Consumer and Privacy Groups Urge Congress to Enact Consumer Privacy Guarantees

TT Note: Insidious surveillance. Now there's a topic for discussion. All you have to do is to watch the news and see who lately has been collecting data, such as email addresses, to make you nervous. Yep, protection of our privacy is so very important.

/PRNewswire/ -- A coalition of ten consumer and privacy advocacy organizations today called on Congress to enact legislation to protect consumer privacy in response to threats from the growing practices of online behavioral tracking and targeting.

"Developments in the digital age urgently require the application of Fair Information Practices to new business practices," the groups said. "Today, electronic information from consumers is collected, compiled, and sold; all done without reasonable safeguards."

The groups noted that for the past four decades the foundation of U.S. privacy policies has been based on Fair Information Practices: collection limitation, data quality, purpose specification, use limitation, security safeguards, openness, individual participation, and accountability. They called on Congress to apply those principles in legislation to protect consumer information and privacy.

Behavioral advertising, where a user's online activity is tracked so that ads can be served based on the user's behavior, was cited as a particular concern: "Tracking people's every move online is an invasion of privacy. Online behavioral tracking is even more distressing when consumers aren't aware who is tracking them, that it's happening, or how the information will be used. Often consumers are not asked for their consent and have no meaningful control over the collection and use of their information, often by third parties with which they have no relationships."

The coalition outlined its concerns and recommended principles for consumer information privacy legislation in letters sent to the House Energy and Commerce Committee, its Subcommittee on Commerce, Trade and Consumer Protection and Subcommittee on Communications, Technology and the Internet.

"Consumers must have their privacy protected as they conduct business and personal matters online," explained Jeff Chester, executive director of the Center for Digital Democracy. "Ensuring that our financial, health, and household transactions have adequate safeguards must be a top Congressional priority."

Chairman Rick Boucher (D-Va.) has indicated that the Subcommittee on Communications, Technology and the Internet will consider consumer privacy legislation this fall. Hearings were held this summer.

"The rise of behavioral tracking has made it possible for consumer information to be almost invisibly tracked, compiled and potentially misused on or offline. It's critical that government enact strong privacy regulations whose protections will remain with consumers as they interact on their home computer, cell phones, PDAs or even at the store down the street. Clear rules will help consumers understand how their information is used, obtained and tracked," said Amina Fazlullah of U.S. Public Interest Research Group. "In the event of abuse of consumer information, this legislation could provide consumers a clear pathway for assistance from government agencies or redress in the courts."

"Respect for human dignity is at the core of our concerns, but we are also worried that online behavioral tracking can be used to target vulnerable consumers for high-price loans, bogus health cures and other potentially harmful products and services," said Susan Grant, director of Consumer Protection at Consumer Federation of America.

"Technological advances have made it far too easy to surreptitiously track individuals online," said Melissa Ngo of Privacy Lives. "Congress needs to step in and enact legislation that will protect consumer privacy rights no matter what technology is used to collect their data."

"When a consumer goes online, they expect that the information collected from the pages they visit will be kept private from companies trolling the Web looking for personal information," said Joel Kelsey, of Consumers Union. "We are setting a very dangerous precedent for American families if we allow advertisers and Internet companies to monitor our every click and analyze our every Web stroke, just to sell our information off without our knowledge."

"Limiting commercial tracking of our online activities may also help protect privacy against the government, which often gets information about us from private companies," said Lee Tien, of the Electronic Frontier Foundation.

"Behavioral ad technology represents the cutting edge of insidious surveillance. It is essential that national policy puts privacy first so that consumers can fully participate online without fear of unfair data collection and use," said Evan Hendricks, editor of Privacy Times.

So far the online industry has argued that self-regulation provides adequate consumer protection. The coalition said formal regulation is necessary.

"The record is clear: industry self-regulation doesn't work," said Beth Givens, Director of the Privacy Rights Clearinghouse "It is time for Congress to step in and codify the principles into law."

"We've seen in industry after industry what happens when the fox is left to guard the chicken coop -- consumers lose," said John M. Simpson of Consumer Watchdog. "Regulations that can be enforced to hold the industry accountable are essential."

Among the main points that the coalition said should be included in consumer privacy legislation:

-- Sensitive information should not be collected or used for behavioral
tracking or targeting.
-- No behavioral data should be collected or used from anyone under age
18 to the extent that age can be inferred.
-- Web sites and ad networks shouldn't be able to collect or use
behavioral data for more than 24 hours without getting the
individual's affirmative consent.
-- Behavioral data shouldn't be used to unfairly discriminate against
people or in any way that would affect an individual's credit,
education, employment, insurance, or access to government benefits.

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Census Bureau to Survey Nation's Spending Habits

TT Note: Beware, my friends, now Big Brother is coming to a location in your home so he can watch how you're spending your precious money. I'm wondering how one can politely say no thanks when the federal person shows up and says, "Hey, You've been selected to tell us everything." And all this is done by a third party hired hand who is to come into my home to do this survey on a regular basis? Will they demand proof of purchase?

This comes on top of the recent letter sent home to students saying Big Brother has to know their race. What other big plans is Big Brother putting in place to monitor our every move? Will we all be tagged soon with GPS?

/PRNewswire / -- In April 2009, U.S. Census Bureau field representatives will collect information about how much Americans spend for groceries, clothing, transportation, housing, health care and other items from a sample of households across the country.

The Consumer Expenditure Survey (CE) program consists of two parts:

-- The Interview Survey - Throughout the year, about 28,000 households
will be interviewed once every three months over five calendar
quarters to obtain data on relatively large expenditures and also for
those expenditures that occur on a regular basis (such as rent and
utilities).


-- The Diary Survey - During the year, another 7,000 households will keep
two consecutive one-week diaries of smaller, more frequent purchases
that may be difficult for respondents to recall later (such as a
fast-food purchase at a drive-through window, a soda or candy bar from
a vending machine, or a carton of eggs from the supermarket).


The U.S. Bureau of Labor Statistics then calculates and publishes integrated data from the two surveys - providing a snapshot of our nation's economy and spending habits. Government economists use the survey results to update a "market basket" of goods and services for the Consumer Price Index, our nation's most widely used measure of inflation.

"The Consumer Price Index," said George Grandy Jr., director of the Census Bureau's Atlanta Regional Office, "helps businesses around the country keep wages, salaries and pensions in line with increases in the cost of living."

Before the CE interviews begin, households will receive a letter from the Census Bureau director informing them of their selection to participate in the survey. Census Bureau field representatives will visit these households to conduct the interview. The field representative must display an official photo identification before proceeding with the interview. Federal law ensures survey respondents' personal information and answers are kept confidential.

The following data on the amount spent on health care are an example of CE results.

Household Expenditures for Health Care: 2006-2007

Average annual amount Percentage of total
Area spent for health care expenditures

United States $2,810 5.7

Northeast $2,618 5.2
Boston 2,809 5.1
New York 2,674 4.7
Philadelphia 2,175 4.5

South $2,788 6.2
Houston 3,293 5.9
Dallas-Fort Worth 2,967 5.5
Washington, D.C. 2,641 4.0
Baltimore 2,431 4.6
Atlanta 2,355 5.0
Miami 2,167 4.7

Midwest $2,957 6.3
Minneapolis-St. Paul 3,705 6.2
Cleveland 3,293 6.9
Chicago 3,020 5.3
Detroit 2,307 4.8

West $2,857 5.0
San Francisco 3,224 4.6
Seattle 3,127 5.3
Phoenix 3,058 5.3
San Diego 2,613 4.8
Los Angeles 2,324 3.8

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Important Deadlines Near for $21 Million Class Action Settlement That Provides Consumers With Money Back for Over 200 Prescription Drugs

/PRNewswire-USNewswire/ -- Important deadlines are approaching for class members of a proposed class action settlement related to the average wholesale prices of certain prescription drugs. The United States District Court for the District of Massachusetts granted preliminary approval of the Proposed Settlement in July 2008. In the lawsuit, In re: Pharmaceutical Industry Average Wholesale Price Litigation, No. 01-CV-12257-PBS, MDL No. 1456, plaintiffs claimed that drug manufacturers unlawfully inflated the published average wholesale price of certain drugs, increasing what certain consumers and others paid. The defendants deny any wrongdoing.

Consumers who paid percentage co-payments or full payments for any of the covered drugs between January 1, 1991 and March 1, 2008 are eligible for money back. (A percentage co-payment varies with the cost of the drug; refunds are not available to those who paid flat co-payments.) Requests to be excluded from the Settlement and objections to the Settlement must be postmarked by March 16, 2009. Consumer Class Members must file claims by May 1, 2009.

The Proposed Settlement includes approximately $21.8 million for payments to consumers who file valid claims. Qualifying consumers can get a minimum of $35 by certifying under oath that they paid percentage co-payments for the covered drugs. Or, with receipts or bills for percentage co-payments for the covered drugs, they can receive more money back. For some of the drugs, the payment is up to three times the amount of the co-payment.

The approximately 200 covered drugs are used for the treatment of many medical conditions and are often, but not always, injected in a doctor's office or clinic. The drugs include those for treatment of cancer, HIV, asthma, allergies, infections, inflammation, pain, gastrointestinal, lung and blood issues, and other conditions.

The Defendants, 11 drug manufacturers, deny any wrongdoing, and have stated that while they believe they have strong defenses to the claims asserted, they have entered into the Settlement as a reasonable way to resolve the litigation and avoid the further expense, burden, and inconvenience that would result if they continued to litigate.

The Court will hold a Final Approval Hearing on April 27, 2009 at 2:00 p.m. to consider whether the Proposed Settlement is fair, reasonable, and adequate and the motion for attorneys' fees and expenses. For detailed information, including a list of all the covered drugs and a claim form, call toll-free 1-877-465-8136, visit www.AWPTrack2Settlement.com, or write: AWP Track 2 Settlement Administrator, P.O. Box 951, Minneapolis, MN 55440-0951.

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Consumers Becoming Increasingly Less Tolerant of Recalls, Demanding More Control Over Information

TT Note: There are so many recalls in our markets. Have you ever stopped to see the country who appears to be the major manufacturer of the suspect items? Take a moment and go to the Fayette Front Page "Recall Roundup." We bring you all the recalls we can find on a daily basis. Be an informed consumer!

PRNewswire/ -- The buying habits of consumers change dramatically and cost companies millions when product safety and quality issues arise, according to a new study released today by Deloitte.

More than half of consumers responding (58 percent) who heard about product safety and/or quality problems changed their buying habits, according to the survey. These consumers turned away from such products for more than nine months, on average, increasing the likelihood that they would discontinue the use of the product or brand entirely.

"Our research shows that consumers are becoming less tolerant of recalls with more than 50 percent changing their product choices," said Pat Conroy, Deloitte LLP's vice chairman and consumer products practice leader. "As these consumers continue to buy different products, product manufacturers can expect lower sales and run the risk of damage to their brands."

The survey, "Food and Product Safety and Its Effect on Consumer Buying Habits," addresses consumer behavior around product safety and product quality issues in general. Specifically, it focuses on key issues in four product categories:

-- Toys
-- Consumer electronics
-- Fresh food
-- Packaged food/beverages


Of these categories, changes in buying habits were most common for fresh food and packaged food/beverage. Roughly half (49 percent) of respondents said they were extremely concerned about product safety, with the greatest concerns coming from women (53 percent) and consumers 55 years of age and older (56 percent). All in all, there is a wide awareness about product safety and quality problems, and more than half of respondents (54 percent) said they were more concerned about the safety of fresh food products than they were a year ago.

Global Concerns

The global lines that were once drawn have now begun to blur and corporate globalization has created "businesses without borders." However, though globalization is an increasingly valuable part of doing business, roughly two-thirds of consumers surveyed (65 percent) were extremely concerned about the safety of products produced outside the United States, with the greatest apprehension coming from older consumers.

Approximately three-quarters of the overall respondents (73 percent) were extremely concerned about the safety of products produced in China, with half having the same doubts about products produced in Southeast Asia and Mexico.

As products fall under greater scrutiny, consumers surveyed indicated they would like more information about the safety of food products provided on packaging (86 percent), company Websites (81 percent) and by the government (81 percent). Some 67 percent said that food product labels with country of origin labeling, certification of product testing and certification of quality testing would be extremely important in their buying decisions.

"Consumers' increased sensitivity of product safety and quality is having a long-term effect on business," said Conroy. "Product recalls impact companies' revenues and share price, as well as market share and brand perception. We've seen that, while some companies can maneuver through recalls relatively unscathed, others suffer catastrophic damage."

The research shows that some of the key factors that drive the extent of a product recall impact ranges from the extent of the company's product diversification, if the recall is specifically for a branded product, strength of the company's brand when the incident occurred and how the company responds.

"Companies are meeting consumers' concerns by upgrading or expanding safety procedures including stricter safety standards, testing and third-party audits and government intervention is driving change," said Conroy. "The recent granting of the Consumer Product Safety Commission to initiate product recalls and monitor ingredient levels such as lead allowed in toys and other children's products, is a very timely and relevant example of changes being made all with consumer safety and peace-of-mind at the top of the agenda."

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