Consumer Confidential: Jobs, DVDs and gold

Here's your full-frontal-Friday roundup of consumer news from around the Web:

--The unemployment rate hit 10.2% last month. OK, we've seen it coming for weeks, and President Obama and Fedatollah Ben Bernanke have been doing their best to prep us for the eventuality. But now that it's here, well, it stings a bit. The pencil pushers say things will probably grow even worse on the jobs front before they get better, with the jobless rate perhaps hitting 10.5% by the summer. Time for all those employers who are seeing their profits creep back up to do their thing ... please.

--But for those with jobs, there's always some shopping to do. And our friends at Target are offering some of their most popular DVDs at a bargain-basement price of just $10, with free shipping. The move is intended to match a similar price point from Walmart, and signals that heavyweight retailers are prepared to duke it out for what little consumer spending we can expect this holiday season.

--Gold futures have jumped to a new record -- more than $1,100 an ounce. Note to wife: Forget about any jewelry this Christmas.

-- David Lazarus

Consumer Confidential: Amazon, Netflix, hookers

Here's your finally-a-Friday roundup of consumer news from around the Web:

--It's shaping up to be a merry e-Christmas. At least that's the message from our friends at Amazon.com, who reported a hefty 69% increase in quarterly profit and said things should continue looking swell right through the holidays. Significantly, the company's turbo-charged results were fueled primarily by sales of electronic goodies, which indicates that consumers are more comfortable buying big-ticket items -- at least if they're offered at the right price. I've said it before and I'll say it again: Watch out for aggressive sales this holiday season. Retailers know you care mostly about price, and they'll be fighting to get your business.

--Build a better mousetrap and investors will beat a trail to your door. That's the takeaway from Netflix, the online DVD-rental service, which has all but decimated brick-and-mortar rivals. The company's stock hit a 52-week high after Netflix reported a 48% spike in profit, based mostly on more people taking out subscriptions. Up next: A bigger push into online streaming of movies and stuff.

--A federal judge has dismissed a lawsuit against Craigslist alleging that the site contributes to prostitution with its listings for adult services. The judge ruled that sites can't be held accountable for their content. Hookers rejoice.

-- David Lazarus

Online merchants to reach out to holiday shoppers with deals and through social media

Online sellers will be pulling out all the stops to try to attract frugal shoppers this holiday season, including offering discounts earlier and turning to social media outlets to promote their merchandise.

According to a survey by Shop.org, a division of the National Retail Federation, one-third of retailers (34.3%) said they would offer holiday deals earlier this year.

Social media will also be a popular avenue to attract shoppers. According to the survey, 47.1% of retailers will be increasing their use of social media this holiday season. More than half of those retailers said they have added or improved their Facebook pages (60.3%) and Twitter pages (58.7%) this year, and 65.6% said they have added or enhanced blogs and RSS feeds.

"Retailers know that times are tough so they have created promotions and incentives to help Americans save money this holiday season," said Scott Silverman, executive director of Shop.org. "From free shipping to Facebook, online retailers are combining new initiatives with tried-and-true tactics to make their companies stand out."

Like brick-and-mortar retailers, online sellers are also making operational changes to help protect profit margins. According to the survey, 41.4% have scaled back on inventory levels.

-- Andrea Chang

Kmart starts online layaway program

Kmart launched an online layaway program today in an effort to help shoppers manage their holiday budgets.

The discounter said shoppers can now place items on layaway through the Kmart website and pick up their purchases at a local store.

Customers must make a down payment of $15 or 10%, whichever is greater, and pay a $5 initiation fee to start a layaway contract. Payments must be made biweekly online or at any register in the Kmart store where the order is held, and shoppers have eight weeks to pay for items in full.

Features of the online program include a layaway calculator, product availability information and reminder e-mails.

“We have an entire generation of customers who grew up shopping online,” said Mark Snyder, chief marketing officer of Kmart. “Launching online layaway at Kmart engages these customers by allowing them to spread their payments out over time and better plan their spending.”

Layaway made a big comeback during the holidays last year. Many retailers, including Kmart, heavily touted their programs.

According to Kmart, interest in layaway is even higher this year: The retailer said online trends showed that the word “layaway” had more than double the interest this August than in the same month last year.

Online layaway is also available at sister company Sears.

-- Andrea Chang

No need to go to the store any more to lay away items like this customer at the Kmart in Burbank did last fall. The company now has an online layaway program.  (Rick Loomis / Los Angeles Times)

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

Consumer Confidential: Fees, sales and coupons

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

--Only an airline would think of charging a fee for avoiding fees. Our friends at United Airlines have announced a new program in which passengers can pay $249 a year for the privilege of checking in two -- yes, two! -- standard bags without paying extra. But United says the program won't cover overweight bags, so you're still on your own there. Anyone want to bet how long it takes all the other carriers to follow suit?

--We've been hearing that it's going to be an ugly holiday season for retailers. But how ugly are we talking? The National Retail Federation says it expects sales this season to be down about 1% from last year, to $437.6 billion. My hunch is that this'll prompt most stores to slash prices in a bid to woo the few dollars shoppers are willing to spend. Keep a sharp eye out for sales.

--Ask.com wants to make bargain hunting easier. The search site is unveiling a new service that will allow users to sift through dozens of discount sites in search of money-saving online coupons. It will also mark regular search results with a special icon to let people know that a related coupon may be available. Electronic coupons now account for about 3% of all coupons used. Expect that number to grow as services like this make it simpler for people to ferret out deals.

-- David Lazarus

Consumer Confidential: Cars, Kindles and credit

• The president of Toyota Motor Corp., Akio Toyoda, said it was "extremely regrettable" that an American family died in a crash believed to have been caused by a faulty floor mat. That's commendable, as far as it goes. But such language is standard among Japanese execs and politicians whenever something goes wrong. More important is what Toyota will do about the problem. So far, no word of a recall or any other measure.
• Amazon.com says it will no longer remove any books from people's Kindle e-book readers without their permission. The decision follows an outcry over the online bookseller deleting copies of George Orwell's "1984" from Kindles due to a copyright issue. Amazon's new policy is intended to help settle a lawsuit brought by Kindle users. Orwell would be pleased.
• California Atty. Gen. Jerry Brown has filed suit against two businessmen who run a "credit repair" company. Brown says the two -- Todd Swick and Michael Sardo -- have ignored repeated warnings that they must register their business with the state and post a $100,000 bond. He says the lawsuit is intended to make sure that all credit repair firms follow the law. Here's a tip: The only one who can repair your credit is you. Don't pay fees up front to any company saying it can help.

-- David Lazarus

Gap's Piperlime adds women's apparel

Piperlime, an online seller of shoes and handbags, is now offering women's apparel from a mix of brands including Marc by Marc Jacobs, 7 For All Mankind, Joie, J Brand and Juicy Couture.

"Apparel is an obvious next step,” said Jennifer Gosselin, vice president and general manager of Piperlime, which is owned by San Francisco-based Gap Inc. “Our customers have come to rely on Piperlime’s style expertise and advice, and we are thrilled to extend our fashion point of view into apparel.” 

With the expansion, Piperlime will offer about 65 clothing brands. The collection is focused on premium denim including Paige Premium Denim and Joe’s Jeans. Tops, dresses and knits from designer brands are also available and feature fall's hottest styles, such as distressed skinny jeans and boyfriend jackets.

In addition to apparel, Piperlime also carries more than 250 footwear brands for men, women and children. 

-- Andrea Chang

Photo: Piperlime's selection now includes apparel, such as this 7 For All Mankind skinny blazer. Credit: Piperlime.com

CVS agrees to $2.8-million settlement with the FTC

Pharmacy chain CVS Caremark Corp. will repay about $2.8 million to consumers who bought a dietary supplement that was falsely marketed as a product that can prevent illness, the Federal Trade Commission said today.

AirShield tablets and powders were touted by CVS as a way to fight off the flu and boost the immune system, but there is no evidence that the products could do either, the FTC said. As part of the $2.78-million settlement, CVS agreed that it will no longer make those claims and the company has since changed the products’ packaging.

AirShield is the store-brand equivalent of the national brand product, Airborne. Last year, Airborne Health Inc., the company that makes Airborne, reached a settlement with the FTC for making the same kind of “misleading claims,” the FTC said. The FTC has also reached a settlement with Rite Aid Corporation for its “Germ Defense” products.

CVS issued a statement noting that it had changed AirShield's packaging in 2008 after the FTC settled with Airborne. The new packaging is "consistent with the terms" of that settlement.

The FTC will contact customers who qualify for the refund. Customers who bought AirShield between July 2005 and November 2008 can be identified if they used a CVS ExtraCare card when they bought the product or if they purchased it on CVS.com.

-- W.J. Hennigan

Gap tweets 15% savings deal

Whoever said it was pointless to Twitter?

Gap, the clothing retailer, tweeted today that online customers can score a 15% savings on men’s and women’s styles. To cash in, enter the promotion code “TWITTER” during online checkout.

If you're interested, you'd  better act fast. The offer is good for today only.

-- W.J. Hennigan