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7/31/2007

FTC Stops Massive, Deceptive Telemarketer

The Federal Trade Commission, with assistance from local police and the United States Postal Inspection Service, today halted the operations of a massive, Largo, Florida-based telemarketing scheme operated by Suntasia Marketing, Inc. The FTC alleges that over the last several years, Suntasia used at least fifteen different business names to defraud consumers across the United States out of tens, and perhaps hundreds, of millions of dollars. According to the FTC, when Suntasia’s telemarketers called consumers to offer supposedly “free” trial memberships in discount buyers and travel clubs, they deceived consumers into divulging their bank account information and later charged consumers without authorization for a series of negative option programs. With a negative option agreement, a company takes a consumer’s silence or failure to cancel as acceptance of the offer, and permission to bill them.

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Iraq Travel Warning

This Travel Warning updates the current security situation and reiterates the dangers of the use of civilian aircraft and road travel within Iraq.  This supersedes the Travel Warning of August 28, 2006.

The Department of State continues to strongly warn U.S. citizens against travel to Iraq, which remains very dangerous.  Remnants of the former Ba’ath regime, transnational terrorists, criminal elements and numerous insurgent groups remain active.  Attacks against military and civilian targets throughout Iraq continue, including in the International (or “Green”) Zone.

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7/23/2007

Federal and State Agencies Announces Pilot Project to Improve Supervision of Subprime Mortgage Lenders

Three federal agencies and two associations of state regulators will cooperate in an innovative pilot project to conduct targeted consumer-protection compliance reviews of selected non-depository lenders with significant subprime mortgage operations.

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FTC Issues Clarification to Consumers Who Received a Refund Check from the USA Immigration Services Redress Program

Commission Clarification: On July 9, 2007, the Federal Trade Commission began issuing refund checks to certain customers of USA Immigration Services. The letter accompanying those checks stated that consumers received a check because they paid the defendants for “green card” lottery assistance services. The letter should have stated that consumers received a check because, sometime between January 2001 and October 2003 they: 1) paid the defendants for “green card” lottery assistance services; 2) paid the defendants for passport, international drivers license, or other travel-related documents and services; or 3) paid the defendants for immigration forms, citizenship applications, temporary visas, permanent visas, affidavits of support, or other residency-related documents and services.

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Fleetwood: Jamboree, Tioga 2008 Motor Homes

On certain motor homes, the spare wheel, when installed on the front axle, may contact the front brake caliper mounting brackets and the driver may experience a grinding/scraping noise in the front with the spare wheel installed. This could cause premature wheel failure resulting in a loss of vehicle control or a crash could occur.

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Black & Decker Recalls Trimmers/Edgers Due to Laceration Hazard from Projectiles

Name of Product: Black & Decker GH1000 Grasshog XP String Trimmer/Edgers

Units: About 202,000

Manufacturer: Black & Decker (U.S.) Inc., of Towson, Md.

Hazard: The trimmer/edger’s spool, spool cap and pieces of trimmer string can come loose during use and become airborne projectiles, posing a laceration hazard to the user as well as bystanders. The trimmer/edgers can also overheat posing a burn hazard to consumers.

Incidents/Injuries: Black & Decker has received 707 reports of incidents, including 58 reports of injuries. Serious injuries included cuts to two consumers’ legs that required medical attention. Minor injuries included bruises, lacerations, and facial injuries such as a welt and broken skin over a consumer’s eye. There were also reports of property damage, including two broken windows.

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Reclining Lounge Chairs Sold at Menards Stores Recalled Due to Collapsing Hazard

Name of Product: Lounge Chairs

Units: About 15,000

Manufacturer: Yotrio International LLC, of Orinda, Calif.

Hazard: Faulty support brackets and/or weak frames can cause the chairs to collapse, posing a fall and severe laceration hazard to consumers.

Incidents/Injuries: Yotrio has received one report of a chair collapsing causing to the consumer to fall to the ground. No injuries have been reported.

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CVS Pharmacy Announces Recall of Playskool Sippy Cups; Poses Choking Hazard to Young Children

Name of Product: Playskool Toddler “NoSpill” Sippy Cups

Units: About 84,000

Importer: CVS/pharmacy, of Woonsocket, R.I.

Hazard: Young children can chew through the plastic spout of the sippy cup, which can pose a choking hazard.

Incidents/Injuries: The firm has received 36 reports of toddlers chewing through the plastic spout of the sippy cup, resulting in one choking incident and three near-choking incidents. No injuries have been reported.

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New Easy-Bake Oven Recall Following Partial Finger Amputation; Consumers Urged to Return Toy Ovens

Name of Product: Easy-Bake Ovens

Units: About 1 million

Manufacturer: Easy-Bake, a division of Hasbro, Inc., of Pawtucket, R.I

Hazard: Young children can insert their hands into the oven’s front opening, and get their hands or fingers caught, posing entrapment and burn hazards.

Incidents/Injuries: Since the repair program announced in February, Easy-Bake has received 249 reports of children getting their hands or fingers caught in the oven’s opening, including 77 reports of burns, 16 of which were reported as second and third-degree burns. Easy-Bake also received one report of a serious burn that required a partial finger amputation to a 5-year-old girl.

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Atico International USA Recalls Coffeemakers Sold Exclusively at Walgreens Due to Fire Hazard

Name of Product: Signature Gourmet™ and Kitchen Gourmet® 12-Cup Coffeemakers

Units: About 392,000

Importer/Distributor: Atico International USA Inc., of Fort Lauderdale, Fla.

Hazard: The coffeemaker can ignite due to an electrical failure, posing a fire hazard.

Incidents/Injuries: Atico International USA, Inc. has received 14 reports of electrical failures, including six reports in which the unit ignited causing minor property damage. No injuries have been reported.

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