Consumer Confidential: Toyota's new recall, Macy's profit up

Here's your waiting-for-Godot Wednesday roundup of consumer news from around the Web:

-- Toyota is, yes, recalling more vehicles. The carmaker is recalling about 550,000 vehicles worldwide, including 420,000 in the U.S., for a potential steering problem. The defect involves the crankshaft pulley on V-6 Toyota- and Lexus-brand vehicles (four-cylinder models are not affected). Toyota says it has 79 reports about the defect dating back to 2007. The global recall is of 447,000 vehicles in the U.S. and Canada, 38,000 in Japan, 25,000 in Australia and New Zealand, 14,000 in Europe, 10,000 in the Middle East and 14,000 in Asia outside Japan. In recent years, Toyota has recalled about 14 million of its vehicles.

-- Things are looking up for Macy's. Profit surged in the third quarter as the department store chain benefited from tailoring its merchandise to local markets. The retailer also raised its full-year profit outlook but offered cautious guidance for the current quarter, which covers the holiday period. Macy's says it earned $139 million for the three months ended Oct. 29. That compares with $10 million in the same period last year. Analysts say it's a sign that Macy's is on the right track. The results also bode well for other retailers as we enter the all-important holiday shopping season.

-- David Lazarus

 

Consumer Confidential: Netflix down, food prices up, masks recalled

Here's your turn-the-beat-around Tuesday roundup of consumer news from around the Web:

-- Netflix is still smarting from its screwups. The company's shares plunged 35% after the one-time Wall Street favorite revealed a massive departure of subscribers angered by price increases and other questionable changes at the rental service that was created to make entertainment a snap. Netflix revealed late Monday that it ended September with 23.8 million U.S. subscribers. That's down about 800,000 from June and worse than what the company had hinted at before. In September, the company predicted it will lose about 600,000 U.S. customers. And it may get worse. Netflix said it expects more defections in coming months. Clearly this company better come up with some good news, and soon, or more people will jump ship.

-- Your grocery bill is still going up. The government says food prices are expected to climb by as much as 4.5% this year, an increase of one-half of a percentage point from its prior forecast, as higher commodity costs continue to filter down to consumers. The estimate comes after months of increases in individual items, particularly meat and poultry. Pork and beef prices have soared to record highs this year as surging export demand, particularly from China, has driven prices higher even while domestic demand remained sluggish. A jump in grain prices, which increases the cost of feeding livestock, has driven the broader jump in food prices this year.

-- Heads up: There's a recall of Halloween masks. Target is recalling about 3,400 children's frog masks because they lack proper ventilation. When secured in place across a child's face, the mask poses a risk of suffocation. The Chinese-made masks were sold at Target outlets nationwide from August through September for about $1. If you bought one, return the mask to any Target for a full refund.

-- David Lazarus

Photo: Netflix is getting slammed by investors for losing subscribers. Credit: Paul Sakuma / Associated Press

 

L.A. firm recalls 377,775 pounds of ground beef in E. coli scare

This could make you want to rethink that burger, or at least order it well-done: A Los Angeles-based company is recalling nearly 400,000 pounds of ground beef because of fears that it may be contaminated with E. coli.

Commercial Meat Co. is calling back 377,775 pounds of meat after routine testing discovered the bacterium.

The beef was processed between Sept. 7 and Oct. 7 and shipped to restaurants in California and Nevada in the form of bulk ground beef, patties, taco meat and chili, according to the U.S. Department of Agriculture’s Food Safety and Inspection Service.

E. coli is potentially deadly for young children, seniors and those with weak immune systems. No illnesses have been reported so far from the Commercial Meat products.

As for a side of melon with your burger, a multistate outbreak of Listeria found in whole cantaloupes has killed 21 people.

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-- Tiffany Hsu

Photo: Freshly ground meat. Credit: Mark Boster / Los Angeles Times

Consumer Confidential: Wireless devices, rich shoppers, stroller recall

 
Here's your be-true-to-your-school Tuesday roundup of consumer news from around the Web:

-- You know how New Zealand is supposed to have more sheep than people? Well, there are now more wireless devices being used in the United States than there are Americans, and we've doubled the amount of Internet data traffic we generate on smartphones, according to the trade group CTIA. The number of mobile devices rose 9% in the first six months of 2011 to 327.6 million -- more than the 315 million people living in the U.S., Puerto Rico, Guam and the U.S. Virgin Islands. Wireless network data traffic rose 111% during the same period. How is this possible? Many adults have more than one wireless device. Beam me up, Scotty.

-- At least someone is shopping. Wealthy families with discretionary income of at least $250,000 plan to boost holiday shopping by 7% from last year to an average $2,708, according to a survey by Hanson Group and American Express. Those pulling down less than a quarter-million bucks plan to scale back their purchases, the survey finds. But the rich are clearly feeling flush. Maybe they'll want a few more wireless devices.

-- Heads up: Hundreds of thousands of popular B.O.B. jogging strollers are being recalled because of choking concerns. The Consumer Product Safety Commission says the backing on an embroidered logo patch on the stroller's canopy can come loose. CPSC says the firm has received six reports of children mouthing a detached patch backing. Two cases involved choking and gagging. Consumers need to remove the patch before they can use the stroller. The recall involves more than 411,000 single and double jogging strollers in the United States and 27,000 in Canada.

-- David Lazarus

Photo: The ubiquity of cellphones means there are now more wireless devices in the U.S. than people. Credit: Spencer Weiner / Los Angeles Times

 

Consumer Confidential: Starbucks stimulus, auto sales, Velveeta recall

Here's your you-can't-make-me Monday roundup of consumer news from around the Web:

--Bank of Starbucks? The world’s largest coffee-shop operator will start collecting donations online and at some of its cafes to spur job creation among community businesses. Starbucks will accept money beginning Nov. 1 to help fund loans to small businesses. The company is working with Opportunity Finance Network, which represents institutions that provide credit to community businesses, to form "Create Jobs for USA." In August, Starbucks CEO Howard Schultz asked fellow CEOs and business leaders to boycott donating to U.S. political campaigns to encourage leaders to solve the nation's growing budget deficit. Looks like the company is growing impatient with Washington's pace of reform.

--One business that seems to be doing just fine is car-making. General Motors' sales rose 20% compared with last September, led by a 34% rise in sales of full-size pickups and SUVs. Chrysler Group's overall sales rose 27%. The growth built on a healthy performance in August, when new models, cheaper financing and pent-up demand lifted the industry after several disappointing months. September truck sales benefited from falling gas prices, a need to replace aging fleets, and promotions to clear out older models from showrooms. Sales of the Chevrolet Cruze compact, while still strong at just over 18,000, fell below 20,000 last month for the first time since March. That's a sign that Honda and Toyota have replenished dealer lots since tsunami-related disruptions.

--Heads up: The "possible presence of small, thin wire bristle pieces" has led Kraft Foods Global to announce a voluntary recall of approximately 137,000 cases of its Velveeta Shells & Cheese and Velveeta Rotini & Cheese products distributed in the United States. According to a company statement, no injuries have been reported and there have been no consumer complaints. Among the products being recalled are Velveeta Shells & Cheese Original Microwaveable Cups, Velveeta Shells & Cheese Original Four Pack Microwaveable Cups and Velveeta Shells & Cheese Made with 2% Milk Microwaveable Cups. If you bought any of these, return them to the store for a refund or exchange.

-- David Lazarus

Photo: Starbucks is collecting donations to help community businesses. Credit:  Elaine Thompson / Associated Press

 

Consumer Confidential: Milk lawsuit, sneaker settlement, toy recall

Here's your kitten-with-a-whip Wednesday roundup of consumer news from around the Web:

--A Los Angeles law firm has filed a class-action lawsuit alleging that various dairy companies and trade groups slaughtered more than half a million cows to inflate the price of milk. The suit filed by Hagens Berman alleges that the National Milk Producers Federation, Dairy Farmers of America, Land O'Lakes and Agri-Mark combined to form Cooperatives Working Together in order to fix the price of milk in the United States. CWT is a trade group representing dairy producers throughout the country who produce nearly 70% of the milk consumed in the United States. The lawsuit alleges that between 2003 and 2010, more than 500,000 cows were slaughtered under CWT's dairy herd retirement program in a concerted effort to reduce the supply of milk and inflate its price nationally. According to the complaint, the increased price allowed CWT members to earn more than $9 billion in additional revenue.

--You don't see this every day: A sneaker company will pay for people wearing its shoes. Well, sort of. Reebok will pay $25 million to customers to settle charges by the Federal Trade Commission that it made deceptive claims in ads that its toning shoes would strengthen and tone the legs and butts of those who wear them. The company is also barred from making any claims of the strengthening effects of the shoes unless it is backed by scientific evidence. Consumers will be paid either directly from the FTC or through a court-approved class-action lawsuit.

--Heads up: More than 1.7 million toy workshop and tool sets from toymaker Little Tikes are being recalled because of choking concerns. The Consumer Product Safety Commission says the play tool sets have oversized plastic toy nails that might get stuck in the throats of young kids. The recall is an expansion of a 2009 recall of about 1.6 million workshop sets and trucks with the same toy nails. The new recall involves an additional 11 models. Little Tikes has reported two additional incidents in which children choked when the toy nail became lodged in their throat. Both children made a full recovery. The incidents occurred before the 2009 recall.

-- David Lazarus

Photo: A lawsuit alleges that thousands of cows were killed to boost milk prices. Credit:  Lillian Chou

Cantaloupe recalled amid Listeria outbreak

Fruit fans, it’s time to check your produce.

The federal Food and Drug Administration warned consumers Thursday that there is a widespread recall for whole cantaloupes sourced from a Colorado firm, amid concerns that the fruit may be contaminated with the Listeria bacterium. Federal officials say that the contaminated fruit may be linked to two deaths and 22 cases of people falling ill.

The fruit, from Jensen Farms, is being recalled after the company confirmed that one of its Rocky Ford melons had tested positive for Listeria.

Jensen Farms said on Wednesday that it was recalling fruit it produced between July 29 and Sept. 10, but reportedly said that there was no clear confirmation that its cantaloupes were the cause of the food contamination outbreak.

To date, federal officials say they know the fruit was shipped to Arizona, Colorado, Illinois, Kansas, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas and Wyoming.

The fruit that is being recalled “have a green and white sticker that reads: Product of USA-Frontera Produce-Colorado Fresh-Rocky Ford-Cantaloupe or a gray, yellow, and green sticker that reads: Jensen Farms-Sweet Rocky Fords,” according to FDA.

If the cantaloupe has no label, FDA officials ask that consumers contact the store in which they bought the fruit and ask them for information about where the produce was sourced. If the fruit is part of the recall, Jensen Farms asks that consumers get rid of it and not eat it.

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-- P.J. Huffstutter

Photo: A cantaloupe. The FDA warned consumers Thursday that there is recall for whole cantaloupes sourced from a Colorado firm. Credit: Konrad Fiedler / Bloomberg

Consumer Confidential: Sentiment down, sales up, cars recalled

Consumer Confidential: Holiday sales, food prices, VW recall

Here's your mo'-money Monday roundup of consumer news from around the Web:

-- Merry Christmas. Retailers are already kicking the holiday season into gear. Christmas merchandise has been at Costco stores since Sept. 1 and will begin showing up on some Home Depot shelves Sept. 19. Kmart and Sears will begin selling Christmas trimmings Sept. 25. And Wal-Mart and J.C. Penney will start selling Christmas merchandise before month's end. More than 37% of shoppers — including 42% of women — plan to do some holiday shopping by Halloween, according to the National Retail Federation. Retailers are happy to oblige as they chase an estimated $450 billion of holiday spending. Ho ho ho.

-- But save some cash for your grocery bills. Food prices could rise next year because an unseasonably hot summer probably damaged much of this year's corn crop. The Department of Agriculture estimates that a surplus of 672 million bushels of corn will be left over at the end of next summer. The estimated surplus is down from last month's forecast and well below levels that are considered healthy. This spring, farmers planted the second-largest crop since World War II. But high temperatures stunted the plants. More expensive corn drives food prices higher because corn is an ingredient in everything from animal feed to cereal to soft drinks. It takes about six months for changes in corn prices to affect products at the grocery store.

-- Heads up: Volkswagen is recalling more than 30,000 Jetta sedans from the 2011 and 2012 model years because the tailpipes can stick out too far and burn people. The National Highway Traffic Safety Administration says stainless steel exhaust pipe tips installed at ports of entry and dealerships can stick out farther than the factory-installed tailpipes. If the tips are hot, they can burn people on the legs. Volkswagen received complaints of burns in July and began investigating. The company says the complaints came from fewer than 10 people. Dealers will inspect the recalled cars to see if the exhaust tips are too long and will replace them free of charge if necessary.

-- David Lazarus

Photo: Look who's already getting ready for work. Credit: CBS

 

Consumer Confidential: Gas prices, car sales, gel-fuel recall

Here's your throat-clearing Thursday roundup of consumer news from around the Web:

--Some news you don't need: Gas prices are surging as we approach the Labor Day weekend. A run-up in oil prices this year, combined with refining problems throughout the U.S., has boosted pump prices. The national average is now $3.629 per gallon (in Los Angeles, it's $3.867). Drivers will pay more for gasoline this Labor Day than in any other year except 2008, when pump prices hit an average of $3.686. Prices are rising despite a drop in U.S. gas purchases. Americans may be using less, but drivers in developing nations are using more. That's pushing fuel prices higher around the world. Just thought you'd want to know.

--Speaking of wheels, General Motors' U.S. sales rose 18% in August, while Chrysler Group and Nissan Motor also exceeded estimates. GM deliveries during the month rose to 218,479 vehicles, from 185,176 a year earlier, the company said. U.S. vehicle sales may have run at a 12.1-million seasonally adjusted annual rate in August, the average estimate of 14 analysts surveyed by Bloomberg. GM's Cruze benefited from lingering shortages of small cars at Toyota and Honda as their production recovers from the March earthquake and tsunami in Japan. Nissan, whose better supply of parts has buoyed inventory levels above its Japan-based rivals, said its deliveries climbed 19%.

--Heads up, patio types: Nine companies are recalling about 2 million bottles and jugs of the gel fuel used in outdoor decorations known as firepots because of a risk of serious burns. The Consumer Product Safety Commission says the gel fuel has been linked to several dozen cases in which people were burned when they couldn't tell whether the flame was out. Pouring more gel on a burning pot can lead to dangerous flares or burns. The companies are: Bird Brain of Ypsilanti, Mich.; Bond Manufacturing of Antioch, Calif.; Sunjel Company of Milwaukee; Fuel Barons of Lake Tahoe, Nev.; Lamplight Farms of Menomonee Falls, Wis.; Luminosities of St. Paul, Minn.; Pacific Decor of Woodinville, Wash.; Real Flame of Racine, Wis.; and Smart Solar USA of Oldsmar, Fla.

-- David Lazarus

Photo: You'll likely pay more at the pump this holiday weekend. Credit: Justin Sullivan / Getty Images

 

Consumer Confidential: Abercrombie's situation, tobacco ad suit

Here's your won't-get-fooled-again Wednesday roundup of consumer news from around the Web:

--Abercrombie & Fitch may no longer be welcome at "Jersey Shore." The clothing company's stock price took a tumble after it offered the reality-show star Michael "The Situation" Sorrentino and other members of the program "substantial payment" if they stopped wearing Abercrombie-branded clothes. Abercrombie says: "We are deeply concerned that Mr. Sorrentino's association with our brand could cause significant damage to our image. We understand that the show is for entertainment purposes, but believe this association is contrary to the aspirational nature of our brand, and may be distressing to many of our fans." The retailer says it has also "extended this offer to other members of the cast."

--Tobacco companies don't want people to know the grisliest consequences of smoking. Four of the five largest cigarette makers want a judge to put a stop to new graphic cigarette labels that include the sewn-up corpse of a smoker and pictures of diseased lungs, saying they unfairly urge adults to shun their legal products and will cost millions to produce. They also say the warnings violate their free speech rights. The companies say the warnings no longer simply convey facts to allow people to make a decision on whether to smoke. They instead force them to put government anti-smoking advocacy more prominently on their packs than their own brands. The Food and Drug Administration refused to comment, saying the agency does not discuss pending litigation.

--Heads up: Tens of thousands of tabletop feeding chairs for babies and toddlers are being recalled amid safety concerns. The Consumer Product Safety Commission says the "Metoo" clip-on chairs imported by Colorado-based phil&teds USA, can unexpectedly detach from a table, sending the chair and possibly the child in it plummeting to the floor. The company and the Consumer Product Safety Commission have received 19 reports of the chairs falling from table surfaces, including five reports with injuries. Two of the injuries involved pinched and cut fingers. The three other injuries involved bruising after a chair detached suddenly and a child struck the table or floor. About 54,000 of the chairs are being recalled.

-- David Lazarus

Photo: Tobacco companies have a message about cigarette warnings. Credit: AFP/Getty Images

 

Consumer Confidential: Sentiment down, sales up, cars recalled

Here's your feets-don't-fail-me-now Friday roundup of consumer news from around the Web:

--Consumers are still feeling blue about the economy, but that apparently isn't enough to stop us from going shopping. Consumer sentiment worsened sharply in early August, falling to the lowest level since 1980, according to a Thomson Reuters/University of Michigan survey. High unemployment, stagnant wages and the ongoing debate over raising the U.S. government debt ceiling spooked consumers, who were polled before the U.S.' credit rating was downgraded last Friday. Two-thirds of all consumers reported that they believed the economy had recently worsened, and just one in five anticipated any gains during the year ahead. Yet a separate report from the U.S. Commerce Department showed that retail sales in July posted their biggest gain in months, tempering fears that the economy might be slipping back into recession. Nothing like a little retail therapy to chase away the blues.

--Heads up: General Motors is recalling some 2012 Chevrolet Impala and Buick LaCrosse models to fix safety problems. GM says 11,915 Impalas are being recalled in the U.S. and Canada because a power steering fluid hose gets too close to the catalytic converter. The hose can melt, and fluid can leak and start a fire. The company says it knows of no complaints or injuries. The large sedans were built from April 19 through July 29. GM also is recalling 4,293 LaCrosse sedans in the U.S. and Canada to fix software that runs a computer that controls the brakes. The software may not detect a malfunctioning sensor. If the sensor fails, it could change the way the car handles and cause a crash. GM says no crashes have been reported

-- David Lazarus