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Friday, October 17, 2014

Rent-To-Own Stores Are Like Blockbusters For Couches

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It’s not a good sign for the prospects of the American working class when the president of a rapidly-expanding rent-to-own household goods company observes that items are coming back to his stores so quickly that it’s “like a Blockbuster.” Yes, it could be that a family just wanted to rent a big-screen TV for a special event, but items are more likely to come back because a customer couldn’t make their payments.

The Washington Post paid a visit to Buddy’s, a Florida-based rent-to-own chain that has been spreading throughout the South. The company’s leaders initially wanted to expand out of Florida to escape the aftereffects of the housing bubble. Recently, the Post followed a family as they fell behind in their payments and needed to decide whether to catch up or just let part of their living room go.


Rent-to-own is an old business model, but one that has grown significantly thanks to the recession. Normally, people with low cash flow and poor credit would have some high-interest borrowing options available to them, but the credit market is no longer interested in these customers. That leaves them in the rent-to-own market, where you can buy anything from an iPad to a living room set, only if you’re able to keep up with the payments and don’t mind paying $1,500 for a used iPad that’s a few generations old, or more than double the sticker price for a sofa that’s already been repossessed from a few other customers’ homes.


Rental America: Why the poor pay $4,150 for a $1,500 sofa [Washington Post]




by Laura Northrup via Consumerist

Debt Collection Is A Great Line Of Work For Ex-Cons

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When a debt collector calls you, there’s a good chance that he or she might be an ex-convict calling you from a strip mall in Buffalo, New York. Buying and collecting debt is a lucrative business, and some people who had a rough upbringing have a real gift for it. Learn about the “Buffalo Talk-Off” and the Excel Spreadsheets of Doom. [NPR] [Planet Money]

by Laura Northrup via Consumerist

Apple Surprises No One By Removing Bose Products From Online Store

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With the fairly recent acquisition of Beats Music and Electronics it probably doesn’t come as a huge surprise that Apple has ceased the sale of Bose products, including headphones and soundbars.

The removal of the Bose products from Apple’s website, and impending removal from retail stores, marks the latest development in what has become a rather contentious rivalry between the two companies, The Verge reports.


Issues between the two entities appear to have begun when Apple decided to purchase Bose rival Beats for $3 billion earlier this year.


Around the time Apple made its purchase announcement, Bose filed a lawsuit against Beats.


According to the complaint [PDF], Bose accused Beats of infringing on patents that have grown to be an essential part of Bose’s business. Currently, Beats uses noise cancellation technology in its Beats Studio, Beats Studio Wireless, and Beats Pro headphones.


The Verge reports that lawsuit was settled outside of court.


The end of the lawsuit wasn’t the end of issues between Apple, Beats and Bose. Instead things intensified earlier this month , when the NFL confirmed that Bose’s exclusivity deal with the league means that Beats and other non-Bose products are banned from being used by players before, during and after games.


Shortly after the deal was announced, San Francisco quarterback Colin Kaepernick was hit with a $10,000 fine for sporting a pair of Beats headphones. The footballer is an endorser of the products.


Apple has removed all Bose products from its store [The Verge]




by Ashlee Kieler via Consumerist

7 Habits Of Highly Obnoxious Travelers

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Traveling is supposed to bring joy and relaxation into one’s stressed-out life, but not all of us can fly in private planes with only those people we know we won’t want to beat senseless with a swim noodle before the jet lands. Since we all want to land without resorting to fisticuffs or threats of forcible early deplaning, there are certain behaviors from which we’d all be wise to abstain while traveling.

Over at Conde Nast Traveler — a magazine that many of us can blame for convincing us it was a good idea to spend money to fly anywhere in the first place — author Lilit Marcus has put together a rundown of “10 Ways to Make Everyone on Your Flight Hate You.”


To save you a bit of trouble, we’ve pulled out the ones with which we agree the most:


1. Eat really stinky food.

Yes, pre-packaged food is cheaper and often better than anything you’ll get at the airport or on the plane, but please have some thought for the olfactory receptors of those around you. Just like you don’t like it when the sock-less guy next to you slips off his shoes to unleash funky foot odor, no one wants to inhale the garlicky aromas emanating from your to-go container.


And it’s not just foods with repellant odors that are bothersome on flights. Even the best-smelling food is obnoxious when it’s not you eating it.


So please leave the egg salad, caesar salad, leftover General Tso’s chicken, and — we can’t stress this last one enough — the tuna fish back at home.


2. Don’t supervise your children.

One surefire way to ensure that your fellow passengers have homicidal thoughts about you is to let your children run wild. Feral kids are insufferable when they have yards and parks to roam about in; pack them into a flying metal container with hundreds of anxious adults and you might as well alert the TSA and FBI that someone will be arrested upon landing.


3. Be rude to the flight attendant/overuse the call button.

You ever wonder why it seems like so many flight attendants now use their authority to have even mildly annoying passengers booted from flights? It’s because they’ve spent decades responding to passengers with a heavy thumb on the call button, many of whom are incredibly unpleasant to the attendant once he or she arrives to see what is needed… this time.


“That flight attendant sure has a nice smile,” writes Marcus. “Wait until you see what her smile looks like after you’ve buzzed her to ask for replacement headphones, the vegan meal you didn’t request ahead of time, a personal escort to the bathroom, five pillows, and a bedtime story.”


4. Make “jokes” about terrorism and Ebola.

If you really feel compelled to tell a joke about bombs in the overhead bin or how that sniffle you have is actually a deadly, contagious disease, just tell it to yourself and know that you are secretly hilarious. Your sense of humor will not be fully appreciated by the FBI or CDC, or by your fellow travelers who won’t make their connecting flights because the plane was grounded and/or quarantined.


5. Don’t share the aisle.

“The aisle is a great place for everyone to stretch their legs and walk to and from the bathroom,” writes Marcus. “But it’s an even better place for you to hold a one-person party!”


That’s right, just put your feet out there for folks to stumble on; maybe go up a few rows to chat with the friend, family member or coworker that you haven’t spoken to since boarding. Whatever you do, don’t do the respectful thing and keep the aisle clear.


6. Practice poor hygiene.

This is basically the personal-care version of the “no stinky food” rule. It’s pretty self-explanatory.


And while you might get bored during your flight, this is not the time to turn the airplane into a bathroom. Your toenails will still need clipping when you land, your earwax level will not get significantly worse during your flight. These things can and should wait.


7. Talk smack about the destination you just left.

Look, we know that not every traveler likes every city they visit. But odds are that many of the people around you on a plane have some sort of relationship to that place. So you might just come off as a horse’s tuchus if you start badmouthing everything that these people hold dear.


Check out the full list of obnoxious behaviors at Conde Nast Traveler.




by Chris Morran via Consumerist

UPDATE: National Car Rental Bus Driver Not Fired For Kevin Hart Photo

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There’s a happy ending to the story of the National Car Rental shuttle driver who was suspended after being caught snapping a photo with actor/comedian Kevin Hart. According to Inside Edition, the employee has been reinstated, effective immediately.


“I got my job back!” she says about the company’s decision to reinstate her. “Things went very well. I’m very happy that Inside Edition, as well as Kevin Hart, and all the petitions and the likes, really helped me out.”


The driver had reportedly been suspended after National found out that she’d posed with Hart while she was operating a shuttle bus at Los Angeles International Airport.


When Hart found out about the suspension, he made a public plea for National to not fire the driver.




by Chris Morran via Consumerist

Kmart Clarifies Layaway Rules For Closing Stores, No One Tells Kmart Employees

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store_ClosingEarlier this week, we shared with you the complaint of some Kmart customers in Ohio who placed items on layaway before learning that the store they had visited was about to close. This affected their payoff date and payments, but a Sears Holdings representative contacted media outlets sharing this story and explained that this is not Kmart’s policy. Unfortunately, nobody bothered to tell people who work at this Kmart.


One customer, who was interviewed on the air, explained that she was told she had to pay her contract off by November 1st. That was a month earlier than she had plans, which interfered with her ability to make the payments on about $1,000 worth of merchandise she had put on layaway for holiday gifts. She was initially told that she could transferring to another store was a possibility, then that it wasn’t. Transferring her payment plan online would extend the term until December 23, which she finds too close to Christmas. She managed to get the deadline pushed back to November 7, which is slightly better.


Kmart’s parent company, Sears Holdings, followed up with the TV station (and with Consumerist) to explain that there was no November 1st deadline, and that layaway customers had the option to transfer their contracts to a different store or to Kmart.com. That was great news for customers, so a WDTN staffer went back inside the store and inquired about layaway contracts. A manager explained that the deadline is still November 1st, contradicting what the Sears spokesperson had said.


We can’t blame people who are about to lose their jobs for not keeping up with the freshest and latest training materials available in the store. At the same time, this one customer got really frustrated. “Limbo, complete miscommunication, no faith in what they say,” she told the TV station. “I don’t have anything holding them to what they’re saying. If they change what they say, I can’t do much about it.”


K-Mart releases statement on layaway policy [WDTN]




by Laura Northrup via Consumerist

Even If You Spend Your Career Driving For FedEx, You Might Not Be An Employee

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Each day thousands of delivery drivers get behind the wheel of FedEx Ground trucks and set out for a long day of work. While those workers must follow the company’s rules and regulations about delivery times and working hours, FedEx contends they aren’t actual employees, but independent contractors. That distinction is at the core of a series of class action lawsuits filed against the company in which former workers are seeking compensation for unpaid overtime and paycheck deductions.

Bloomberg Businessweek reports that hundreds of former drivers are awaiting court decisions regarding a slew of lawsuits levied against the company.


The workers contend they regularly lost nearly half their yearly wages to deductions and truck expenses because the company unfairly labeled them as independent contractors.


In one case a plaintiff says that for 10 years he worked 10-hour shifts delivering packages in San Diego for FedEx Ground. During that time he was never paid overtime and didn’t receive contributions to his Social Security benefits.


The man tells Businessweek that he made about $90,000 per year from the company, but between 40% and 60% was lost to deductions and truck expenses the company wouldn’t cover because he was just an independent contractor.


FedEx Ground, a subsidiary of FedEx, has long employed independent contractors, a practice officials with the company say differentiates it from competition.


“The entrepreneurs who run these small businesses have a flexibility and drive not often found in a traditional workforce,” the company said in a statement to Businessweek


Former contractors, however, say that the motivating difference for the company was its bottom line.


According to the National Employment Law Project, a workers’ rights group, employing independent contractors can save companies up to 30% of payroll costs by not including unemployment insurance, workers’ compensation, and state taxes.


Additionally, because independent contractors aren’t covered by wage and hour rules, companies aren’t obligated to pay overtime or cover the costs for uniforms.


In early October, a ruling by the Kansas Supreme Court bolstered the workers’ claims that FedEx uses the independent contractor label to save money.


“As FedEx’s counsel acknowledged at oral argument,” the Kansas court said in its decision, “the company carefully structured its drivers’ operating agreements so that it could label the drivers as independent contractors to gain a competitive advantage, i.e., to avoid the additional costs associated with employees.”


The ruling was a drastic change from previous court decisions that sided with FedEx Ground.


Businessweek reports that back in 2009 the D.C. Circuit Court of Appeals sided with the company. The same outcome happened in 2010 when a federal district court in Indiana ruled in favor of the company, throwing out other state claims.


The lawsuits against FedEx Ground are perhaps the biggest indicator of a shift in the workforce.


Back in 2006, the U.S. Government Accountability Office estimated that independent contractors and temp workers made up 31% of the country’s workforce. Two years later, Maryland Labor officials found that one in five employees were wrongly labeled as independent contractors.


Perhaps in light of the lawsuits, FedEx tells Businessweek that it’s changed business practices and now contracts drivers through other companies.


Still, former drivers suing the company say that’s not entirely truthful.


The owner of one such business says FedEx still tells his drivers when they’re leaving and how to drive, much like an actual employer might do.


While it remains to be seen what while happen with the many lawsuits facing FedEx Ground, the company insists the law is on its side.


“We are committed to protecting our way of doing business and the rights of thousands of independent business owners to continue owning and operating their own businesses,” it tells Businessweek.


As for the former independent contractors, they continue to feel taken advantage off.


The former San Diego driver says that while he once thought working for FedEx Ground would be like owning a “piece of the dream,” it’s not that way anymore.


FedEx Ground Says Its Drivers Aren’t Employees. The Courts Will Decide [Bloomberg Businessweek]




by Ashlee Kieler via Consumerist

Pizza Hut Creates Crusts Stuffed With Jalapeños And With Dessert

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pizza_turnoversIn their ongoing quest to stretch the boundaries of pizza crust-stuffing science, Pizza Hut uses their international outlets as test kitchens for new and exciting meals. In the United Arab Emirates and in Korea, the chain is testing two ideas that sound quite appealing. Or maybe I should have eaten lunch today.


Over in Korea, there is a fabulous star-shaped pizza. No bacon cheeseburgers here, though: the folded dough “points” of the star are actually turnovers. Yes, this is a pizza with a dessert crust. The turnovers come filled with cranberries and cream cheese or apples, cinnamon, nuts, and cream cheese. The special pizza has a nice variety of meat and seafood on top, as well, including shrimp, squid, sausage, bacon, and steak. It’s like surf and turf and pastry.



Over in the UAE, things are going in a spicier direction. They’re hawking a regular, non-dessert-containing pizza with a stuffed crust. You can have that crust stuffed with red or green japalpeño peppers, though, and the spiciness doesn’t stop there. The standard version of this pizza has chili sauce instead of tomato sauce, spicy nacho cheese, and more sliced jalapeños on top. They claim it’s the chain’s “spiciest pizza ever,” and this one is a more likely candidate to eventually reach Pizza Huts in the United States.


Pizza Hut Offers New Jalapeno Stuffed Crust Pizza in Middle East [Brand Eating]

Pizza Hut Korea’s Ridiculous New, Star-Shaped Pizza is Dessert & Dinner in One [Brand Eating]




by Laura Northrup via Consumerist

Thousands Of MacBooks Made In 2011 Have Self-Immolating Graphics Cards

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These pink and white stripes are not pretty.

These pink and white stripes are not pretty.



Models of Apple’s higher-end portable computer, the MacBook Pro, have come to the end of their three-year extended warranties. That leaves their owners at the mercy of Apple when something goes wrong, and at minimum thousands of the computers have had the same computer-killing problem with their graphics processing unit. Apple has not publicly admitted that the machines have a problem.

Of course, MacBook Pro owners are people who have spent at least $2,500 on a computer designed for serious graphics work. That means that they’re probably media professionals or serious amateurs, and able to make YouTube videos making fun of the situation with really great production values.



Some iMacs from the same period were recalled and their graphics cards replaced, but for the notebook computers, Apple appears to be making decisions on a case-by-case basis. Some of those decisions are leaving computer owners with unusable aluminum-encased lumps.


There’s a Washington, D.C.-based law firm gathering plaintiffs for a class action suit, but that process will take a long time, and most likely resolve once all of the users will have long since moved on, purchasing new, non-self-destructing computers. (For example, a class action against Apple regarding power adapter for Macbooks was filed in 2009, and not settled until 2011.) It also might not help customers who live outside of the United States, as many of the people complaining of issues with their MacBooks do.


A Change.org petition pleading with Apple to repair or fix all affected computers now has more than 18,500 signatures. A single repair may not help when some users report that they’re on their second or third logic board replacement.


This is not a new problem. Widespread failures of the soldered-on graphics card, which users more battery life and kicks in during graphics-intensive tasks like watching video, was first reported over a year ago on Apple Insider.


2011 MacBook Pro and Discrete Graphics Card [Apple Support] (via Reddit)

MBP2011 [Official Site]

Replace or Fix All 2011 Macbook Pro with Graphics Failure [Change.org]




by Laura Northrup via Consumerist

Woman Sent To Jail For Failing To Mow Lawn

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If you’ve ever looked a lawn that needed trimming and said to yourself, “I’ll get around to it. What are they gonna do, arrest me?” this story of a woman in Tennessee might have you dusting off the mower and hedge clippers.

WVLT-TV in Knoxville reports on a local woman who was told she had to spend a five-day term behind bars for failing to keep up with her yard work.


She initially received a citation from the city during the summer because her property required some grooming.


“With my husband going to school and working full time, me with my job, with one vehicle, we were trying our best,” she explains. “[The bushes and trees] were overgrown. But that’s certainly not a criminal offense.”


But following a second citation and a recent court hearing, the mother of two was looking at five days in the clink.


The woman says she was steamrolled by the process; that she was never told of her legal rights or that she could have a lawyer represent her at court.


“It’s not right,” she claims. “Why would you put me in jail with child molesters, and people who’ve done real crimes, because I haven’t maintained my yard.”


Earlier this week, the judge acknowledged that this was not a criminal case and reduced the sentence to only six hours of jail time. She offered to do five days of community service instead, but the judge insisted on some time behind bars.


She served her time on Tuesday evening, but the judge could give her additional jail time if he’s not happy with her lawn-maintenance efforts when they review her progress at a November check-in hearing.


For comparison’s sake, semi-celebrity Nicole Richie only spent 82 minutes in jail for an incident in which she drove the wrong way on a highway while admittedly being under the influence of alcohol, marijuana and Vicodin.


[Thanks to Steve for the tip!]




by Chris Morran via Consumerist

Volkswagen Recalls More Than 441,000 Beetles, Jettas To Inspect Rear Suspension Issue

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Did you ever play the road trip game where you got to punch your sibling if you saw a Volkswagen Beetle? No? Okay, well then, neither did I. For those thinking of playing “slug bug” (or punch buggy, punch bug, punch dub, piggy punch, beetle bug) on the next long drive, there may be fewer cars to spot now that VW is recalling some 441,000 Beetle and Jetta vehicles for possible suspension issues.

The Wall Street Journal reports that VW issued a recall for 400,602 Jetta sedans manufactured between 2011 and 2013, and 41,663 Beetle and Beetle convertible vehicles manufactured from 2012 to 2013.


The recall, which includes more than a million cars globally, was initiated so dealers could inspect the rear suspension of the vehicles.


An investigation was launched two months ago in China after consumers complained about broken suspension arms on the rear axle of some VW sedans.


Officials with VW inspected dozens of cars and found that the suspension arm was broken in connection with a rear-end collision for all of the vehicles, the WSJ reports.


According to VW the issue is not a defect. Instead, they insist the broken suspension arm was a result of the owners continuing to drive the car although the axle had been damaged in an accident.


Officials with the company say there have been no injuries reported relating to the axle issue.


Volkswagen Recalling Nearly 500,000 Beetles, Jettas in U.S. [The Wall Street Journal]




by Ashlee Kieler via Consumerist

Kevin Hart Begs National Car Rental To Not Fire Driver Who Took Photo With Him

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Even during my darkest days of working in the celebrity news trenches (a time in my life I’d like to forget), I still found myself occasionally starstruck, posing for poorly snapped cellphone photos with celebrities like Salma Hayek and Love Boat’s Jill Whelan. Thank heavens I wasn’t a bus driver for National Car Rental, or I’d have been suspended from my job.

This is apparently what happened to one National shuttle bus driver at Los Angeles International Airport, who spotted comedian/actor Kevin Hart and got him to pose for a photo with her.


Earlier this week, TMZ reported that the driver had been suspended without pay for her actions, but last night Hart actually used to gossip site to make a public plea to National to let the driver keep her job.


“I’m asking National to please give this woman a pass,” Hart says in the brief video plea above. “I love National, and if I had seen me I would have taken a selfie with me too! C’mon, have some compassion.”




by Chris Morran via Consumerist

Michigan May Be Latest To Ban Direct Sales Of Teslas

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Because car dealerships don’t want to move beyond an era of gladhanding salesman upselling customers on unnecessary add-ons — and because they apparently want to give electric car company Tesla as much free advertising as possible — they are pushing for Michigan to enact legislation preventing carmakers from selling directly to consumers in the state.

Tesla doesn’t operate the typical network of franchised auto dealers. Instead, people looking to buy one of the pricey electric cars does so directly through Tesla. The company does, however, operate a small number of display operations where people can look at Tesla models and ask questions about the cars.


This hasn’t sat well with various auto dealer industry groups who have backed legislative attempts in multiple states seeking to ban direct sales.


The Michigan effort is particularly underhanded as the ban on direct sales was quietly attached to an unrelated bill regarding fees charged by auto dealers on Oct. 2, shortly before the legislation went to a final vote.


The amended bill passed through the Michigan state House and Senate and now sits on the desk of Gov. Rick Snyder, who has until Tuesday to decide whether to veto or sign the legislation.


The Michigan Auto Dealers Association claims that Tesla is already violating existing state law by not selling cars through franchised dealers. Tesla maintains that it’s not breaking the old laws because it simply doesn’t operate any sales businesses in Michigan.


The amendment, backed by the MADA, attempts to close this purported loophole by clarifying that the law applies to all manufacturers who “sell, service, display or advertise vehicles in the state.”


“One of the things that was added to the bill was a section that states this law applies to all manufacturers. There’s no creation of new rules,” said Terry Burns, executive vice president of the MADA to the Detroit Free Press. “If a manufacturer wants to come in and sell cars in the state of Michigan, they should probably follow Michigan law.”


But Tesla’s general counsel counters that the amendment is not a simple clarification of the law; it’s an attempt to change the law and ban the sale of Teslas.


“People don’t introduce bills unless they intend to change the law,” he explained. “Secondly, people don’t sneak language in at the last minute unless they know it will be consequential.”


Tesla doesn’t even operate a display in Michigan, but the state wants to join Texas, Arizona, Colorado, North Carolina and Virginia on the list of states that are terrified of living in a world where car dealerships aren’t always necessary.


The fact is that auto dealers face a future where they may no longer be such an integral part of the retail landscape.


“The market will eventually push that in that direction,” Christie Nordhielm, associate professor of business at the University of Michigan’s Ross School of Business tells the Free Press. “Rule one of distribution is there’s only one customer, and that is the consumer. Everyone else is a middle man.”


State Representative Tom McMillin of Rochester Hills was the only “no” against the final bill, arguing that the government should not be in the business of deciding how cars are sold.


“If a company wants to try to distribute their product different than through dealerships, they certainly should be able to,” he explained to the Detroit News. “The only winners in that would be the consumers.”


In September, the Supreme Judicial Court of Massachusetts threw out a lawsuit aiming to block Tesla from selling directly to customers and using a retail storefront to display model vehicles.


Weeks earlier, the Georgia Automobile Dealers Association filed a complaint with the state’s Department of Revenue, claiming that Tesla sold too many through its one retail store in the state.


A petition asking the White House to introduce federal legislation to allow for direct sales to consumers in all states gathered more than 130,000 signatures last summer. The White House responded by saying that consumer choice is important, but that laws regarding things like auto sales are best left in the hands of the individual states.


While most states don’t have active bans on direct sales, a recently passed law in New Jersey expressly allows Tesla and others to sell directly to consumers.




by Chris Morran via Consumerist

The Future Will Be Online TV, But That Might Come With Online Blackouts

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It’s been a heck of a week for anyone who’s been waiting for all their TV to go online. HBO, CBS, and Univision have all announced online streaming subscription packages this week, which is big news for consumers. But the future, while different, may not be rosy. You can’t watch streaming video without internet access, after all. So what happens to your show when your TV network and your ISP get mad at each other?

The fine folks over at the WaPo’s The Switch point out that this is exactly the kind of problem we’re likely to see someday.


The Switch quotes Ross Lieberman, who works for the American Cable Association and who tweeted out the big question: “If CBS and a cable op[erator] can’t agree on a [retransmission] deal, will CBS block that op’s broadband sub[scribers] from accessing its new streaming service?”


Cable or satellite blackouts happen relatively often when two companies can’t agree on contract terms. This year, for example, The Weather Channel went dark on DirecTV for three solid months when the two could not agree on terms. The Weather Channel wanted more money than DirecTV was willing to pay, so no new contract was signed as the old one expired, and 20 million customers were unable to watch Jim Cantore stand in the rain as a result.


As carriage disputes go, though, that one was mild even though it was protracted. Some are much more contentious, like last year’s dispute between CBS and Time Warner Cable. The CBS/Showtime blackout that resulted was disastrous for TWC, which lost over 300,000 subscribers. And in an era where cord-cutters are ascendant, and ever-more content is available without a cable box, those are subscribers that pay-TV companies aren’t going to get back.


So what might happen as we put more and more TV online?


Content companies — broadcast networks like CBS, as well as premium channels like HBO — are going to stay on cable and satellite for a long time. They’re not going to walk away from those contracts, even as more Americans choose the online options instead. 90 million pay-TV subscribers is a big drop from 100 million pay-TV subscribers, but it’s still a lot of people and a lot of money.


But for viewers to watch online content, we need to pay an internet provider. And for huge swaths us our internet provider is also a pay-TV company that has a strong interest in double-dipping and making money wherever possible.


So let’s say that Comcast and CBS get into a carriage dispute in the future. If you don’t have a cable subscription, you don’t care that CBS and Showtime are going dark on cable boxes, because you only pay Comcast for broadband, and you pay $6 per month to CBS directly for online access to their content.


But you get that internet access from Comcast, and CBS is withholding their content from Comcast customers. So now, when you try to use the CBS subscription you’re paying for — on any of your devices — you get a big fat blackout error message on your app or browser preventing you from watching your content online.


Sound farfetched? It’s not. Online gatekeeping already happens on occasion. For example, earlier this year one basic cable network pulled a show off the air mid-season but put the remaining episodes online, on their website. However, for the first several days after the change, some customers who get both cable and internet from Comcast (including yours truly) were unable to access the show from the website, and instead received error messages about being required to subscribe to the channel.


It wasn’t a dispute, and Comcast and the network got it all sorted out in a few days (well before the show’s current season hit the ether). But it hints at some of the underlying problems that an unbundled, streaming future is likely to face. Content networks, pay-TV companies, and broadband companies all have a strong stake in accessing both the TV and online side of the equation. But they aren’t three distinct entities: there’s loads of overlap, and each company is likely to have even more competing interests over the coming years of change.


Only one thing remains ever true: no matter who argues, it’s consumers that get stuck in the middle.


Cable blackouts could someday be broadband blackouts, too [Washington Post]




by Kate Cox via Consumerist

Consumerist Friday Flickr Finds

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Here are ten of the best photos that readers added to the Consumerist Flickr Pool in the last week, picked for usability in a Consumerist post or for just plain neatness.












Our Flickr Pool is the place where Consumerist readers upload photos for possible use in future Consumerist posts. Want to see your pictures on our site? Just be a registered Flickr user, go here, and click “Join Group?” up on the top right. Choose your best photos, then click “send to group” on the individual images you want to add to the pool.




by Laura Northrup via Consumerist

Couple Accused Of Stealing $45K Worth Of Luggage From Airport

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One of the suspects caught on camera allegedly stealing a bag from the Sea-Tac baggage claim.

One of the suspects caught on camera allegedly stealing a bag from the Sea-Tac baggage claim.



Did you have a bag go missing at the airport last spring? If the airport was Sea-Tac International in Washington, we have a pretty good idea what might have happened to it.

SeattlePI.com reports on a pair of miscreants (sorry, alleged miscreants) from Chicago who have been charged with stealing $45,000 worth of luggage from Sea-Tag baggage claim carousels.


Unlike other airport theft operations that we’ve written about — which often involved airline or airport employees smoothly redirecting luggage or grabbing select, expensive items from bags as they headed to and from airplanes — this couple took a more direct approach to their crime.


Port of Seattle investigators say the twosome simply grabbed bags off carousels and carried them right out to their car.


Authorities say they know of at least 18 successful baggage thefts and one failed attempt.


After police shared photos of the suspects through CrimeStoppers, someone identified the man in the images and claimed that he’d committed similar heists and Portland International in Oregon.


It’s jerks like these — along with ridiculous checked-bag fees — that have so many travelers trying to cram everything they are traveling with into those rolling suitcases that hog up overhead bins.




by Chris Morran via Consumerist

Cleaning Supply Sales Are Up As Americans Freak Out Over Ebola

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Ebola is a terrifying disease affecting parts of Western Africa right now, and some health care workers who cared for an infected visitor to Dallas from Liberia without being provided proper infection control equipment are being treated or quarantined for the disease. Naturally, this means that it is time for a nationwide freakout wherein we stock up on disinfectants and treat everyone with suspicion.

Flu season is coming, so stocking up on disinfectants and cutting back on handshakes isn’t a bad idea. Market-research company Nielsen reports that sales of disinfectants and hand sanitizer are up 23%, and customers are apparently concerned that the Lysol can does not individually list every pathogen that it kills.


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Shopping with Ebola in mind isn’t a bad idea if you think about it metaphorically, like when the Centers for Disease Control released a disaster-preparedness guide for a zombie invasion that actually serves as advice for more probable emergencies that do not involve zombies. Yet if you’re ready for a zombie attack, you’re also ready for a hurricane, earthquake, blizzard, or an extended power outage.


Stocking up on disinfectants and hand sanitizer isn’t all that helpful in the event that you do come into direct contact with the bodily fluids of a person suffering from Ebola symptoms, but it could be very helpful in protecting against diseases that people in North America are more likely to encounter: influenza, norovirus, and enterovirus. If you’re going to prep for Ebola, that’s cool, but go get a flu shot, too.


America’s Ebola Preppers Go Shopping for Clorox [Businessweek]

Consumers Buying More Disinfectants and Hand Sanitizers Amid Ebola News [AdAge]




by Laura Northrup via Consumerist

FBI Director Wants To Change Law To Allow Easier Snooping On Smartphones

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James-Comey-Official-Portrait-High-Res Last month, FBI Director James Comey expressed vague concerns that new privacy measures on iOS and Android smartphones might allow criminals to do bad things. Now Comey is saying it’s time to change the law to make sure that law enforcement doesn’t have to figure out your phone’s password.


Thanks to the Communications Assistance for Law Enforcement Act of 1994, the police have relatively easy access for warranted monitoring of telephone and Internet communication, by requiring that providers build in a way for authorities to tap into these connections.


But recent changes to Apple’s iOS and Google’s Android operating systems throw a wrench in CALEA because they give users a way to secure the data on their devices in a way that doesn’t allow either company to remotely unlock them.


So while police can get a warrant and listen to your calls, access cloud-stored data, possibly see your texts and e-mails, they would ultimately need to figure out a device’s passcode to access information that is stored only on your phone.


This worries Comey, and outgoing U.S. Attorney General Eric Holder, both of whom have claimed that this additional layer of privacy protection would allow criminals to do criminal things.


Now Comey is arguing that it’s time to change CALEA to compel companies not currently covered by the law to build in a “front door” for law enforcement access.


“Thousands of companies provide some form of communication service, and most are not required by statute to provide lawful intercept capabilities to law enforcement,” the Director said on Thursday during a speech at the Brookings Institution. “What this means is that an order from a judge to monitor a suspect’s communication may amount to nothing more than a piece of paper.”


Comey directly addressed the security updates recently announced by Apple and Google, saying, “Both companies are run by good people, responding to what they perceive is a market demand. But the place they are leading us is one we shouldn’t go to without careful thought and debate as a country.”


Then, in an effort to use metaphor to bolster his point, Comey inadvertently shoots his argument in the foot.


He says that encryption is “a closet that can’t be opened. A safe that can’t be cracked.”


Exactly. Locked closets and safes have been around for centuries, but the police don’t have master keys so that they may easily gain entry just because they think something bad is hidden therein.


Similarly, people have been using encryption and passcode protection on personal and business computers for decades but it’s been up to law enforcement to try to get around that protection when performing a search.


So why should the police have any sort of special access to smartphones? Just because it is both a telecommunications device and a computer that stores information?


As we’ve repeatedly stated in recent weeks: Neither consumers nor electronics manufacturers have an obligation to make it easier for law enforcement to do their jobs. And just because you don’t want authorities looking at the photos stored on your phone doesn’t mean you have anything to hide.


“When we accept the premise that full access to everyone’s communications is required, there will be no end to access government can demand to your smart home, smart car, and so on,” cautions lawyer Albert Gidari Jr., to the Washington Post, “just because a bad guy somewhere might use such a device in furtherance of a crime.”




by Chris Morran via Consumerist

Thursday, October 16, 2014

Comcast Sued By Customer Who Says Cable Company Had Him Fired From Job

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Last week, we brought you the story of former Comcast customer Conal O’Rourke, who lost his job at renowned accounting firm PriceWaterhouseCoopers after someone from Comcast called his employer with details of Mr. O’Rourke’s numerous — and valid — complaints about his cable service. Comcast has subsequently apologized for the myriad billing and service problems but maintains it did not intend to have O’Rourke fired, but that has not satisfied Conal, who has filed a lawsuit against the nation’s largest cable company, alleging violations of, among other claims, a federal law prohibiting cable companies from sharing personal information without customers’ consent.


The complaint [PDF], filed in a U.S. District Court in San Jose, CA, on Thursday, accuses Comcast of violating the Cable Communications Policy Act, defamation, breach of contract, intentional infliction of emotional distress, and unfair business practices.


“Mr. O’Rourke’s story is both simple and chilling,” reads the complaint.


For those coming late to this story, here’s the brief rundown.


In early 2013, Conal became a customer of Comcast. From the start, he claims the company failed to provide service at the promised promotional price. Multiple promises to resolve the over-billing resulted in only continued inaccurate invoices, even after meeting with Comcast staff in person and presenting them with detailed breakdowns of every charge and credit associated with his account.


It eventually got so bad that Conal says Comcast sent and billed him for $1,820 worth of equipment he never requested and did not need.


Exasperated with Comcast’s non-responsive customer service, Conal eventually contacted the office of the Comcast Controller, Lawrence Salva, and expressed his opinion that should perhaps be investigated by the Public Company Accounting Oversight Board (PCAOB), a private-sector oversight operation.


After this discussion with Mr. Salva’s office, the controller himself — who had not actually spoken with O’Rourke — contacted Conal’s employer, PriceWaterhouseCoopers, which earns a significant amount of revenue (at least $30 million annually, according to the complaint) as a consultant to Comcast.


There is little debate about the above points. Where Conal and Comcast differ is their respective accounts of his call to Mr. Salva’s office.


Comcast claims that Conal mentioned that he was employed by PwC and attempted to use it as leverage to get better service.


“Mr. O’Rourke believes that the Controller’s office performed an online search after Mr. O’Rourke stated that Comcast should be investigated by the PCAOB, and learned that Mr. O’Rourke worked for PwC,” contends the complaint.


The call from Mr. Salva — who is also named as a defendant in the suit — to a PwC executive resulted in Conal being subjected to an ethics investigation, which Conal claims consisted solely of a 20-minute phone interview.


Conal says he has made repeated requests for recordings of the call where he is purported to have name-dropped PwC, but in spite of Comcast’s claims that it exists, the recording has not materialized. Additionally, neither Comcast nor PwC will provide details on exactly what Mr. Salva told PwC.


“Defendant Salva either directly asked for Mr. O’Rourke’s termination, or implicitly requested and caused it by making the knowingly false, defamatory, and malicious accusation that Mr. O’Rourke had violated accounting ethics rules by attempting to use his employment with PWC as leverage in his ‘negotiations’ with Comcast,” contends the lawsuit.


Section 551(c) of the Cable Communications Policy Act forbids cable companies from disclosing “personally identifiable information concerning any subscriber without the prior written or electronic consent of the subscriber concerned.” And since Comcast has yet to argue in any of its statements that it obtained this permission, Conal believes the company has violated this statute.


Additionally, Section 551(f) of the same law allows victims of such violations to seek actual and punitive damages, along with legal costs.


The lawsuit also alleges breach of contract, as Comcast has admitted publicly that it failed to live up to its obligation to provide the service that Conal ordered and paid for.


“Comcast breached the Agreement when it engaged in… overcharging Mr. O’Rourke, failing to show up for service appointments, sending Mr. O’Rourke to collections, and failing to repair his internet service,” reads the complaint.


Finally, Conal accuses the defendants of engaging in “unfair, unlawful and fraudulent business practices” in violation of California Business & Professions Code, by “violating his privacy, defaming him to his employer, unfairly and persistently overcharging him, and retaliating against him for questioning the legality and propriety of its billing and collections practices.”


The suit ultimately seeks damages and legal costs in excess of $1 million, an injunction barring Comcast from: providing subscribers’ personal information to third parties without consent; defaming customers to third parties; over-billing customers; and retaliating against customers who complain.


We’re reaching out to Comcast for comment, but as it’s after midnight here in Philadelphia, we probably won’t hear anything until the morning, if at all.




by Chris Morran via Consumerist

Starbucks Holiday Promo: Free Drinks For Life, Or At Most 30 Years

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Starbucks doesn’t want your cash. It doesn’t want your credit or debit card, either. The chain coffeeteria wants its customers to pay using Starbucks gift cards or mobile apps, so they can keep track of what you, personally order, and send you promotions and coupons accordingly. That’s the unstated reason why Starbucks will have a promotion this holiday season: a chance to win “Free Starbucks for Life.”

There will be a total of ten winners, and the promotion will last from December 2 until Christmas. It may be debatable how long your life would be with a daily dose of espresso, but “life” in this case is capped at thirty years. The prize isn’t unlimited, but allows the recipient to receive one food or beverage item for free for thirty years. Presumably, single drinks made in vases, coolers, and jugs will not be permitted. Assuming that beverage prices don’t rise too much in the next thirty years, the total cost of could be under a million dollars.


If the promotion is intended to sell more Starbucks gift cards as holiday gifts, those gift-givers will need to hurry: the promotion ends at Christmas. Instead, Starbucks is giving customers an incentive to visit Starbucks stores, but more importantly an incentive to pay using Starbucks currency: the company’s own gift cards, reloadable stored-value cards, and mobile apps.


CEO Howard Schultz told the Wall Street Journal that people actually ask him whether it is possible to gift someone a lifetime supply of Starbucks drinks. The people who ask him this are celebrities and fellow CEOs, he claims.


Starbucks Unveils Reimagined In-Store and Digital Innovations for Holiday 2014 and Beyond [Starbucks]

Starbucks to Offer Customers a Chance to Win Free Drinks for Life [Wall Street Journal]




by Laura Northrup via Consumerist

Uber Imposes Surge Pricing After Train Fatality: Is That Profiting From Death?

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uberlogookayWhen there is a lot of demand for rides, the car-summoning app Uber imposes “surge” pricing, multiplying the standard fare. This serves to entice more drivers out onto the roads, and also to make some people looking for rides say, “eh, I’ll walk instead.” In the past, the company had promised not to raise prices excessively during emergencies that create high demand for rides, but not all situations that create intense demand are “emergencies.”


At 5:40 PM yesterday, a man was hit by a train and killed in Palo Alto. Authorities needed to investigate, and trains were delayed for an hour or more. People with somewhere to be tried to summon an Uber driver, only to find that the train delays had increased demand, and the increased demand raised prices for a ride. That led some commuters and PandoDaily to wonder: does that mean Uber and its drivers were profiting directly from a man’s death?


Depending on your point of view, surge pricing is either capitalism at work or price-gouging. When prices increased to seven or eight times the normal rate during a snowstorm in the Northeast, users accused Uber of price-gouging.


Earlier this year, Uber promised to cap surge pricing during states of emergency and natural disasters, donating its portion of the higher fares to the American Red Cross. This situation in Palo Alto wouldn’t count as a natural disaster, though. Neither would a baseball game or a concert, which could cause intense, temporary traffic snarls.


Uber seeing deja vu as riders complain of rate gouging following Caltrain fatality [PandoDaily]




by Laura Northrup via Consumerist

Get Ready To Show That Ink, Baristas: Starbucks Changes Policy To Allow Some Visible Tattoos

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Things are about to get a bit more graphic behind the Starbucks counter. And by graphic we mean in the illustrated sense, now that the coffee company has revised its tattoo policy, allowing employees to show off their ink – albeit with a few caveats.


Starbucks announced on its website today that beginning October 20, its partners (better known as employees) can sport visible tattoos as long as they aren’t offensive and don’t appear on the face or neck.



Starbucks’ revised dress code policy. [Click to enlarge]



“We want customers to focus on you, not your body art,” a new retail dress code guideline handout reads. “Tattoos are allowed, but not on your face or throat. Treat tattoos as you treat speech – you can’t swear, make hateful comments or lewd jokes in the workplace, neither can your tattoos.”

While the previous dress code policy didn’t exactly forbid employees from having tattoos, they were required to keep them covered up while working.


In addition to allowing some visible tattoos, Starbucks also announced that colored ties and neck scarves and black denim would now be allowed.


The official change comes less than a month after Starbucks Chief Operating Officer Troy Alstead sent an internal e-mail saying the company would revisit its “dress code, including the tattoo policy.”


Talk of a revised dress code and tattoo policy began earlier this year when CEO Howard Schultz launched a campaign seeking feedback from employees on how the company could improve its workers’ careers.


There was also significant discussion online among employees about ways the company could allow tattoos while continuing to project a professional atmosphere.


An online petition on coworker.org gathered more than 25,000 people – 14,000 signatures from Starbucks employees – around the world who believed the company’s policy to cover up tattoos should be revised.


After Thursday’s announcement the Starbucks barista who began the petition tells coworker.org that she was “thrilled that Starbucks listened to feedback from employees like me and has updated its policy.”


Starbucks Announces New Partner Experience Investments [Starbucks]




by Ashlee Kieler via Consumerist