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Controversial food dyes in U.S. to be labeled in Europe, not here

Jorgen Wouters Jul 20th 2010 @ 8:00PM EST Filed Under: Food, Consumer Ally

American food products containing potentially harmful dyes will now be forced to carry warning labels when sold in the European Union -- a precaution not required for American consumers, according to the Center for Science in the Public Interest (CSPI).

The 27-member European Union (EU) recently mandated that most foods containing artificial food dyes must bear warning labels declaring that the food "may have an adverse effect on activity and attention in children." It's unclear exactly how many food products will now be required to carry the warning label, says the CSPI, since Europeans have traditionally used far less artificial dye than Americans. The British government asked companies to remove most artificial dyes in December 2009.

The CSPI hopes the new EU labeling rule catches the attention of officials at the U.S. Food and Drug Administration, which it says has not shown interest in protecting American consumers from the dyes.

Because the FDA hasn't required U.S. food manufacturers to switch to safer natural colorings, the CSPI says, many American companies sell artificially dyed food in the United States but not in Europe. For example, the topping in McDonald's Strawberry Sundae sold in the United States contains Red 40, while in the United Kingdom, the topping's color comes from strawberries.

"At this point, American food manufacturers and regulators alike should be embarrassed that we're feeding kids foods with chemicals that have such a powerfully disruptive impact on children's behavior," said CSPI executive director Michael F. Jacobson in a statement. "European officials are taking the issue much more seriously, and are moving toward a safer food supply as a result."

Synthetic food dyes have been suspected of triggering behavioral problems in children since the 1970s, when Dr. Ben Feingold, a San Francisco allergist, found that his patients improved when artificial dyes were removed from their diets. According to the CSPI, numerous controlled studies conducted over the next three decades proved that some children's behavior is worsened by artificial dyes.

A 2004 analysis concluded artificial dyes affect children's behavior, and two recent studies funded by the British government found that mixtures of dyes, as well as the preservative sodium benzoate, do the same thing as well. In 2008, CSPI filed a regulatory petition calling on the FDA to ban dyes because of the problems documented in children.

Representative Louise Slaughter, Chairman of the House Rules Committee and the only microbiologist serving in Congress, has twice written the FDA expressing concern about the widespread use of artificial dyes in food.

"This is a sensible policy and a smart move to help protect the health and well being of children in Europe," Slaughter wrote. "For too long, studies have raised questions about the impact food dyes are having on the development of children and the possible link between dyes and behavior. I have been troubled by the lack of solid data on this issue for more than a decade. It's my hope that the Food and Drug Administration reviews the abundance of science on this issue and considers implementing a similar restriction or outright ban."

Besides being linked to behavior problems in children, food dyes are also inadequately tested and may pose cancer risks as well, according to a CSPI report published last month: Food Dyes: Rainbow of Risks.

Arkansas sues Consumer Telcom over long distance charges to consumers

Stella M. Chavez Jul 20th 2010 @ 7:30PM EST Filed Under: Consumer Ally

Arkansas Attorney General Dustin McDaniel has sued Henderson, Nev.-based Consumer Telcom, Inc. alleging that the telecommunications company continued to charge Arkansas consumers even after they had canceled their long distance service.

The suit alleges that CTI violated Arkansas' Deceptive Trade Practices Act by making it difficult for consumers to cancel their services. The company bills itself as a low-cost provider to consumers.

According to the suit, customers who tried to change their long distance provider by calling Consumer Telcom or a local phone service provider were billed the full amount of Consumer Telcom's bundled services.

Many customers did not know they were still being billed because charges were included in the bundled services. Consumer Telcom claims that its customers are bound by an agreement that requires them to let the company know they want the entire bundle canceled, according to the attorney general. But the office alleges the company doesn't provide consumers with a copy of the agreement so they can read it before switching long-distance providers.

"Arkansas customers of CTI should be able to cancel CTI's services without having to say the magic words required by 'contract' they didn't get the opportunity to see, read or accept," McDaniel said in a statement. "This company should honor cancellation requests however they are made."

Representatives of Consumer Telcom could be immediately reached for comment.

Social Security's electronic payment system criticized

Jean Chatzky Jul 20th 2010 @ 4:30PM EST Filed Under: Banks, Retire, Technology, Banking - Checking Account

Last month, I wrote about a big move by the Treasury Department to make all payments from the U.S. government electronically. In the announcement, Office of Management and Budget Director Peter Orszag called the change a "win-win for the American public." Now, we're hearing from others with a different opinion.

Consumer rights groups, including the Consumer Federation of America and Consumers Union, have stepped forward to say that the real winner here could be banks and payday lenders.

The issue at stake is that, while the Social Security Administration says that 83% of all Social Security and SSI beneficiaries receive their benefits by direct deposit, the elimination of paper checks may be forcing the rest into a situation that could put them at risk for expensive payday loans and high fees.

Continue reading Social Security's electronic payment system criticized

Teen barters cell phone for a Porsche on Craigslist

Josh Smith Jul 20th 2010 @ 3:15PM EST Filed Under: Saving Money, Technology

Bartering for goods is as old as commerce itself, but the ingenuity and resourcefulness of a teen from California, who traded an old cell phone all the way up to a Porsche is a testament to the power of trade. And also possibly, to the current economy.

Starting two years ago, Steven Ortiz took an old cell phone he had been given by a friend and traded it on Craigslist.org for a better phone; and thus kicked off a cycle of trades that landed him an iPod Touch, dirt bikes, a MacBook Pro, a Toyota 4Runner and a tricked out off-road golf cart. That was all before he turned 16.

After these initial trades Ortiz found himself in possession of several more dirt bikes, street bikes and a '75 Ford Bronco, which, as luck would have it, was a collectible worth approximately $15,000.

It was this Bronco that, according to the San Gabriel Valley Tribune, sealed the deal on a 2000 Porsche Boxster Convertible, which was actually worth less then the Bronco on paper, but not to the Young Ortiz.

This isn't the first time someone has traded an item of insignificant value for a highly-prized possession. In 2005 a Canadian man famously traded a red paperclip for a house in a series of interesting trades.

Continue reading Teen barters cell phone for a Porsche on Craigslist

Target sells t-shirt depicting Leaning Tower of Pisa in Rome

Tom Barlow Jul 20th 2010 @ 2:00PM EST Filed Under: Shopping, In the News

Last month we reported on a Target blooper, selling soccer t-shirts with the wrong flag of Spain, one hearkening back to the fascist regime of Franco. Now, according to Consumerist, the company has shown its lack of knowledge of Italian geography by selling a t-shirt for a bicycle festival in Rome that features a screen print of the leaning tower of Pisa. Pisa, by the way, is over 350 kilometers north of Rome.

But lets not send the Target folks back to school just yet. It turns out that the graphic appears to be a copy of a poster for the "Rome Festival Bicycle Division League 1964." I was not able to find any details about this festival, but the graphics offered some clues that the event took place decades ago. The bicyclists are dressed like old-time bikers, in old-style cycling caps (rather than helmets) with looping brake and shifting cables instead of the internal routing popular today.

Continue reading Target sells t-shirt depicting Leaning Tower of Pisa in Rome

Budgets are the best deal; here's how to start

Josh Smith Jul 20th 2010 @ 2:00PM EST Filed Under: Budgets, Family Money, Saving Money, Wealth, Economizer

Forget the coupon clipping. A straightforward, realistic budget is the best deal you'll ever find.

Why is a budget the best deal? Because, just like your childhood puppy your budget will always be there for you, no expiration dates, no fine print to yank away the savings after you've already been whipped into a furry of consumerism. If you care for your budget it will take care of you so that "saving" isn't just not unnecessarily spending an extra $5 at the grocery store this week; but actually saving money in a high yield savings account. Another great thing about a budget is that, again like your puppy, it will take you back even if you screw up.

Think outside the sale. For years I chased after deals and discounts like they were the oxygen keeping me alive. It didn't matter if I needed an item or not -- if there was a sticker advertising 60, 70, 80 or 90% off a gadget, I wanted to buy it. How could I pass up the savings?

It wasn't until recently that I realized a budget is the best deal you can find. After taking a few minutes to look at how to put together a budget I realized that it takes less time to set up and follow a budget than it does to look for deals every day of the week.

Thanks to great free personal finance management (PFM) tools from sites such as like Mint.com, Rudder and others you can easily create a budget and track how well you are following it each day. These tools will even send you a notification when you go outside of your budget so you aren't shocked at the end of the month. If you don't already have a successful budget don't start creating one yet. First go read these tips for setting realistic budget.

Advice on Budgeting

Reverse Budget - A savings first solution from FiveCentNickel
Budgeting basics - a Budget primer from Consumerism Commentary including suggestions on how to get started.

My personal favorite and current method of budgeting isn't so much a budget as it is smart spending. Ramit Sethi explains the model in his book I Will Teach You to Be Rich, calling it, "Conscious Spending." Instead of focusing on the minutia Sethi concedes that it is in fact OK to, "Spend extravagantly on the things you love, and cut costs mercilessly on the things you don't."

A budget may be the best deal, but that doesn't mean you need to give up on coupon clipping and bargain hunting; just make these tools that support your plan instead of the main focus. If you plan for your purchases, by saving up at SmartyPig or setting a goal in Rudder, you can still go looking for a deal on your next purchase and pay in cash. Trust me, there's something really incredible about paying in cash for the new camera that you've researched and found the best deal on.

Continue reading Budgets are the best deal; here's how to start

Thieves stealing credit card info from gas pumps, ATMs in Arizona

Stella M. Chavez Jul 20th 2010 @ 1:30PM EST Filed Under: Identity Theft, Consumer Ally

Arizona Attorney General Terry Goddard is warning consumers about using gas pumps and ATMs equipped with electronic devices to steal information from credit or debit cards. Known as "skimming," the small devices record credit or debit card numbers off magnetic strips as the consumer pays for gas or withdraws money.

Earlier this month, WalletPop reported on the sophisticated technology thieves are using to access personal identification information from ATMs. But crooks also are using gas pumps to steal information.

In some cases, miniature remote cameras have been installed on the machines to capture the personal identification number of the card user. Others are using wireless technology to intercept signals from the gas pump to the station's central computer networks, the office said in the consumer alert.

So far, skimming devices have been found on ATMs at two Scottsdale banks. One, however, reported many of its branches statewide have had customers notify them of problems with skimming.

This isn't the only trick in a thief's book these days. Consumer Ally recently reported on a fake ATM installed in Beijing.

The Atty. Gen.'s office offers the following tips for consumers to avoid being a victim of skimming:

Go inside the store to process transactions. Remain inside to sign all credit card receipts. Keep receipts in a secure location or shred them.
Select credit instead of debit at the gas pump. Your liability is limited to $50 when using a credit card.
If you suspect you're a victim of skimming, call police immediately and alert the gas station attendant. But don't rely on the attendant to call police. In some cases, gas station employees have been involved in such scams.

Ben Stein is off his rocker in dissing unemployed

Aaron Crowe Jul 20th 2010 @ 1:00PM EST Filed Under: Career, Recession, In the News

Ben Stein is losing it. At 65, the economist, actor, writer and funny guy is either having a senior moment and forgot to think before writing in The American Spectator about the unemployed, or as a millionaire with homes in Beverly Hills and Malibu is so far removed from reality that he hasn't met a long-term unemployed person and has no idea what it's like to be out of a job for two years.

Here's what Stein wrote: "The people who have been laid off and cannot find work are generally people with poor work habits and poor personalities."

Continue reading Ben Stein is off his rocker in dissing unemployed

How to teach your kids the value of money

Aaron Crowe Jul 20th 2010 @ 12:00PM EST Filed Under: Budgets, Family Money, Video

I wrote a story for WalletPop last week on how to prepare your child for an allowance. For those who prefer video to reading, here's a TV interview I did the next day on "The View from the Bay," a San Francisco TV show.