Consumer Confidential: Strollers, shakes and spam

Here's your make-my-Monday roundup of consumer news from around the Web:

--Heads up if you've got a little one. Maclaren, which makes some very popular strollers, has recalled about 1 million folding strollers that can cut or even cut off kids' fingertips. So far, the company says mishaps have resulted in at least 12 kids' fingertips being amputated. The kids apparently get their fingers caught in side hinges when the stroller is being opened or closed. For more info, check out www.maclaren.us/recall or call 877-688-2326.

--The economy might still stink, but things are looking up at the golden arches. McDonald's says its global sales rose 3.3% last month as consumers worldwide answered a hankering for Big Macs, fries and shakes. This was especially the case in Asia, the Middle East and Africa, where sales jumped 4.7%. Who says the United States isn't spreading sunshine throughout the world?

--The website Tagged.com has agreed to pay $500,000 to the New York attorney general's office to settle charges that it routinely hijacked people's e-mail accounts and sent marketing pitches to everyone they know. This is a relatively common ploy among social-networking sites and has sparked outcry among many Net users. If you've had a similar experience with either Tagged.com or some other site, don't hesitate to let California Atty. Gen. Jerry Brown know about it.

-- David Lazarus

Menu-labeling laws are changing food purchases in New York City, study finds

People are consuming fewer calories at many New York fast-food restaurants.

The mean number of calories purchased per customer decreased at nine of 13 fast-food or coffee chains, according to a study presented today by researchers from the New York City Department of Health and Mental Hygiene.

The agency was looking to see if there was any meaningful reduction in calorie consumption from New York’s menu-labeling laws that went into effect in March 2008. They presented preliminary data today at the annual meeting of the Obesity Society in Washington, D.C.

The study found that the decreases were statistically significant at four of the chains: McDonald’s, KFC, Au Bon Pain and Starbucks. People purchased more at four other chains, but the study's authors said there was only one chain -- Subway -- where the increase was statistically significant.

A similar California law will make chain restaurants post calorie information on menus starting in 2011. Some restaurant chains in California are already printing the information on their menus.

An earlier study by New York University researchers that looked at consumers in low-income and minority neighborhoods found that calorie information on menus may increase awareness of calorie content but had less of an effect on the number of calories people purchase. They New York City study authors said they believed their result was different because their sample size was much larger and more representative of the city's entire population.

Paying attention seems to be the biggest factor in whether people choose less caloric offerings. Customers who said they saw and acted on posted calorie information purchased 106 fewer calories than those who did not notice or did not use the information.

The city agency surveyed more than 10,000 customers at 275 locations of 13 different fast-food and coffee chains throughout the city in the spring of 2007 and over 12,000 in 2009, nearly a year after the requirements began.

The New York researchers said people most likely purchased more calories at Subway than they had previously because of a recession-related promotion. The number of customers buying 12-inch sandwiches at the chain rose from 28% to 73%. This shift happened as Subway launched its $5 foot-long sandwich promotion, something the researchers said suggests that the slimming effects of calorie labeling may be overcome by intensive marketing of large portion sizes.

“Dietary change is likely to come gradually; it will start with consumers interested in making informed, healthy eating decisions and we hope industry will respond by offering more healthier choices and appropriate portion sizes,” said Lynn Silver, an assistant commissioner at the agency.

The study was funded by Healthy Eating Research, a national program of the Robert Wood Johnson Foundation.

-- Jerry Hirsch
Twitter.com/LATimesJerry

Photo: A New York Taco Bell posts calories on its menu board. Credit: Carolyn Cole / Los Angeles Times

Consumer Confidential: Pizza, Enron and e-books

Here's your tantalizing Tuesday roundup of consumer news from hither and yon on the Web:

--When the going gets tough, it turns out the tough aren't eating pizza. Domino's Pizza Inc. has reported a steeper-than-expected drop in quarterly earnings -- a result, the company says, of more people preparing their own food during these recessionary times rather than ordering in. On the upside, though, Domino's says it's met with some success offering stuff beyond its usual crust-and-cheese lineup, especially sandwiches for lunch.

--He's baaack. Former Enron CEO Jeffrey Skilling will take his case to the Supreme Court, arguing that he was wrongly convicted of securities fraud, insider trading and lying to auditors, resulting in a 24-year prison term. Skilling says federal law was inappropriately applied in his case and that he was unable to get a fair trial amid "blistering daily attacks" in the media. I'm sure we're all sending good thoughts to the man who helped oversee the wipeout of more than $60 billion in shareholder wealth and $2 billion in Enron employee pension plans.

--Step aside, Kindle. Barnes & Noble is getting set to unveil its own e-book reader. The Wall Street Journal says the bookseller could roll out its device by next month, just in time for holiday sales. The B&N reader reportedly will have a six-inch screen, touch input and a virtual keyboard. Amazon.com has lowered the price for its Kindle to $259, so it's a safe bet that any new entrant to the e-book market will arrive near or below that level. My position remains unchanged: It'll take a pretty dazzling effort by any electronic gadget to woo me away from the myriad pleasures of the printed page.

-- David Lazarus

Restaurant industry continues to go hungry

Restaurant owners don't appear to be getting any break from the recession.

The National Restaurant Assn. reports that the industry's performance continued to decline in August, the latest period for which it has data.

The association’s Restaurant Performance Index – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 97.9 in August, down 0.2%  from July and its third decline in the last four months, the trade group said.  

The group's index is based on the responses to the National Restaurant Assn.’s Restaurant Industry Tracking Survey that asks about such economic indicators as sales, traffic, labor and capital expenditures. 

The survey found that restaurants continued to suffer from deteriorating sales and traffic levels in August.  Only 17% of restaurant operators reported a same-store sales gain between August 2008 and August 2009. That is down from the 26% who reported a sales gain in July and the lowest reading in the seven-year history of the index. More than two-thirds, or  68%, of operators reported a same-store sales decline in August, up from 58% who reported negative sales in July.   

Customer traffic levels also dropped off in August.  Only 15% of restaurant operators reported an increase in customer traffic between August 2008 and August 2009, the trade group said. That's down from 23% who reported higher traffic in July. 

-- Jerry Hirsch
Twitter.com/LATimesJerry

Consumer Confidential: Kindle, bank fees and Whoppers

Here's your wow-it's-Wednesday roundup of consumer news from around the Web:

-- Amazon.com really wants you to have a Kindle. The online retail giant has cut the price of its e-book reader yet again, this time by $40. Now, you can score a Kindle for $259, rather than the $399 it was originally offered at in 2007. Amazon will also offer a $279 international version that it says will work in 100 countries. Me, I'm going to see what Apple and Microsoft have up their sleeves on the tablet-computer front before splurging on an e-reader of any sort (which I still think won't be as enjoyable as a good old-fashioned book).

-- We all know that banks are making money hand over fist from overdraft fees -- I wrote about it the other day in my column. And now comes a new report informing us that the practice may be even more lucrative for our banking brethren than previously thought. According to the Center for Responsive Lending, banks pocketed nearly $24 billion in overdraft fees last year, up 35% from just two years earlier. The main reasons: Banks automatically sign up customers for overdraft protection and then order transactions from highest to lowest, rather than chronologically. Consumer advocates say this all but guarantees that fees will kick in for people living paycheck to paycheck.

-- Burger King says it's going upscale. Good luck with that.

-- David Lazarus

Menu labeling might not change food purchases

Posting calorie information on menus is often cited as an important tool in fighting obesity, but a study published today shows that at least in its initial stages, it doesn't have as big an effect as many health officials hoped.

California chain restaurants must provide calorie information in a readily accessible place for consumers and, starting in 2011, will have to post the data on menus.  Some restaurants are already doing that.

Calorie information on menus may increase awareness of calorie content but has less of an effect on the number of calories people purchase, according to New York University researchers in a study published today by the journal Health Affairs.

Their data are from New York city, where a mandatory posting law for chain restaurants went into effect last year. The study's authors looked at purchases made by adults at fast-food restaurants two weeks before and one month after mandatory calorie labeling went into effect in July 2008. They focused on lower-income, predominantly black and Latino communities in New York.

Here's what they found:

• The percentage of people who noticed calorie information increased significantly after the regulation was implemented, from 16% to 54%.
• Nearly 28% of the post-labeling sample who saw the calorie information said the information influenced their choice. Of those, almost 90% said they bought fewer calories in response.
• There were significant increases in the percentage of people who utilized the information (2.5% to 15%) and the percentage who said it made them purchase fewer calories (1.9% to 13%).
• While a significant number of those surveyed said calorie labeling influences their food choices, there were no significant differences in the mean number of calories individuals purchased before and after the regulation was implemented.

According to the Robert Wood Johnson Foundation Healthy Eating Research program, which was one of the funders of the study, eating behavior is notoriously resistant to change.

The foundation said that "simply displaying information about the caloric value of various food options may fail to translate into attitudinal, motivational, or -- most importantly -- behavioral changes in line with choosing healthier food options. Menu labels may need to be coupled with additional policy approaches in order to have a significant impact on eating behaviors."

The report came out on the same day a study in Health Affairs questioned whether a moratorium on new fast-food restaurants in South Los Angeles is effective in fighting obesity.  Read The Times report here.

Full versions of both studies can be found here.

-- Jerry Hirsch

Photo: A New York Taco Bell posts calories on menu board.  Credit: Carolyn Cole / Los Angeles Times

The Great American Dine-Out uses restaurants to raise money to end childhood hunger

Thousands of restaurants are helping fight childhood hunger by participating in the Great American Dine-Out from Sunday through Sept. 26.

Chains including Carrows Restaurants, Elephant Bar Restaurant, Dave and Buster’s and Coco’s Bakery Restaurant will donate money for each entree or meal ordered.

The Corner Bakery Cafe will match each donation of at least $1 and will hand out certificates for free Whoopie Pies or cookies to customers who give.

Hawaiian fusion restaurant Roy’s will donate proceeds from sales of the Classic Melting Hot Chocolate Souffle.

Search the Share Our Strength website for participating restaurants nearby.

--Tiffany Hsu

Gold medal is no guarantee of great wine

New research questions whether gold medals from wine competitions mean that you're getting a good wine.

Wineries covet gold medals and spend millions of dollars a year entering wine in competitions and paying fees in hopes that they will be able to brag about awards on their bottles and boast about them in pitches to tasting room customers and wine club members.

But a study of U.S. wine contests published this week suggests consumers shouldn't always assume that gold medal winners are outstanding wines.

Writing in the Journal of Wine Economics, retired Cal State Humboldt professor Robert Hodgson said he looked at the results for more than 4,000 wines entered in 13 U.S. competitions in 2003 and found little consistency in what wines won gold medals.

The findings were dismissed as "hogwash" by the organizer of the Los Angeles County Fair's giant wine contest.

To read the Business section story by Jerry Hirsh, click here.

Here's a video about the controversy.

Half off at Boston Market over Labor Day weekend

Don’t want to barbecue this Labor Day weekend?

Let Boston Market do the work.

Stop by any participating Boston Market restaurant Saturday through Monday and get 50% off a purchase of any Family Meal or Market Feast. Just present this coupon.

Check with your local restaurant and make sure it recognizes the deal.

-- W.J. Hennigan

Starbucks and AT&T offer free coffee and Wi-Fi for those displaced by wildfires

Starbucks Corp. and AT&T Inc. have paired to provide relief to those displaced by the Station fire in the form of free coffee and free Internet service. 

Coffee will be donated to fire staging areas and Red Cross evacuation centers, Starbucks said in a statement.

AT&T is offering free Wi-Fi service in 19 Starbucks locations in communities affected by the fire so people can stay in touch with family, friends and business contacts, said John Britton, an AT&T spokesman.

The free coffee and Wi-Fi efforts began Monday and will run through Sept. 15, Britton said. By then, it is hoped that the fires will be extinguished, he said.

The Station fire has consumed more than 120,000 acres over the last week, mostly in the Angeles National Forest. Two firefighters have been killed by the blaze.

The 19 Starbucks locations with free Wi-Fi service are:

280 E. Palmdale Blvd., Palmdale

8349 Foothill Blvd., Sunland

3747 Foothill Blvd. #A, Glendale

2627 Foothill Blvd., La Crescenta

475 Foothill Blvd. #M, La Cañada Flintridge

1929 Verdugo, La Cañada Flintridge

1840 E. Washington Blvd., Pasadena

1135 Truman St., San Fernando

19435 Soledad Canyon Road, Santa Clarita

24802 Orchard Village Road, #A4 Santa Clarita

23792 San Fernando Road, Santa Clarita

26925 Sierra Highway, Santa Clarita

805 E. Avenue K #101, Lancaster

1845 W. Avenue I, Lancaster

2062 W. Avenue K, Lancaster

39904 10th St. West #D, Palmdale

39570 Lowes Drive, Palmdale

2834 Lenwood Road, Barstow

2843 Lenwood Blvd. Suite D, Barstow

-- Nathan Olivarez-Giles