Archive for the ‘Federal Agencies’ Category

The perils of not reading terms, conditions

CONSUMER FORUM 

Posted May 17, 2015, at 6:50 a.m.

Dear Company X:

Thank you for your recent letter regarding my inquiry about your negative option policy. I understand your policy states that “purchases and renewals are non-refundable” and that it was in effect when I signed up for your “club.”

I’m confused because your response states “membership cancellation can only be completed prior to the next renewal date.” Lucky me, I have plenty of time, since this membership I’m trying to get out of lasts until next February.

And, yes, when first signing up I checked the little box that says I understand and agree to all the stuff that’s in your policy. For your convenience, at the bottom of this letter I’ve included a checkbox that says you understand that most consumers wouldn’t read these things if trapped alone on a desert island with nothing else to read.

Here’s what gets me, Company X. A request to cancel has to be made at least five days before my plan expires. Even if I do that, with about nine months of “service” left on my current membership, I get nothing back?

I got into this situation because I was looking for a renewal notice before my last membership ran out. I noticed the renewal charge on my credit card bill, which arrived too late for me to cancel. Why don’t you guys do what the magazine companies do and send renewal notices eight or nine months before our subscriptions run out? Why instead is your policy to say nothing and be signed up and charged again?

Click to read: Tragic (Legal) Mistake 4: Continuity Programs: In the FTC Crosshairs

I’m told this is called a negative option policy. This practice by your company and many others has drawn attention from some people in high places. Six years ago, the Federal Trade Commission had its staff look at four kinds of negative option plans. The staff examined automatic renewals, including mine. They also looked at pre-notification negative option plans, such as book or music clubs that send a periodic notice that a consumer will receive another selection. If the person does nothing, the company ships the selection and charges for it. The staff also looked at continuity plans, where consumers agree up front to receive goods or services until they cancel the agreement. There also are free-to-pay or nominal-fee-to-pay plans: After a trial period, sellers automatically start charging a fee — or increased fee — unless consumers affirmatively return the goods or cancel the services.

Then, Company X, there’s the upsell. Some companies pitch their negative options, seal the deal, then offer an additional product or service for a few dollars more. Or they bundle offers, so two or more products or services may only be purchased together.

The FTC staff work led to passage in 2010 of the Restore Online Shoppers’ Confidence Act, or ROSCA. As you know, ROSCA bans negative option deals unless the seller does the following:

— Clearly and conspicuously discloses all material terms before getting the consumer’s billing information.

— Gets the customer’s express informed consent before making the charge.

— Sets up a simple way to prevent recurring charges.

I’m sure you folks at Company X wouldn’t diminish my consuming experience by failing to comply with the law just to make a few dollars more.

DirecTV incurred the FTC’s wrath by allegedly failing to make clear what the rates were when a nifty introductory offer was up. There apparently was some concern about the fees people were paying to get out of the deal, too.

Your company and others may be watching to see if DirecTV appeals. Or maybe you think it’s better for all businesses to be clear and conspicuous with their offers so we all know where we stand. Please check here if you agree — uh, that’s called affirmative consent.

Have a nice day.

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, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

FTC Launches New Resource for Identity Theft Victims

IdentityTheft.gov Helps People Report and Recover from Identity Theft

FOR YOUR INFORMATION

May 14, 2015

The Federal Trade Commission has launched IdentityTheft.gov, a new resource that makes it easier for identity theft victims to report and recover from identity theft. A Spanish version of the site is also available at RobodeIdentidad.gov.

The new website provides an interactive checklist that walks people through the recovery process and helps them understand which recovery steps should be taken upon learning their identity has been stolen. It also provides sample letters and other helpful resources.

In addition, the site offers specialized tips for specific forms of identity theft, including tax-related and medical identity theft. The site also has advice for people who have been notified that their personal information was exposed in a data breach.

Identity theft has been the top consumer complaint reported to the FTC for the past 15 years, and in 2014, the Commission received more than 330,000 complaints from consumers who were victims of identity theft.

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(link is external), follow us on Twitter(link is external), and subscribe to press releases for the latest FTC news and resources.

Phony medication call centers target military families

CONSUMER FORUM

By Russ Van Arsdale, executive director Northeast CONTACT
Posted May 10, 2015, at 4:35 p.m.

Click image to read TRICARE’s April 10th article

The Defense Health Agency has been warning military families and veterans covered by TRICARE about scams involving “call centers.” Callers ask clients to reveal personal and medical information over the phone, with promises to help them get medications.

TRICARE is a civilian health care program run by the U.S. Department of Defense Military Health System. It offers benefits for active duty service people, retirees and their families. The program was formerly known as the Civilian Health and Medical Program of the Uniformed Services, or CHAMPUS.

A call from a “call center” generally begins with the caller claiming to be from a sound-alike agency, “calling to tell you about a prescription pain cream you qualify for that TRICARE will cover.” The caller chats up the client — sometimes using personal information gleaned from Google or other sources — and asks for the name of the client’s doctor and other TRICARE information.

“TRICARE will never call beneficiaries and ask for personal information,” Defense Health Agency spokesman Kevin Dwyer said.

But others will, including a host of less-than-reputable companies that deal in compounded prescriptions.

A recent article on the Military Times website notes a huge increase in compounded medications, from $5 million in 2004 to over $700 million in the first three months of this year.

The boom in sales has attracted aggressive marketers, who cold call TRICARE clients, ask if they have certain medical needs and if so, whether they are interested in compound medications. The meds can cost a few hundred dollars to more than $9,000 for a prescription.

The Military Times article cites an ad on Craigslist searching for both customers and sales representatives. The ad claimed meds are “handcrafted for every individual” and formulated to help deal with everything from post-traumatic stress disorder to chronic pain and scars.

Supporters of the compounding industry say the majority of its members are small companies that try to help patients and want a fair price in return. But the entry of hustlers during a time of changing regulation has put the industry under a microscope.

Starting May 1, Express Scripts, which administers the TRICARE pharmacy program, is under orders to screen every ingredient in compounded meds to make sure substances meet Food and Drug Administration regulations. TRICARE will cover those with allowable ingredients; others will have to be reformulated or will need prior approval to be covered.

[questions and answers about TRICARE’s new compound drug policy]

It’s unclear how many recent prescriptions may not be reimbursable.

In any case, those cold calls are likely to keep coming.

TRICARE officials say beneficiaries should never reveal personal or financial information over the phone. If they receive such a call, they’re urged to call Express Scripts at 866-759-6139 or 866-216-7096 or email fraudtip@express-scripts.com.

Betty Balderston, statewide coordinator for Maine Senior Medicare Patrol, alerted Northeast CONTACT to the cold calling. She urges all seniors who receive similar calls to avoid revealing personal and financial information.

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, ME 04412, visithttps://necontact.wordpress.com or email contacexdir@live.com.

 

A quick means to looking older — not in a good way

CONSUMER FORUM

By Russ Van Arsdale, executive director Northeast CONTACT
Posted April 26, 2015, at 11:22 a.m.

After several days of cloudy weather, most of us may not be worrying about getting too much sun. With prom and beach seasons approaching, many people are looking for ways to get a suntan going.

However, many medical professionals are concerned about overexposure to sunshine, specifically to ultraviolet rays, or UVR. Some who treat skin disorders are especially concerned about the use of tanning beds by young people.

WebMD reports UVR exposure damages fibers in our skin called elastin. That breakdown causes the skin to sag and stretch and to lose its ability to go back into shape after stretching.

The bottom line: UVR exposure can make us look older, sooner.

In February, researchers at Yale University released results of a study on UVR exposure. They found evidence of a chemical chain reaction that can damage DNA more than three hours after exposure. They said it’s not clear how many skin cancers may result from this previously unknown reaction.

Click image to view “Are teens heeding the warnings on tanning beds?”

Tanning beds have been the focus of attention of many health experts, because their UVR is more concentrated than the sun’s. The U.S. Food and Drug Administration requires sunlamps and tanning beds to carry a warning that people younger than 18 should not use these products.

An FDA website on tanning, found at fda.gov/Radiation-EmittingProducts/RadiationEmittingProductsandProcedures/Tanning/default.htm, declares repeated UV exposure from sunlamp products “poses a risk of skin cancer for all users.”

Jeffrey Shuren, the doctor in charge of FDA’s Center for Devices and Radiological Health, says, “the highest risk for skin cancer is in young persons under the age of 18 and people with a family history of skin cancer.”

Last July, the U.S. Surgeon General issued a “Call to Action to Prevent Skin Cancer.” The document notes that, while genetic factors — being fair-skinned, having a family history of skin cancer — may heighten a person’s risk, the most common types of skin cancer are strongly associated with UV radiation and that exposure to UV is the most preventable cause of skin cancer.

At least 42 states regulate the use of tanning beds. Eleven states ban their use by children younger than 18.

In Maine, anyone under age 14 may not use commercial tanning beds; 14- and 15-year-olds must have a parent’s permission.

A bill to raise the age to 18 passed two years ago but was vetoed by Gov. Paul LePage. A similar bill was introduced this year but did not pass.

Critics of regulation say links between UVR exposure and development of tumors are based on “circumstantial data and inference, rather than clinical trials and sound scientific data.”

Some also charge public cautions are aimed at younger women, while statistics show men are twice as likely as women to die of melanoma.

Tanning isn’t just about perceived good looks. It’s a $5 billion industry that thrives based on what many consumers are told constitutes a “healthy look.”

The FDA disagrees, stating on its website, “UV radiation, whether from natural or artificial sources, damages the skin.” Visit the FDA website, FDA.gov, and search “tanning risks” to learn more about tanning beds in particular and the health risks of UVR exposure in general.

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, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Unlocking the code – FTC Scam Alert

 

Unlocking the code

by Alvaro Puig
Consumer Education Specialist, FTC

Identity thieves may already have a lot of information about you – like your credit card number, the card’s expiration date, and your name, address, and phone number. With all that information in his hands, why would he call you? He’s after one vital piece of information – the security code on your credit card.

Read more >

Easier to lose money than weight

CONSUMER FORUM

By Russ Van Arsdale, executive director Northeast CONTACT Posted Feb. 22, 2015, at 10:09 a.m.

Here’s a recipe for making millions on unsuspecting consumers. Buy green coffee bean extract from China for about 50 cents per bottle plus shipping, sell each bottle for $30 to $48 and gross an estimated $16 million to $26 million.

To rack up those sales, you’ll need to pass off an unscientific study as “proof” people can lose “an astounding amount of fat and weight” simply by downing your product. Advertise that there’s no need to reduce calories or increase exercise; just swallow the extract along with the seller’s worthless promises. You’ll need some TV promotion to build credibility. An appearance on the “Dr. Oz” show should do the trick. Add a few websites with names that will trigger lots of hits for your wonder product, and you’re on your way.

Dr. Oz scolded at hearing on weight loss scams (click image for FoxDC.com story)

Just don’t get caught. The Federal Trade Commission said last year the “as seen on TV” campaign was false and misleading. In May 2014, the FTC charged NPB Advertising of Tampa, Florida, with making “false and unsupported advertising claims” and with failing to disclose its news sites and testimonials were phony. The case is pending. Then, in September, the FTC charged that Applied Food Sciences of Austin, Texas, used a study it should have known was flawed to make “false and unsubstantiated weight-loss claims” to deceive consumers and sell its extract. The company settled that case for $3.5 million. In September, Dr. Oz announced on his website the study had been retracted. “This sometimes happens in scientific research,” Oz wrote at the time. Last month, the FTC settled charges against Lindsey Duncan and two companies he controls: Pure Health LLC and Genesis Today Inc. Under the settlement, Duncan and his companies have to pay $9 million in consumer redress and refrain from making deceptive claims about green coffee bean extract or any other dietary supplement or drug product. Several critics of the settlement cited a “chilling effect” and voiced fears other manufacturers might hesitate to advertise true claims about products. In a statement, FTC Chairwoman Edith Ramirez said she and the other two commissioners supporting the settlement are “more concerned about other marketers’ incentive to emulate the defendants’ conduct, believing that they will ultimately retain the lion’s share of their ill-gotten gains.” You can review a timeline of the FTC’s actions at nutritionaction.com. On the homepage, look for the article titled “Watch Out for Deceitful Marketing of Dietary Supplements” under “Daily Tips.” Then do a web search for “green bean coffee extract.” We’re betting a wide majority of the 1.58 million hits are still touting weight-loss myths. To lose weight and keep if off, eat fewer calories and increase activity. To learn more about possibly getting some money back if you bought green coffee bean extract, visit the FTC website at consumer.ftc.gov/features/feature-0008-getting-your-money-back.

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, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Kidde Recalls Disposable Plastic Fire Extinguishers Due to Failure to Discharge | CPSC.gov

Consumers should immediately contact Kidde for a replacement fire extinguisher.

Hazard:

A faulty valve component can cause the disposable fire extinguishers not to fully discharge when the lever is repeatedly pressed and released during a fire emergency, posing a risk of injury.

Consumer Contact:

Kidde toll-free at (855) 283-7991 from 8 a.m. to 5 p.m. ET Monday through Friday, or online at www.kidde.com and click on Safety Notice for more information.

Incidents/Injuries:

Kidde has received 11 reports of the recalled fire extinguishers failing to discharge as expected. No injuries have been reported.

Remedy:

Consumers should immediately contact Kidde for a replacement fire extinguisher.

Sold at:

Home Depot, Menards, Walmart and other department, home and hardware stores nationwide, and online from August 2013 through November 2014 for between $18 and $65, and about $200 for model XL 5MR.

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