Consumer Confidential: Prices come down, shoplifting goes up

Here's your Happy-Festivus Friday roundup of consumer news from around the Web:

-- And down they come -- prices, that is. Half off at the entire store at Ann Taylor. Sixty percent at Gap. Forty percent off almost everything at Abercrombie & Fitch. Aggressive last-minute deals in the days before Christmas are good for procrastinators, but they could be an alarm bell for the retail industry. While scattered markdowns are standard every year, discounts across entire stores -- which analysts say are more widespread than last year -- suggest merchants are stuck with too much merchandise. Many retailers entered the season with fully loaded shelves. Now they're scrambling to move inventory. Among the deals to be had, Toys R Us announced new markdowns on dozens of items for Friday and Saturday. (New York Times)

-- But apparently not all shopping is paid for. During the four weeks leading up to Christmas, an estimated $1.8 billion in merchandise will be shoplifted this year, according to the Global Retail Theft Barometer, a survey of retailers worldwide. That's up about 6% from $1.7 billion during the same period last year. Sticky fingers are common during the holidays. The crowded stores and harried clerks make it easier to slip a tablet computer into a purse or stuff a sweater under a coat undetected. But higher joblessness and falling wages have contributed to an even bigger rise this year. People steal everything from necessities to luxuries they can no longer afford. (Associated Press)

-- And if you're going to be returning anything (paid for or otherwise), keep in mind that there are rules to follow. Some items -- especially electronics -- have a shorter return window. Target has shortened its return time for tablets, netbooks, e-readers, cameras and camcorders to 45 days, down from 90 days last year. Also, shoppers who return gifts without receipts or other proof of payment may end up receiving the current selling price of the item, which may be lower than what was paid. In other cases, the retailer may decline the return all together. Retailers estimate that holiday returns will total a record $46.3 billion this year, up 4% from last year and 10% from two years ago. (SmartMoney)

-- David Lazarus

Photo: Discounts are growing as retailers scramble to move inventory. Credit: Scott Eells / Bloomberg

 

Consumer Confidential: Risky massage, Motrin recall, burger wars

Here's your thunder-island Thursday roundup of consumer news from around the Web:

-- We all want a massage to die for ... but not literally. The Food and Drug Administration is warning consumers not to use the ShoulderFlex Massager because at least one person is reported to have died from strangulation while using the device. The massager is sold in retail stores, catalogs and online. It's intended to provide a deep tissue massage to the neck, shoulders and back area while lying down. But the FDA warns that hair, clothing or jewelry can become entangled in the device and cause serious injury or even death from strangulation. There have been reports of one death and one near-death due to strangulation. (ConsumerAffairs.com)

-- Another heads up: Johnson & Johnson has issued another recall of Motrin pain relievers -- the sixth in two years. This time, it's because Motrin IB pills may not dissolve and begin working as fast as they're supposed to as they approach their three-year expiration date. That could delay relief of pain. The recall covers Motrin IB coated caplets and coated tablets, in packages with either 24 pills or 30 pills. A company spokeswoman says J&J is recalling packages only from retailers, not consumers, because there's no safety concern. If you have questions, call J&J at (888) 222-6036. (Associated Press)

--Who rules Burger Land? Well, McDonald's is still top dog, but the battle for second place is heating up. Wendy’s is poised to pass Burger King in market share sometime next year, according to market analysts. It would be the first time that Wendy’s, which was founded in 1969, has reached the No. 2 spot. Burger King, which once held about 20% of the $65 billion hamburger market, fell to 13.3% last year and could soon dip below 10%. Wendy’s, meanwhile, has focused on taste, offering thicker burgers with buttered buns while reminding customers of its glory days with a remake of its 1984 "Where’s the beef?" commercials. (Financial Times)

-- David Lazarus

Photo: This is a good massage. But the FDA says you could get strangled if you use a ShoulderFlex massager. Credit: Jay L. Clendenin / Los Angeles Times

 

Consumer Confidential: Holiday shopping, fewer fliers, gas pains

Here's your last-train-to-Clarksville Tuesday roundup of consumer news from around the Web:

--We're still shopping, right down to the wire. Sales at stores opened at least a year rose 3.4% for the week ended Saturday compared with the previous week, according to the International Council of Shopping Centers-Goldman Sachs Weekly Chain Store Sales Index. That follows two consecutive weekly declines as shoppers took a break after a discount-fueled spending spree over the Thanksgiving weekend. Compared with a year ago, sales for the week rose 4.6%. And there's still more shopping to do. According to a poll of 1,000 shoppers conducted by ICSC and Goldman Sachs, shoppers on average completed 70% of their holiday buying as of Sunday. Moreover, 9% of shoppers polled hadn't even started their holiday buying. Man, talk about procrastinators. (Associated Press)

--And we're still traveling, but not quite as much. The estimate for the upcoming winter holiday travel period predicts there will be fewer fliers than a year ago. A projected 43.3 million air travelers will fly on U.S. carriers for both domestic and international routes during a 21-day period, according to Airlines for America, the industry trade organization for the leading U.S. airlines. That's a 1% drop from the same period last year, which translates to about 20,000 fewer passengers on average per day. However, travelers will not find that translates into more leg room once they board planes. On the busiest days, flights will be filled to at least 85% capacity, according to the forecast. (CNN)

--Feeling a bite out of your earnings? That's your gasoline bill talking. Despite the fact that gas prices have been falling in recent weeks, the fact is consumers have spent more money on gas this year than any other, according to the Oil Price Information Service. As of mid-December, gas prices have averaged $3.52 per gallon. Based on recent demand trends, the total consumers will have spent on gas this year should be about $481 billion. Last year, motorists spent a total of $389 billion on gas, according to OPIS. When all of this data is broken down, each American household will have spent an average of $4,155 on gasoline 2011, approximately 8.4% of an average family's income. Ouch. (ConsumerAffairs.com)

-- David Lazarus

Photo: Polls show Americans still have plenty of holiday shopping to do. Credit: Mark Boster / Los Angeles Times

 

Consumer Confidential: Saab's woes, Nissan recalls, bearish penalty

Here's your ain't-no-mountain-high-enough Monday roundup of consumer news from around the Web:

--Sayonara, Saab? Saab Automobile has filed for bankruptcy, bringing the Swedish carmaker to the brink of shutting for good after failing to find investors to rescue the 74-year-old company. Saab, which General Motors sold to Swedish Automobile in February 2010, won protection from creditors in September and has been seeking funding since then. Guy Lofalk, Saab's court-appointed administrator, applied on Dec. 7 to end the reorganization, saying the carmaker was out of money and had no realistic hope of gaining financing soon. Swedish Automobile's stock plunged as much as 76% to 5 cents. How do you say "fare thee well" in Swedish? (Los Angeles Times)

--Speaking of vehicles, heads up: Nissan is recalling some 2010 and 2011 models of its Sentra small car for a battery-related problem -- the second time in a month it has recalled the cars for a battery issue. And it's recalling its Juke small car because a bracket could break and cause the engine to stall. The latest recall involves Sentras built from May 11 through May 22, 2010, and from July 8 through Oct. 25, 2010. A zinc coating on a bolt that holds the battery cable is too thick and can reduce voltage, resulting in hard starting and damage to the engine control module. As a result, the engine could stall and be hard or impossible to restart. (USA Today)

--The bear necessities: The people who make the Build-A-Bear toy bears have agreed to pay a $600,000 penalty for failing to report a safety defect that resulted in injuries to consumers. The penalty results from the company's alleged failure to immediately report problems involving a toy bear beach chair. The Consumer Product Safety Commission said sharp edges of the chair's folding frame could pinch, lacerate and even amputate a child's fingertip. The chairs were recalled in May 2009, by which time there were at least 10 reports of injuries, which the St. Louis-based company apparently knew about but didn't report. In agreeing to the settlement, Build-A-Bear said it denies allegations about the existence of a defect or hazard, or that it violated the law. (ConsumerAffairs.com)

-- David Lazarus

Photo: Saab may be going bye-bye after filing for bankruptcy. Credit: Eric J. Shelton / Associated Press

Consumer Confidential: Online deals, safe cars, holiday accidents

Here's your fightin'-words Friday roundup of consumer news from around the Web:

--It's Free Shipping Day! More than 2,500 retailers are participating. And just in time, here are some of the sweeter deals out there to save you even more money. At Coldwater Creek's website, enter the promo code BEST40 to get 40% off your purchase. At J. Crew's site, use the code CHEER to get 30% off. At Land's End, you'll get 40% off, and you don't even need a promo code. At the Levi's site, use the code THIRTY to get 30% off. And for Perry Ellis, enter PESIRE30AF for 30% off. (Time)

--Which cars are safest? Glad you asked. The Insurance Institute of Highway Safety has crunched the numbers and come up with its winners. Companies with the strongest showing included Subaru, which got top ratings for all five models it sells in the U.S. Toyota got the most top picks, with 15 of its Toyota, Lexus and Scion models. Honda gets a nod for most improved. Of the 18 vehicles new to top safety pick status this year, 10 of them were Honda or Acura models. Among high-mileage green cars, the Toyota Prius V qualifies. So do the plug-in Nissan Leaf and Chevy Volt. (MoneyWatch)

--And be safe in the home as well. According to the Consumer Product Safety Commission, more than 13,000 people were treated in emergency departments nationwide last year due to injuries involving holiday decorations. This is an increase from 10,000 in 2007 and 12,000 in 2008 and 2009. Although estimates of deaths and injuries related to Christmas tree and candle fires are down, there are still an alarming number of incidents. Live trees or other evergreen decorations that have dried out burn fast and hot in a matter of seconds if they come in contact with an open flame. The agency recommends extra caution with flames, make sure your tree is watered, and be careful climbing up and down ladders. (Times News)

-- David Lazarus

Photo: It's Free Shipping Day. But don't overlook all the discounts as well. Credit: Lawrence K. Ho / Los Angeles Times

 

Consumer Confidential: Chase disclosure, retail sales, Toys R Us

Here's your thank-the-lord-for-the-nighttime Thursday roundup of consumer news from around the Web:

— From the Better Late Than Never file: Chase bank is making its checking accounts easier for customers to understand. The bank says it will start providing a three-page disclosure that helps consumers quickly identify the key terms of its basic checking account, such as the monthly fee and conditions customers need to meet to have that fee waived. Chase will be the first major bank to adopt a version of the consumer-friendly disclosure developed by the Pew Charitable Trusts earlier this year. As it stands, Pew says disclosures are often more than 100 pages and bury the fees and terms of most interest to consumers. The model disclosure developed by Pew in April is just one page and highlights terms such as the ATM withdrawal fee and overdraft policy. (Associated Press)

— Retail hopes are rising for the holiday season. The National Retail Federation says it now expects holiday sales for the November-December period to rise 3.8% to a record $469.1 billion. That's up from its more modest 2.8% forecast made in early October when the economy's health looked more uncertain. The new forecast is hardly stellar. The projected gain is still below the 5.2% pace seen during the holiday 2010 season from the prior year, but it's well above the 2.6% average increase over the past 10 years. And any upgraded forecast is good news as stores look to the final days before Christmas to rope in holiday shoppers. (Associated Press)

— But some retailers are taking no chances. Toys R Us says its stores nationwide will remain open for 112 uninterrupted hours beginning at 6 a.m. Tuesday, Dec. 20, and continuing through 10 p.m. on Christmas Eve. This is the second year Toys R Us has opened 24 hours during the holidays. The company will hold a two-day sale from Tuesday to Wednesday, and it has extended shipping deadlines. Orders submitted online by 2 p.m. on Christmas Eve can still be picked up in store on the same day, so presents can be wrapped and ready for Christmas morning. (Orlando Sentinel)

— David Lazarus

Photo: Chase wants customers to finally understand their checking accounts. Credit: Kathy Willens / Associated Press

 

Consumer Confidential: Holiday travel, higher airfares, Acura redux

Here's your watching-the-detectives Wednesday roundup of consumer news from around the Web:

— Downturn, shmownturn. Despite continued worries about the economy, more Americans are expected to hit the highway this holiday season. AAA says it expects 91.9 million Americans — about 30% of the population — to travel at least 50 miles from home during the 11-day, year-end holiday season. That's up 1.4% from a year ago, making it the second-highest travel volume in the past 10 years. The majority (about 91%) of travelers are expected to venture forth by automobile, a 2.1% increase from a year ago. That comes in the face of high prices at the pump, with gas prices 29 cents higher than a year ago. On the other hand, air travel is expected to decline slightly. (CNN Money)

— And there's a reason for that. If you thought it was more expensive to fly this year, you're right. Average domestic airfares rose to $370 in the second quarter of 2011,up 8.5% from the average fare of $341 in the second quarter of 2010, according to the U.S. Department of Transportation. Second-quarter fares increased 3.9% from the first quarter, the second consecutive quarterly increase. And total prices may be even higher than government says. Fares in the study include only the price paid at the time of the ticket purchase and do not include other charges such as baggage fees, paid at the airport or on board the aircraft. (ConsumerAffairs.com)

— Honda's Acura brand isn't so ritzy after all. The carmaker had always hoped its Acura line could emulate Toyota and Nissan, which successfully propelled the Lexus and Infiniti brands, respectively, into the rarefied luxury-car tier alongside Mercedes-Benz, BMW and Cadillac. It never quite happened, and Honda now says it will try to reposition Acura as a mid-range, fuel-efficient brand. Over the next few years, Acura will introduce a new compact sedan, the ILX, built on Honda's global Civic platform, replacing the TSX. A redesigned RL flagship is expected by next fall, followed by a redesigned mid-sized TL sedan in the spring of 2013. (ConsumerAffairs.com)

— David Lazarus

Photo: Despite economic hard times, more people are expected to hit the road this holiday season. Credit: Michael Robinson Chavez / Los Angeles Times

 

Consumer Confidential: Weak retail sales, returns a-plenty

Here's your tea-for-two Tuesday roundup of consumer news from around the Web:

-- We're still wary when we go shopping. Retail sales rose less than expected in November as a drop in receipts for food and beverages weighed against stronger sales of motor vehicles, tempering some of the expectations of a strong holiday shopping season. Total retail sales increased 0.2% after rising by an upwardly revised 0.6% in October, according to the Commerce Department. Consumer spending -- which accounts for more than two-thirds of U.S. economic activity -- rose sharply in the third quarter but November's retail sales growth was the weakest in any month since June. (Reuters)

-- And when we do shop, we're not always satisfied. Consumers are returning an increasing amount of electronic gadgets even when they're not defective, generating huge costs for retailers and manufacturers, according to the consulting firm Accenture. It estimates that in 2011, U.S. consumer electronics manufacturers, carriers and retailers will spend $16.7 billion to process returned merchandise. This includes repairing, reboxing, restocking and reselling products. The amount spent on returns represents 5% to 6% of revenue for manufacturers and 2% to 3% of sales for retailers. The report also says the return rate for consumer electronics devices is between 11% and 20%, with about 58% of gadget retailers reporting higher return rates than previous years. (Chicago Tribune)

-- David Lazarus

Consumer Confidential: Highest minimum wage, generational income

Here's your rainy-days-and-Mondays Monday roundup of consumer news from around the Web:

--Our friends up north in San Francisco are making history with the first minimum wage to top $10 an hour. Come New Year's Day, the city's hourly wage for its lowest-paid workers will hit $10.24, more than $2 above the California minimum wage and nearly $3 more than the working wage set by the federal government. San Franciscans passed a proposition in 2003 that requires the city to increase the minimum wage each year, using a formula tied to inflation and the cost of living. And even though some businesses may see this as a burden, they should remember what Henry Ford said when he boosted his employees' wages back in the day: A well-paid worker is simply another customer for his products. Smart. (Associated Press)

--Speaking of having more cash on hand, here's a topical question: Are young people today better off than their parents? At least when it comes to income, the answer depends on gender. Today's young women make $1.17 for every $1 their moms earned back in 1980. Young men, however, are earning 10 cents per dollar less than their fathers did 30 years ago, new research shows. The study, compiled by the nonprofit Young Invincibles and the think tank Demos, looked at wage data for 25- to 34-year-olds in 2010 and compared it with the wages of that same age group in 1980. What they found is that young women are faring slightly better than their mothers did at the beginning of their careers, mainly because of advances for women in the workplace. Meanwhile, young men have fewer opportunities overall, due to the decline of manufacturing, construction and other male-dominated industries. (CNN Money)

-- David Lazarus

Photo: As far as minimum wages go, San Francisco is tops. Credit: Justin Sullivan/Getty Images

 

Ask Laz: Handling neighbor's debris from recent windstorm [Video]

Good fences make good neighbors, as Robert Frost wrote, but they aren't always a good barrier against the mighty Santa Anas.

And now that last week's fierce winds have settled, you might have found the better part of your neighbor's trees are scattered across your fence and in your yard.

Last week's Southern California windstorm caused at least $40 million in damage, though that number is expected to rise. Pasadena, for instance, sustained nearly $20 million in damage from more than 1,200 downed trees that crushed cars, knocked out power lines and scarred homes and businesses, according to city officials. 

KTLA viewer Rosella's place was trashed in windstorms. Her neighbor's foliage is now hanging on her side of the fence.

Who is responsible for cleaning up the mess?

Los Angeles Times consumer columnist David Lazarus digs through the debris to offer an answer.

 

  

 

You can watch David Lazarus on KTLA-TV Channel 5 weekday mornings and during the 1 p.m. newscast. 

If you have a burning consumer-related question, write or send a video to asklaz@ktla.com. You might just get David's answer on KTLA. 

RELATED: 

Windstorm caused more than $40 million in damage

State emergency management officials tour wind-damages areas

All Edison customers' power restored a week after windstorm  

-- Michelle Maltais

Consumer Confidential: Amazon fallout, hybrids galore, Ford recall

Here's your Brandy-you're-a-fine-girl Friday roundup of consumer news from around the Web:

--It's not just brick-and-mortar retailers who are unhappy about Amazon.com luring away shoppers with its Price Check app. Sen. Olympia Snowe (R-Maine) called on the Internet heavyweight to drop its promotion because it gives consumers an incentive to gather price data from small retailers and leave stores without spending money. Amazon is offering a 5% discount on Saturday to entice users to try a new mobile app that compares its prices with real-world retailers. "Amazon’s promotion -- paying consumers to visit small businesses and leave empty-handed -- is an attack on Main Street businesses that employ workers in our communities," Snowe says. "Incentivizing consumers to spy on local shops is a bridge too far." (Bloomberg)

--There's likely a hybrid in your future. One of every two cars will be either a hybrid or some other alternative-fuel vehicle by 2040, oil giant Exxon Mobil predicts. Hybrids, which rely on both gas and electricity for power, currently account for less than 1% of all vehicles on the world's roads. They should move into the mainstream as governments boost fuel-efficiency requirements, Exxon says. Power for those hybrids, along with other vehicles and a growing number of households around the world, will increasingly come from natural gas, nuclear power and renewable energy sources like wind, Exxon believes. But the largest publicly traded oil company also makes clear that oil will remain king of the energy world for many, many years. (Associated Press)

--Speaking of wheels, heads up: Ford is recalling more than 128,000 Ford Fusion and Mercury Milan sedans from the 2010 and 2011 model years because the wheels can fall off the cars. The recall affects only cars with 17-inch steel wheels built from April 1, 2009, through April 30, 2009, and from Dec. 1, 2009, through Nov. 13, 2010. Federal regulators say that bolts holding the wheels on can fracture, causing a vibration. If the vibration is ignored, the wheels can separate from the car. Ford says it's not aware of any crashes or injuries caused by the problem. (Associated Press)

-- David Lazarus

Photo: Sen. Olympia Snowe thinks Amazon should back off its price-check promotion. Credit:  Harry Hamburg / Associated Press