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Friday, March 25, 2016

Citi Will Send Members’ New Costco Visa Cards In May

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This June, things will change at Costco: the warehouse retailer will change its official, store-endorsed credit card from a Costco-branded American Express card to a Costco-branded Visa card from Citi. We now know that the new cards will start being mailed out in June, and what kinds of rewards users will be able to expect.

The Wall Street Journal reports that if you currently have the AmEx card from Costco, you’ll receive the new Citi Visa card automatically by the time of the June changeover. Your former Costco-connected card should be canceled. Some rewards will transfer over, and some won’t: cash rewards will transfer to users’ accounts at Citi, but rewards that are specific to AmEx will not.

Rewards for some routine purchases will be better with the new card: users will get 4% back on their restaurant purchases instead of 3%, and 4% back on up to $7,000 worth of gasoline purchases per year, instead of 3% back on up to $4,000 worth of gas.

This will be a big blow for AmEx: about 10% of their cards currently in customers’ hands are those Costco-branded ones that will be canceled in just a couple of months. Will Costco customers be fond enough of the card to get their own, non-Costco-branded AmEx accounts?

We’ll find out in June, but in the meantime, AmEx is pursuing a new generation of bulk buyers by partnering with Boxed, a site that offers a curated selection of items in large quantities, shipping them to customers’ homes.

Citi to Ship New Costco Cards in May [Wall Street Journal]


by Laura Northrup via Consumerist

Cage-Free Eggs Are More Profitable For Retailers Than Conventional Eggs

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As food retailers and restaurants announce to the public that they plan to switch to all cage-free eggs on their shelves and in their products, here’s something to keep in mind: the retailers, at least, are going to make more money after the change is fully phased in. That’s because cage-free eggs only cost only fifteen cents per dozen more to produce, but retailers can charge double for them.

That’s according to analysis from Bloomberg, which looked at the rush in recent months for retailers to join the cage-free egg party. At retail, people will pay $3.42 on average for a dozen cage-free eggs, and $1.45 per dozen at most for conventional eggs. Even if that includes other egg types like pastured or free-range, it’s a significant difference that can make the egg business more profitable…once farmers have invested in the new setups for their hens.

Most companies, especially the biggest ones with the most complex supply chains, plan to hit 100% cage-free as far as 10 years out. That’s because they must wait for existing supply contracts to run out, and for the farmers in their supply chain to change over to cage-free setups for their hens.

Cage-Free Eggs May Be Golden Goose for Retail Profits [Bloomberg]


by Laura Northrup via Consumerist

Redbox Reportedly Looking Into Starting Streaming Service – Again

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Two years after Redbox Instant was officially declared dead, the DVD rental business is poised to dip its toes into the video streaming service waters yet again. 

Variety, citing sources familiar with the plans, reports that the company is working on a new version of its defunct Redbox Instant that aims to serve as a video-on-demand type service.

According to sources, the service — dubbed Redbox Digital — will allow customers to rent movies or TV show episodes for streaming or purchase.

Variety, which received concept screenshots and a working logo for the service, describes it as similar to the current Redbox website, with the addition of a digital content store.

The company reportedly has plans to integrate the service directly into the Redbox app and extend support to TV-connected platforms, Variety reports.

Unlike Redbox Instant, the new service looks to be a competitor for services like iTunes, Vudu, or Google Play, rather than Netflix.

For that reason, Variety points out it might have a fighting chance at success, unlike its predecessor.

Redbox Instant debuted in early 2013 as a partnership between the company and Verizon. The service planned to compete with Netflix while offering one thing that Netflix couldn’t: bonus instant DVD rentals from Redbox’s in-person kiosks.

The service was marred with issues early on, as it became a popular avenue for credit card thieves to test whether or not their ill-gotten card numbers were genuine.

Redbox Instant responded by first preventing current users from changing their payment info, then by cutting off new signups. The service never opened up to new subscriptions and closed in October 2014, just months before its second birthday.

Redbox Plans to Launch New Streaming Service ‘Redbox Digital’ [Variety]


by Ashlee Kieler via Consumerist

People Keep Stealing The Sign For Glory Hole Drive For Some Reason

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glory holeWhen someone keeps stealing your street sign, it’s kind of difficult to give directions to your home. Residents who live on a private road in California have frequently faced this problem: their sign has been stolen five times, twice in the last two years. Named after a former gold mining camp, their street is called Glory Hole Drive.

That name presumably meant something different in a 19th-century gold mining context than it does today. A warning to anyone out there who is tempted to steal this or any similarly hilarious sign, though: it isn’t a victimless crime and the expense isn’t shared among many taxpayers.

For private roads like this one, it’s the people who live there who pay for sign replacement, not local government. A new sign costs about $300. CBS Sacramento points out that the last time Google Street View passed through the neighborhood, the sign was missing, too.

One resident observed that he has a habit of choosing homes on streets with highly stealable names: “We moved out from Alaska and our street name was Smoke Bowl,” he told CBS Sacramento.

Glory Hole Drive Sign A Target For Thieves Who Love Double Entendres [CBS Sacramento]


by Laura Northrup via Consumerist

BMW Gets Extension To Come Up With Takata Replacement Parts

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Automakers of cars equipped with defective Takata airbags have just a week to stockpile enough replacement parts to fix the vehicles deemed to be the most at risk for a rupture. That is, all of the carmakers beside BMW, which now has five additional months, after tests of its chosen replacement parts failed safety tests. 

Automotive News reports that the National Highway Traffic Safety Administration extended BMW’s deadline for ensuring it has a sufficient supply of remedy parts for what has been deemed “priority group 1” to no later than August 31, 2016.

In November, NHTSA issued a coordinated remedy order [PDF] to Takata, BMW, and eleven other carmakers establishing a prioritization schedule for the remedy of defective Takata inflators. The order also created deadlines for when the automakers must have enough replacement parts on hand. The first deadline is March 31 and applies to vehicles from the 2008 model year or prior that are located in hot, humid climates.

In all, BMW has about 1.8 million cars affected by the Takata recall, however the extension order only applies to a small fraction of that: 400,000 model year 2002-2006 3-series models, 2002-2003 5-series models, and 2003-2004 X5s equipped with driver side-inflators.

According to the extension order [PDF] from NHTSA, in January BMW experienced an “unexpected failure” during “robustness” tests of inflators chosen replace the Takata PSDI-4 inflators that were being sourced from an alternative supplier.

BMW then stopped production of the alternative supplier’s inflators — which were intended to last the for the lifetime of the vehicle — while it worked to find a solution.

As a result, BMW notified NHTSA in February that it would be unable to meet the March 31, 2020 deadline to have enough replacement parts fix its most at risk vehicles.

“We’re only going to put in safe inflators,” Bryan Thomas, a rep for NHTSA, tells Automotive News. “We’re not going to encourage or allow manufacturers to put unsafe inflators into their vehicles.”

While BMW waits for new inflators, the company is replacing defective inflators with Takata’s version of the replacement. However, those parts will eventually need to be replaced yet again.

The NHTSA rep says that those parts are a “safer” alternative to the original Takata inflators that have been found to rupture with such force they shoot pieces of shrapnel at drivers and passengers.

“We’re not calling them safe, but they’re an interim step until they can get sufficient supply,” of replacement inflators, Thomas said.

BMW gets 5-month extensions on Takata airbag fixes [Automotive News]


by Ashlee Kieler via Consumerist

Judge Questions Size Of Lyft California Class Action

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The proposed settlement in a class action lawsuit against ride-hailing app Lyft is quite modest compared to what the drivers initially sought: they’re getting about fifty bucks each, and Lyft has agreed to not remove drivers from the platform with no warning and without cause. Now the judge in that case is questioning the settlement, mostly because Lyft has grown significantly in California just in the time that the case has been going through the courts.

The suit was originally filed in 2013, but includes only drivers for Lyft in California. Attorneys representing the drivers negotiated the settlement of $12.25 million based on the number of drivers in June 2015, not now. A new calculation shows that the total amount that Lyft would owe drivers for vehicle expense reimbursement if they had been employees is almost double the amount calculated based on the number of drivers in June.

That wouldn’t matter if Lyft hadn’t grown significantly in the last few months, and the period covered in the class action will include that rapid growth. “Shouldn’t you have estimated what the value would be through the entire class period?” the judge asked attorneys for the drivers.

Most drivers are fine with the deal, and the attorneys agree that it’s pretty fair. Five drivers have filed their objection to the settlement, and so has the Teamsters union, which represents taxi drivers in some cities. They say that the class shouldn’t settle for anything less than being granted employee status.

U.S. judge questions Lyft settlement over driver benefits [Reuters]


by Laura Northrup via Consumerist

Snapchat Buys Bitstrips For $100M: Uniting Puking Rainbows & Cartoons Of Ourselves

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Remember that brief, weird moment a few years back when your Facebook feed was suddenly full of just-ironic-enough comic strip versions of your friends? Well, now you’ll probably see that all over Snapchat, as the messaging app reportedly agreed to pay $100 million to acquiring Bitstrips. 

Fortune, citing multiple unnamed sources, reports that Snapchat finalized a cash and stock deal to purchase Toronto-base Bitstrips, the maker of personalized emojis known as bitmojis.

Bitstrips began in 2007 by allowing user to build personalized digital comics featuring an avatar in their likeness. These scenes – which featured avatars in different scenarios like the one pictured above, making toast – regularly showed up on Facebook.

Two years ago, the company created a third-party keyboard that allows users to send a version of their avatar in different poses or scenarios to friends via text message.

While it’s unclear what Snapchat plans to do with Bitstrips, the idea of allowing users to create and send personalized emoji versions of themselves seems in line with the messaging system, which created the puking-rainbow selfie filter.

A rep for Snapchat declined to comment on the deal, and Bitstrips has yet to reply to Fortune’s inquiry.

Exclusive: Snapchat Buys Bitmoji Maker [Fortune]


by Ashlee Kieler via Consumerist

McGriddles Coming To More McDonald’s All-Day Breakfast Menus

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McDonald’s customers in Oklahoma must have been big fans of the McGriddle during lunch and dinner: the Golden Arches will expand its test of adding the syrup-flavored breakfast item to the all-day breakfast menu to another 1,000 restaurants across the country. 

Beginning Monday, restaurants in several southern states will start offering the McGriddle breakfast sandwich at all hours of the day, the Associated Press reports.

Specifically, the addition will appear on menus in Alabama, Georgia, Louisiana, Mississippi, and South Carolina.

A rep for the company tells the Tribune that McDonald’s will “continue to evolve the all-day breakfast menu.”

Tests of the all-day McGriddle began just last month, when 72 restaurants in the Tulsa, OK added the item for purchase from morning to evening.

McDonald’s began offering all-day breakfast last October after years of customers asking for it. The menu debuted with just a select group of breakfast items, including parfaits, oatmeal, hash browns, burritos, hot cakes and McMuffins or biscuits.

Restaurants have a choice to offer breakfast sandwiches made with either English muffins or biscuits, depending on what folks in that area prefer. Around 80% of restaurants have opted for McMuffins, likely because it’s a bit of an operational strain to make biscuits throughout the day.

Earlier this month, the fast food behemoth began testing its full breakfast menu all-day in a few markets.

McDonald’s: 1k stores adding McGriddles to all-day breakfast [The Associated Press]


by Ashlee Kieler via Consumerist

Multi-Tasking Shoplifting Suspect Left 11-Year Old He Was Watching Behind At Walmart

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There simply aren’t enough hours in the day to get everything done that you need to, right? Maybe that’s why a man who was keeping an eye on an acquaintance’s 11-year-old brought the boy with him to a Pennsylvania Walmart to pick up some tools. Police say that he walked out of the store without paying for the tools, leaving the boy behind.

Security confronted the man as he exited the store after loading his tools into plastic bags, and he ran for his car, driving off in a silver Ford. The kid was still in the store, though, and that didn’t seem to concern him very much.

Police found the child’s mother and had some questions for her about the incident, but she claimed not to know the name of the man she had left her son with. Police apparently didn’t believe this, and have labeled her “uncooperative.”

Her son was allowed to come home, but the police contacted youth and family services about the incident.

Suspected Shoplifter Flees Scene, Leaves Boy Behind In Montgomery County [CBS Philly]


by Laura Northrup via Consumerist

With High Shipping Costs, Online Shopping Is Not Big Business For Chocolate Makers

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Sure, shopping from the comfort of your couch can be an easy, convenient alternative to schlepping to the mall or grocery store. But there are just some things that might not be worth the trouble to have shipped. Case in point: chocolate. The sweet treat can be a real pain to transport, for both the company and customer. 

The Wall Street Journal reports that chocolate makers are having a difficult time finding balance when it comes to ensuring their product arrives in perfect condition and the mounting costs to actually ship the goods.

Companies like Hershey and Mars usually employ refrigerated trucks to ship pallets of their products to retailers, ensuring the chocolatey cargo doesn’t melt or “bloom” — the white film that covers the treats when sugar and fat rise to the surface.

While companies like Hershey and Mars usually employ refrigerated trucks to ship pallets of their products to retailers, ensuring the chocolatey cargo doesn’t melt or “bloom” — the white film that covers the treats when sugar and fat rise to the surface.

But that type of shipping isn’t exactly economical when a customer orders a single box of chocolates for Valentine’s Day online.

The WSJ reports that keeping such a small shipment cool often costs more than the chocolate itself. For example, a $4.25 bag of Hershey Kisses has a shipping cost of $6.95.

But that’s not the only shipping related cost customers might encounter when shopping their favorite chocolate maker online. Hershey also “strongly suggests” that customers buy liquid ice packs and a foam cooler for another $4.99. All together that $4.25 bag of chocolate now costs you about $20.20, and that’s without figuring in taxes.

These high costs, and other logistical issues, have many chocolate makers looking for ways to revamp and streamline their shipping options.

Hershey’s recently hosted a competition in which people competed to design the lightest, most-affordable packaging to keep its goods from melting for at least 48 hours. The company hasn’t announced a winner for the $25,000 prize yet.

“We were talking about it, and our e-commerce team said, ‘We need to find a better solution,’” Eric Zampedri, a packaging engineer in Hershey’s research and development office, tells the WSJ. “If we can reduce the cost for us, we can reduce it for consumers too.”

For now, the company continues to ship its products from distribution centers using parcel carriers, packing on sometimes two to three pounds of ice to keep each five-pound box of chocolate cool, Zampedri says.

The WSJ reports that it’s not just large chocolate companies that are struggling with shipping their goods directly to consumers; smaller, speciality chocolatiers are also looking for ways to decrease shipping costs.

Vosges Haut-Chocolat, a Chicago company that sells truffles and chocolate bars, tells the WSJ that it loses money on most cold shipments to consumers. Yet, it can’t discontinue the service, as online sales made up 20% of the company’s $26 million in revenue last year.

To help offset the costs, the company includes a $10 shipping surcharge to cover cool shipping on customer orders. In order to decrease the costs passed on to customers, the company is looking to use a combination of gel packs and ice pack.

“The biggest hurdle is…maintaining that balance of what the customer is willing to pay for, and how to ship it to them in the best condition possible,” Zach Jarosz, Vosges’s supply-chain planning manager, says.

High Cost of Keeping Chocolate Cool Tempers Online Sales [The Wall Street Journal]


by Ashlee Kieler via Consumerist

VW, Porsche Recall 800,477 SUVs Because Pedals Shouldn’t Be Loose

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When preparing to hit your car’s brake pedal, the last thing you want is for the control to be broken. Unfortunately, that could be the case for more than 800,000 Volkswagen and Porsche SUVs. 

The recall of 800,477 model year 2011 to 2016 VW Touareg and Porsche Cayenne vehicles was initiated after the company found that their foot pedals could come loose, Bloomberg reports.

While the recall hasn’t been posted by the National Highway Traffic Safety Administration yet, the issue reportedly involves a clip that could be loose on the bearing bracket for the pedals on the cars.

VW says it found the potential defect during internal checks. Owners of the affected vehicles will be notified and dealers will fix the issue in less than half an hour.

VW Recalls 800,477 Touareg, Porsche Cayenne SUVs to Check Pedals [Bloomberg]


by Ashlee Kieler via Consumerist

Former Corinthian College Students To Have Easier Time Getting Student Loan Discharges

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For nearly a year, advocates and lawmakers have shared their dissatisfaction with the Department of Education’s pace and complicated process on discharging the student loan debt for students of now-defunct for-profit chain Corinthian Colleges. Today, the Department is expected to clear a path for debt relief for these students after determining that state investigations into the schools found enough proof that the company widely misled students about their futures if they attended the schools. 

The Washington Post reports that the Dept. of Education determined that findings from joint investigations with several state attorneys general, including those from Massachusetts, Illinois and Wisconsin, provide proof that Wyotech, Everest University and Heald College campuses lied about how many students graduated from its programs, obtained gainful employment after attending the schools, and misled students on their job prospects during the enrollment process.

According to the Department of Education, under the law, students may be eligible for loan forgiveness of any federal Direct Loans taken out to attend a school if that school committed fraud by doing something or failing to do something, or otherwise violated applicable state law related to the loans or the educational services paid for.

While the rules are fairly straightforward, actually proving the hardship is difficult and often unclear. Education Department officials have said in the past that the agency failed to draft rules after the law was passed in the early 1990s. Until last year, only five applications have been submitted to the Department, and just three were granted.

That means when students submit their claims, it’s unclear what proof is needed to demonstrate a school committed fraud. Earlier this year, the Dept. began taking steps to clarify the process by drafting new rules.

The Department’s announcement today means that thousands of students who attended Everest and Wyotech schools in more than 20 states can now seek loan forgiveness by having their claims grouped together to speed up the process.

A similar deal was created for students of Heald College campuses in California, Hawaii, and Oregon last year after the Dept. levied a $30 million fine against the schools for falsifying job rates.

Independent monitor for the relief process, Joseph Smith, said at the time that his team of four attorneys had reviewed claims where the “facts and law are clear.”

The Post reports that anyone who was enrolled at one of the Everest or WyoTech programs listed on the department’s website can apply to have their federal student loans forgiven by filling out an attestation form found at http://ift.tt/1PuOcMe.

The Dept. says it will also notify the affected former students through mailers, email, partner organizations, and other means.

“When Americans invest their time, money and effort to gain new skills, they have a right to expect they’ll get an education that leads to a better life for them and their families. Corinthian was more worried about profits than about students’ lives,” Education Secretary John B. King tells the Post. “Through these important partnerships with states’ attorneys general, we are pleased to offer relief to Corinthian students who were defrauded.”

In all, independent monitor Smith said on Friday that the Dept. has approved student loan discharges for more than 8,800 former Corinthian students, totaling more than $130 million. About $42.3 million is related to defense claims from 2,048 borrowers, the Post reports.

So far, nearly 600 Heald students have been granted $10.3 million in total relief, and another 190 Everest and WyoTech students have been approved for $4.1 million in relief.

While those numbers may seem large, they’re only about half of the total number of claims submitted, Smith says, noting that there are still 8.952 open defense claims that need to be reviewed.

Corinthian students may have a clearer path towards debt relief [The Washington Post]


by Ashlee Kieler via Consumerist

Gree Must Pay Record $15.45M CPSC Penalty For Self-Immolating Dehumidifiers

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This morning at the Consumer Federation of America’s Consumer Assembly in Washington, DC, Consumer Products Safety Commission Chairman Elliot Kaye announced a record civil penalty against Gree Electric Appliances, the manufacturer of millions of particularly flammable dehumidifiers that were recalled in 2013 and 2014. The company has been ordered to pay $15.45 million to the CPSC to settle charges that they failed to report fires to the Commission, “knowingly made misrepresentations to CPSC staff,” and put UL safety marks on products that didn’t meet UL standards.

Longtime readers might remember this recall: we publicized it heavily at the time, and helped readers who wondered where their promised refund checks were, or who had other concerns about the recall. Their main complaints were that their refunds were significantly delayed, or that the amount they received didn’t cover the expense of buying a new appliance –– when they were able to find any dehumidifiers available in stores at all. In some areas, they were responsible for hefty recycling fees to get rid of the appliances as well.

Those were the people whose dehumidifiers hadn’t caught fire. The CPSC says that fires caused by these appliances caused almost $4.5 million in property damage across the country. One of the charges that Gree is settling is that they knew about the fires, but didn’t notify the CPSC in a timely manner.

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This morning, Chairman Kaye delivered the news in his keynote speech at the Consumer Assembly, telling consumer advocates that this record penalty for a single violation, the largest in agency history. has an important purpose: it tells companies that they should consider CPSC penalties to be an actual deterrent, not a nuisance.

“Companies can no longer write civil penalties off as a cost of doing business,” Kaye told the crowd. This is the highest penalty for a single offense that the CPSC has ever imposed. The cap, previously $1.8 million, was raised in the Consumer Product Safety Improvement Act of 2008 (CPSIA).

Gree Agrees to Pay Record $15.45 Million Civil Penalty, Improve Internal Compliance for Failure to Report Defective Dehumidifiers


by Laura Northrup via Consumerist

Leaked Info For 1.5 Million Verizon Enterprise Customers Posted Online

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While all of us regular Verizon customers can give a sigh of relief that our information wasn’t posted online in a recent hack attack, nearly 1.5 million customers of Verizon Enterprise Solutions — the portion of the company that deals with other businesses’ data breaches — weren’t so lucky. 

Krebs on Security reports the data — including contact information for the 1.5 million customers — was posted for sale on an “underground cybercrime forum” earlier this week.

Hackers advertised the sale of 100,000 records for $10,000 or all of the information for $100,000. The group also offered the option for buyers to purchase information about security vulnerabilities in Verizon’s Web site.

A rep for Verizon Enterprise says the company recently identified a security flaw in its site that allowed hackers to steal customer contact information, and that it is in the process of alerting affected customers.

“Verizon recently discovered and remediated a security vulnerability on our enterprise client portal,” the company tells Krebs on Security. “Our investigation to date found an attacker obtained basic contact information on a number of our enterprise customers.”

The company says that no customer data was affected by the breach.

Krebs warns that if hackers do get their hands on some of the enterprise customer data, they could be targeted for phishing an other attacks.

Crooks Steal, Sell Verizon Enterprise Customer Data [Krebs on Security]


by Ashlee Kieler via Consumerist

Netflix Admits To Throttling Its Own Streams On AT&T, Verizon Wireless Because Data Caps

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If you have a network connection of a certain speed available on your phone, you expect receive data at roughly that speed, more or less. That’s how it works. Except that’s not how it’s been working for Netflix: the popular streaming video service was moving at a fraction of what users expected, on Verizon and AT&T networks. Consumers were all ready to line up and blame their mobile carriers, but the wireless companies weren’t the ones screwing around with anything, as it turns out. Netflix was.

The Wall Street Journal confirmed late last night that for the the last five years, Netflix has been capping their own mobile data streams at 600 Kbps on most wireless networks around the world.

The reasoning? If you hit your data cap and get socked with overage fees you won’t be watching any more Netflix this month — and you might cut back in future months, too. Therefore, in the interest of keeping customers watching and subscribing, they throttled the streams.

In terms of data usage, it’s easy to see why they chose that tactic. When we did the math on HD video a while back, Netflix was recommending a connection of 5MBps or faster in order to view HD video content… and their HD video streams used about 3 GB of bandwidth per hour. We calculated that viewing a lot of video (like, say, the entire 62-episode run of Breaking Bad) would put you so far over your average mobile data cap as to be completely ludicrous. In fact with those numbers, you’d go over a 3 GB data plan — Verizon’s “medium” — in a single episode.

Except millions of people with 3GB or 10GB data plans manage to watch Netflix for a few hours a month without going hundreds of dollars over their limits. So what gives?

Netflix gives.

Although your average modern mobile 4G LTE network can easily download data at speeds between 10 and 50 Mbps, the throttled Netflix streams are capped at less than 5 Mbps, allowing you to stroll, rather than sprint, towards your monthly data cap. You’ll still get there if you’re not using WiFi when you can, but it’ll take longer.

But wait: Netflix admitted to doing it for Verizon and AT&T customers, but not for T-Mobile or Sprint. Why not? Because “historically those two companies have had more consumer-friendly policies,” Netflix told the WSJ. Specifically, they mean the practice of throttling down data instead of charging overage fees. Watching too much Netflix in one week might mean you can’t for the next three weeks, but it won’t make you broke. And consumers are very sensitive to hits in the wallet region.

(T-Mobile customers, however, may still see reduced-quality Netflix streams thanks to the carrier’s BingeOn program.)

An AT&T representative told the WSJ, “We’re outraged to learn that Netflix is apparently throttling video for their AT&T customers without their knowledge or consent.” And while Netflix customers now have knowledge, there’s a decent case to be made that they didn’t exactly consent.

However, now that they’ve been called out on their behavior, Netflix says they’re working on ways to give consumers some say. They are “exploring new ways to give members more control in choosing video quality,” they told the WSJ, as well as soon launching a “mobile data saver” that will allow subscribers to tinker around with their mobile streaming settings.

Netflix Throttles Its Videos on AT&T, Verizon Networks [Wall Street Journal]


by Kate Cox via Consumerist

Dollar General Plans To Open 2,000 New Stores, Remodel 870 Others Over Two Years

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A year after sticking it to Family Dollar for brushing off its $9 billion takeover bid by saying it would open 730 new stores in 2015, Dollar General is continuing to spend the money its rival retailer wouldn’t take, announcing its plans to open 2,000 new stores through 2017. 

The Associated Press reports that Dollar General announced during an investor meeting Thursday that it will open 900 new stores and relocate or remodel 875 other stores during the next 12 months.

As for 2017, the company says it will open about 1,000 additional locations.

Dollar General’s determined expansion plan comes as a sign the company is continuing to respond to added competition from the year-old merger of the Family Dollar and Dollar Tree companies.

Those two companies combined to have about 13,000 stores. Under Dollar General’s plan it would recapture the top dollar store crown with a total of more than 14,000 stores.

While Dollar Tree was ultimately named the victor of the dollar store war and won the heart of Family Dollar, had Dollar General been successful in landing the smaller store, it would likely have had to sell off nearly 4,000 stores.

The sordid dollar store love triangle began back in July 2014 when Dollar Tree made an $8.5 billion bid for North Carolina-based Family Dollar. Not one to feel left out, Dollar General proceeded to provide an unsolicited bid of $8.95 billion for the smaller chain.

But Family Dollar wasn’t feeling the love and rejected the Dollar General offer citing “significant antitrust issues” because the two chains have similar business models. Both Dollar General and Family Dollar sell items at different dollar price points, catering to low-income shoppers, while Dollar Tree caters to more middle-income shoppers and sells most items at $1.

Dollar General came back with a second bid of $9.1 billion and in an attempt to ease Family Dollars’ anti-trust review fears, it proposed closing 1,500 of the potentially combined-companies 20,000 stores.

Yet, that still wasn’t enough and Family Dollar rejected the bid, choosing instead to stay with its true love, Dollar Tree. Dollar General subsequently turned hostile, taking its big directly to shareholders in September.

The ordeal concluded in January when the shareholders for Family Dollar overwhelmingly voted in favor of a smaller, but safer, takeover bid from Dollar Tree, effectively crushing the heart of aggressive suitor Dollar General.


by Ashlee Kieler via Consumerist

Consumerist Friday Flickr Finds

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

(Eric BEAUME)
(Wolf SilverOak)
(Karen Chappell)
(frankieleon)
(Clyde Stringer)
(Karen Chappell)

Want to see your pictures on our site? Our Flickr pool is the place where Consumerist readers upload photos for possible use in future Consumerist posts. 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

Thursday, March 24, 2016

Playboy Reportedly Looking To Sell Itself

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A mansion with Hugh Hefner inside might not be the only thing Playboy Enterprises is looking to get off its hands: the company is reportedly toying with the idea of selling itself. 

The Wall Street Journal, citing people familiar with the situation, reports that the company is exploring a sale to companies that would license the brand for use in consumer goods, new media outfits, and trophy buyers.

The sources estimate that the company could bring in about $500 million in a possible sale.

While Playboy, which was taken private in 2011, doesn’t disclose financial information, documents reviewed by the WSJ calculate the company’s 2015 revenue at $38 million for media, and $55 million from licensing its brand to other companies.

The company put the mansion — with Hefner still inside — on the market for $200 million in January; sources say the possible sale of the company could include that property.

Reports that the company might be exploring a sale come just months after the magazine announced it would be getting rid of full-frontal nude photos. The magazine’s March issue is the first one where models keep their clothes on.

Playboy Enterprises Explores Sale [The Wall Street Journal]


by Ashlee Kieler via Consumerist

Why Is My House Listed For Rent On Craigslist?

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It must be an awkward conversation when you call up a friend to let her know that the house she owns is up for sale on Craigslist, but protecting us from scams is just one of the many purposes that friends serve in our lives. In California, a woman was surprised to learn that her house was listed as a rental on Craigslist, when she had no plans to rent it out.

Perhaps it was a mixup. While the ad didn’t list the home’s address, which is fortunate, it was definitely a photo of her house. She contacted the number listed on the ad, and the man who answered the phone stopped talking when

What’s the scam here? CBS Los Angeles talked to another woman who had inquired about renting the house, which was advertised as a “rent-to-own” deal at an appealing price. The fake landlord advertising a real house asked her for $40, and she gave him her credit card information to charge her.

She doesn’t know whether the scam was just about collecting the forty bucks, or they were collecting credit card numbers to use for shopping sprees.

Find out how to look up property records in your area to make sure that a person who claims to own the home you want to rent actually does. Most importantly, though, don’t pay an application fee or submit a credit report from any sites that the prospective landlord sends you to, especially if you haven’t visited the property yet.

Woman Finds The Home She Owns Listed For Rent On Craigslist [CBS Los Angeles]


by Laura Northrup via Consumerist

Would You Borrow Your Outfits By Mail For $139 Per Month?

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Would you treat your wardrobe like a Netflix DVD subscription? Rent the Runway, a company known for renting out special-occasion dresses and ugly holiday sweaters, has been testing a service that they call Unlimited for a few years now, finally letting it out of beta. The idea? You rent three pieces of designer clothing at a time, receiving the next one in your queue when you send one back to be dry cleaned, or just because you’re tired of it.

The service is targeted to women who like high-end clothing, dislike cleaning out their closets, and who want to have a theoretically unlimited wardrobe. It also helps if you’re willing to spend $1,668 per year on clothes that you won’t necessarily get to keep.

In an interview with the Washington Post, CEO Jennifer Hyman pointed out that the money customers would normally spend on fast-fashion pieces they might wear once or twice could go toward the rental service instead, simply borrowing and disposing of on-trend pieces in a different way, with less waste.

“Your closet no longer has to be a graveyard for questionable purchases and bad trends,” Hyman said in the company’s statement announcing the service.

The subscription price includes shipping, dry cleaning, and insurance, but would not make an acceptable alternative to doing laundry. Insurance covers minor clothing mishaps, and customers will have to pay 70% of an item’s retail price if they seriously trash it. They will also have the option to buy items that they want to keep forever at a discount.

Incidentally, some of those “designer” brand items include Rent the Runway’s house brands, which the company says are of comparable quality to items from designers that you’ve actually heard of.


by Laura Northrup via Consumerist

Report: YouTube Working On Live-Streaming Video App

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YouTube might be stepping up to bat against Twitter’s Periscope and Facebook Live with its own foray into the live-streaming video world, according to a new report.

Google’s video division is working on YouTube Connect, an app that streams video as it’s happening, Venture Beat reports, citing insiders close to the matter.

According to VentureBeat, YouTube Connect will be available on both iOS and Android devices. Google is staying mum.

YouTube Connect will work a lot like other similar apps, a source said: live videos will be available within the app as well as on the YouTube site itself. Users can log in using their Google or YouTube Account and start streaming from their mobile phone.

There’s a built-in chat function and tagging features, as well as a news feed that shows clips from friends or other accounts you’ve subscribed to on YouTube. Users will be able to stores some broadcasts in the app, so you and friends can replay your shenanigans in the future.

It’s unclear when YouTube connect will be released, but as VentureBeat notes, Google’s I/O developer conference is coming up in May, which would be a likely time to debut a new product.

Google is building YouTube Connect, a livestreaming app to take on Periscope [VentureBeat]


by Mary Beth Quirk via Consumerist

U.S. Customs Officials Find 755 Pounds Of Marijuana In Shipment Of Fresh Broccoli

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Perhaps one might figure that one kind of green plant matter could easily pass as another kind, say, marijuana masquerading as a shipment of fresh broccoli. They’re the same color! But U.S. Customs and Border Protection officers weren’t born yesterday, and they can tell the difference between nutritious vegetables and weed.

Officers with the Office of Field Operations at the Pharr International Bridge cargo facility in Texas were inspecting a semi truck hauling a shipment of broccoli from Mexico on Tuesday, when they found 661 packages — 766 pounds — of marijuana tucked in among the veggies.

“I commend our frontline officers at our cargo facility for their dedication and commitment towards the CBP mission of helping keep drugs from crossing our border,” Port Director Efrain Solis Jr. said. “Our ability to analyze all the information presented with commercial importations in conjunction with officer experience, is the basis for accomplishing these type of interceptions.”

Customs officers have put a $153,00 street value on the pot, which they seized, along with the truck it came in, and say the investigation is still ongoing.


by Mary Beth Quirk via Consumerist

VW Gets Another Month To Come Up With Plan For Vehicles With “Defeat Devices”

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Today was the day, the deadline for Volkswagen to come up with a fix for some 500,000 diesel-engine vehicles that contain “defeat devices” to skirt federal emissions standards, only that didn’t happen. Instead, a judge is giving the company one more month. 

The Associated Press reports that U.S. District judge Charles R. Breyer gave VW until April 21 to provide him with a detailed plan to bring the affected vehicles into compliance with clean air laws and compensate owners, or risk going to trail.

Breyer previously declared that six months was long enough for VW to find a solution to the issue, emphasizing that every day the cars remain in use additional pollution is emitted.

“It’s an ongoing harm that has to be addressed,” Breyer said back in February. “I’ve found the process is a function of how much time people have available to fill. The story about lawyers is that if you give them a year to do something, it will take them a year to do something. If you give them 30 days to do something, they’ll do something in 30 days.”

Breyer changed his tune a bit on Thursday, saying that former FBI director Robert Mueller, appointed to oversee discussions between the parties, had told him that the carmaker, regulators, and attorneys have made progress on the issue.

The parties were not able to immediately announce the solution because engineering technicalities and other important issues still needed to be resolved, Breyer said Mueller told him.

“I would hope by the 21st that as many outstanding issues as possible will be wrapped up,” he said Thursday, warning that he would seriously consider holding a trial this summer if a solution isn’t created soon.

A spokesperson for VW tells the AP that it is committed to finding a fair resolution.

Volkswagen gets a month for plan on diesel emissions fix [The Associated Press]


by Ashlee Kieler via Consumerist

Coke Says It Paid $132.5M To Fund Scientific Research Over A Five-Year Period

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After facing backlash and fallout from its funding of the now-defunct Global Energy Balance Network — an anti-obesity organization with a decidedly pro-soda bent — Coca-Cola began disclosing all of its spending in the U.S. on scientific research and health partnerships. Now, nearly six months after first disclosing it had spent $118.5 million in a five-year period, the company has come back with an updated figure of $132.8 million. 

The Associated Press reports that Coca-Cola has doubled back and revised its initial discolors — unveiled in September 2015 — after conducting an internal investigation.

In all, the company says it spent $132.8 million on scientific research and health partnerships from 2005 to 2010.

The hefty tab went toward funding for groups like the Juvenile Diabetes Research Foundation, the National Park Foundation, a health fair for the National Organization for Mexican American Rights, the American Council for Fitness and the American Diabetes Association.

But it also included payments to health and fitness experts who simply mentioned the company’s products in blog posts or columns, the AP reports.

The company says that the $1 million it gave to the University of Colorado for the creation of the Global Energy Balance has also been returned. However, $507,000 given to the University of South Carolina as part of GEBN has yet to be returned.

GEBN, which stressed the importance of proper diet and exercise in fighting obesity, came out of nowhere in recent years thanks to purportedly no-strings-attached funding from Coca-Cola. However, the group’s motives were questioned when its leadership made public statements that seemed to directly echo beverage industry talking points.

The organization, based at the University of Colorado School of Medicine, claimed that it was the media, and not science, that had linked the obesity problem to high-calorie foods, declaring that there is “virtually no compelling evidence that that, in fact, is the cause.”

When Coke’s involvement in the GEBN became known, the beverage biggie claimed it took a hands-off approach to the group. However, subsequently revealed emails showed that Coca-Cola was heavily involved in shaping the group’s message, likening it to “a political campaign, we will develop, deploy and evolve a powerful and multi-faceted strategy to counter radical organizations and their proponents.”

GEBN officially ceased to exist in December 2015.

In addition to revising its expenditures for research and health organizations, Coca-Cola says it removed several inaccurate listings from its website disclosing the partnerships, the AP reports.

Coke discloses more of its funding on health efforts [The Associated Press]


by Ashlee Kieler via Consumerist

Judge Scolds FTC For Maybe Telling Amazon Exec What To Say In Staples-Office Depot Hearing

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Is Amazon a valid competitor to Staples and Office Depot for the business of corporate office supply customers? In a hearing in the federal lawsuit that the Federal Trade Commission has filed against the two retailers, the government argues that it isn’t yet, and the two stores argue that it is, or soon will be. Yesterday, an attorney for Staples accused the FTC of telling an Amazon executive what to say in his testimony about his company’s plans for office supply domination, earning criticism from the judge.

We downloaded the transcript of Wednesday’s testimony from Amazon VP Prentiss Wilson, head of the Amazon Office division, which is a quick read for a 92-page document since the session was supposed to be closed, and access to the transcript limited. (You can download the PDF here, if you like scrolling through a series of black rectangles interspersed with some text.)

The FTC’s goal in this hearing, which is expected to last through the end of next week, is to get a preliminary injunction and stop the proposed merger.

Staples attorney Diane Sullivan asked Wilson whether the FTC had specifically asked him to say that Amazon wasn’t as far along in developing their commercial business supply operation as Staples and Office Depot claim.

She pointed to a draft affidavit that the FTC gave to Amazon’s lawyers, which said that Amazon wouldn’t be prepared to compete for large business supply contracts within the next two years.

That wasn’t actually the case: Wilson said that it’s possible that Amazon may be able to bid on large corporate contracts relatively soon. Amazon Business has already started to bidding on a few contracts, and the company is working to get the infrastructure in place that they’ll need to compete with Staples, Office Depot, or a merged StaplesMaxDepot.

Sullivan recounted the FTC’s draft comments for the court during her cross-examination of Wilson:

Currently, Amazon Business does not believe it will be in a position to respond more comprehensively to large office supply customer RFPs until the beginning of 2017. And Amazon Business will do so only if it can successfully develop and launch the required technologies over the course of 2016.

U.S. District Judge Emmet Sullivan ordered that the parts of the transcript recounting the FTC’s helpful suggestions be made public. “The public ought to know that the government wanted Amazon to say some things that weren’t true,” he told the court, “and that’s going to be public.”

Staples Judge Slams FTC for False Testimony in Office Depot [Bloomberg]
TRANSCRIPT OF PRELIMINARY INJUNCTION AFTERNOON SESSION – SEALED TRANSCRIPT [PDF]


by Laura Northrup via Consumerist

Facebook Creating A Tool To Tell You When Someone Impersonates Your Profile

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You may have been there: you see a Facebook friend posting a warning not to accept a “friend” request from a fake account baring their name and photo – it’s a trick, that person isn’t really your friend. While you might still see that cautionary message in the future, Facebook is now taking steps to weed out accounts impersonating others. 

Facebook says it is working on a new tool that will automatically alert users when it detects someone else is impersonating their account, Mashable reports.

If Facebook detects a duplicate account, it will automatically send an alert to the original account owner. That person will then be prompted to identify if the profile in question is indeed a fake or if it truly belongs to someone else.

Mashable reports that while the notification process is automated, flagged profiles will be reviewed by Facebook employees.

The social network says the new feature, which it started testing in November and now covers about 75% of accounts, was created as a way to curb harassment on the site.

The topic was discussed heavily during Facebook-hosted roundtables on privacy and safety that were recently held with users from around the world.

“We heard feedback prior to the roundtables and also at the roundtables that this was a point of concern for women,” Antigone Davis, Facebook Head of Global Safety, tells Mashable. “And it’s a real point of concern for some women in certain regions of the world where it [impersonation] may have certain cultural or social ramifications.”

The impersonation identification tool is just one part of the company’s mission to eradicate harassment on the site. It is also working on ways for users to report nonconsensual intimate images and a photo checkup feature.

Davis tells Mashable that initial testing of the more robust reporting processes — which provides resources for those who have been harassed — have gone well, but there are no plans make them widely available just yet.

Facebook is testing a feature that alerts you if someone is impersonating your account [Mashable]


by Ashlee Kieler via Consumerist

Man Arrested For Not Returning ‘Freddy Got Fingered’ VHS Rental In 2002

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If you’ve got any old VHS tapes still kicking around, now might be a good time to make sure they weren’t rentals you forgot to return way back when. Otherwise, you may find yourself clapped in handcuffs, like a North Carolina man who was recently arrested for failing to return a VHS copy of Freddy Got Fingered to a video store in 2002. Yes, this really happened.

The rental store has since closed, but that didn’t stop police for arresting the man after he was pulled over for a tail-light that was out while driving his daughter to school Tuesday morning, reports WSOC.

After the officer ran his license and a 25-minute wait, he was asked to step out of his vehicle.

“The officer said, ‘I don’t know how to tell you this but there’s a warrant out for your arrest from 2002. Apparently you rented the movie “Freddy Got Fingered” and never returned it.’ I thought he was joking,” said the man. Nope, not joking.

The officers let him take his daughter to school and go to work as long as he promised to turn himself in later that day. He figured he’d sort everything out at the station, so he was surprised when officers arrested him on the charge of failure to return rental property, a misdemeanor punishable by a fine of up to $200.

He says he vaguely recalls renting the movie, starring comedian Tom Green — who called him up on Wednesday night to say hello.

The mans’ friend had shared his story with Green on Twitter, the New York Daily News reports, and the comedian found it totally hilarious, if not somewhat unreal.

The comedian, who is currently on a stand-up tour in Australia, told the NYDN that he’s happy to support fans of his film, which currently has an 11% rating on Rotten Tomatoes. He added that he could put in a good word for the man in court, or help out with some cash — to a point.

“If it’s 200 bucks of course I’ll pay it for him, just for the principle of the thing,” Green said.

Concord man arrested for not returning VHS rental 14 years later [WSOC]
North Carolina man arrested for not returning 2001 VHS rental of ‘Freddy Got Fingered’ could have fine paid by movie’s star Tom Green [New York Daily News]


by Mary Beth Quirk via Consumerist

Gerber Recalls Baby Food Pouches Because You Shouldn’t Feed Your Kid Anything Spoiled

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Giving your child a pouch of baby food can make for a convenient and less messy dinner. But you know what might make that dinner a little bit less delicious? Coming down with an upset stomach and then finding out what’s inside that pouch is spoiled. For that reason, Gerber announced the recall of select Organic pouch products. 

The company announced the voluntary recall of four batches of Gerber Organic 2ND FOOD pouches that may contain a packaging defect that could lead the product to spoil during transport and handling.

A spokesperson for Gerber tells Consumerist that when the affected pouches of Pears, Carrots, & Peas and Carrots, Apples, & Mangoes in question left the factory they passed quality tests.

“We later received reports through our review of consumer contacts that products may appear bloated or product inside may have an off taste or odor noticeable to some parents,” she says. “Because we want to maintain the integrity of our baby foods and uphold our high quality standards, we are voluntarily removing the pouches in question from stores and online retailers.”

According to a notice filed with the Food and Drug Administration, Gerber received three reports from consumers of temporary gastronomical symptoms after digesting the baby food. However, the company says they have been unable to confirm that these are related to the affected product.

The company says it is working with physical and online retailers nationwide to remove the product from shelves.

It’s unclear exactly how many pouches are being recalled. The Gerber spokesperson tells Consumerist that a “limited number of batches” – two batches of each variety being recalled – contain the packaging defect, and that no other Gerber products are affected. As for other company’s products that may be produced at the plant, the spokesperson said Gerber considers production information to be “considered proprietary information.”

The affected pouches, which may be bloated and contain product that has an off taste or oder, can be identified by UPC codes and “best by” dates near the bottom of the package.

Screen Shot 2016-03-24 at 12.07.45 PM

Affected products have the following codes and best by dates:

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Consumers who purchased pouches are encouraged to contact the Gerber Parents Resource Center at 1-800-706-0556 anytime day or night for a replacement coupon.

“Like you, we place the health and well-being of your baby above all else, and all our baby foods must meet our rigorous quality standards,” Gerber CEO Gary Tickle said in a statement. “I sincerely apologize for any concern this may have caused.”


by Ashlee Kieler via Consumerist

Sony Planning To Make PlayStation Games For iOS, Android Devices

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In an effort to cut a slice out of the mobile gaming market, Sony says it’s planning to create a new division of the company devoted to making PlayStation games that can be played on iOS and Android devices.

Before you go rubbing your hands in glee, eager gamers, you should know that the fun may be geographically limited: the project will be available to users based in Japan and Asia, today’s announcement says, though it’s unclear if that means it’s only starting out there and will eventually spread elsewhere, or if it will remain limited in scope.

The new division, called ForwardWorks, will officially launch on April 1, at which point it’s likely more details will be revealed.

Nintendo also has a mobile game out there right now, Miitomo. But it’s more of a social app that lets users invent cartoon avatars based on characters in the Wii game system.

Sony’s last attempt at breaking into the smartphone world didn’t work out so well, TechCrunch points out, after the company shut down PlayStation Mobile last year. The cross-platform product offered games that worked on both PS Vita and Android devices, and was tied to Sony’s Vita handheld devices.


by Mary Beth Quirk via Consumerist

Fake Food Festivals Want To Gobble Up Your Credit Card Information

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Food festivals: they’re lots of fun, great for tourism, and celebrate local cuisine and restaurants. Unfortunately, a new scam is ruining the good name of food festivals by taking consumers’ money in exchange for tickets to a food festival that doesn’t actually exist. The non-event is touring around the country: don’t get your hopes up about an unlimited crab dinner and lose your money.

Our colleagues down the hall at Consumer Reports shared how this scam works: you see an ad online, maybe on Facebook or on Groupon, for a new local food festival that you’ve never heard of, with names like the “Hot Garlic Crab Feed” or “The Super Crab Festival.” The deal is that you pay $50 for unlimited food including fresh crab, or $99 for an upgraded ticket that includes steak and lobster.

Enough people have thought this sounded like a fun time and a good deal that they bought tickets and showed up at the sites where the crab feeds were supposed to be. The fake festival has hit San Francisco, Los Angeles, Phoenix, and Houston so far.

How should you know to stay away from this non-festival? Note that when you click on the site, it redirects you straight to a separate, seemingly unrelated site to buy tickets.

The purported Dungeness Crab Association website looks unprofessional, and the Facebook page that the site links to no longer exists. Unless the people behind it were very dedicated, a fake festival would have phone numbers and e-mail addresses that were fake, or that no one answered.

No matter how delicious a new festival might look, check it out before signing on to buy tickets.

Beware of the Fake Food Festival [Consumer Reports]


by Laura Northrup via Consumerist

Starboard Once Again Throwing Around Its Weight, Starts Fight To Oust Yahoo Board

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Activist investors at Starboard Value are once again looking to shake things up at a major company. After essentially forcing the now-contested Staples-Office Depot merger, questioning the number of breadsticks handed out at Olive Garden and ousting the entire Darden Restaurant Inc. board, the investor group has launched a fight to remove the entire board of Yahoo. 

Reuters reports that Starboard began a proxy fight on Thursday to remove the board, including CEO Marissa Mayer, and nominate its own nine candidates for the board.

The fight comes after the investor group has been very vocal about its desire for Yahoo to get out of the internet business.

Starboard has pushed for the company to auction its core business — including search, mail, and news sites — possibly to private equity firms. Yahoo launched an auction in February after ditching a plan to spin-off its stake in Alibaba, Reuters reports.

Some Yahoo investors had previously pushed for a merger with AOL, but that option went “poof” last year when Verizon acquired that other web 1.0 relic for $4.4 billion. Before that, there was talk of an acquisition by Microsoft that never came to fruition.

“We have been extremely disappointed with Yahoo’s dismal financial performance,” Starboard said in a letter to Yahoo, noting that the company’s desire for a proxy fight was initiated in order to ensure the sale of the company’s business went smoothly.

Starboard said it remained open to discussions with Yahoo and was hopeful that it could reach an agreement to get involved with the company.

Yahoo tells Reuters that it will review Starboard’s nominees.

The company and the investor group could still come to an agreement on the business’s future before a scheduled June annual meeting, Reuters reports, adding that any agreement would hinge on Yahoo’s willingness to give up its board.

However, if the groups can’t avoid a proxy fight and the Yahoo board election is taken to a shareholder vote, analysts expect decisions to fall to the large mutual and index funds that own the stock.

“We think everyone getting into the stock over the past six months, and most of those easing their way out, will all side with Starboard,” Don Bilson, head of event-driven research at Gordon Haskett, an independent research firm, tells Reuters.

News of the proxy fight is just the latest incident in which Starboard has been able to flex its muscle and push around companies.

In late 2014, the activist group began pushing — via strongly worded letters — for an Office Depot, Staples marriage. At that time, Starboard had recently taken a 5.1% stake in Staples and increased its existing holding in Office Depot by about 10%.

Before that, the company roundly mocked Olive Garden and then seized seats on its parent company’s board of directors.

Starboard launches proxy fight to remove entire Yahoo board [Reuters]


by Ashlee Kieler via Consumerist

After Surviving A Tornado, House Gets Accidentally Destroyed By Wrecking Crew

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Mother Nature may pose a danger to mankind at times, but we humans can do a pretty good job of messing things up all on our own. For example, a homeowner in Texas was relieved when her house was spared from a tornado… and then incredibly upset to find that a wrecking crew had demolished the house accidentally.

What nature spared, man took away, when the woman arrived home this week to find that a demolition company had made a mistake and accidentally tore down her house, reports KMOV.com.

Though tornadoes had touched down in the area in December, wreaking havoc on other houses in the neighborhood, her home had escaped serious damage. She and her family had been preparing to make repairs to the house after an engineer deemed it structurally sound. The house did not escape human error, however.

“Boom. Just like the tornado came through again,” the homeowner told KMOV of finding her home demolished.

She says she met with the demolition supervisor right after the incident, who told her what happened: the wrecking crew had called and given the number of the address they were at, saying it was a corner lot, and asking if they should be tearing down that house. The supervisor apparently affirmed, without confirming the street name. Instead of tearing down a house one block over, her house was destroyed.

The supervisor passed her along to the company president, who she said only offered excuses when she called.

“I didn’t believe he was telling me this,” she told the news station. “I was hoping for an apology — ‘I’m sorry my company did this, we’ll make it better,’ and instead he’s telling me how the insurance is going to handle it, and telling me that it’s going to be a nasty fight.”

She says she’s still hoping the company will help her, or she’ll consider legal action.

This isn’t the first time we’ve heard of accidental home demolition, sadly: there was the man who went out of town for a few months, only to return to find the town had destroyed his house in his absence; and the man who was accused of changing an address so a wrecking crew would demolish his neighbor’s house instead of his own.

Wrong house demolished in mix-up in TX [KMOV.com]


by Mary Beth Quirk via Consumerist

Maker Of Super-Powerful Desktop Magnets Must Recall Pieces, Provide Refunds

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Nearly four years after federal regulators dealt a swift blow to the makers of super-powerful desktop magnetic toys Buckyballs, filing a lawsuit against the company and persuading retailers to stop selling the dangerous toys, a Colorado-based company has been ordered to recall similarly powerful magnets that can cause fatal injuries when swallowed. 

A U.S. District Judge this week banned Zen Magnets and its owner, Shihan Qu, from selling any more of the BB-sized magnets — known as “sculptural toys” — and ordered them to offer refunds to customers who have previously purchased the items, Courthouse News reports.

The final order [PDF], which makes a 2015 preliminary injunction on the sale of the toys permanent, directs Zen Magnets to destroy any remaining magnetic spheres in its possession.

According to the original complaint [PDF] against the company, Qu purchased 917,000 of the magnets at a substantial discount from Star Networks in July 2014. Days after the purchase, Star Networks agreed to recall the Star Magnet toys as part of an agreement with the Consumer Product Safety Commission.

District Judge Christine Arguello ruled this week that Zen Magnets’ subsequent sale of the spheres after the Star Magnet recall violated the Consumer Product Safety Act.

Zen Magnets argued that by placing the magnets in different packaging and selling them under different names, the magnets were no longer covered by the recall.

The court didn’t see it that way, noting that such an interpretation would “allow manufacturers and importers of consumer products to simply circumvent (and effectively disarm)” the Consumer Product Safety Act “by merely repackaging recalled products as they saw fit.”

Under the court order, Zen Magnets must provide a refund for any returned magnets, with Arguello noting that allowing customers to return the product “will reduce the likelihood that such consumers are injured by those products.”

For years now, the CPSC has maintained that the magnets are dangerous. When a person ingests more than one of the magnets, they are attracted to each other in the digestive system, creating the potential for serious damages to intestinal tissue.

Nearly 3,000 incidents of children swallowing the small balls were reported to the CPSC during a five-year period from 2009 to 2013. Some of the accidents required emergency surgery because if two or more balls are swallowed, they can bind intestinal tissue together.

The saga of the super-powerful magnet began back in 2012 when the CPSC filed a lawsuit against manufacturer Maxfield & Oberton in order to stop them from selling their product Buckyballs.

The Commission claimed the company refused to issue a recall even after at least a dozen young children were reportedly hurt by swallowing the magnets, as well as teens and tweens who used the balls to make it look like their tongues are pierced.

The lawsuit led to a back and forth, with the company’s founder Craig Zucker dissolving the business in 2012. At that point, the CPSC could no longer sue the business, and instead went after Zucker and two other companies, including Star Networks and Zen Magnets.

In April 2015, a rule issued the by the CPSC went into effect, prohibiting the sale of magnets or magnet sets that are small enough to be swallowed and that have a high degree of magnetic attraction. Zen Magnets is challenging that rule, Courthouse News reports.

[via Courthouse News]


by Ashlee Kieler via Consumerist

Walmart Charges Extra 9 Cents To Put Your Printer Cartridges In A Single Box

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Theoretically, buying combination packs or buying an item in bulk should save you money. You’re giving the retailer more money, right? Only the pricing logic of big-box stores doesn’t really see things that way, and that’s where Target Math comes from. Target Math is when you pay more per unit for buying in bulk, like this combo-pack of printer ink where you pay an extra nine cents for the privilege of having your cartridges in one box.

epson_math

This type of pricing strangeness is most common at Target, which is why we call it Target Math. It doesn’t actually matter that reader John spotted this display at Walmart: this type of strange math is so common at Target that we simply call it that.

There’s no malice involved on the part of the stores, as far as we know: their prices may be based on recent sales figures or the amount of space that each item takes up on a shelf.


by Laura Northrup via Consumerist

Why Doesn’t AT&T Require Email Verification Before Sending Sensitive Account Information?

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There’s a reason why companies that handle sensitive billing information may ask customers to verify their email addresses before sending any communications. It’s to prevent customers from seeing things they shouldn’t. So why doesn’t AT&T have such a safeguard in place for its customers?

Consumerist reader Joshua emailed us recently with an issue he was having trouble getting resolved. He received an order confirmation from AT&T for a home security system at an address in Detroit — which is an issue, because he lives in Minnesota. The order contained the person’s first name, date the order was placed, their address, the type of service, type of credit card used, and the amount billed.

“I am an AT&T customer; have been for over a decade. My email address has been on file with them for years now as an authorized user (the account is under my wife’s name),” Joshua wrote. “I was surprised that an account they had on record as belonging to me could be used by someone else without raising any flags.”

Reaching Out

He contacted AT&T using the phone number in the email, and was bounced from a sales rep to the global fraud prevention department. He explained the issue, telling the rep upfront that the email belonged to him, but that the information was intended for another customer.

He told her he didn’t think he should be receiving such information, nor did he think that the other customer would be pleased to know he’d gotten it.

He tells Consumerist that the fraud prevention representative was “incredibly rude and downright dismissive.”

“When I asked her why AT&T didn’t take the basic step of verifying ownership of an email address prior to using it for billing purposes, she flatly stated that AT&T could not and would not do that, as it ‘was not possible’ in the first place.”

Which is odd, Joshua says, considering turnkey services exist for this very reason, and many other businesses will email a unique link or code to the address for confirmation.

“She refused to remove my email from the account, refused to even do so much as confirm that someone would look into the issue,” Joshua writes. “I was really taken aback.”

Going Social

He also vented on Twitter about the issue, and was contacted by a social media manager asking for his email address. He provided it — but then got no response.

A few days later, Joshua wrote to Consumerist with his plight, and we reached out to AT&T that day to ask why the company doesn’t verify email addresses used for sensitive communications. With Joshua’s permission, we provided his contact information yet again.

That same day, an AT&T social media manager replied to Joshua’s direct message on Twitter, apologizing for the delay in responding and asking for his email address (again), and the billing account number or phone number associated with the email.

Joshua didn’t see the message immediately, saying he doesn’t often check his Twitter inbox, as that’s not a method of communication he’s used to using. Besides, he’d given Consumerist permission to share his email address with AT&T AND had shared it directly with the social media rep who asked for it before, so he thought that would be how the company would reach out to him.

He once again provided his email address to the person writing from AT&T’s Twitter account, as well as as much information he could glean from the misdirected emails about the other customer’s accounts.

Apology Without Action

At that time, a rep for AT&T told Consumerist that the company’s policies don’t allow for sharing details about customer accounts in these situations, but said that they were able to “resolve the issue” and would be letting Joshua know that.

“We’ll also apologize for the inconvenience and the delay in getting back to his social media queries,” he said.

That same day, another AT&T social media rep messaged Joshua saying, “We are here to help, Joshua. Your account details are being reviewed. Thanks!”

It’s been a week since then, and Joshua says he’s still receiving email regarding the other person’s account.

“Just got one asking me to set up permits for the alarm to avoid fines,” Joshua writes. “It looks as if AT&T does not care whether or not their customer in Detroit is getting fined or not!”

Joshua says the situation ticks him off, because it’s an example of an otherwise responsible company not taking “basic steps to validate contact information prior to sending personally identifying information.”

That behavior could be dangerous: Joshua notes that AT&T sent him enough information that it would be easy for him to call the other person, pose as an AT&T rep, cite order details, and claim there was a problem with billing, and ask the customer to repeat their card number and confirmation code on the AmEx/Visa/Mastercard/Discover credit card they used to set up the account.

And beyond that, he’s still getting those emails meant for a stranger. What’s to prevent AT&T from sending Joshua’s information to other people as well?

“I would be furious if they made it this easy for someone else to steal MY info, and then refused to take any action when informed of the problem,” Joshua writes.

We’ve reached out to AT&T multiple times since our last communication to ask again, why the company doesn’t offer email verification for customers who choose to have billing and other sensitive account information emailed to them, and have not heard back.

“The burden of keeping my information private should be on the company, not on the consumer,” Joshua says. “I can’t stop people from accidentally using my address, but there is absolutely no reason for AT&T not to check the email before sending personal details — especially when the email in question is already in their system, tied to another account, under a different name, in a different state.”


by Mary Beth Quirk via Consumerist

JetBlue Flight Attendant Accused Of Leaving Bag Full Of Cocaine At LAX Arrested In NYC

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The hunt is over for the JetBlue flight attendant accused of bolting from a security checkpoint and abandoning a bag stuffed with 69 pounds of cocaine at Los Angeles Airport: authorities say she’s been arrested across the country in New York.

The woman was taken into custody on Wednesday after officials say she surrendered to the Drug Enforcement Administration at John F. Kennedy International Airport, reports CBS Los Angeles.

According to authorities, the flight attendant was selected by the Transportation Security Administration at random on Friday for a secondary security screening at Los Angeles International Airport, which isn’t typical for crew members.

The criminal complaint alleges that after she entered the secondary screening area, she dropped her bag, kicked off her Gucci heels and fled, running down an upward escalator.

When authorities searched her carry-on bags, they discovered something that shouldn’t be there.

“The abandoned luggage was subsequently found to contain eleven individually wrapped packages that each contained a mixture or substance containing a detectable amount of cocaine that, in total, weighed approximately 68.49 pounds,” the complaint states.

She’s now been charged with possession with intent to distribute cocaine. She’s facing 10 years behind bars if she’s convicted of drug trafficking.

JetBlue Flight Attendant Accused Of Abandoning Cocaine-Filled Luggage At LAX Arrested In New York [CBS Los Angeles]


by Mary Beth Quirk via Consumerist

Starbucks Launching Pumpkin Spice K-Cups

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We’re still months away from peak pumpkin spice season, but that’s not stopping one of the most well-known pumpkin-flavor peddlers from starting to tease its fall strategy. Starbucks says it’ll launch a new “Pumpkin Spice Caffè Latte” K-Cup this fall. 

That means while most people are okay with just one pumpkin spice latte each year, those consumers who crave a little bit of the fall flavor each day no longer have to put on clothes, get in their car, and head to the coffee shop to get their fill. Instead, they can simply walk to the kitchen and hit the button on their coffee maker.

Starbucks, which previously offered bottled Pumpkin Spice Frappuccinos exclusively at Costco last fall, announced the new K-Cup venture during a shareholders meeting Wednesday, Fortune reports, adding that the new venture is part of the company’s expanded partnership with Keurig Green Mountain.

While there are other make-at-home pumpkin-spiced drinks out there, this is the first time Starbucks will make the wildly popular (hot) drink available outside of its stores.

The pumpkin-flavored K-Cups — which will be a limited time seasonal offering starting this fall — are part of a larger push by the coffee giant to sell cafè-style K-Cups. This summer it plans to offer three flavors for a limited-time: Caramel, Vanilla, and Mocha.

In addition to the latte K-Cups, Starbucks will bring to market a bottled version of its cold brew coffee that will be sold at its own stores and at grocery stores, Fortune reports.

Starbucks’ Pumpkin Spiced Latte K-Cups Are Coming [Fortune]


by Ashlee Kieler via Consumerist

Wednesday, March 23, 2016

Failed For-Profit College Operator Ordered To Pay $1.1 Billion For Predatory Practices

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Corinthian Colleges Inc. — which formerly ran for-profit education chains like Everest University, Heald College, and WyoTech — may have collapsed and had its remnants sold off, but the lawsuits against the failed company continue to loom. This week, a California judge ordered the defunct company to fork over $1.1 billion to the state for lying to students, investors, and regulators.

California Attorney General Kamala Harris sued CCI back in Oct. 2013, accusing the company of a panoply of predatory practices — none of which the company challenged, resulting in a default judgment being entered this week against CCI.

YOU’LL MAYBE, POSSIBLY GET A JOB-ISH

That lawsuit [PDF] alleged that CCI deliberately targeted low-income Americans with the promise of a good-paying job after graduation.

Some CCI programs claimed to have placement rates of 100%, but the California investigation not only found that the real placement rates were significantly lower, but that — for some programs — investigators could not turn up evidence that even a single graduate found a job in their field within a reasonable amount of time.

CCI didn’t just lie to prospective students about job-placement rates. The company misled investors, reporting a nationwide placement rate of 68.1% in investor presentations, even though internal audits demonstrated that the company was well aware that this information was not accurate.

Prosecutors said that CCI faked placement stats with the aid of a temp agency, which was paid “to place students to meet the accreditation deadline and minimum placement percentage.” Some job placements were counted twice to further fudge the numbers.

Recently released testimony in the lawsuit one woman says that CCI actively recruited her and her fiancé, even though the couple made it clear that they were homeless and living in a tent at the time. However, recruiters used placement stats to convince them that better days were in their future, leading them to take out private student loans to pay for tuition.

SURE, WE OFFER THAT CLASS (EXCEPT WE DON’T)

Starting in at least 2010, and continuing on until CCI’s 2015 collapse, the company advertised educational tracks — including ultrasound, x-ray, radiology, and dialysis technician programs — that its schools didn’t offer.

When a prospective student would contact the school about one of these programs, CCI call center employees were allegedly told they would face discipline if they disclosed that these programs were fictional.

TAKE YOUR CREDITS WITH YOU (BECAUSE THEY’RE USELESS)

In addition to the misleading job-placement stats, CCI also misled students in California about the likelihood that the credits earned in CCI programs would transfer to other schools.

In fact, ads run in the state promised that all or most of the credits earned at CCI’s Heald College campuses would transfer to “partner colleges,” including those in the California state university system. But only a fraction of Heald credits were deemed acceptable for transfer to Cal state schools. Those with only a diploma, certificate, or Associate of Applied Science degree from Heald would not even be eligible to transfer to 3/4 of these so-called parter programs in the state.

BORROWED GLORY

In an effort to bolster its marketing to military personnel, CCI illegally used the official seals of the Army, Navy, Air Force, Marine Corps, and Coast Guard on websites and in emails. The company also failed to make the required disclosures that these government agencies had not endorsed or approved these messages.

DO AS WE SAY, NOT AS WE DO

At the time of the lawsuit, the company’s various schools ran more than 100 campuses nationwide with around 81,000 total students, many of them paying upwards of $40,000 a year to remain enrolled. California residents represented around one-third of all CCI students.

When a student enrolled at a CCI school, they were forced to sign an agreement that exempted the company from responsibility for “any and all claims of any kind whatsoever.” The legal equivalent of “not it!” and a violation of the California Civil Code’s prohibition against representing that a transaction “confers or involves rights, remedies, or obligations which it does not have or involve, or which are prohibited by law.” Similarly, another California state law invalidates “All contracts which… exempt any one from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent.”

GIVE US THE MONEY

For the company’s final four years of existence, CCI paid third-party debt collectors that engaged in unlawful collection practices like:
• Attempting to collect from students in the middle of class.
• Blocking students who were behind on their payments from attending classes.
• Barring these same behind-on-payment students from participating in externships.

CCI also failed to disclose to students that the company had a financial relationship with the entities on the list of preferred private student loan lenders.

JUDGMENT DAY

With CCI not putting up any sort of legal fight against California, the court granted the state’s request for a default judgment and ordered the company to pay $820 million back to students, along with civil penalties totaling more than $350 million.

Californians affected by CCI’s illegal practices can get more information on the Attorney General’s website.

In a statement, Harris says, “For years, Corinthian profited off the backs of poor people – now they have to pay. This judgment sends a clear message: there is a cost to this kind of predatory conduct.”


by Chris Morran via Consumerist

Federal Prosecutors Charge Toys ‘R’ Us Employee With Stealing $2 Million From Truckers

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Here’s how eCash for truck drivers at Toys ‘R’ Us was supposed to work. Authorized employees would load the cash on drivers’ debit cards, and the drivers would use that money for things like meals, lodging, and repairs to their vehicles. Employees other than drivers are not supposed to load up a debit card with company money, then withdraw cash at an ATM. Yet one man is accused of doing exactly that, taking out $1.89 million over a period of almost three years.

Reuters reports that one of the company’s directors of inbound and outbound transportation loaded up a fleet card and withdrew cash in three different European countries, and those transactions coincided with dates when the employee was traveling there.

He allegedly made a total of 117 transfers from the money meant for the chain’s fleet drivers while not driving a truck, and an ATM surveillance camera caught him making a withdrawal at a cash machine in New Jersey. He began transferring money in May 2013, and the last transfers were made earlier this month. According to the criminal complaint, he withdrew thousands of dollars from ATMs in Europe and at home, and he also transferred around $600,000 to his personal checking account

The federal government is holding him without bail.

Toys “R” Us employee accused by U.S. of $2 million card theft [Reuters]
Toys ‘R’ Us manager used $2M in fraudulent debit cards for lavish European spending sprees, prosecutors say [New York Daily News]


by Laura Northrup via Consumerist