victims hundreds or even thousands of dollars while ripping them off.

Here’s how the scheme works. Unscrupulous lawyers and financial planners visit long-term residential facilities, senior centers and other places to make their pitches. They might offer lunch or snacks or claim to be veterans to gain others’ confidence. They will almost always turn on the high-pressure tactics to get you to put your money into a trust or buy an annuity (and the more they sell, the higher their commission).

The FTC reminds veterans that it’s free to apply for benefits. If you need help, check with the Veterans Administration; the agency has accredited professionals to assist those who need help. While the VA does not endorse financial products or plans, accreditation is a good starting point.

You can also check with agencies that regulate various professions:

• Insurance agents: Maine Bureau of Insurance can tell you if the seller is licensed.

• Financial planners: The National Association of Personal Financial Planners can give you names of planners who work on a fee-for-service basis, rather than on commission based on what you buy.

• Lawyers: Check with the Maine State Bar Association to see if a lawyer is licensed or if charges of ethical violations have been filed.

Nonmilitary folks may be targets as well, and they could be living anywhere. A Web search for investment help by U.S. citizens living abroad turned up this bit of verbiage: “We have a great experience in this field because pension transfer specialists are into ourfolds (sic) for providing you the best tips for pension investment in the home country.” Such awkward grammar is often a sign of a scam attempt.

Whether you’re a veteran or not, the best defense against someone who offers to poach your pension to “get you a better deal” is a firm “no, thanks.” Maine Securities Administrator Judith Shaw noted recently that “safe investing” resources for all Maine families are available on the Office of Securities’ website, www.investors.maine.gov, or by calling 1-877-624-8551 (TTY: Please call Maine Relay 711).

Shaw added, “To avoid investment fraud and invest as safely as possible, investors should make a rule to always check the credentials of any investment adviser or broker before entrusting money to them.” To file a complaint with the FTC, visit the agency’s online “complaint assistant,” www.ftccomplaintassistant.gov, or call 1-877-FTC-HELP (1-877-382-4357).

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

National Consumer Protection Week – March 3-9, 2013

Consumer Topics

 Every day, we make important decisions about finances, health, privacy, technology and more.

NCPW.gov offers consumers a wealth of tips and information from federal and state government and non-profit partner organizations. You can download and print the materials and share them with friends and neighbors, or order materials from select partners if you’re planning a larger event such as a conference or workshop.

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