<![CDATA[Consumerist: Investigations]]> http://cache.gawker.com/assets/base/img/thumbs140x140/consumerist.com.png <![CDATA[Consumerist: Investigations]]> http://consumerist.com/tag/investigations http://consumerist.com/tag/investigations <![CDATA[ Petland Uses Puppy Mills ]]> Jane Weaver of MSNBC writes:

After an eight-month investigation, the Humane Society of the United States accused Petland, the national pet store chain, of selling dogs bred under appalling conditions at puppy mills around the country.

While puppy mills aren't illegal, they're also not places where dogs are treated as anything more than merchandise—and the Humane Society says that the 21 Petland stores they investigated mislead buyers on where the dogs actually come from.

From Weaver's article:

"They are buying from puppy mills where these dogs are not treated like pets," Michael Markarian, an executive vice president with the Humane Society, told a news conference. "They're treated like a cash crop, where mother dogs live in wire cages, sometimes stacked on top of each other in filthy, dirty, cramped conditions, where they receive little socialization or human interaction or exercise."

Among the poor conditions cited, investigators found puppies in commercial breeders "living in filthy cages reeking of urine, with inadequate care and socialization," according to the release. The Humane Society says dogs at the mills were found in cages with wire flooring so large that the puppies' paws and even the paws of the mother dogs would fall through.

Petland did not return calls to Weaver about the allegations, but she notes that their website seemingly absolves them from corporate responsibility by stating that each store is independently owned and individually "responsible for choosing healthy pets offered to Petland customers."

While that may be true, there's no reason for Petland to offer such an unrestricted, hands-off policy to its franchisees. By way of example, this week Subway asked one of its franchisees to rescind a corporate-branded donation to California's anti-gay "Yes on 8" campaign, citing that their agreement prohibits using "the Trademark in a manner that degrades, diminishes, or detracts from the goodwill of the business associated with the Trademark."

So, uh, how come you don't protect your brand like that, Petland?

"Investigation ties pet chain to puppy mills" [MSNBC]
(Photo: Getty Images)

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Consumerist-5095246 Thu, 20 Nov 2008 20:11:06 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5095246&view=rss&microfeed=true
<![CDATA[ Video: JiffyLube Caught Upselling Car-Damaging Repair Services ]]> KNBC undercover cameras caught local JiffyLubes and EZ-Lubes upselling customers to buy engine-flushing and fuel-injection cleaning services, services which have been forbidden by auto-manufacturers because they're unnecessary and can severely damage your engine. One guy's engine died while he was driving on the highway, and it cost him $5,000 to replace his engine.

Engine-flushing is supposed to clean out the gunk and deposits in your engine, but breaking these up is like dislodging a blood clot - they can jam up other sensitive components. Honda calls fuel-injection cleaning an "improper repair procedure" as it can damage other injection parts. They and other makers have sent notices to repair shops telling them not to perform them. Despite this, KNBC received complaints from across the country from consumers with cars damaged after getting upsold into the potentially dangerous service. See more in their video report, below:In a statement, both JiffyLube and EZLube say it wasn't acceptable for employees to lie and say services were recommended by the manufacturer when they weren't, and the employees caught would be fired.Could This Damage Your Car? [KNBC]

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Consumerist-5086351 Thu, 13 Nov 2008 16:44:37 EST Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5086351&view=rss&microfeed=true
<![CDATA[ Video: Ben Popken Investigates for CNBC's On The Money ]]> Here's the clip from my piece and appearance on CNBC's On The Money on Friday night. I attended a Robert Allen Institute get rich in real estate seminar, interviewed some attendees, and gave tips on what to watch out for in "money-making opportunity" scams. Here are some red flags to beware:
  • Promises of fast and easy money
  • The person who brings you in gets a cut of your profits, and then you get a cut off new people you bring into the system
  • Requires large upfront fees before you really understand what's going on
As one interviewee told me, anyone who's got a killer investing strategy is out there doing it, they're not giving free seminars about it. Watch the video, inside...

Buyer Beware [On The Money]

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Consumerist-5080438 Sat, 08 Nov 2008 08:05:35 EST Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5080438&view=rss&microfeed=true
<![CDATA[ Ben Popken On On The Money This Friday ]]> Check me out on On The Money tomorrow night. I acted as their on-screen reporter in their piece about the Robert Allen get rich in real estate Institute. Catch it Friday at 9pm eastern on CNBC. Bloggers are reporters and they're on TV, baby!

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Consumerist-5078461 Thu, 06 Nov 2008 12:34:29 EST Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5078461&view=rss&microfeed=true
<![CDATA[ Updated: Ben Popken Rocks On The Money (Delayed) ]]> UPDATE: CNBC is holding my piece tonight because Robert Allen himself has agreed to talk to them on-camera. So maybe we'll see it next week. Stay tuned.

Be sure to catch me in my debut as a "real journalist" of the small-screen, doing a special report on the Robert Allen real estate program, on CNBC's On The Money program Tuesday night, 9pm eastern. I'll be the reporter in the piece, and talking with Carmen Wong Ulrich on set. Set the DVR to "posterity," it's a special Consumerist/On The Money tag-team you don't want to miss!

On The Money [Official Site]
RELATED:Consumerist Attends Robert Allen's Get Rich Quick In Real Estate Seminar
Despite Subprime Implosion, Robert Allen's Troops Still Pitch "Get Rich Quick In Real Estate With No Money Down"

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Consumerist-5069595 Mon, 27 Oct 2008 21:33:52 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5069595&view=rss&microfeed=true
<![CDATA[ Consumerist Attends Robert Allen's Get Rich Quick In Real Estate Seminar ]]> I wanted to find out what Robert Allen's "get-rich-quick in real estate with no money down" promise was all about, so when I saw a full page ad in the Daily Post advertising one of his free seminars recently, I went and checked it out. I'll give you a full run-down later, but here's the quick and dirty, and what I can tell about how the darn thing seems to function.

The way they're able to set up people who have no job or money down or credit score or clue what they're doing is to avoid the banking system entirely. Instead, they have a book of private lenders who will invest in your deal. These lenders are themselves "graduates" of the Robert Allen institute. According to the presenter, these graduates just have made so much money in real estate that they don't need to deals anymore, they just need places to invest their money.

The whole thing hinges around you finding properties in preforeclosure and then negotiating with the desperate owner and the lender to get a short sale. Then you're supposed to clean up the curb appeal and turn around and sell it for a little bit more. Basically the good ol' fix n' flip scenario. But wait, you ask, how do I find houses in preforeclosure?

Luckily the Robert Allen institute has a database they give you access to that shows you all the houses across the country in preforeclosure status. They charge $240 a year for this database, but you can get it for a year free if you sign up for a 3-day workshop class. The 3-day workshop costs $3995. Except today you can get a one-time discount of $1000. And if you get a friend or companion to sign up with you, they get 50% off. The presenter encouraged us to put it on Mastercard and only pay $40 a month. Within 4 months, he promised we would close a deal with a net profit of tens of thousands of dollars, and we could just pay off the Mastercard then. He had this overworked manner of emphasizing the syllables in polysyllabic words. Mastercard became Master-Card. He said things like "that strat-e-gy was very at-trac-tive."

The presenter talked about how important it was to put together the perfect short-sale package with all the right forms in the right order. He clasped that blue plastic binder and believed in it like it was the newly discovered epistles of Jesus. But I felt pretty confident that whatever was in that binder, or in his special CDs packed with legal documents, I could find for free online.

So what was in the seminar? Very basic information that teased to the prospect of learning more basic information at an inflated price tag, along with a pitch to join the Robert Allen multi-level-marketing real-estate pyramid, just like I figured. I'll give a more thorough analysis in a future post.

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Consumerist-5067398 Wed, 22 Oct 2008 20:00:45 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5067398&view=rss&microfeed=true
<![CDATA[ Wireless Carriers Tell Senate: "Text Messaging Rates Have Dropped, And Your Queries Have Led To Lawsuits Against Us!" ]]> The national wireless carriers have responded to the Senate's request for information on why its text-messaging fees have doubled over the past three years. Their collective response: they haven't gotten more expensive, they've gotten cheaper—and your public suspicion of our business practices has led to lots of class action lawsuits!

RCRWireless reprinted part of T-Mobile's response:

“Although your letter states that carriers’ prices for text messaging appear to have increased since 2005, the opposite is true,” states Robert Dotson, president and CEO of T-Mobile USA Inc. “Since 2005, the prices that T-Mobile charges for text messages — 90% of which are purchased in texting package plans — have fallen by more than half.

AT&T came right out and (almost) blamed Senator Kohl for the spate of lawsuits:

“As you probably know, since your letter was made public, 20 class-action lawsuits have been filed around the country against AT&T and other national carriers, specifically alleging price-fixing for texting messaging services. All but one of these cases cite your inquiry as one of the bases of alleged collusion. We are therefore eager to clear up any misunderstanding,” said Timothy McKone, executive VP for federal relations at AT&T.

If fees for text messaging bundles have dropped, while fees for single-serve text messages have shot up 20 cents, then in a way both sides are right—but if that's the case, we think the carriers are being intentionally dense about the true meaning of the Senator's line of questioning, which (we think) is an attempt to determine whether the carriers colluded to hike individual rates enough to drive customers into more profitable bundle services.

Wireless carriers counter antitrust concerns over rising costs of texting [RCRWireless]
(Photo: Getty Images)

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Consumerist-5062935 Mon, 13 Oct 2008 21:04:40 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5062935&view=rss&microfeed=true
<![CDATA[ Supermarket Chain Adds 10% At Register, But Only In Some Stores ]]> Nash Finch, a Minneapolis-based supermarket chain, adds a 10% fee to the bill at its stores catering to Hispanic shoppers in Colorado, reports 9News in Denver:

The Nash Finch stores Avanza, Food Bonanza and Wholesale Food Outlets add the 10 percent charge to food at the register and specialize in serving Hispanics, according to store workers.

However, the Nash Finch stores Sun Mart Foods, Econo Foods, Family Fresh Market, Pick N Save and Prairie Market stores do not charge extra at the register and do not cater to Hispanics, according to the store workers.

"Jim," a store manager, told the news station that the fee is to offset other costs, but it's clear that the 10% charge is at least partly a way to offer steeper "discounts" throughout the store that are effectively removed when you pay.

Nash Finch denies it's doing anything skeevy or illegal with its unclear pricing, but 9News points out their attempt at full disclosure is confusingly worded, perhaps deliberately so:

"The 'shelf-plus' pricing program is only used in certain store formats. These stores tend to be located where consumers are more price-conscious, as compared to our more conventional supermarkets," said Brian Numainville, Public Relations for Nash Finch Company. "The pricing policy is explained, not just in English, but also in Spanish, so that no customer is caught unaware at the cash register."

The stores do advertise that they are going to add a 10 percent fee in signs posted across the store, on the store shelves below the price of a food item on the store shelf and in flyers and circulars. However, the wording is confusing to many. For example, the flyers read, "A great way to save - Plus 10 % at the Register."

What do you think—is this an acceptable way to price groceries? In a series of questions Nash Finch answered for 9News' story, they claim that they're not the only chain to do this, and that it's not just Hispanic markets. Here's their final justifaction for the practice:

Question 9: Wouldn’t it be more honest/up front to just add 10 percent to the price of all of the products—so that people can see the actual price on the shelf and on the sticker?

Answer: The grocery industry is extremely competitive. Stores vie for customers. Customer loyalty is highly valued. Given the need to attract and retain customers, our stores cannot afford to alienate its customers by charging unexplained fees or unanticipated mark-ups. Our pricing is attracting customers—rather than losing them—demonstrating that the pricing policy is in fact fair, obvious, and well-understood by our shoppers.

"Some grocery stores add 10 percent fee" [9News.com] (Thanks to Randy!)

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Consumerist-5061786 Fri, 10 Oct 2008 14:44:20 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5061786&view=rss&microfeed=true
<![CDATA[ What It's Like To Be A Flight Attendant ]]> A travel reporter for the New York Times spent two days working as a flight attendant on American Airlines, flying between Dallas and New York City and shadowing the real flight attendants as they dealt with drunk passengers, supply shortages, and travelers who are already fed up and tense before they even board the plane.

“Who would have thought, after 30 years, that we’d be a flying 7-Eleven,” Becky Gilbert, a three-decade veteran of the industry told me during a break in our training session in Fort Worth.

The author, Michelle Higgins, captures the dramatic shift from what was once a career loaded with perks—free travel, flexible schedules, plenty of time off, and even a bit of cachet—into a job that puts you on the front line of the war most airlines are carrying out against their paying customers.

At the start of one flight, for example, the crew is told the plane is moving to a shorter runway, and they have to carry out a quick count of the number of children on board to see whether the plane meets the suddenly-reduced weight limit—otherwise they will have to kick off passengers. (And those passengers will hopefully write to The Consumerist.)

We've no doubt that there are bad employees in the skies—the bigots, morons, burn-outs, and despots who provide us with so many infuriating stories—but it's revealing to see the level of stress that today's good flight attendants have to deal with, and something worth keeping in mind the next time you fly and want to reach out and hurt the person telling you there are no more blankets or cookies, or that you'll almost certainly miss your connecting flight.

"Flying the Unfriendly Skies" [New York Times]
(Photo: FaceMePLS)

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Consumerist-5054848 Thu, 25 Sep 2008 13:45:48 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5054848&view=rss&microfeed=true
<![CDATA[ Some Outsourced Dental Implants Test Positive For Lead ]]> If you're getting dental implant work done, you may want to ask if they outsource to other countries. A KPHO investigation bought 13 crowns from labs in China, Thailand and the US. Ten of them came back positive for lead, with levels from 110 parts per million to 240 parts per million. The problem may be from the surface stain used to whiten and brighten the teeth. Throughout history, lead has been used in paints because it's bright, cheap, and highly durable.

Some Dental Work May Contain Lead, Tests Show [KPHO] (Thanks to Nicole!) (Photo: dental ben)

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Consumerist-5053901 Tue, 23 Sep 2008 18:41:04 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5053901&view=rss&microfeed=true
<![CDATA[ UltimateBet Poker Site Admits Players Cheated, But Won't Name Names ]]> Here's a mystery story to distract you from the U.S. Banking Apocalypse. UltimateBet.com, "one of the top 10 poker sites," has admitted that employees manipulated the software to cheat from at least January 2005 to January 2008, when some players started noticing an unusually high rate of wins for a certain user name. An Australian player mapped that user's wins against accounts that had played a similar number of hands, and realized that "NioNio's" wins were "less likely than 'winning a one-in-a-million lottery on four consecutive days.'" But NioNio is just one part of the mystery.

As the players continued to dig, they concluded that NioNio was at the center of a web of accounts that were able to change user names with ease, making it harder for victims to detect the cheating.

UltimateBets launched an investigation when the players brought this to their attention, and in March of this year they issued a confirmation that certain players had been cheating by taking advantage of malicious code that had been inserted by prior employees.

As of September, no one has been named in the scandal, although some players have named a poker pro. Two other poker pros visited him in person, with a lawyer present, and now say they're no longer sure he was the culprit—or at least not the main culprit.

Another problem is that the company that claims ownership of UltimateBet—"Tokwiro Enterprises, headquartered in the Kahnawake Mohawk Territory in southern Canada"—may be a front for Blast-Off Ltd., which has filed an $85 million claim against UltimateBet. The Kahnawake Gaming Commission has ordered an investigation of UltimateBet, but that's not comforting some victims:

[Tokwiro] has issued some refunds and promised to repay any players who lost money once an outside investigation is completed. But many players who haven’t received credits remain fearful they will never see a dime.

"Poker site cheating plot a high-stakes whodunit" [MSNBC] (Thanks to Patrick!)

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Consumerist-5051834 Thu, 18 Sep 2008 14:20:57 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5051834&view=rss&microfeed=true
<![CDATA[ Verizon Refuses To Help Locate Body Of Missing Woman For Four Days ]]> Verizon, which has no problem helping the government spy on its customers, suddenly turned stupid in June when a police department asked them for help finding the body of a woman who had been abducted on camera. Despite pleas from the woman's parents, the police, and the FBI, it was four days before a technician was sent out to the appropriate cell tower. When that technician gave the police the location info, they found Kelsey Smith's body within 45 minutes. Verizon won't respond to requests for an explanation of why they couldn't help sooner.

The Johnson County District Attorney, Phill Kline, told Fox News that Verizon not only seemed unhelpful, but possibly incompetent:

We did have a problem with Verizon. We're talking about 3 hours afterwards, they [the police] were already pushing for this information, with the sergeant speaking to Verizon directly at 2:30 a.m., demanding that this information be provided and it wasn't.

There was a lack of understanding on their end of what they were incapable of doing. I was on the conference call with Verizon, and we had three technicians telling us different things and using different terms, and we can't guess their mind. We've got a girl that's missing. We have a girl that's missing, we have a likely abduction, we need to find her.

Everyone involved in the search has made it clear that Verizon's incompetence had nothing to do with Kelsey's death, but it could have made the search a lot shorter, and saved a lot of people unnecessary grief. Unfortunately, when Verizon's president met with Kline and Kelsey's parents two months later, he brought three lawyers with him for protection.

Kelsey's mom told Fox, "If [Verizon] brought them because you think we're here to sue you, that's not what this is about." Says Kline, "They didn't realize that they have an opportunity... to establish a course that leads the way that is right and responsible, and instead they chose a different posture, and that's unfortunate."

Kelsey's mom:

We almost didn't get to say to goodbye to Kelsey, because of her body decomposition from being out there so long.

Kelsey's dad:

We never did get a why, that was the thing that was so frustrating, why can't you do this. That question was never answered.

"Why Did It Take So Long to Find Kelsey Smith?" (video) [MyFoxKC.com] (Thanks to Albert!)

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Consumerist-5051343 Wed, 17 Sep 2008 16:18:25 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5051343&view=rss&microfeed=true
<![CDATA[ Angry Wiccan Digs Up The Identity Behind Scam Site Fastspells.com ]]> Fastspells.com is a ridiculous website loaded with sexy young lady "Wiccans" who, for anywhere from $40 to $265, will "find you love, give you an abortion, cure your cancer, grant you immortality, and change your sex organs." Terrific, because I need some new sex organs! These are all worn out. Anyway, Trae at TRHOnline.com was annoyed by their expensive and unrealistic promises, and the more he looked into the domain registrations, the more suspicious he became.

Trae eventually managed to dig up a potential cuplrit behind the site, and he pretended to be a broken-hearted teenager with poor judgement (and spelling) to see what he could find out. What he found was someone named Brittney Reynolds, a member of the pro-anorexia movement and someone with possible connections to an earlier scam on MySpace called the "themilliondollarpiggybank."

So why did Trae feel the need to get so sleuthy? Because Fastspells.com was running ads on his site, and he didn't like the idea of a fake-Wicca site trying to prey upon his readers. Fastspells may still pop up via Google's Adsense, but they're probably not going to drum up a lot of business from TRHOnline anymore.

Where does this leave us. We know that she must have been in on the Million Dollar Piggy Bank scam, as they used her e-mail address. We know that at one point a Facebook page was made using that e-mail address for a "Kevin Reynolds" from Virginia. We know that the young woman has had an eating disorder, and likely a rocky adolescence. We also know that everything Fastspells.com says on their website is a lie.

"More FastSpells.com Insanity" [TRHOnline.com]

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Consumerist-5051179 Wed, 17 Sep 2008 12:39:27 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5051179&view=rss&microfeed=true
<![CDATA[ Most Verizon FIOS Installations Violate National Electric Standards ]]> A two-year investigation has concluded that most Verizon FIOS installations fail to meet national safety standards, and could cause fires or electrocutions. FIOS is famous for house fires, but New York's Public Service Commission first started its investigation back in 2006 after several inspectors discovered improperly grounded installations.

PSC staff said FiOS "may form an electrically conductive path" and could create an electrical hazard. PSC spokesman James Dean called the public safety risk "minimal - however, there is a potential risk."

Under a plan submitted to the PSC last month, Verizon would review all of its fiber-optic installations to ensure connections are properly grounded and correct violations.

The company also said it would issue credits of up to $20 to customers for installations after Aug. 18 unless it meets standards at least 95 percent of the time. The credits would "compensate such customers for the inconvenience of the inspection (and, where applicable, remediation) process," according to documents filed with the PSC.

Verizon added that they take the Public Service Commission's concerns "very seriously."

Verizon offers plan to inspect FiOS wiring [Albany Times Union]
Violations cited in LI FiOS installations [Newsday]
(Photo: Getty)

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Consumerist-5043882 Sat, 30 Aug 2008 18:00:32 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=5043882&view=rss&microfeed=true
<![CDATA[ Los Angeles Hospitals Accused Of Using Homeless 'Patients' In Insurance Fraud Scams ]]> Earlier this year we noted a story about an LA hospital caught dumping a paraplegic homeless patient on the sidewalk without a wheelchair. At the time, everyone assumed the hospital was stuck in a bad situation—they couldn't keep a patient forever after treating him, and he had no physical address, so what were they supposed to do? It turns out incidents like this, which one LA-based reader said "happens all the time," may not be so 'innocent' after all:
Hospitals in Los Angeles and Orange counties submitted phony Medicare and Medi-Cal bills for hundreds, perhaps thousands, of homeless patients—including drug addicts and the mentally ill—recruited from downtown's Skid Row, state and federal authorities allege.

City attorneys began investigating after receiving reports back in 2006 that hospitals were dumping homeless patients on Skid Row streets. What they found, they say, was that some hospitals were using conditions such as dehydration, yeast infection, and exhaustion as reasons for keeping homeless patients in beds for "as long as three days" in order to maintain full patient loads and collect money from the government.

Agents arrested Rudra Sabaratnam, CEO of City of Angels hospital, and Estill Mitts, operator of a Skid Row health assessment center, FBI spokeswoman Laura Eimiller said. They were in federal custody and were scheduled to be arraigned Monday.

The city attorney's office said it filed a lawsuit against the corporate owners of the three hospitals — along with Sabaratnam, several doctors and others — in connection with the alleged scheme.

Representatives of the hospitals did not immediately respond to calls seeking comment. Los Angeles Metropolitan and the Tustin hospital are owned by Pacific Health Corp., and Los Angeles-based Intercare Health Systems owns City of Angels.

"FBI: LA hospitals used homeless in medical fraud" [Associated Press]
(Photo: Getty)

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Consumerist-5034136 Thu, 07 Aug 2008 07:55:50 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5034136&view=rss&microfeed=true
<![CDATA[ Beware The "Fannie Mae" Prize Draw Scam ]]> Scammers love to tap into national trends to put a new face on an old scam, and the "Fannie Mae, Freddie Mac Equity Prize Draw" scam spotted by the Louisville, KY BBB is no exception.

The faxed scam says, "We are happy to info you that you have emerged a winner under the F&F EQUITY DRAW, which is part of a promotional draws organized by all crediting lending partners to enable home owners who owned a home all over the United States of America have more money, and at the same time buy more homes in the area where they live. The funds were drawn from part of the total Fifty Billion US Dollars ($50 Billion) release to the financial institutions and creditros by the Government and other donor nations who have so much interest and investments in the United States of America."

Here's the BBB's report on investigating the scam:

After faxing my official “Equity Draw” information sheet to a number in Idaho, I called the 778 number and had the pleasure of speaking to “Jorge Marcelo”, at Fannie n Freddie Prize Headquarters. He said he had my fax right there in front of him, which is interesting since I never told him who I was nor did he ask. But he did tell me that to collect my big prize I was required to wire a “processing fee” of $850 to the Vegas address in my documents via Western Union, call him with the WU control number and then I could collect my riches.

Obviously I’m excited, so I invited the FBI to share in my excitement. I’m not sure if there’s anything here worth law enforcement pursuit, but that’ll be up to them. My guess is Jorge is probably not in BC, and that the WU office in Vegas will forward my $850 to another location, and it may be bounced several times.



Fraudsters have a core set of scams that they just keep putting new hats on old scams to fit the zeitgeist. Most of us wouldn't fall for this iteration, rife with spelling and grammatical errors. But a few, like the desperate, elderly, ignorant, non-native-English-speaking, or some combination thereof, might. The scammers, will, however, try another variant on the lottery scam. For them, it's all a numbers game, and their auto-dialers just keep ringing up one more.

(Photo: ptaff)

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Consumerist-5031163 Wed, 30 Jul 2008 15:59:29 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5031163&view=rss&microfeed=true
<![CDATA[ Google now helps catch criminals. The FBI ... ]]> Google now helps catch criminals. The FBI identified a Citibank PIN thief by cross-referencing security camera footage with an ICQ handle and personal photos on ham radio enthusiasts sites. [Information Week]

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Consumerist-5021930 Thu, 03 Jul 2008 12:38:42 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5021930&view=rss&microfeed=true
<![CDATA[ Here's What The World Of ATM Hacking Looks Like ]]> Wired has been covering the ongoing investigation into recurring ATM pin thefts from Citibank accounts, and their latest article tracks how Ukrainian immigrants, a ringleader back in Russia, a hacked company named Fiserv that runs Citibank-branded ATMs in 7-Elevens, and an online payment service that also offers money laundering for a small fee all come together to steal your money. It's an amazing look at how the U.S. tries to combat the threat of ATM-related theft.

[The] undercover operation... at one point had Eastern European hackers chasing a female FBI agent through the streets of New York, trying to mug her for ATM-card-programming gear.

"Stakeouts, Lucky Breaks Snare Six More in Citibank ATM Heist" [Wired Threat Level] (Thanks to Robbie!)
(Photo: Getty)

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Consumerist-5019751 Wed, 25 Jun 2008 20:30:29 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5019751&view=rss&microfeed=true
<![CDATA[ Over 400 people have been charged in the ... ]]> Over 400 people have been charged in the government's national mortgage fraud probe, called "Operation Malicious Mortage," which dealt with individual rather than corporate fraud. [Reuters]

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Consumerist-5018048 Thu, 19 Jun 2008 15:25:32 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5018048&view=rss&microfeed=true
<![CDATA[ Possible Class Action Against HP Over Cruddy Pavilion Notebooks ]]> If you own an HP Pavilion Notebook and you've had problems with it—specifically overheating, problems with the power supply, and an inability to update the BIOS—then you might want to contact this law firm and tell them your story. We know class actions rarely help the individual consumer, but they do succeed in punishing the offending company occasionally, and we can't think of a computer company more in need of a good class action smackdown than HP.

HPNotebookClassAction.com
(Photo: Tahmid the ~) Sensor`BurnEr (~)

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Consumerist-5013245 Wed, 04 Jun 2008 19:09:49 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5013245&view=rss&microfeed=true
<![CDATA[ Pregnant? Asthmatic? Don't Like Rollercoasters? Stay Away From NYC Elevators And Escalators ]]>

Unless you're willing to risk being stranded with 14 other passengers several stories underground in a cattle car elevator on a hot summer day, or plunging at extreme speeds down an escalator with a broken chain, you might want to steer clear of NYC's subway system lifts. The New York Times has published the results of an extensive investigation that includes tales of daily breakdowns, comically undertrained mechanics, and about $1 billion spent over the past decade.

Probably the most disturbing finding is that the subway's mechanics are released into the system with 4 weeks of training, compared to 4 years for elevator repairmen in the private sector. By contrast, mechanics hired by Washington, D.C. metro system now receive 4 years of training, and those hired by the San Francisco metro system receive 2 years of training.

The worst offender is the 181st St station for the 1, 9 trains. As passengers familiar with the station know, you have to take giant elevators several stories underground to reach the subway lines, and they suffered over 100 breakdowns last year. The article highlights one breakdown where 15 people, including two women who began to suffer from asthma attacks, were trapped for 40 minutes last summer. The same elevator "had broken down five times in the eight days leading up to the event. Each time, mechanics came, made minor adjustments and put the machine back in service — only to have it break down again." After the 15 people were let out, the elevator was put back in service, only to break down again later that afternoon.

But it sounds like it's the plunging escalators you really have to watch out for—or at least have strong ankles and the ability to leap and roll when you reach the bottom:

On June 6th, during the evening rush, the chain snapped with a bang and the escalator stopped moving. People began walking down the escalator. The last person on was Magaly Diaz, a pregnant woman on her way home from work.

Suddenly, the escalator sprang back to life. Freed from the hold of the drive chain, the steps began freewheeling downhill, quickly picking up speed. It all went so fast that Ms. Diaz cannot even remember if she screamed.

“It felt like a roller coaster,” said Ms. Diaz, 40. “You know how it feels when you’re at the top of a roller coaster going down? That’s the kind of momentum it had.”

Most people jumped or stumbled off at the bottom. But a friend standing in front of Ms. Diaz fell at the bottom and Ms. Diaz landed on top of her. Both women were taken to the hospital. Ms. Diaz had two badly twisted ankles, though she was grateful that a sonogram showed no injury to her fetus.

Coming soon: the MTA will use this as a reason to call for fare increases.

"$1 Billion Later, Subway Elevators Still Fail " [New York Times]
(Photo: Pro-Zak)

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Consumerist-5009699 Mon, 19 May 2008 11:18:04 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5009699&view=rss&microfeed=true
<![CDATA[ Big 99 Cent Store Fined $13,225 For Cutting Dates Off Boxes Of Expired Toothpaste ]]>

Expired items are lurking on store shelves. A Fox5 investigation followed around the Nassau County's Office of Consumer Affairs and found evaporated skim milk and diabetic medicine on the shelf that expired over a year ago. At a dollar store, they found the manager was cutting the expiration dates off boxes of expired toothpaste and still selling them. The Stop and Shop was fined $1450 for selling expired goods, the dollar store, $13,225 for 529 items. Don't forget to check the expiration date, the store, or the Consumer Affairs Office, isn't always going to do it for you.

Expired Items [FOX5]

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Consumerist-5009349 Fri, 16 May 2008 11:33:54 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5009349&view=rss&microfeed=true
<![CDATA[ WaMu Backs Down, Returns The $1500 To Bill's Bank Account ]]> Bill, whose small business checking account had been inappropriately drafted $1500, sent us the following email late last night:

After another battle with a branch manager today—who insisted that money couldn't be returned and that I needed to fill out a fraud report—I went over her head.  After a heated, uh, discussion, the main downtown Seattle branch put the $1,500 back in my business checking account.  The $7 fee was refunded a few hours later.
 
Some bad PR in Consumerist no doubt helped. Thank you!

We're not sure we posted the story in time to have an effect on the outcome, but we'll take it.

RELATED
"WaMu Presents Random $1500 Check On Someone Else's Account, Then Calls It Fraud"

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Consumerist-5008846 Tue, 13 May 2008 10:50:10 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5008846&view=rss&microfeed=true
<![CDATA[ WaMu Presents Random $1500 Check On Someone Else's Account, Then Calls It Fraud ]]>

[Update: WaMu has returned the money.] Bill's small business account was hit with a $1500 check written by an unrelated third party to another third party—both completely unconnected with his account. He was also penalized with an insufficient funds fee, although the money was debited from his account. Now WaMu's saying they have to investigate for fraud before they can return Bill's fees.

I received a returned check notice from Washington Mutual last week. Not unusual for a small business — until I opened it.

The check in question was a $1,500 private party check written to another private party. The check wasn't written by, or issued to, my business.

Simple mistake? I visited the WaMu branch across the street from my office and got the stunning response from the branch manager that they'd have to do a fraud investigation. I raised hell again today, and the money, plus a $7 returned check fee, still hasn't been returned to my account.

I'm considering going to go to small claims court — or swear out a theft complaint against WaMu — to get my money back. The only fraud is that WaMu or KeyBank (the check in question was written on a KeyBank account) screwed up and they're taking it out of my hide. I'm the innocent bystander.

Maybe WaMu is trying to cover its losses by randomly reassigning bounced checks to accounts that have money in them and hope no one notices.

Why can't WaMu assume the $1500 loss while they investigate what was probably a clerical error, instead of forcing the problem onto their customer? Maybe WaMu should amend their new ad slogan to "We've got your back... unless we're covering our own asses."

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Consumerist-5008781 Mon, 12 May 2008 19:05:46 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5008781&view=rss&microfeed=true
<![CDATA[ Xbox Live Won't Refund Points For Game They Can't Deliver ]]>

How long can a company continue to "investigate" what's obviously a failed download before they credit your account? For Xbox Live Marketplace, the answer is 2 months, 2 weeks, and counting. Every attempt Joe makes at resolving the issue lands him in a customer service purgatory from which no solution can ever escape. Joe writes, "The problem is that there is no recourse for the customer in a situation where this actually does happen. Microsoft took my money before my product was transferred to me. The transfer then failed to take place. It is no fault of my own and there is nothing I can do about it." Read Joe's full account below.

I recently attempted to purchase Ninja Gaiden Black from the Xbox Live Marketplace. Recently is used loosely here, as the original “purchase” took place on February 23th 2008.  After forking over $15 in Microsoft points, I sat and waited for my download to reach completion. This never happened. Progress reached 7% then the download disappeared from my queue without manifesting an error message.  A second attempt gave me the same result. This was a job for Xbox Live Customer Support. Here is a recap of my experience with those wonders of the customer service industry…
   
2/23 I pay money for Ninja Gaiden Black. My download fails at 7% on multiple attempts. Xbox Live Customer Support is emailed, as it is too late to contact the call center.

2/24: I call Xbox Live Support. We attempt troubleshooting. Nothing works. Later in the day I receive a reply from Support via email. An excerpt: This is a known issue that occurs with certain ISPs that perform specific types of network optimizations. Some network optimization processes can cause certain larger Marketplace files not to download. Examples of large files may also extend to content that is found in the Video Marketplace area.  (full email is attached)

2/25: I called Xbox Live Support. More troubleshooting is attempted none of which remedies the situation. I am told I will receive a callback in approximately one week, after they‘ve looked into the problem on their end. After we discuss the email I received from Xbox, I am also told to contact my ISP(Comcast) to see if the problem is originating from their end.

—Every call from here on out is escalated to a manager at some point—
—Also, in this time period, I contact Comcast. They monitor my connection for any abnormality that may cause this download to fail. None are found and I am assured that they aren’t actively doing anything that would interfere with it—

3/9: Never received a callback, so I contacted Xbox. I was told that there was no callback scheduled for my issue. More troubleshooting; no success. I am again told I will receive a callback.

3/23: Again, I did not receive a callback. I am told that the issue is “under investigation”.  I refuse any troubleshooting attempt, as I have already spent approximately 4 hours on the phone at this point. I believe this is the first time I mention wanting a refund. I am told the issue is now “under investigation with upper management”. I am told I will receive a callback in three days or less.

3/28: I did not receive a callback. I contact support and tell them I want a refund of my Xbox points. Not a credit to my credit card, just a refund of the points which are only valid currency on Xbox Live. The idea isn’t completely dismissed given the circumstances, but first the results of their investigation must be known. I am told that upper management is still investigating and I should try back in the near future to check.

4/7: I call Xbox Live Customer support. There is no further information available. I tell them that at this point, I really just want the points back. After going back and forth with management for some time I am told that the support call center does not have the ability to refund my points, but they have forwarded it to their tech department, who actually can do that. I am told to keep an eye on my points because a refund is on the way.(success!!!)

4/19: No refund is ever made. I call Xbox Live Customer support. They don’t acknowledge that I was promised a refund of my points. I get heated, but am still somehow under control. I am told there is no further information available and it is still under investigation. I tell the manager that I feel completely helpless and that this is an indictment of the reliability of the Xbox Live marketplace at large. I tell him I am emailing The Consumerist. However, I am too lazy to do so.

5/9: I directly call the Xbox Escalation Support line. The initial call center worker sounds very helpful. He seems to actually be concerned about the terrible service I have received and seems to be working for a resolution to come about today.  I am put on hold while he talks with management. He tells me he is going to transfer me to an upper level department that can help me. I am put on hold while he explains the situation to this mysterious high-level department within Microsoft. He then gets on the phone and transfers me to…..THE CALL CENTER IN INDIA. The very same place I have called SEVEN times previously and who’ve told me the same thing for the past two months. To her credit, this particular call center worker did have some skills. She danced around for a few minutes before finally giving me the same line I’ve heard so many times before: “I’m sorry, this is under investigation with upper management. I have no further information at this time.” Eventually, I am transferred to her manager, which is one of the managers I spoke with a few weeks ago.  After some futile discussion, I am told that the issue is being investigated and I will receive a callback. He couldn’t give me any type of timeframe for when I should expect my call. I actually email The consumerist.

Some Notes:
It is noteworthy that at the bottom of the description for Ninja Gaiden Black, it states “THERE ARE NO REFUNDS FOR THIS PRODUCT”.  The thing is, I did not receive a product for which a refund could be given. This is the equivalent of me walking into Bestbuy, picking up a copy of Ninja Gaiden, paying for it at the register, then the cashier refusing to give me the game and refusing to give me a refund.

The size of the file has come up as a possible problem. It’s 5.9GB, pretty big for Live. I’ve made it a point to download several large Demos and also rented a movie to test out my ability to receive products via Live. Several of these downloads were near 2GB and they all came through without incident.

The email I received stated that this is a known issue, but no one I’ve spoken to at customer support seems to be aware of any pattern of cases similar to this one.

In the earlier calls to customer support, they acknowledged that they could see on their end that the download did not complete. They haven’t done that in the last few and it came up today that, more than likely, what is actually under investigation is whether or not I somehow got the game and am now trying to claim that I didn’t.

I have spent in excess of  6 hours on the phone over this. (It’s not the money. I am a man of principle and I am not giving a massive corporation like Microsoft money for nothing.)

I have checked several message boards to see if this has happened to anyone else and I can’t find anything. It seems to be exceptionally rare.

The problem is that there is no recourse for the customer in a situation where this actually does happen. Microsoft took my money before my product was transferred to me. The transfer then failed to take place. It is no fault of my own and there is nothing I can do about it.

That’s why I’m writing this. The ability to purchase games and videos directly through Xbox Live seems like a great idea on the surface and when it works it is very convenient. However, this is a relatively new form of commerce. When you make a purchase on Live, beware of the fact that if something goes wrong with your download and troubleshooting doesn’t help; there is no effective protocol in place for them to resolve the issue. Xbox already has your money and as far as they are concerned that means the transaction is complete.

Oh yeah, and if you want to play GTA IV on Tuesday when I’m scheduled to get my system back from the repair center, my Gamertag is Tackleberrie. Be gentle though. My ‘box broke 4 days before GTA came out so, I don’t know the ropes yet.

Thank you for your time.  

By contrast, when we rented a movie through our Tivo using Amazon's Unbox download service and it failed to arrive in one piece, Amazon investigated and resolved the issue in less than 48 hours, and that was over a weekend. They looked at our account, confirmed we weren't able to download the file, and adjusted the account accordingly. Joe isn't asking for special treatment—he just wants to either have his points to spend, or have a product in exchange for points. Please, Microsoft, finish your "investigation" and quit jerking Joe around.

(Photo: Getty Images)

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Consumerist-5008539 Sat, 10 May 2008 11:36:05 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5008539&view=rss&microfeed=true
<![CDATA[ Burger King Investigating Email Shenanigans In Tomato Price War ]]> Last week a Florida journalist busted Burger King VP Stephen Grover for using his tween-aged daughter's email account to slam a farm workers group—but that wasn't the only weird email event related to this story. Now Burger King is taking steps to officially distance itself from Grover's actions and the other internal emails by announcing it's launched an "internal investigation" into all three.

The internal emails are particularly weird. Back in January, two messages were sent from a single Hotmail account through Burger King's servers, one to a journalist and one to a pro-farm workers group. The emails criticized Burger King and offered to provide assistance and information about the restaurant company's plans. Were the Hotmail messages legit? Is there a traitor within Burger King HQ? Or was somebody trying to set up the farm workers group for future accusations of dirty tricks?

As expected, BK gives the standard corporate spin about the investigation without actually saying anything of substance:

"Senior management of the company had no knowledge of Grover's postings. These comments were not sanctioned by the company and they do not reflect the opinion of the company," Burger King spokeswoman Denise Wilson said in a statement. "We are conducting an internal investigation, and appropriate disciplinary action will be taken."

We'd like to think that means Grover will have to wear the Duke costume at the next corporate retreat, but more likely it just means he'll get a few sympathetic back slaps by his C-level buddies. Oh well—we'll always know you're a jackass, Grover.
 
"Burger King investigates e-mails slamming farmworker group" [Florida Times-Union]
(Photo: malias)

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Consumerist-5007921 Tue, 06 May 2008 09:16:14 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5007921&view=rss&microfeed=true
<![CDATA[ Denver TV Station Tests Computer Repair Techs ]]> con_computerram158.jpgA Denver TV crew unseated a RAM chip and then took it to seven different repair centers for a diagnosis. The resulting displays of incompetence were pretty evenly distributed, with two Best Buy Geek Squads, one Circuit City Firedog, and one locally owned repair center (CTI) all failing miserably ("It's the motherboard!" they each said). Of the three locations that correctly diagnosed and fixed the problem, Action Computers charged $50, Geek Squad charged $30, and the Firedog tech who hands-down won the challenge "reinstalled the memory cards in less than two minutes, free of charge."

So what does this prove? That you should learn to troubleshoot your own damn computer! Or more realistically, that you should troubleshoot the computer technician before taking him at his word:

Powis said customers need to ask questions when bringing a computer to any repair shop, including if the employees are qualified and what if any certifications and formal training they have.
 
He also said knowledgeable technicians would, in most cases, ask to keep the computer to perform diagnostic testing.

"Computer Shops Fail Undercover Test" [Denver's Channel 7 News] (Thanks to Jim!)
(Photo: redjar)

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Consumerist-384676 Mon, 28 Apr 2008 10:48:18 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=384676&view=rss&microfeed=true
<![CDATA[ Wachovia Now Being Investigated For Drug Money Laundering ]]> con_wachoviatower158.jpgWachovia, you old rascal! As soon as you wrap up one unsavory scandal, a new possible scandal comes to light. U.S. justice authorities are investigating the bank for possible money laundering through Mexican and Colombian money-transfer businesses. The Wall Street Journal reported on Saturday that "the bank is possibly facing a deferred-prosecution agreement with the US Department of Justice that would subject it to 'extensive federal oversight,'" but Wachovia denies that any such discussion has taken place.

The money-transfer businesses, or casas de cambio, are commonly used by people in the U.S. to send money back to family members in Latin America, but the Justice Department suspects the popular businesses are also used by drug traffickers to shuttle money from U.S. drug sales to drug cartels in Mexico.

"Internal emails and documents filed in federal courts in Miami, Chicago and New York describe former ties between Wachovia and money-changing firms," the Journal said.
 
It said Miami court documents show that US agents have seized over 11 million dollars in 23 Wachovia accounts that belonged to the Mexican chain Casa de Cambio Puebla. US authorities suspected the money was the laundered funds of a drugs syndicate.
 
The probe into Wachovia is part of a larger investigation into money laundering by drug cartels through the money transfer firms that involves both US and Mexican authorities.
Wachovia says it stopped doing business with the casas de cambio at the end of 2007.

"Wachovia probed over drug-money laundering: report" [AFP]

RELATED
"Wachovia To Pay $144 Million For Bilking "Gullible" Seniors"
(Photo: Adam Cole)

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Consumerist-384621 Mon, 28 Apr 2008 09:48:31 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=384621&view=rss&microfeed=true
<![CDATA[ Cablevision Claims They Are Not Lying Liars, But Mysteries Remain ]]> Cablevision responded to our post chastising their attempt to force customer to upgrade to digital service by pointing to an unrelated FCC mandate. Cablevision admits that there is no connection between their unilateral business decision to cut channels and the FCC-mandated transition to digital television, but their statement leaves several questions unanswered. Read Cablevision's statement and our response, after the jump.

Cablevision writes:

"There is no direct connection between the digital transition of broadcast television stations that will occur across the nation in early 2009 and Cablevision's decision to transition away from the duplicate analog feeds of a certain number of channels that we already carry in digital format.
Great! This fully supports what we wrote and is an important clarification for anyone who was confused by Cablevision's letter or their customer service representatives.

Unfortunately, Cablevision goes on to say:

Neither our customer service training, nor our customer communications, link the two in any way."
Hold on. Let's immediately disprove the second assertion. We posted two recordings unequivocally showing that their "customer communication" blamed the FCC for the loss of analog programming.

As for Cablevision's training, we spoke with four customer service representatives and each one said the same thing. These weren't rogue agents conjuring up their own unsupportable explanations. Two CSRS put us on hold to consult their materials, came back, and repeated their assertions.

When we asked the agents to tell us who instructed them to mention the FCC, they expressly stated that they were following Cablevision's training. We strongly suspect that if we (or you) called back, we would again receive the exact same answer. Could all the agents have made the same mistake, and lied about their training? Absolutely, but Occam's Razor seems to shred any suggestion of a coincidence.

Cablevision admits that their agents repeatedly provided incorrect information. Two questions remain: Are they now lying about their training; and, how will the FCC admonish Cablevision for their deceptive and predatory behavior?

PREVIOUSLY: Cablevision Blatantly Lies To Subscribers As The FCC Twiddles Its Thumbs
Cablevision Uses Digital TV Transition To Upsell Basic Cable

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Consumerist-381890 Sun, 20 Apr 2008 19:45:51 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=381890&view=rss&microfeed=true
<![CDATA[ Cablevision Blatantly Lies To Subscribers As The FCC Twiddles Its Thumbs ]]> Update: Cablevision responds.

Cablevision is lying to customers by claiming that the FCC will require all subscribers to upgrade to digital cable boxes in 2009. Digital cable boxes cost $6.50 per month, plus an extra $10.95 for digital service. Cablevision recently sent a letter to all boxless subscribers threatening to cut several channels unless they forked out a bundle of extra cash for digital service. When one of our family member called for an explanation, Cablevision shirked responsibility and placed the blame squarely on some crazy new FCC mandate. We called shenanigans and decided to call back and record our chats with several customer service representatives. Inside, the recordings of Cablevision lies and the FCC's flaccid response.

Before we get to the recordings, let's look at Cablevision's fairly innocuous letter:

http://consumerist.com/assets/resources/2008/04/The%20Letter%20-thumb.jpgclass=

Here's the deal: Cablevision—not the FCC—has decided to move several channels to their digital tier. To keep receiving the channels, customer will need to upgrade to digital service with a digital box. Customers who don't pony up for the service lose the channels.

40 million American families don't use a digital cable box. Assuming all cable companies use Cablevision's rates, operators stand to pick up an extra $698,000,000 per month by convincing all 40 million families to shell out an extra $17.45 for digital service. That small piece of change is worth more than the yearly GDP of several small nations.

Cablevision is well within its bounds to charge whatever it wants for service. They can tell us we need a cable box, and that service will now cost $300 per month. That's a freedom afforded by the market. What they can't do is cowardly hide behind the FCC and blame their money-grubbing on the government. Let's listen as they try to do just that:

We spoke with four representatives, each of whom blamed the FCC for forcing us to upgrade to digital cable. We asked one representative how this information was conveyed to the CSRs, and she explained that Cablevision had specifically trained them to point to the FCC.

Let's be perfectly clear: the FCC decision has absolutely nothing to do with the channels Cablevision is taking away, nor does it require anyone to upgrade to a digital cable box.

Don't believe us? Let's see if we can find someone to refute Cablevision.... Maybe Cablevision is up to the task?

http://consumerist.com/assets/resources/2008/04/The%20Truth%20Comes%20Out%21-thumb.jpg

Looks like they know the truth after all. The transition to digital television will have no affect on Cablevision's service.

We spoke with two representative at the FCC who claim that several cable companies have engaged in similar deceitful and fraudulent actions. According to the representatives, the Commission is powerless to take action. One even defended the cable companies, saying:

"Most of [the cable companies] are blaming it on the FCC. It's easier for us to take it. We have broad shoulders, you know? We're the ones who have to explain it to all the consumers anyway when they find the 800 number and then they start calling and asking us: "why is my cable company doing this to me? I want to file a complaint."

Unfortunately, there are no mandates for good customer service. I wish there was! I would really like there for to be a mandate that says: "I'm sorry, but people on the phone at my cable company have to be nice to me and they have to tell me the truth." I wish there was, but there's not.

A mandate for good customer service couldn't be enforced by the 82nd-airborne, but lying? Regulated companies should not be allowed to lie to their customers.

Thankfully, the bespectacled bossman helming the FCC takes a different view. Chairman Kevin Martin recently slammed retailers for lying about the digital transition, dishing out several million dollars worth of fines to Sears, Best Buy and Walmart. Why can cable companies lie, but not retailers?

We know that Chairman Martin is a good guy who likes consumers. Let's go back and listen to the sweet consumer-protecting swan song he sung so graciously in our defense last year:

If the cable companies had their way, you, your mother and father, or your next door neighbor could go to sleep one night after watching their favorite channel and wake up the next morning to a dark fuzzy screen. This is because the cable operators believe that it is appropriate for them to choose which stations analog cable customers should be able watch. It is not acceptable as a policy matter or as a legal matter.

Kevvy was announcing that cable companies would be required to carry broadcast channels (CBS, NBC, ABC, etc...) until 2012, and not Travel Planet or RAI, which Cablevision is preparing to yank. The Chairman did, however, explicitly endorse our right to enjoy cable service without a box, and Cablevision's right to require us to rent one:

...the Commission is not forcing consumers to purchase or lease a set top box to continue watching their favorite channels. This decision lies in the hands of the cable company. They can avoid the need for new boxes bychoosing to downconvert the digital signal into analog at their headend. This downconversion would permit analog cable subscribers to continue watching broadcast television just as they do today without disruption.

This isn't the first time Cablevision has used the DTV transition to beat customers like cash-spewing pinatas. The cable giant was previously caught sending letters to prospective customers telling them that TV would disappear in 2009 unless they started paying $240 per year, despite the availability of $20 converter boxes that will keep the Price Is Right up and running.

Cablevision is clearly engaged in a pattern of deception and fraud. The FCC has a responsibility to investigate and admonish Cablevision for their abusive conduct. Predatory upseling simply cannot be tolerated in a responsibly regulated marketplace.

PREVIOUSLY: Cablevision Uses Digital TV Transition To Upsell Basic Cable
Sears, Best Buy, Wal-Mart And Others Fined For Not Warning Consumers About Analog Obsolescence
FCC Takes Action To Prevent Cable Companies From Dropping Digital Broadcast Networks From Analog Cable

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Consumerist-379852 Sat, 19 Apr 2008 17:15:15 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=379852&view=rss&microfeed=true
<![CDATA[ Drugs In The Water No Big Deal, Says NYC Official ]]> fishinwater.jpgIn regards to a headline grabbing AP investigation that found the drinking water of major cities contained trace amounts of an array of pharmacopoeia, the deputy commissioner of New York City's Department of Environmental Protection, "A person would have to drink one million glasses of water to get the dose of even one over-the-counter ibuprofen tablet or the caffeine in one cup of coffee...Even at eight glasses of water per day, this would take the average person over 300 years to consume." So for those of you hoping to replace your medicine cabinet just by draining the Brita, sorry Charlie. However, there are no studies on the long-term effects to human of small exposure to a vast array of drugs, although, the Times notes, they have been shown to cause mutations in fish.

Council Considers Testing Water for Traces of Drugs [NYT]
PREVIOUSLY: AP: 41 Million Americans Drink Water Contaminated With Antibiotics, Anti-Convulsants, Mood Stabilizers, And Sex Hormones
(Photo: Getty)

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Consumerist-377214 Tue, 08 Apr 2008 09:43:21 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=377214&view=rss&microfeed=true
<![CDATA[ ISPs Are Maniacal Stalkers Who Read Your Email And Watch You Surf The Web ]]> Internet service providers are actively tracking 100,000 users, reading every email they send and every website they visit, according to the Washington Post. The report coincides with a damning Associated Press investigation of ISP contracts which finds that they reserve broad rights to read essentially anything you view on the internet without any intervening supervision or regulation.

"The network is asserting almost complete control of the users' ability to use their network as a gateway to the Internet," said Marvin Ammori, general counsel of Free Press, a Washington-based consumer advocacy group. "They become gatekeepers rather than gateways."

But the provisions are rarely enforced, except against obvious miscreants like spammers. Consumer outrage would have been the likely result if AT&T Inc. took advantage of its stated right to block any activity that causes the company "to be viewed unfavorably by others."

Jonathan Zittrain, professor of Internet governance and regulation at Oxford University, said this clause was a "piece of boilerplate that is passed around the corporate lawyers like a Christmas fruitcake.

"The idea that they would ever invoke it and point to it is nuts, especially since their terms of service already say they can cut you off for any reason and give you a refund for the balance of the month," Zittrain said.

AT&T removed the "unfavorably by others" wording in February after The Associated Press asked about the reason behind it. Subscribers, however, wouldn't know that it was gone unless they checked the contract word for word: The document still said it was last updated Oct. 8, 2007.

Most companies reserve the right to change the contracts at any time, without any notice except an update on the Web site. Verizon used to say it would notify subscribers of changes by e-mail, but the current contract just leaves that as an option for the company.

Specifically, ISP's reserve the right to:
  • Read Your Email: No warrant or court involvement required. They can read your email for any reason, at any time, without any oversight.
  • Ban Websites: Any content deemed "inappropriate" can disappear behind an impromptu version of the Great Chinese Firewall.
  • Boot You For Using The Service: You can be booted for excessively using your unlimited connection. Our tipsters tell us that Comcast's unpublished limit is around 200 GB per month.

Separately, the Washington Post claims that some ISPs are taking full advantage of these provisions to fine-tune their ad-spewing systems:
The online behavior of a small but growing number of computer users in the United States is monitored by their Internet service providers, who have access to every click and keystroke that comes down the line.

The companies harvest the stream of data for clues to a person's interests, making money from advertisers who use the information to target their online pitches.

[..]

The extent of the practice is difficult to gauge because some service providers involved have declined to discuss their practices. Many Web surfers, moreover, probably have little idea they are being monitored.

But at least 100,000 U.S. customers are tracked this way, and service providers have been testing it with as many as 10 percent of U.S. customers, according to tech companies involved in the data collection.

Although common tracking systems, known as cookies, have counted a consumer's visits to a network of sites, the new monitoring, known as "deep-packet inspection," enables a far wider view — every Web page visited, every e-mail sent and every search entered. Every bit of data is divided into packets — like electronic envelopes — that the system can access and analyze for content.

We really dislike the pessimists writing for the AP's investigative unit. They break all the sad stories, the ones proving our water is a pharmaceutical factory and that large corporations use our private data for their amusement. Report on something positive for a change, like: aren't bunnies cute? How'd they get so cute? And no, it has nothing to do with toxins or a distorted marketplace. They're just cute, ok? We want 5,000 words on the topic in our inbox by Friday. Now ISPs, in exchange for allowing you to read this uplifting report, you agree not to read any of our other emails. Deal?

ISPs Hog Rights in Fine Print [AP]
Every Click You Make [Washington Post]
(Photo: Getty)

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Consumerist-376388 Sun, 06 Apr 2008 10:45:30 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=376388&view=rss&microfeed=true
<![CDATA[ Justice Department Will Investigate Countrywide's Lending Practices ]]> A judge has authorized an investigation into Countrywide's lending practices, says the NYT.

Judge Thomas P. Agresti of the Federal Bankruptcy Court in Pittsburgh on Tuesday approved an inquiry into "the impact of Countrywide's bankruptcy procedures on the integrity of the bankruptcy process" by the Office of the United States Trustee, a Justice Department arm that polices bankruptcy filings.

Judge Agresti dismissed Countrywide's protests that authorizing an investigation by the trustee's office could have "staggering implications" for other big mortgage lenders by starting an investigatory "free for all."

He said an investigation was warranted because the trustee's office had demonstrated "a common thread of potential wrongdoing" in several bankruptcy filings involving Countrywide.

The trustee's office has asserted that it needed to look into accusations that Countrywide had chronically mishandled mortgage payments, pumped up bills with improper fees and charges and ignored court orders while pursuing troubled consumers.

Countrywide denies that the mistreatment of homeowners is a "feature of its mortgage processing backroom systems." We can't help but point out that if you have to hire lawyers to help you deny that your incompetance is a "feature," you are officially really bad at your job.

Court Approves Review of Countrywide Practices [NYT]
(Photo:meghannmarco)

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Consumerist-375809 Thu, 03 Apr 2008 15:18:25 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=375809&view=rss&microfeed=true
<![CDATA[ Hannaford Credit Card Theft Caused By Malware, Not Database Breach ]]> con_hannafordap.jpg Most corporate credit card data theft happens at the database level, like the massive T.J. Maxx breach. But Hannaford has notified investigators that the recent theft of 4.2 million accounts was caused by malware that was installed on the servers at each of its 300 locations. The software "intercepted data from customers as they paid with plastic at checkout counters and sent data overseas," reports CNET.

The breach appears to be one of the first in which credit card numbers were stolen while the information was in transit, or at the point of sale. One of a growing number of sophisticated attacks, it illustrates vulnerabilities in the communication between cash registers and branch servers, as Neal Krawetz of Hacker Factor Solutions has warned in research (PDF).
 
Andrew Conry of InformationWeek adds that Hannaford, in addition to the breach, has two related class action lawsuits on its hands alleging negligence in maintaining customer security. And he suggests that there might be some truth to the claims, noting that Hannaford should have noticed that "internal servers were transmitting outside the network to a strange IP. This should've raised flags somewhere—server logs, IDS logs, firewall logs."
"Malware to blame in supermarket data breach" [Cnet]

RELATED
"4.2 Million Credit Cards Exposed In Hannaford Supermarket Security Breach"
(Photo: AP/Pat Wellenbach)

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Consumerist-374023 Mon, 31 Mar 2008 10:47:09 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=374023&view=rss&microfeed=true
<![CDATA[ Geek Squad Feels "Unfairly Targeted" By Consumerist Expose ]]> When personal finance magazine Kiplinger asked the Geek Squad about our video that caught one of their technicians stealing porn from our harddrive (peeping tomism, hardly limited to Geek Squad, is just as rampant in the computer repair industry as the photo developing industry), an unidentified Geek Squad spokeswoman ingenuously responded, "We have been the target of a blog that prefers to focus on the exceptions to our service and not the overall, vast majority of successful services we provide to clients." That's like saying dirt is unfairly targeted by a broom. Where there's a valid complaint, we'll post. Where there's a consumer whose rights aren't respected, we will defend. We don't have a vendetta against the Geek Squad, or any other company. We have a vendetta against bad customer service. That's our bottom line. After the jump, the original undercover video...

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Consumerist-373702 Fri, 28 Mar 2008 19:47:22 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=373702&view=rss&microfeed=true
<![CDATA[ Comcast Tells FCC It Doesn't Have Authority To Interfere With "Traffic Shaping" ]]> con_comcasttauntsfcc.jpg Comcast is now claiming that the FCC "has no legal power to stop the cable giant from engaging in what it calls 'network management practices' (critics call it peer-to-peer traffic blocking)," reports Ars Technica. In an amazing display of spin, Comcast writes that letting the marketplace "maximize consumer wel