uLegislator Demands Department Of Education Investigate For-Profit Chain ITT Technical Instituter

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• Following the Securities and Exchange Commission’s decision earlier this week to file fraud charges against current and former executives with ITT Education Services – the operator of for-profit college chain ITT Technical Institute – for their part in concealing problems with company-run student loan programs, one legislator is calling on the Department of Education to further investigate the company.

  Today, California Rep. Jackie Speier sent a letter [PDF] to the Dept. of Education demanding an investigation into alleged deceptive and predatory lending practices by ITT Education Services.

  With more than 140 institution in 39 states and numerous online operations, ITT Education Services has become one of the largest operators of for-profit colleges in the U.S. But the company, which has previously been party to federal and state investigations, has continuously harmed students with large debt bills, while failing to provide the needed education and skills to repay their hefty student loans.

  In fact, Speier says the schools have been plagued with large cohort default rates nearly twice the national average. During the 2009 to 2010 school year, ITT had a higher CDR than their graduation rate.

  Even more troublesome for Speier are the company’s recent fraud charges levied by the SEC.

  On Tuesday, the SEC filed fraud charges against former CEO Kevin Modany and current CFO Daniel Fitzpatrick stem from their alleged fraudulent concealment of the poor performance and looming negative financial impact of two student loan programs the company financially guaranteed to investors.

  The loan programs – called PEAKS and CUSO – provided loans for ITT’s students after the collapse of the student loan markets. ITT guaranteed that the loans carried little risk of loss from the student loan pool to entice financial institutions to finance the loans.

  According to the SEC complaint [PDF], the loans performed so poorly by 2012 that the company’s guarantee obligations were triggered. However, instead of disclosing the issue to investors, ITT and its management took a variety of actions to create the appearance that ITT’s exposure was more limited.

  “If these allegations are accurate, ITT has engaged in deceptive and predatory lending practices, pushing students into high-interest loans they know cannot be repaid, at costly taxpayer expense,” Speier wrote in the letter. “These students become saddled with unforgivable debt, and their inability to repay it ruins their future job prospects while harming taxpayers who are stuck with the bill.”

  Speier urged the Dept. to quickly move to investigate the college and not delay increased oversight, a move she says occurred with now defunct Corinthian Colleges, Inc. – the operator of for-profit schools Heald College, Everest University and WyoTech.

  “In fact, Corinthian Colleges, Inc. was investigated by the SEC in June 2013 – a full year before the ED opened their own June 2014 investigation…” The letter states. “This delay harmed student who continued to take on a worthless education, and taxpayers who footed the bill. I ask that in this case you take action quickly and responsibly.”

  Congresswoman Speier Demands Investigation into Deceptive and Predatory Lending Practices by For-Profit College Company ITT Educational Services, Inc. [Jackie Speier]

  
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by Ashlee Kieler via Consumerist

uFDA Finally Warns Drug Company Against Selling Antibiotic As A Pig-Fattenerr

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• 

  The website for Novartis Animal Health’s antibiotic feed-additive Denagard had an entire page dedicated to the drug’s growth-promotion effects.

  A year after public health advocates called out drug maker Novartis for continuing to actively market a particular antibiotic as a product farmers could use to fatten up their pigs, the FDA has finally gotten around to issuing a warning.

  Some background: Antibiotics used on farm animals account for more than 80% of all antibiotics sold in the U.S., and most of them are not used to treat sick cows, chickens, and pigs, but because these animals get bigger when these drugs are put into their feed and water.

  Unfortunately, continual low-dose use of antibiotics also has the effect of creating drug-resistant bacteria. That’s not good for the animals or humans, which is why there has been increasing pressure on regulators to limit non-medical use of important antibiotics on farm animals.

  In 2013, after decades of inaction on the issue, the FDA issued voluntary guidelines for drug makers, asking them to stop selling medically important antibiotics for non-medical applications.

  And yet Novartis Animal Health (which is now owned by Eli Lilly) continued to market the growth-promotion aspects of its swine antibiotic product Denagard with an entire section of the drug’s website dedicated to the topic, touting weight gains for pigs that consumed the drug and how the antibiotic “provided a 4:1 return on investment.”

  The FDA’s initial response to complaints from advocacy group Keep Antibiotics Working about Denagard’s marketing was lackluster to say the least. At the time, the agency said, “We understand your concern and… we intend to look for ways to reinforce the importance of the principles of judicious and appropriate use, including engaging animal drug manufacturers on the appropriate use of promotional materials.”

  Meanwhile, Novartis defended its marketing and argued that — in spite of evidence to the contrary — it was not pushing an off-label use of Denagard.

  But in a warning letter sent earlier this month from the FDA’s Center for Veterinary Medicine to Novartis Animal Health, the agency disagreed with the drug company.

  Citing the Denagard website’s growth-promotion section, the letter contends that the company is marketing the drug for “new uses for which it lacks approval, conditional approval or an index listing, and for which its labeling does not provide adequate directions for use.”

  According to the Food, Drug and Cosmetic Act, Denagard would thus be considered unsafe, adulterated, and misbranded.

  The letter takes issue with statements about Denagard, like, “Success starts in the nursery with Denagard,” and various statistics given about things like the ratio of weight gain to feed.

  Also of concern to the FDA was that some the studies cited in the Novartis marketing materials were designed specifically to demonstrate the economic benefits from increased weight gain and more efficient use of animal feed, of using Denagard.

  “Variables related to clinical disease were not measured with the exception of mortality, which was not found to be statistically different between the control and treated groups,” writes the FDA. “In fact, the authors of one article reported ‘No significant health issues were observed,’ and ‘Overall mortality was relatively low for both treatment groups.’ Therefore, the supporting studies cited in the materials do not support the claims that the weight gain and feed efficiency improvements described in these studies resulted from Denagard plus CTC being effective for its approved indications.”

  Another concern raised in the letter was the description of Denagard as a “broad-spectrum” drug for enteric and respiratory diseases in pigs, even though the antibiotic is only approved for the treatment of one respiratory ailment caused by one type of bacteria. Its use in enteric disease treatment is also limited.

  “Use of the term ‘broad spectrum control’ implies that this product could be used for control of a wider range of disease organisms than the four pathogens included in the product approval,” states the FDA letter. “The approved indications are limited and very specific. Therefore the claim of broad spectrum control of enteric and respiratory disease in nursery pigs seen in these materials broadens the indication and is a new intended use.”

  The FDA has called on the Denagard makers to “immediately cease misbranding Denagard plus CTC and cease introducing the adulterated and misbranded drug into interstate commerce.”

  The letter also clarifies that the violations listed in the warning are not exhaustive and that Novartis Animal Health is now responsible for re-vetting all its materials to make sure they are compliant.

  “Failure to correct the violations discussed above may result in enforcement action by FDA without further notice, including seizure and injunction,” reads the warning.

  NAH has 15 days to respond to the warning.

  
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by Chris Morran via Consumerist

uNew York Islanders Sell Bottles Of Melted Ice From Old Arena For $20r

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• Never underestimate the love that sports fans have for their favorite team’s old fields, rinks, and stadiums. Without that affection, there would be no sales of seats or infield dirt when those venues close. Now there’s another relic for team faithful to enjoy: the National Hockey League’s New York Islanders will sell $20 bottles of holy water to fans. I mean, melted ice from their last game at the now-closed Nassau Coliseum.

  Do you want some of that ice? Too bad. Every drop of it that was available to the public has already sold out to nostalgic fans.

  The team, meanwhile, will play at the Barclays Center in Brooklyn. They might move back to Lawn Guy Land eventually, but only with a sufficiently not-crappy arena to coax them back. Geographical pedants would argue that Brooklyn is already attached to Long Island, so really the team is just moving 30 miles or so east.

  Even if the team were only moving across the street, which is what often happens when it’s time to move to a new venue, nostalgic fans would still demand old seats, bottles of melted ice, or little packages of infield dirt. That’s just what fans do.

  NY Islanders quickly sell out of melted Nassau Coliseum ice [Yahoo Sports]

  
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by Laura Northrup via Consumerist

uWindows 10 Will Come Pre-Loaded With Candy Crush Saga Because That Is The World We Live In Nowr

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  (abbamouse)

  Get your best “back in my day” grumble face on: Solitaire and Minesweeper might’ve been good enough procrastination tools in times past, but Microsoft is getting hip to the times, and will pre-load Candy Crush Saga into its upcoming Windows 10.

  Anyone who’s looked up from their smartphone long enough on the bus, train or park bench knows that the addictive candy popping and dropping game from mobile game company King is the distraction of choice, and Microsoft says it’s definitely noticed.

  Noting that Windows Phone users have been able to play Candy Crush since it came to that platform in December, Microsoft writes on Xbox Wire: “As an added bonus, Candy Crush Saga will automatically be installed for customers that upgrade to or download Windows 10 for periods of time following the game launch. It will even include cross-play options for your iOS and Android devices.”

  And for those still firmly in the solitaire camp — you know, the kind of game you play that doesn’t intone “Taaaasty!” when you forget to turn the volume off — Microsoft recently announced it’s bringing Solitaire back for Windows 10 after leaving it off with Windows 8. Something for everyone, I suppose.

  
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by Mary Beth Quirk via Consumerist

uDetergent Pod Poisonings Increase, Even After Changes To Packagingr

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  (Mike Mozart)

  In spite of efforts by manufacturers to make their laundry detergent pods look less like candy in a jar, the number of poisoning incidents related to these products continues to grow.

  This according to a Wall Street Journal analysis of data from the American Association of Poison Control Centers. Between 2012 and 2014, the number of reported poisonings jumped from 6,343 to 11,714.

  In 2012, Tide’s corporate overlords at Procter & Gamble responded to concerns about the safety of the pod packaging by switching to a double-latch lid intended to make it more difficult for a very young child to open.

  Safety advocates urged P&G and others to go further and put the pods in opaque packaging. Some pods, like Costco’s store-brand detergent — were being sold in the same sorts of bins the company sells bulk candy, cookies, and nuts in, but with a simple peel-back lid instead of a screw-top. Costco eventually began wrapping its pod jars in opaque plastic.

  It was revealed in 2013 that P&G had originally tested opaque packaging for the pods but opted against it because the clear jars show off the brightly colored packets. Tide has since switched to opaque packaging, but some brands continue to sell detergent packets in clear jars and resealable plastic bags.

  In terms of educating the public, both the Centers for Disease Control and Prevention, and the U.S. Consumer Product Safety Commission spoke out publicly about the risk of having pods within reach of young children who haven’t learned to differentiate between what should and shouldn’t go in their mouths.

  According to the Journal, at least seven people have died after biting into single-dose laundry packets. Four of those deaths occurred in 2014 and one already this year. Two of the seven deaths have involved adults with dementia, so this isn’t always just a matter of putting the pods on a higher shelf in the laundry room.

  It’s likely no coincidence that the increase in poisoning incidents is occurring at the same time as sales of detergent packets increase. During a period in which poisoning reports increased 20%, sales of pods were up 30%. However, they still only make up around 12% of the detergent market.

  From their colorful exterior, to their packaging, to the fact that the detergent gel can shoot out when punctured or bitten into, these pods are a safety advocate’s nightmare.

  “There is something inherent about these products that makes them unsafe,” Richard Geller, medical director of the California Poison Control System, tells the Journal.

  Earlier this year, Sen. Dick Durbin of Illinois and Rep. Jackie Speier of California introduced legislation, the Detergent Poisoning and Child Safety Act, in both the Senate and House that would require the CPSC to issue safety standards to protect children under five years of age from the risks of injury or illness caused by exposure to liquid detergent packets. The odds of that legislation even making it out of committee are currently quite slim.

  
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by Chris Morran via Consumerist

uJeni’s Splendid Ice Cream To Reopen Scoop Shops After Listeria Contaminationr

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  Jeni’s Splendid Ice Cream will reopen scoop shops by Memorial Day weekend.

  A week after Jeni’s Splendid Ice Cream announced it had pinpointed the source of the listeria contamination that led to the Ohio-based company recalling all of its products and closing its boutique stores, the treats maker has restored production –– just in time for summer.

  The Chicago Tribune reports that Jeni’s Splendid has reworked production to prevent future contamination and plans to reopen its scoop shops by Memorial Day weekend.

  The company prevoiusly identified the source of the listeria contamination at its production kitchen to a single pint-filling machine.

  Since finding the issue, Jeni’s has turned its focus to creating a production kitchen with the best defenses against any contamination. To do so, the company has enlisted top food safety experts and plans to invest more than $200,000 into the kitchen transformation.

  Although Jeni’s recall included closing boutique ice cream shops, the contaminated machine was not used to produce ice cream scooped at those stores.

  Still, because the company destroyed hundreds of thousands of pounds of ice cream during the initial recall, guests shouldn’t expect all flavors to be available at scoop stores right away.

  The company says it will take time to rebuild its supply. But with the assistance of several other Ohio-based Ice cream producers, it hopes to be back to full demand soon.

  Jeni’s Splendid recalled all of its products on April 23 after the Nebraska Department of Agriculture found listeria in a random sample of the company’s products.

  The recall covered all products including ice creams, frozen yogurts, sorbets, and ice cream sandwiches sold at boutique stores in seven states and at retailers such as Whole Foods and Target.

  A week after the recall was initiated, Jeni’s announced it would dispose of 535,000 pounds of ice cream by placing it in an anaerobic digester, which provides electricity while it digests and produces fertilizer.

  Jeni’s to reopen ice cream shops by Memorial Day weekend [Chicago Tribune]

  
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by Ashlee Kieler via Consumerist

uAd Board Recommends McDonald’s Focus On Actual Meal, Not Just The Cool Toyr

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• By now we all know that McDonald’s is trying to appeal to a younger audience, but a commercial the company aired last fall geared toward its youngest customers apparently didn’t sit well with an ad review board. And now that group is warning the fast food giant to stick to its food and not to use toys to appeal to youngsters.
  

  The Children’s Advertising Review Unit (CARU) recommended yesterday that McDonald’s ensure all future advertising directed at children focus on food products and not on included toys after reviewing a 30-second commercial for Happy Meals that ran last year.

  CARU – which is an investigative unit of the advertising industry’s self-regulatory system and is administered by the Council of Better Business Bureaus – opened its investigation into McDonald’s commercial featuring “Teenie Beanie Baby Boo” toys after routine monitoring of ads directed to children.

  Self-regulatory guidelines dictate that advertisers should not stimulate children’s unreasonable expectations about product quality or performance; something the CARU questioned about the McDonald’s ad.

  As with the National Advertising Division (NAD), recommendations from CARU aren’t legally binding, but most companies generally follow them.

  According to CARU, the McDonald’s commercial generally glosses over the meal portion of the Happy Meal and instead focuses on the “premium” – their word for toy.

  The ad spot opens with two animated characters shaped like Happy Meal boxes playfully engaging with a tube of yogurt. The scene then cuts to a child walking toward a Happy Meal box, exclaiming “I am so excited to find out what’s in here.”

  Instead of featuring a box full of actual food, the commercial showed a second child pulling a toy from the box; the tube of yogurt, chicken nuggets and French fries that presumably came in the box were already situated on the table and generally skipped over.

  Another scene in the commercial cuts to two other children beside a Happy Meal box. While one child held a tube of yogurt, the rest of the food – juice boxes and French fries – were on the table. The camera then moved in for a close-up of the toy, as one of the children pulled her toy from the box and then focused on the toy.

  The final two scenes include the entire lineup of Teenie Beanie Boo toys, the animated Happy Meal boxes, and a wide shot of a Happy Meal including chicken McNuggets, a large container of French fries, a juice box and a tube of yogurt.

  According to CARU, McDonald’s argued that the commercial more prominently features edible contents of the Happy Meal rather than the toy, because the primary focus and most engaging aspect of the ad was an animated box interacting in a fun way with yogurt.

  The company maintained that the food was prominently displayed throughout the commercial and was displayed on-screen almost twice as long as the toy.

  Still, CARU’s final determination was that the commercial’s primary focus was on the premium and that children would have difficulty distinguishing between the product and the toy.

  In a statement to CARU, McDonald’s continues to believe the commercial was appropriate for children.

  “The ad at issue is no longer running,” the company said. “Although we believe that the ad primarily focuses the child’s attention on the product, McDonald’s respects the self-regulatory process and will take CARU’s comments into consideration when producing future ads.”

  CARU Recommends McDonald’s Modify Adverting to Focus on Product, Not Premium [Children’s Advertising Review Unit]

  
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by Ashlee Kieler via Consumerist