FindLaw's Common Law

Card Reform May Come Too Late This Holiday Season

2009-11-25T13:43:11-08:00

It seems like credit card companies will be free to scrooge us through holiday season continued credit card interest rate increases. Previously, we discussed the congressional push to move up the effective date on card reform this holiday season, but it seems like that push has now faded into a pipe dream.

Congress was trying to pass a measure that would enact strict rules against a credit card rate increase during the holiday season because of fears that credit card companies would do just that before the CARD Act is fully enacted on February 22, 2010.

CNN reports that while the House of Representatives have passed a measure to do just that, Republican senators have blocked a bill that would freeze current credit card interest rates.

CNN quotes Sen. Chris Dodd (D-Conn) addressing his fellow senators on the floor: "The holiday season is upon us. Hard-pressed Americans want go out and do what what they can to help their families and celebrate, in a very difficult time, some joy... by taking a credit card out and making those purchases. They're watching... an industry continue to skyrocket these rates and fees on people."

His words seem to have fallen on deaf ears in the Senate. While Sen. Dodd is attempting to pass this measure, many are predicting that the Senate will not pass it because the effective date of the CARD Act is so near.

In the meantime credit card companies are hiking up their interest rates. CNN quotes the Government Accountability Office as saying, "In recent months, changes in the economy and the passage of the [new law] have led many issuers to 'reprice' their credit card accounts by altering the rates, fees, and other terms that apply to cardholders' cards."

This is not good for consumers, but since Congress is too busy with other issues, its likely that the measure to push CARD Act will likely fall flat.

At least we know whose stockings to fill with coal this Christmas.

Related Resources:

CARD Act Move-Up: Credit Card Reform May Come Early (Findlaw's Common Law)
Credit Card Practices Bilk Cardholders Waiting for New Rules (Findlaw's Common Law)
First Part of New Credit Card Laws Take Effect (Findlaw's Common Law)

Storkcraft Crib Recall: Drop-Side Crib Danger Affects 2.1 Million Cribs

2009-11-24T13:05:00-08:00

Approximately 2.1 million Storkcraft drop-side cribs have been recalled, according to the U.S. Consumer Product Safety Commission. The Storkcraft crib recall involves a drop-side crib defect that causes the drop-side to detach in one or more corners, which could allow a baby to fall or suffocate.

The drop-side crib's plastic hardware can break down or deform which leads to the problem with the drop-side. The U.S. Consumer Product Safety Commission urges parents to immediately stop using the recalled cribs and find alternative sleeping arrangements for their infants. Storkcraft is offering a free repair kit in order to fix the defect. Consumers can contact Storkcraft for the free kit.

The cribs affected by this recall are outlined by the U.S. Consumer Product Safety Commission as being: "Stork Craft cribs with manufacturing and distribution dates between January 1993 and October 2009. This recall also includes Stork Craft cribs with the Fisher-Price logo that have manufacturing dates between October 1997 and December 2004. The Stork Craft cribs with the Fisher-Price logo were first sold in the U.S. in July 1998 and in Canada in September 1998."

The retailers that sold these defective cribs include BJ’s Wholesale Club, J.C. Penney, Kmart, Meijer, Sears, USA Baby, and Wal-Mart stores and online at Amazon.com, Babiesrus.com, Costco.com, Target.com, and Walmart.com. The price range on the cribs are from $100 to $400.

According to CNN, this is the second time that the company has had to recall cribs. They recalled over half a million cribs back in January 2009. There have been over 100 documented cases of drop-side detachment in both the United States and Canada. The injuries sustained have ranged from severe concussions to minor bumps and bruises.

CNN quoted U.S. Consumer Product Safety Commission spokesperson Scott Wolfson as saying: "CPSC is working on new federal rules to make all cribs safer." This could result in a move to actually ban drop-side cribs. CNN reports that Toys "R" Us plans to actually stop carrying drop-side cribs and jurisdictions such as Suffolk County, NY has already passed a law that banned sales of drop-side cribs.

Related Resources:

Infant Entrapment and Suffocation Prompts Stork Craft to Recall More Than 2.1 Million Drop-Side Cribs (U.S. Consumer Product Safety Commission)
Stork Craft Recalls More Than 500,000 Cribs; Mattress Support Bracket Failures Create Risk of Entrapment and Suffocation (Findlaw)
CPSC chief concedes it moved slowly on crib safety (Findlaw)
Products Liability Overview (provided by Hartley Hampton)
Product Recall and Personal Injury News (provided by Warner Law Offices PA)

Food Safety System to Get More Government Oversight in 2010

2009-11-24T12:14:28-08:00

According to Reuters, the U.S. Senate committee on Health, Education, Labor and Pensions voted last Wednesday to increase government oversight on food safety. This would be the first major overhaul of the food safety system in 50 years. However, as busy as congress is with health care, food safety probably won't hit the Senate floor until early 2010.

The Senate bill, similar to the House legislation, would allow the FDA to expand oversight of the food supply and more importantly, shift its focus from reacting to outbreaks of foodborne, illness to preventing them. The FDA would have the power to order recalls, increase inspection rates to at least once every four years, and in the case of high-risk facilities, once every year. Currently, facilities can go several years without a visit from the FDA. The Bill would also implement traceability for fruits and vegetables and start a pilot program for tracing processed foods.

The only current difference between the House and Senate bills is the House bill provides for funding for the increased oversight via a yearly fee of $500 charged to processing plants while the Senate bill does not. However, the Senate might change its mind on that point after the Congressional Budget office puts a price tag on the bill. Chairman of the Health Committee Tom Harkin (D) said, "if this is for public protection, it's something we all ought to pay for."

Consumer groups are pleased with the progress thus far. "This is another milestone on the path to fixing our badly broken system for food safety," said Jean Halloran, a director at Consumers Union. Even large U.S. food companies are generally in favor of improving food safety as illness outbreaks are detrimental to sales. "There are not big substantive disagreements that will stand in the way of legislation," said Scott Faber, a vice president at the Grocery Manufacturers Association.

Related Resources:

U.S. food safety likely to get overhaul in 2010 (Reuters)
CDC Food Safety Office website
Food Poisoning and Safety Resources (FindLaw)
Personal Injuries from Dangerous Products (provided by Woomer & Hall LLP)
Personal Injury News (provided by Marsh, Rickard & Bryan, P.C.)

Tis the Season for...Toy Safety: New Rules from CPSC

2009-11-23T09:11:02-08:00

CPSC Chair Inez Tenebaum held a Town Hall meeting in New York recently to talk to parents and consumers about safe toys and new toy safety regulations. The CPSC has introduced new rules and guidelines for higher toy safety standards this year. In addition, there are steps parents and grandparents can take to ensure a happy and safe giving season.

Starting this year new federal rules state:

federal limits for lead in paint on children's toys dropped to 90 parts per million, which is among the lowest in the world;
toys for children 12 and younger must now be tested and certified that they meet the new lead in paint limits;
children's toys cannot be made or sold with more than 300 parts per million of total lead;
children’s toys cannot be made or sold with more than 0.1% of six prohibited phthalates
most children’s toys now fall under mandatory standards, instead of voluntary ones.

This year, toy recalls are significantly down. So far this calendar year there have been 38 toy recalls, down from 162 in 2008 and 148 in 2007. CPSC cites better enforcement for imports, cooperation with other nations, and more consumer awareness and education, among the factors giving consumers a bit safer year.

There are several safety tips the CPSC would like consumers to take when shopping this holiday season:

Scooters and other Riding Toys – Riding toys, skateboards and in-line skates go fast and falls could be deadly. Helmets and safety gear should be worn at all times and be sized to fit.
Small Balls and other Toys with Small Parts – For children younger than age three, avoid toys with small parts, which can cause choking.
Balloons - Children can choke or suffocate on un-inflated or broken balloons. Keep un-inflated balloons away from children younger than eight years old. Discard broken balloons at once.
Magnets – For children under age six, avoid building or play sets with small magnets. If magnets or pieces with magnets are swallowed, serious injuries and/or death can occur.

Once the screaming is over and the gifts are open, the CPSC also recommends the following:

Immediately discard plastic wrappings or other packaging on toys before they become dangerous play things.
Keep toys appropriate for older children away from younger siblings.
Charging batteries should be supervised by adults. Chargers and adapters can pose thermal burn hazards to young children. Pay attention to instructions and warnings on battery chargers. Some chargers lack any device to prevent overcharging.

The CPSC is committed to working with consumers on toy safety and education and with foreign and domestic toy manufacturers, importers and retailers to understand and comply with the new regulations.

To see the full text of the CPSC News Release go to: http://www.cpsc.gov/cpscpub/prerel/prhtml10/10039.html.

Related Resources:

Toy Safety Publications List (CPSC)
Information about phthalates (AmericanChemistry.com)
Holiday Toy Safety (FindLaw)
Personal Injuries from Dangerous or Defective Products (provided by Carter & Fulton, P.S.)
Personal Injury FAQs (provided by Law Offices of Lawrence M. Knapp)

Public Health Advisory: Drug Interaction, Prilosec/Plavix

2009-11-20T12:13:01-08:00

A new Public Health Advisory from the FDA was published on November 17th. The FDA has new data showing a drug interaction between the drug omeprazole (Prilosec and Prilosec OTC) and clopidogrel (Plavix) which reduces the effects of the clopidogrel (Plavix) by almost half when both are taken by the same patient. The drug interaction in this case is caused by the omeprazole (Prilosec) blocking the "conversion of the Plavix into its active form."

Clopidogrel (Plavix) is a medication taken by heart attack or stroke patients to aid anticoagulation and prevent further clotting of the blood. Omeprazole (Prilosec) is commonly taken by prescription and over the counter to treat frequent heart burn. The FDA wants patients taking clopidogrel (Plavix) to know the following:

Patients using clopidogrel should consult with their healthcare provider if they are currently taking or considering taking omeprazole, including Prilosec OTC.
Both clopidogrel and omeprazole can provide significant benefits to patients, and patients should always consult with their healthcare professional before starting or stopping any medication.
It is very important that patients talk with their healthcare professional about any over-the-counter (OTC) drugs they are taking before starting or while using clopidogrel

The FDA recommends patients taking clopidogrel (Plavix) that need a medication for stomach acid can use the following medications without serious interference with anti-coagulation medications such as Plavix: antacids such as Maalox or Mylanta, Zantac, Pepcid, or Axid.

The label for clopidogrel will be updated with the new warnings. If you are concerned about these drugs or their interactions with any medication you are taking, you should speak with your doctor.

Related resources:

FDA Public Heath Advisory on Prilosec and Plavix (fda.gov)
Things You Should Know: Taking Prescription Medications (FindLaw)
Pharmacy and Prescription Errors (provided by Burnside Wall LLP)
How to Avoid the Risks of Medical Negligence (provided by The Watson Law Group, Steven M. Watson)

Never Mind, Rapunzel: Illinois AG Sues Hair Growth Institute

2009-11-19T12:07:13-08:00

Hair today, gone... no, that's just too easy. What is more difficult than promised, apparently, is for follically challenged Illinois consumers to get their money back from the Natural Hair Growth Institute. The Institute is a company supposedly promoting hair growth remedies. In a suit announced November 17, Illinois Attorney General, Lisa Madigan, is seeking $50,000 in penalties for each violation of the Consumer Fraud Act, full restitution for customers, and to ban the defendants Natural Hair Growth Institute (NHGI) and owner, Steve Bennis, from operating in Illinois.

According to the Attorney General's News Release, the claims made by the NHGI are completely unsupported by science. The company, for a token $8,000-$12,000, guarantees (or your money back) that its laser therapy, scalp massage and topical hair products will help re-grow hair within six months. The NHGI also claims that it uses an FDA approved "Orbit Laser Light" treatment like one commonly used in that great oasis of cutting edge health treatments, Europe. In fact, Madigan says, the laser used is not the same as the approved Orbit Laser Light device.

The Illinois AG's Office has received nine complaints by consumers that, even after the promised "scalp detoxification... massage" and additional treatments failed to work, they did not receive their money back, as promised. Even after repeated requests.

ChicagoBreakingNews.com reports that the defendant remains unbowed. A spokeswoman for Bennis said Tuesday night that he stands behind his businesses and called the suit a waste of taxpayer money. The suit "is 100 percent one-sided and has no basis whatsoever," spokeswoman Angela Kolton said. Maybe hats will just come back into fashion in Illinois.

Related Resources:

What is Fraud? (FindLaw)
Madigan Files Suit against Natural Hair Growth Institute (Ill. AG's Office)
Lawsuit alleges hair growth firm's claims are bald (Chicago Sun Times)
State sues 2 local hair growth businesses (ChicagoBreakingNews.com)

Feds Crack Down on Gift Cards in Time for Holidays

2009-11-17T12:52:00-08:00

With the holidays approaching, it seems like the best way to handle those pesky shopping lists is just to buy a bunch of gift cards right? Wrong! Sometimes you end up giving a nightmare instead of a dream gift.

Why is that? Sometimes retailers pretend that gift cards are like cash, but there are things in the fine print. For example, gift cards can expire before they can be used. Or the gift card has a monthly "maintenance" fee. Gift card fees and gift card expiration aren't exactly what most gift givers have in mind.

The government has heard many complaints and it has finally decided to crackdown on these unfair gift card practices. Complaints have been steady since 2007 about gift card practices. For example, Kmart had to settle charges brought against it by the Federal Trade Commission which charged that the retailer engaged in deceptive practices in selling and advertising its gift card. It promoted its card as the equivalent of cash but there were fees placed on the cards after two years of non-use. The retailer also advertised that the card never expired when it really did expire after a certain period of time.

Well this holiday season promises to be a bit brighter with help from the Federal Reserve Board. It announced that proposed rules to restrict fees and expiration dates would apply to gift cards. This would prevent all of those problems that consumers have had in the past with gift cards as outlined above.

According to the press release from the Federal Reserve Board: "The proposed rules would prohibit dormancy, inactivity, and service fees on gift cards unless: (1) there has been at least one year of inactivity on the certificate or card; (2) no more than one such fee is charged per month; and (3) the consumer is given clear and conspicuous disclosures about the fees. Expiration dates for funds underlying gift cards must be at least five years after the date of issuance, or five years after the date when funds were last loaded."

This is in order to help implement the provisions outlined in the Credit Card Accountability Responsibility and Disclosure Act of 2009 which are specifically for gift cards.

So make sure you read the fine print this holiday season. That way you can prevent retailers from scrooging your gift card recipients.

Related Resources:

Banking - Gift Cards (Findlaw)
CARD Act Move-Up: Credit Card Reform May Come Early (Findlaw's Common Law)
Kmart Settles Charges Over Gift Cards (Findlaw's Common Law)

Update: Utah Settles with Eli Lilly in Zyprexa Case

2009-11-17T11:50:00-08:00

As we previously discussed regarding Eli Lilly's $1.42 Billion Zyprexa settlement, major pharmaceutical company Eli Lilly has faced a host of suits over its marketing tactics for the drug Zyprexa. Last week Utah Attorney General, Mark Shurtleff, announced that state's settlement of the drug lawsuit with Lily, for $24 million.

Shurtleff feels this was a big win for the state, not only in terms of the money, but because the he wanted Lilly's "bad conduct to stop." According to Utah's four year investigation, 1,769 patients over the age of 65 received the drug with out the appropriate diagnosis.

Utah, like 13 other states, choose to go it alone in its suit against the drug company instead of joining the 32 state group who's suit against Lilly ended in a $62 million dollar settlement last year. The group suit, like the Utah case, centered around Lilly's aggressive marketing of the drug for off-label uses for dementia, Alzheimer's, agitation, aggression, hostility, depression and generalized sleep disorder. The FDA has not approved the drug for treating these conditions.

The settlement money will be useful for Utah which, like so many other states, is struggling with a huge budget shortfall. "There are plenty of opportunities and critical needs for this money," House Speaker David Clark, R-Santa Clara, said as he accepted a faux $24 million check from Shurtleff.

In the Utah Attorney General's News Release, Robert Steed, Assistant Attorney General and Director of the Utah Medicaid Fraud Control Unit said, "Today's announcement should send a clear message that those who would put corporate profits ahead of patient safety will be held accountable."

Related Resources:

Utah Snags $24m in drug case (Salt Lake Tribune)
Utah Attorney General News Release
Eli Lilly Zyprexa Settlement: Drug Maker to Pay Record $1.42 Billion> (FindLaw's Common Law)
FDA Overview (provided by Goldenberg & Johnson, PLLC)

Heads Up: BPA in High Levels Linked to Sexual Dysfunction

2009-11-17T08:58:31-08:00

After numerous reports on the potential harmful effects of the chemical bisphenol A, known as BPA, one more issue rears its ugly head: potential problems with sexual function in men. In a new report from Kaiser Permanente and published in the journal Human Reproduction, researchers spent five years studying workers in factories in China with relatively high levels of exposure to BPA. Numerous effects on sexual function were reported.

Earlier research has linked BPA exposure to reproduction problems in animals, but the new study is the first to do so in humans, reports webmd.com. Critics who were quicker to reject reports based on animal subjects may have a more difficult time dismissing this one. Additionally, there is the subject matter. Based on self-reporting techniques, the study found the BPA exposed workers had nearly a fourfold increased risk of reduced sexual desire, an even greater risk of erectile dysfunction and a more than sevenfold risk of ejaculation difficulty than non-exposed men.

American Chemical Council spokesman Steve Hentges, PhD, tells WebMD.com he still has doubts. He finds the study sample small, "with just 230 occupationally exposed and 404 unexposed workers," and is concerned by the "self-reported observations of sexual dysfunction." However, doubts about the self reporting should be considered carefully since workers might well be likely to under-report, rather than over-report, such problems.

Consumers should be aware of these new findings, as BPA is found not only in plastic goods such as bottles, but in the lining of cans used for food products. However, it should be noted that the men in the study were exposed to about 50 times higher levels of BPA than the average American male.

SanFranciscoGate.com also reports that while the FDA found in 2008 that trace amounts of BPA are not harmful, some manufacturers have stopped using it and several regional and state governments have banned it in baby products such as bottles and sippy cups.

Researches who published the report for Kaiser Permanente would like to do further research investigating the effects of lower levels of exposure, like those to consumers of products containing BPA.

Related Resources:

Study: High BPA Linked to Sex Problems in Men (WedMD)
Article: Study: Bisphenol A Linked to Sexual Dysfunction (SFGate.com)
Study: Occupational exposure to bisphenol-A (BPA) and the risk of Self-Reported Male Sexual Dysfunction (Journal of Human Reproduction)
BPA in Canned foods (FindLaw's Common Law)
Personal Injuried from Dangerous Products (provided by Stulce & Yantis)
Personal Injury - An Overview (provided by Carter & Fulton, P.S.)

FDA Considering New Food Tracing Guidelines

2009-11-16T12:50:00-08:00

In a November 13, 2009 press release, the Food and Drug Administration (FDA) released a food safety report from the Institute of Food Technologists (IFT) recommending objectives be set to improve tracking on global food supply chains. The IFT is a nonprofit scientific society focusing on the science of food. This report was commissioned by the FDA's Center for Food Safety and Applied Nutrition in 2008.

Since food can become contaminated at any point in the supply chain, the improved ability to trace the movement of food products will allow the FDA and other agencies to more quickly identify the source of contaminated foods and thus hopefully reduce the instances of illnesses in consumers.

According to WorldPoultry.net, the recommendations from the IFT and their expert panel include basic plans to integrate and update food tracing systems. Suggestions include: use of electronic data systems for data transfer, comprehensive record keeping to allow linking of information with partners, standardization of formats of information. As elementary as some of these tasks sound, partners in food production and supply include a diverse, global group including farm workers, shippers, importers, wholesalers, retailers, government agencies and consumers. It will be a large task to develop a system to allow information from each of these groups to be available to all the others.

The improved ability to track and pinpoint the origin of food borne diseases will of course enable the FDA to "get risky products off the market faster," notes the FDA press release. This report is only part of the record the FDA will consider when, as meat international.com reports, the FDA and the U.S. Department of Agriculture's Food Safety and Inspection Service will hold a public meeting on food product tracing in Washington, D.C., on December 9 and 10, 2009. The agencies will be seeking written input from stakeholders on improving the food tracing system.

Related Resources:

New Report Recommends Enhanced Food Tracing Guidelines (FDA)
Study: Establishing comprehensive tracing system (WorlPoultry.net)
New report recommends enhanced food tracing guidelines (MeatInternational.com)
Beef Recall: 500,00 Pounds Due to E. coli; 2 Deaths Linked (FindLaw's Common Law)
Personal Injuries from Dangerous or Defective Products (provided by Warner Law Offices PLLC)
PI Overview (provided by Hagner & Zohlman, LLC)