Mitch is WalletPop's Consumer Ally. He writes The Boston Globe's Consumer Alert column and has worked at The Philadelphia Inquirer, South Florida Sun-Sentinel and Consumer Reports.
While the annoying Kars4Kids radio jingle asking consumers to donate their unwanted cars for needy children seems straightforward enough, it may actually be steering donors down a road they didn't expect.
All of the money raised by Joy for Our Youth (a.k.a. Kars4Kids) -- $16.2 million in 2007, according to their tax returns -- gets funneled to another charity called Oorah, which is never mentioned in the radio jingles or the billboards plastered along many major highways. Oorah is a Jewish religious organization whose stated mission is to heighten Jewish childrens' awareness of their heritage.
Eating popcorn at the movies used to be fun. Now it's scary, thanks to the Center for Science in the Public Interest -- the advocacy group that also has given the beat-down to Chinese food, fast food and most other things Americans love to pig out on.
The group performed lab tests on popcorn purchased from the largest movie chains, AMC and Regal, and came up with this equation: That eating a medium popcorn with a soda at a Regal theater is equal to eating three McDonald's Quarter Pounders with 12 pats of butter.
That's 1,610 calories and 60 grams of saturated fat. And, just to rub it in, CSPI noted the high profits the chain must collect for selling the combo for $12 -- given how cheap popcorn and soda actually are.
Lowe's recalled 663,000 Perfect Flame SLG Series gas grills after nearly two dozen people reported injuries due to deteriorating burners, the U.S. Consumer Product Safety Commission said. In some cases, the lids caught on fire.
Using these Chinese-made grills, imported by L G Sourcing, could put consumers at risk of being burned and should not be used until they are repaired, the CPSC said.
A California environmental health advocacy group commissioned testing on some 250 toys and found high lead levels in seven of them, including Barbie and Disney-branded products.
While the percentage that failed was low, the findings released by the Center for Environmental Health were disturbing nonetheless for just how high the levels were -- in some toys they were dozens of times above the legal limit.
Organic food advocates have turned against a once highly-embraced brand, Silk soy milk, after the company that owns it quietly altered the products' label from government-regulated "organic" to the practically meaningless "natural" without properly notifying customers.
The silence surrounding the label change has fueled a public battle between the farm policy research and advocacy group Cornucopia Institute and dairy giant Dean Foods, which owns White Wave, the maker of the Silk line of soy milk products. Organic devotees say products that are not organic can be grown with pesticides and other chemicals without running afoul of the virtually unregulated claim of being "natural."
Making matters worse, consumers have been doubly irked to find out that they were paying the same pumped up prices organic commands for the new, less-than-organic version.
"Hi. This is Rachel from Cardholder Services." It's safe to say that millions of Americans have received a call from Rachel or one of her robo-calling cohorts at some point. In fact, there have been so many complaints about calls from robo-dialers with pre-recorded announcements that the government has almost entirely banned them.
Just don't tell that to Rachel. She doesn't appear to be slowing down -- and, at least for the time being, no one can stop her because it's not clear where she comes from.
Internet telephone provider Vonage agreed to pay $3 million and change how it deals with its customers after reaching a settlement with 32 states.
Among the allegations against Vonage was consumers continuing to be charged after canceling, not clearly disclosing the terms of its "free trial," and not honoring a supposed "money back guarantee." One problem consumers ran into -- something that particularly affected senior citizens -- was the failure to disclose in Vonage's numerous advertisements that having high-speed internet was a requirement to use the service.
Extended warranties of all sorts have always been a dicey proposition, but when it comes to extended auto warranties many don't even appear to be warranties at all.
Missouri Attorney General Chris Koster took aim at the industry this week by suing six companies that market the so-called warranties and warning the public that what is being pitched isn't what you end up with. He said the industry is "rife with fraud."
Koster said what consumers are actually buying into are limited "service contracts" or "automotive additives" deals rather than a traditional warranty. That was done to avoid consumer protections otherwise afforded by law, he said in a news release.
The contracts are filled with catches. Among them:
A 30 to 90 day (or 1,000 miles) timeframe when you can't make a claim.
Promotion of a 7-year, 100,000 miles warranty extension that doesn't note coverage is limited to the declining value of the car. (In other words, Koster said, "The coverage may soon be less than the price paid by the consumer for the contact).
Sending an additive to be put into your car immediately to activate coverage without noting that its use negates the ability to cancel.
BlueHippo.com, which markets itself as a way for the credit-challenged to buy a new computer and other electronics, has been ripping off its customers and should be ordered to stop, the Federal Trade Commission told a federal judge today.
"BlueHippo is a company with a business model based on deceit," FTC Chairman Jon Leibowitz said in a statement. The company is also allegedly operating in violation of a 2008 agreement to settle a previous case brought by the FTC.
Among its complaints, the FTC says BlueHippo took in $15 million under the guise of financing computer purchases for their customers, but it neither provided the financing nor the computers. Fewer than 1 percent of customers received what they signed up for, the FTC said.
A call to BlueHippo's designated phone number for the media rolls into a voice mail that doesn't accept messages. And a call to their spokesman at the Washington, D.C. offices of an international public relations firm was not returned.
Pharmacy giant CVS has agreed to pay $875,000 to settle a lawsuit brought by the state of New York that alleged the chain routinely sold expired food, drugs and other outdated products, New York Attorney General Andrew Cuomo said.
"New Yorkers should not have to worry that their neighborhood pharmacy is selling expired over-the-counter drugs that may be harmful to themselves or their families," Cuomo said in a written statement. "Today's settlement with CVS and our past settlement with Rite Aid - which total approximately $2 million --send the message that companies have a responsibility to put the safety of their customers ahead of boosting their profits."