понедельник, 22 июня 2015 г.

uAnother Report Finds NHTSA Failed To Hold Automakers Responsible For Defects, Other Issuesr


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  • The hits keep on coming for the National Highway Traffic Safety Administration. Less than a month after internal reports determined the agency failed to adequately address the General Motors ignition switch defect that has been linked to more than 100 deaths, an audit from the U.S. Department of Transportation identified a plethora of shortcomings within the auto-safety regulator’s Office of Defects Investigation (ODI) that prevent it from properly protecting consumers from vehicle defects.

    The 42-page report [PDF] by the Transportation Department’s Office of Inspector General claims inadequate data and analysis in NHTSA’s processes undermines its ability to identify and investigate vehicle safety concerns.

    According to the report, NHTSA failed to carefully review safety issues, hold automakers accountable for safety lapses, carefully collect vehicle safety data, or properly train or supervise its staff.

    Regulators have repeatedly been unsuccessful in conducting basic tasks, such as advising consumers how to report issues, verifying that auto makers provide complete data on safety problems, reading through all consumer complaints and adequately training and supervising staffers.

    Additionally, the audit found that in some cases even when ODI investigators found reason to believe a defect could be present, requests to open investigations were often denied.

    “Collectively, these weaknesses have resulted in significant safety concerns being overlooked,” the report found. “[These weaknesses] deter NHTSA from successfully meeting its mandate to help prevent crashes and their attendant costs, both human and financial.”

    Specifically, the audit found systematic flaws contributed to the decades-long delay in identifying and addressing GM’s ignition switch defect.

    The defect, which affects more than 2.6 million vehicles, involves ignition switches that can easily be turned into the “off” position because the switch is bumped by the driver’s knee or because the key is attached to a heavy keychain. When this happens, the vehicle’s engine stops and there is no power steering or power brakes. Most importantly, the airbags will not function, so if the car crashes after a stall-out, the airbags will not deploy.

    According to a timeline included in the DOT report, NHTSA first received a consumer complaint about ignition issues with GM vehicles in 2003. The following year, the agency received at least three reports of airbag non-deployment in GM cars, at least two of which resulted in injuries to the vehicle driver or other occupants.

    In March 2005, the report identified a field report that described a 2005 Chevrolet Cobalt stalling on a highway when the driver’s knee hit the key holder.

    That August, NHTSA launched a special crash investigation into a July 2005 fatal crash involving a 2005 Cobalt. The air bags did not deploy, and the ignition switch was in the “accessory” position. According to ODI staff, they were invited to participate in the on-site inspection.

    Still, the audit found that ODI didn’t start looking into GM airbag non-deployments as a potential safety issue until 2007, and even then the issue wasn’t given much scrutiny.

    In fact, in November of that year the agency declined to open a formal investigation into deaths in GM cars. However, an associate administrator for the agency was tasked with keeping an eye on the issue. That person left in 2008 and was never replaced, leaving the issue to go unaddressed for another six years.

    The DOT report found that the failure to identify and address the GM issue largely stemmed from systematic issues within the agency’s complaint review processes.

    While NHTSA regularly refers to consumer complaints posted in its database as evidence of defects and the need for recalls, the DOT report found the agency ignores nearly 90% of the grievances received daily.

    That figure is based on the fact that an initial reviewer’s workload consisted of viewing roughly 330 complaints each day in 2014, a year in which the agency received some 78,000 complaints.

    “Determinations of whether complaints warrant further review are made within a matter of seconds — in part because the initial screener spends roughly half of the day carrying out other work responsibilities,” the report found.

    To make matters worse, the review tells the DOT that his decisions rely on informal guidance set forth by ODI.

    “ODI’s process for initially screening consumer complaints leaves the office vulnerable to a single point of failure and the risk that complaints with potential safety significance may not be selected for further review,” the report states.

    As a result of the audit’s findings, the DOT laid out 17 recommendations to improve NHTSA’s collection, screening and analyzing of vehicle safety data including developing more clear-cut guidelines on assessing and improving reporting data; developing a process for prioritizing, assigning responsibility, and establishing periodic reviews of potential safety defects that ODI determines should be monitored; and documenting and establishing procedures for enforcing timeframes for deciding whether to open investigations. A full list of recommendations can be found in the report.

    In a response letter to the DOT, NHTSA administrator Mark Rosekind agreed with the audit findings and recommendations, saying the agency has already begun to “aggressively implement” changes such as new training programs and standards for complaint reviews.

    Rosekind and DOT Inspector General Calvin Scovel are expected to address a Senate Commerce Committee hearing on vehicle recalls and safety.

    Inadequate Data and Analysis Undermine NHTSA’s Efforts To Identify and Investigate Vehicle Safety Concerns [DOT]



ribbi
  • by Ashlee Kieler
  • via Consumerist


uCigna Rejects Anthem’s $47B Merger Bid, Says It’s “Deeply Disappointed” By Suitor’s Recent Actionsr


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  • After Anthem Inc. unveiled its roughly $47 billion bid to merge with fellow health insurer Cigna Corp. over the weekend, the object of its affections swiftly put the kibosh on that proposal. In a letter to Anthem’s board, Cigna said it was “deeply disappointed” with its suitors recent actions, and that the offer wasn’t in the best interest of shareholders.

    Cigna Chairman Isaiah Harris, Jr. and Chief Executive David Cordani penned the letter explaining exactly why the company wouldn’t be getting hitched to Anthem, reports Reuters.

    Among the reasons: Anthem’s “lack of growth strategies,” complications related to its membership of Blue Cross Blue Shield Association and its “massive” recent data breach.

    “We have attempted to engage in dialogue so that we can understand and consider these issues,” the letter said. “Unfortunately, you have continued to avoid addressing these key concerns and have failed to demonstrate what has changed over the past few months.”

    Cigna’s board also has doubts over Anthem’s “insistence” that one guy would assume four roles at the new combined company: Joseph Swedish is Anthem’s president and CEO, and would then be chairman, CEO, president and head of integration at the new company.

    “Your proposal raises very serious questions regarding your views on proper governance, board oversight and risk management and underestimates the complexity of combining our organizations,” the letter adds.

    Anthem said today that it’s not giving up just yet however, and is committed to pursuing Cigna. It says the combined insurer would have a much broader base over which to spread costs and expenses, and it would be able to make big investments in technology for the industry’s biggest customer pool, reports the St. Louis Post-Dispatch.

    “The proposal we submitted to Cigna presents significant and compelling value for shareholders in a transaction that would bring together two highly complementary platforms with a powerful growth potential,” Swedish said in a statement from the company.

    In the meantime, Cigna is looking to date elsewhere, competing with Aetna Inc. to buy Humana Inc, sources tell Reuters.

    Cigna rebuffs Anthem’s ‘deeply disappointing’ proposal [Reuters]



ribbi
  • by Mary Beth Quirk
  • via Consumerist


uSupreme Court: L.A. Hotel Owners Can’t Be Forced To Turn Over Guest Info Without A Warrantr


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  • Should the police, without a warrant, be able to walk into a hotel and get the names, addresses, license plate numbers, and other information about any guest who stayed there in the last three months? And should hotel owners face criminal charges if they fail to comply? The City of Los Angeles thinks so, but this morning the Supreme Court disagreed.

    Los Angeles Municipal Code §41.49 [PDF] requires hotel operators to maintain records for all guests for 90 days, and that this information “shall be made available to any officer of the Los Angeles Police Department for inspection,” ideally at a “time and in a manner that minimizes any interference with the operation of the business.”

    Additionally, if a hotel operator fails to make these records available to LAPD, they face a misdemeanor charge punishable by up to six months in jail and a $1,000 fine.

    This case goes back to 2003, when a group of motel operators sued the City, alleging that the ordinance — and the threat of criminal charges — was a warrantless search in violation of their Fourth Amendment rights.

    A trial court ruled in favor of the City, saying hotel owners lacked an expectation of privacy about these records, but that decision was reversed by Ninth Circuit Court of Appeals in 2012. The panel held that these records are the private property of the hotel owners and that an owner has “the right to exclude others from prying into the[ir] contents.” The appeals court also found that the City ordinance was facially unconstitutional as it required owners to turn over this information, under penalty of law, without judicial review.

    In appealing to the U.S. Supreme Court, the City argued that a facial challenge — an attack on a law itself, as opposed to a particular application — to a statute authorizing warrantless searches must fail because it will never be unconstitutional in every possible application.

    The City also claimed that the ordinance itself was “an adequate substitute for a warrant. By explicitly requiring hotel owners to maintain certain records and to make the required records available for police inspection, it advises hotel owners that inspections are conducted pursuant to law and are not discretionary acts of law enforcement.”

    In arguing that the ordinance is not unconstitutional in all applications, the City gave examples of police needing to access hotel records in emergency situations, or where the owner consents to turning over the info.

    But in today’s 5-4 SCOTUS ruling [PDF], the majority noted that these examples miss the point.

    To decide whether a statute meets the standard of being facially unconstitutional, “the Court has considered only applications of the statute in which it actually authorizes or prohibits conduct,” writes Justice Sotomayor for the majority. She was joined by Justices Kennedy, Ginsburg, Breyer, and Kagan.

    Thus, the above examples from the City are situations where the ordinance isn’t even required.

    “[W]hen addressing a facial challenge to a statute authorizing warrantless searches, the proper focus of the constitutional inquiry is searches that the law actually authorizes, not those for which it is irrelevant,” writes Sotomayor. “If exigency or a warrant justifies an officer’s search, the subject of the search must permit it to proceed irrespective of whether it is authorized by statute. Statutes authorizing warrantless searches also do no work where the subject of a search has consented.”

    Though SCOTUS has never prescribed the exact form that precompliance review of a search must take, the majority notes that it “has held that absent consent, exigent circumstances, or the like, in order for an administrative search to be constitutional, the subject of the search must be afforded an opportunity to obtain precompliance review before a neutral decisionmaker.”

    With regard to the ordinance’s threat of criminal penalties for hotel owners who fail to comply, the opinion points to the 1967 decision in Camara v Municipal Court, in which SCOTUS held that the Fourth Amendment held that a San Francisco man’s Fourth Amendment rights were violated when he was arrested for refusing to allow repeated warrantless searches of his building.

    Without some sort of opportunity for independent review, Sotomayor says the L.A. City ordinance “creates an intolerable risk that searches authorized by it will exceed statutory limits, or be used as a pretext to harass hotel operators and their guests. Even if a hotel has been searched 10 times a day, every day, for three months, without any violation being found, the operator can only refuse to comply with an officer’s demand to turn over the registry at his or her own peril.”

    The majority doesn’t say that it’s unconstitutional for a hotel owner to face criminal charges for noncompliance, just that if the City is going to dangle that threat of arrest, the owner must have the chance to have the merits of their refusal reviewed.

    Today’s SCOTUS ruling affirms the Ninth Circuit ruling. The LAPD halted enforcing the warrantless searches in 2014 pending the outcome of this case.

    Chief Justice Roberts — along with Justices Thomas, Alito, and Scalia — dissented.



ribbi
  • by Chris Morran
  • via Consumerist


uT-Mobile Hands Over ‘Refurbished’ Phone Full Of Someone Else’s Data, Shrugsr


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  • A T-Mobile customer bought the un-carrier’s “Premium Handset Protection” when getting a new phone, and eventually had to use it when his Nexus 5 stopped working. The phone swap was a bigger hassle than he anticipated, but that wasn’t really the problem: the problem was that the phone was still full of the previous owner’s stuff, and logged on to her social media accounts.

    The customer wrote to the New York Times’ Haggler column to sort out the issue, explaining that the Premium Handset Protection had been promoted as seamless, so that people paying for the service “won’t miss a beat.” The actual experience consisted of sending his handset to a service center in Texas, and buying a missing SIM tray from a vendor on Amazon.

    Once the phone was finally usable, there was the issue with the device being full of someone else’s data. “We are looking into what happened in this specific instance with our vendor,” a T-Mobile spokesperson told the Times’ Haggler, since the vendors T-Mobile acquires their refurbished phones from are supposed to take care of these things.

    It would be easy to blame the other customer in this situation, and it is a really good idea to erase your device before trading it in if possible. However, her phone may have failed mechanically before she could log out of Snapchat, or she may have thought that she was sending her device in for repair and it would be returned to her.

    Here’s the part that sounds familiar to us at Consumerist, though: the T-Mobile representative told the Haggler that the complaint had been resolved. “I’ve verified that our care team spoke with the customer and that he is satisfied. This should be ‘case closed.’” she wrote.

    Had it really? Nope, the customer said that he hadn’t told T-Mobile that he was satisfied. Heck, they hadn’t even compensated him for having to buy a replacement SIM tray to make the phone usable.

    The Replacement Cellphone With a Past Life [NY Times]



ribbi
  • by Laura Northrup
  • via Consumerist


uGeneral Mills Cutting Artificial Flavors, Colors From All Its Cerealsr


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  • (frankieleon)

    Say goodbye to those blues and greens. (frankieleon)

    Following the lead of Kraft, Nestlé, Panera, Subway, Pizza Hut and Taco Bell and other food-focused companies that have recently decided to ditch artificial ingredients, General Mills says it’s getting rid of artificial flavors and colors from all of its cereal lines.

    Say goodbye to Red 40, Yellow 6, Blue 1 and other artificial dyes common in some cereals, especially those sweet and brightly colored cereals aimed at kids. Instead, General Mills says it will use colors made from spices and fruit and vegetable concentrates.

    The company announced today that it’ll start the process by first removing all the artificial stuff from Trix, Cocoa Puffs and Reese’s Puffs by the end of the year.

    “Consumers increasingly want the ingredient list for their cereal to look like what they pull out of their pantry,” Jim Murphy, president of General Mills U.S. cereal business, told the Star Tribune, noting that shoppers don’t want labels full of “colors with numbers and ingredients you can’t pronounce.”

    Murphy says more than 60% of the company’s cereals are already free of artificial colors or flavors, with 90% of its cereals expected to be free of such ingredients by the end of 2016. The rest will be knocked off in 2017.

    It’s going to take time, you see, to rejigger sugary cereals like Lucky Charms and Count Chocula, as marshmallows are hard to reformulate without making them not only taste wrong but also look weird.

    “The look is important,” Murphy said. “People taste with their eyes sometimes.” He adds that though the overhaul will mostly be “imperceptible” to customers, some brightly colored cereals might not be so shiny anymore.

    And Trix specifically will look different — it won’t have green and blue puffs anymore, as it’s tough to make blue food colors with natural ingredients. Without blue, it’s impossible to create green.

    “Trix is known for color, so this hit Trix pretty hard,” said Kate Gallagher, a General Mills cereal developer. Natural ingredients the company tried to get those same colors didn’t work out so well.

    “It didn’t deliver the brighter color and it was imparting a flavor we didn’t want,” Gallagher said.

    General Mills to remove artificial colors, flavors from cereals [Star Tribune]



ribbi
  • by Mary Beth Quirk
  • via Consumerist


uFifth Third To Close 100 Branches To Focus On Mobile Bankingr


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  • fifthCustomers of Fifth Third Bank will have fewer options when it comes to doing business at a physical location as the company plans to close or consolidate 100 branches and scrap plans to open 30 new locations.

    Fifth Third Bank’s decision to cut back on branches comes as the lender shifts focus toward mobile and online services, Cincinnati.com reports.

    “This plan reflects the continued progression of our work on providing an integrated customer experience,” Kevin Kabat, CEO and vice chairman tells Cincinnati.com. “Meeting the evolving preferences of how our customers interact with us is our top priority.”

    The Ohio-based bank says that the consolidation will cost it between $75 million and $85 million in impairment charges and up to $10 million in other costs, including the termination of real estate contracts.

    The company says in the long-term, the changes will save roughly $60 million a year. Locations set to close or be consolidated have yet to be identified.

    Fifth Third currently operates 1,301 full-service branches in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina.

    The lender made headlines last year as one of the final banking institutions to offer payday loan-like products for customers. Fifth Third eventually announced it would discontinue its use of the often under-fire program, but backtracked in late 2014, saying it would continue with a revised, supposedly less harmful version of the service for existing customers.

    Fifth Third cutting up to 100 branches [Cincinnati.com]



ribbi
  • by Ashlee Kieler
  • via Consumerist


uApple Music Changes Its Tune, Will Pay Artists During 3-Month Free Trialr


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  • iphone6-3up-applemusic-features-pr-print-1Breaking news: It appears that musicians would like to be paid for their work. After Apple announced it’d be giving customers a free three-month trial of its new streaming Music service, artists and others who contribute to making music weren’t too pleased to find out they’d be receiving royalties of 70% of nothing for that time period. The company has now changed its tune, and says it will pay musicians after all.

    Popular musician Taylor Swift wrote an open letter titled “To Apple, Love Taylor,” criticizing Apple’s decision to keep the purse strings tied during those first three months, and explaining why she’d be holding back her new album from the new streaming service.

    “I’m sure you are aware that Apple Music will be offering a free 3 month trial to anyone who signs up for the service. I’m not sure you know that Apple Music will not be paying writers, producers, or artists for those three months,” Swift wrote. “I find it to be shocking, disappointing, and completely unlike this historically progressive and generous company. ”

    While recognizing that Apple is moving toward a model that pays artists for streaming, Swift notes that three months is a long time not to get paid — for anyone. She added that it wasn’t about her, as she can support herself and her team by playing live shows.

    “This is about the new artist or band that has just released their first single and will not be paid for its success,” Swift wrote.

    Her letter went viral, prompting Apple’s senior vice president of internet services and software Eddy Cue to announce on Twitter one day later that the company will pay artists during the free trial period.

    “We hear you @taylorswift13 and indie artists,” Cue wrote on Twitter. “Love, Apple.”

    He told Billboard the decision to pay artists came after reading Swift’s letter.

    “When I woke up this morning and saw what Taylor had written, it really solidified that we needed a change,” Cue said. “And so that’s why we decide we will now pay artists during the trial period.”

    He added that others were grumbling as well, citing “concern from a lot of artists” and saying it was “never our intent” to not pay people, but that Apple had planned to negotiate a higher royalty rate, which the company is going to stick with.



ribbi
  • by Mary Beth Quirk
  • via Consumerist