Another Lawsuit Challenges Dial Complete Claims

A class action lawsuit has been filed against The Dial Corporation claiming that Dial Complete products are no more effective than regular soap products. The action was filed in New York federal court by Michael Feuer, who said in the suit, “Dial’s marketing and advertising campaign sends an unmistakably clear, but an unconsciously deceptive and unfair message: Dial Complete is more effective at killing germs, protecting the consumer from germs, and thus preventing illness and promoting good health, than washing with less expensive soap and water.”

Dial Complete is advertised as being over 1,000 times more effective at killing disease-causing germs than other anti-bacterial soaps and hand soaps. It is also supposed to reduce disease transmission by 50 percent compared to washing with plain soap, and to prevent and protect consumers from contracting serious illness, such as streptococcal infections, salmonella, E. coli, and staphylococcus bacteria. Dial ads reference study results, but Michael Feuer says the study was done by Dial itself and only lists two types of bacteria. Continue reading Another Lawsuit Challenges Dial Complete Claims

Group Reports on Seafood Label fraud

You just ordered a filet of salmon and can’t wait to dig in, but you may not be digging into what you think you are. Scientists using DNA tests have found that in one out of three cases, your seafood is actually a cheaper, lower-quality fish.

A new report released by the conservation group Oceana says that most of the seafood in the U.S. is imported, but only two percent of that is actually inspected. Not only are consumers being deceived, in some cases they are being sickened. Six hundred people in Hong Kong became severely ill after eating what they believed to be Atlantic cod. Instead, it was escolar, known as oilfish, which causes diarrhea, nausea, and vomiting. Continue reading Group Reports on Seafood Label fraud

FTC wants to revise online advertising guidelines

The Federal Trade Commission is looking to revise its guidelines for online advertising since the advent of the social networking site.

The regulatory agency last introduced guidelines to businesses in 2000, telling industries how its laws pertained to online advertising. Well, a lot has changed in 11 years, especially online, and the FTC feels the need to update those early guidelines, according to a report from The Cleveland Plain Dealer.

The FTC is asking for business and public input as it seeks revisions to those 2000 guidelines, titled “Dot Com Disclosures.”

Specifically, regulators want to know how mobile internet and much more intricate social networking sites have changed the online marketplace.

In recent weeks, the vulnerability of vast public networks has become an issue, namely the hack of the Sony Playstation Network and several more of the company’s online entertainment networks.

Tens of millions of credit card numbers, email addresses and passwords were hacked in that breach of security.

In addition to that incident, the way online ads are delivered to Web users has also changed. Companies have the ability to target individual users with advertising based on their most recent browsing activity.

“The Donald” Faces Lawsuit Over Role in Failed Florida Development

Donald Trump is being sued by angry home buyers who claim he misled them about his role in developing luxury towers, but his lawyers are firing back. They say Trump was listed as licensor, being paid for the use of his name on the purchasing agreements signed by the buyers. He was not a developer, as the marketing materials suggested. Because of the contradiction, Trump’s attorneys want the cases thrown out.

Judge Adalberto Jordan of the Southern District of Florida, however, denied the motion set forth by Trump’s lawyers, saying he was unconvinced by their explanation that the purchasing agreements and marketing materials contradicted each other, or that buyers had failed to show that such misrepresentations had been made. Continue reading “The Donald” Faces Lawsuit Over Role in Failed Florida Development

American Airlines accusing travel Web sites of anti-trust violations

Third-party airline ticket brokers are the subject of a possible anti-trust investigation launched by the Justice Dept.

Via USA Today, Reuters is reporting that American Airlines and Sabre, the company which owns, have been contacted as part of the investigation, but neither party would comment on the specifics of the probe to the media.

According to a USA Today report, industry magazine Travel Weekly is reporting tension between American Airlines and companies that operate third-party sales of tickets aboard its planes. American would like to launch its own online booking service and has filed lawsuits against Sabre, and the companies that own other travel sites like Galileo, Apollo, Worldspan and

A Justice Dept. spokesperson told Reuters of the investigation, “The antitrust division is investigating the possibility of anti-competitive practices in the global distributions industry.”

American appears pleased that an investigation has been launched and that it is likely to benefit the cases in its lawsuits against ticket broker companies.

American believes travel sites are inflating the actual cost of its flight tickets on their Web sites. It stopped posting flights available on after tensions increased when the Web site would not adopt new ways the airline was allowing its customers to book flights.

Playstation Network Hack Proving Expensive for Sony

The security breach that resulted in a nearly month-long shutdown of the Playstation Network that was discovered on April 19 is going to cost at least $171 million, Sony executives say. That does not include any lawsuits that may be filed in the future. The estimate does include an identity theft prevention program and promotional packages designed to win back both customers’ business and trust.

So far, no confirmed reports of customer identity theft issues or credit card misuse have been reported as a result of the breach, but future lawsuits could prove to be costly. The estimate is far more than that of other companies who have also been hacked, such as retailer TJX Companies, who set aside $118 million to cover a database breach that exposed data for 45.6 million payment cards; and Heartland Payment Systems which reserved approximately $105 million for lawsuits related to an attack by hacker Albert Gonzalez that allowed him to obtain at least 100 million cards. Continue reading Playstation Network Hack Proving Expensive for Sony

Tennessee woman claims restaurant shorted serves on overtime pay, forged documents to alter hours

A Nashville woman claims her former employer falsified documents to avoid paying employees overtime pay.

According to WSMV-TV in Nashville, Ashley Puckett is a former server at O’Charley’s restaurant. She says her fellow employees were not paid for overtime hours worked at the restaurant.

Puckett has filed a lawsuit against O’Charley’s restaurant, which was first reported by The Nashville Post.

Not only did the restaurant not pay overtime, it forged documents and signatures to cover its tracks. Management at the Nashville restaurant routinely “corrected” work logs to show that employees were not putting in overtime hours. They then forged employee signatures on those changes, without an employee’s consent

The restaurant defending its pay practices and said it works to ensure employees are “fairly and legally compensated,” according to a statement acquired by WSMV.

The report does not indicate how many hours Puckett was shorted, nor does it list terms sought by the lawsuit.

Are Drug Company Mergers Causing Shortages?

Sen. Herb Kohl (D-WI) wants the Federal Trade Commission to look into the connection between consolidation in the pharmaceutical industry and a critical shortage of drugs, especially chemotherapy and pain relief medications. The shortage is endangering patient safety and costing hospitals an estimated $200 million because they are searching for substitutes at much higher prices.

Kohl, who is chairman of the Subcommittee on Antitrust, Competition Policy and Consumer Rights, which oversees the FTC, told FTC Chairman Jonathan Leibowitz that he decided to make the inquiry after receiving widespread complaints from healthcare providers about drug shortages. Continue reading Are Drug Company Mergers Causing Shortages?

JP Morgan Chase settles charges it wrongfully foreclosed on military families

JP Morgan Chase & Co. has settled a class-action lawsuit which alleged it overcharged thousands of military families on their mortgages, and also wrongfully foreclosed upon 18 military families.

The lawsuit, according to a report, alleges JP Morgan Chase violated the Servicemembers Civil Relief Act when it failed to keep active-duty servicemembers’ mortgage rates fixed at 6%. The company also violated that same law when it foreclosed 18 homes of active-duty servicemembers.

The SRCA holds steady the mortgage loan rates of active-duty personnel and freezes foreclosures for those same members for up to nine months upon their return from duty.

JP Morgan agreed to pay $12 million to repay the 6,000 homeowners who were over-charged due to higher interest rates. Another $15 million will pay for individual damages, according to that same report.

The bank has already paid at least $6 million to repay over-charged military families and set aside another $6 million to settle future charges of wrongful foreclosure. It will also pay $8 million in legal fees, separate from the terms of the settlement.

The class-action lawsuit was filed in February and settled in late April. Since news of the wrongful foreclosures on military families broke, JP Morgan Chase has been working diligently to smooth relations with the families, including offering new incentive programs for new homeowners, lowering interest rates below the SRCA cap and offering military families jobs within the company.

Dropbox uploading system leaves customer documents vulnerable, FTC complaint alleges

An Indiana University Ph.D. candidate has filed a complaint with the Federal Trade Commission alleging the online file storage service Dropbox is over-selling the capabilities of its data encryption system.

According to a report at, Christopher Soghorian has filed his complaint over Dropbox data security with the FTC, specifically when it comes to the company’s ability and method of checking to see if a stored document is a duplicate of a previously-uploaded file.

In his complaint, Dropbox uses an inferior system to store documents that are duplicates of older ones on its servers. Rather than using the AES-256 system to upload all documents, Dropbox uses deduplication on the initial upload.

AES-256 requires a specific user’s password to gain access to the document. Deduplication does not, and it gives access to the document to Dropbox employees and anyone else who can gain access to its servers. If a Dropbox customer is saving personal information or sensitive files on its servers, this could put that valuable information into a hacker’s hands.