Commonwealth Conversations: Consumer Connections

What Consumers Should Know about Automobile Recalls

In light of Toyota Motor Corp.’s latest recall of 2.3 million vehicles, the Office of Consumer Affairs and Business Regulation wants you to know what to expect and what steps you should take if your car is recalled.

A car recall can be ordered by the manufacturer or the National Highway Traffic Safety Administration (NHTSA).

If your vehicle is the subject of a recall campaign, the manufacturer will contact you by mail. The notice should make clear how long the repair will take, evaluate the safety risk caused by the defect, and include a number to call if you go through any inconveniences when trying to get the work done.

If you hear of a recall in the news, but you have not heard from the manufacturer, you can contact either the manufacturer or your local dealership and provide them your VIN (vehicle identification number). With this information, your dealer can tell you if your vehicle is part of the recall. You can also contact the Auto Safety Hotline of the NHTSA (see their contact information below).

If your car is recalled, you should contact your local dealership to schedule the repair work. Dealerships are required by federal law to repair recalled automobiles at no charge to the consumer.

If the dealer does not offer a solution (e.g. refuses to make the repairs), contact the manufacturer.

If contacting the manufacturer does not work, contact the NHTSA.

National Highway Traffic Safety Administration
400 7th Street SW
Washington, D.C. 20590
Phone: (888) 327-4236
Online: www.nhtsa.gov

What happens if my dealer does not properly fix the recall safety defect?
If the dealer attempts to fix the safety defect at least three times and is unsuccessful, you may qualify for additional relief under the Massachusetts Lemon Laws. For more information, go to our website at Lemon Laws.

For more information about Toyota’s latest recall:
Toyota is currently working on a solution and owners will be notified when one is ready. In the meantime, Toyota owners with questions should call Toyota's customer service line at (800) 331-4331 or visit their website. For information, including links to FAQs and other documents from Toyota, click here.

Taking Stock of Growing Fees

Posted by:
Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation

Earlier this week, my office released the results of a survey of restocking fees at national retailers that are popular during the holiday shopping season. We found that these fees on returns – particularly on electronics and furniture – are being charged at more and more retailers.

 

On Tuesday night, I discussed this issue on “Greater Boston” with Host Emily Rooney and Jon Hurst from the Retailers Association of Massachusetts.

 

Greater Boston video

 

 

Consumers need to be aware of these fees, and need to know which retailers are charging fees and which aren’t. To read more about the fees, click here. To see the full results of our survey, click here.

Consumer Insider: Health Insurance, Winter Tips, and More

Posted by:
Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation

The December 2009 edition of the Consumer Insider is now available (Download December_2009_Newsletter_Final). The latest newsletter includes updates on the Patrick-Murray Administration’s efforts to reform small business health insurance (including Governor Deval Patrick’s announcement event, photo right), tips for tenants when dealing with winter weather, and some good things to keep in mind when looking for a health club.

The Consumer Insider is a bi-monthly publication of our Office, and we think it is a good way for consumers to keep up with valuable news they can use. You can read back issues of the Insider here, and you can sign up to have it delivered directly to your Inbox here.

Enjoy!

Time for a Health Insurance Checkup

Posted by:
Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation

For many families, now is the perfect time to get up to speed on health insurance. Many companies hold their open-enrollment periods at the end of the year. It’s a chance to assess your health coverage, and make sure you’re maximizing benefits while keeping costs as low as you can.

Everyone in Massachusetts needs health coverage, as mandated by our landmark health-care law. However, health insurance isn’t a one-size-fits-all proposition. Families need to understand their coverage and their plans, and decide what is best for them.

Recently, the National Association of Insurance Commissioners did a nationwide survey of consumers, and found only six out of 10 said they understand their right to appeal a denied claim. Fewer than one in three said they understand the cost factors that determine premiums. It is a complicated thing to understand, but there are a few things you can do to make sure your health insurance is right for you.

• Check with your human resources department to find out when open enrollment takes place. Make sure you use that window to make any changes – you won’t get another chance for a year.
• It might be a good idea to open a flexible spending account, if available. This allows you to pay for out-of-pocket health care expenses through pre-tax dollars set aside in your paycheck. It not only creates a rainy day account for you, but also saves you money by not paying taxes on the money.
• Do your homework on available plans. Is your doctor available in a particular network? Does one plan offer better benefits than another? Check the co-pays and other costs to make sure the terms best match your needs.
• Visit the Massachusetts Division of Insurance Website. It has a wealth of information for you to catch up on, including a series of consumer guides that can help you navigate your way through the process.

Save Money on Car Insurance, But Don’t Get Blinded by Ad Barrage

Posted by:
Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation

One of the goals of Governor Deval Patrick’s move to managed competition in auto insurance was to create a more competitive environment for companies to work to win new customers. Based on the number of auto insurance companies advertising in Massachusetts, this goal is being met.

We’ve seen the ads promoting savings, better benefits, and stronger customer service. Whether the spokesmen are reptiles, respected actors, or average customers, they all offer the hope of a better deal. And while there is growing opportunity for drivers to shop for an auto insurance policy that offers both protection and a good price, consumers need to be sure a company can deliver what it advertises.

The Division of Insurance has created a Consumer Alert that outlines some of the issues consumers should be aware of as they watch ads. Consumers need to understand that “average savings” touted in ads may or may not apply to an individual as their policy cost is determined by a complex process. Consumers also need to understand that lower prices may not include some benefits or protections they may want to have, and they need to know if some extra benefits may be included when comparing similarly-priced policies.

Now is a good time for consumers to shop for auto insurance. You don’t have to wait for your policy to expire to shop, but many drivers’ policies expire in the first three months of year, so it might be time to shop around now. We’ve heard from drivers who have saved hundreds by shopping for car insurance since the reform of our market began in 2008.

Shopping for auto insurance can take a few hours, whether you’re meeting with your insurance agent or doing some research on your own. But it might be time well-spent if you end up saving up to hundreds of dollars in the process.

Don’t Be a Turkey in the Thanksgiving Kitchen

Posted by:
Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation

There are few culinary tasks tougher than getting Thanksgiving dinner on the table. It’s a trick that necessitates a lot of work, some good timing, and some cooking skill.

With that balancing act going on, and a living room full of hungry people just waiting to eat, it can be tempting to cut a few corners here and there. Some corners, like canned cranberry sauce instead of homemade, can be forgiven. Others, like not properly defrosting the turkey (if you’re turkey is still frozen at this point, you might want to get a fresh one) or not handling leftovers properly, are a recipe for holiday disaster.

Our office has put together a few tips that all Thanksgiving chefs (and their helpers) should have in mind this week. Information on how to best thaw out and cook Old Tom Turkey, and how to put him and his delicious sides away for later, are all part of our latest Consumer Advisory.

To check out our latest advisory, Download Tips for Thanksgiving Dinner. To sign up for our e-mail mailing list for Consumer Advisories and our bimonthly Consumer Insider, click here.

Best wishes for a happy and safe Thanksgiving holiday!

When Car Shopping, Look for Yellow

Posted by:
Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation

Not everyone would be interested in a yellow car, but when you go car shopping, it’s a good idea to look for yellow – the yellow sticker that must be attached to all cars that detail the Massachusetts Lemon Laws.

Today, we announced the results of a survey we did at 73 dealerships around the Boston area and Cape Cod, checking to see how many cars had the necessary yellow stickers (seen on the right). We found that 43 percent of the 1,912 cars we checked did not have the stickers. We found that of the 1,304 used cars we checked, 51 percent were missing stickers. (To see all the results of our survey, visit our Publications & Reports section of our website.)

We sent letters to all the dealers we visited, informing them that these stickers are important and need to be in a conspicuous place, so consumers can plainly see what their rights are. The Lemon Law is a valuable consumer protection for people thinking about buying a car, and consumers have a right to know their rights under the Lemon Law. These stickers detail repair and refund rules, and deadlines to request free repairs.

The best practice is for dealers to be consistent about putting the stickers on every car, and we found many dealerships that follow through on that requirement. This way, consumers will always know their rights, whether they’re looking at one car or a bunch of cars when shopping.

Our website includes a wealth of information about the Lemon Laws, including the New and Leased Lemon Law, the Used Car Lemon Law, and much more. We also operate the Lemon Law Arbitration Program. If you have any questions, please call our Consumer Hotline at (888) 283-3757. Click here to watch Channel 5's story on the survey.

Attention to H1N1 Flu Creates Environment for Bogus Cures

Posted by:
Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation

As is often the case when a particular issue becomes the focus of national attention, there’s been a recent outburst of products that aren’t just ineffective in fighting the flu and the H1N1 virus, they might actually be harmful.

The federal Food and Drug Administration has sent out a warning to consumers, pointing out the potential harm of unapproved products that claim to prevent, fight, or diagnose the infamous H1N1 flu virus. To get a rundown on potentially bogus products, check out the FDA’s interactive widget at the bottom of this post.

In the run-up to flu season, and the wait for H1N1 vaccines, the very contagious flu virus has captured the nation’s attention. And in doing so, it has brought in a series of questionable products that are not FDA-approved. According to the FDA, consumers should buy only approved products from licensed pharmacies. Tamiflu and Relenza are the only two FDA-approved antiviral drugs of H1N1.

If you buy a prescription drug from a Web site or other unapproved source, you run the risk of potential life-threatening side effects from bad medication, or dangerous drug interactions. The FDA has been aggressively pursuing Web dealers, but they continue to pop up.

As with most medical situations, discuss your concerns with your pharmacist or doctor, and make sure you buying medication from a legitimate, trusted source. And remember, wash your hands early and often with anti-bacterial soap or sanitizer, the best way to fight off germs during the upcoming flu season.

H1N1 Fraudulent Products

‘Going Green’ on Appliances Can Earn Green for Your Wallet

Posted by:
Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation

“Going green” is not just about driving a fuel-efficient car or recycling cans and bottles. Some of our everyday tasks can be quite taxing on the environment, and more importantly, on our wallets. Most home appliances are energy hogs, driving up our electricity bills every month. Yet often it is too expensive to upgrade to newer models, especially as families tighten their belts during a recession.

Massachusetts is setting out to help consumers ditch their electricity-hogging home appliances with a new “cash for clunkers” program that targets devices in the home we use every day such as dishwashers, refrigerators, and laundry machines. Earlier this week, the Patrick Administration announced the launch of a rebate program enabling consumers to trade in old home appliances for cash towards new energy-efficient models. It’s a winning situation for everyone:  for thousands of consumers, immediate cash savings towards new appliances and future savings on electricity bills. For the environment, recycling old devices and wasting less energy.

The state’s Office of Energy and Environmental Affairs estimates that when the program is complete, around 27,000 old, inefficient appliances will be taken out of service. The energy savings as a result of the program will be 2.6 million kilowatt-hours per year, equivalent to a full year’s energy consumption from 340 Massachusetts homes.

This program is yet another innovative component of Governor Patrick’s Recovery Plan, and it enables Massachusetts to become greener, help consumers invest into major components of their homes, and save electricity in the long term.

Reforms Will Change Small Business Health Insurance

Posted by:
Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation

I was in Quincy yesterday morning with Governor Patrick when he announced a series of reforms aimed at helping reduce the rapid cost increases in health insurance premiums for small businesses. It’s an important step that is necessary to help create the best possible environment for health care, and economic recovery, in Massachusetts.

I was part of a team put together by the Governor to consider this issue and possible solutions. We made four recommendations that the Governor discussed today that we will quickly go about investigating and acting on.

Chief among them is the creation of open-access purchasing cooperatives. These cooperatives would give small businesses and individuals the ability to combine their purchasing power and seek out lower premiums through a larger entity. Additionally, we are seeking to expand the Division of Insurance’s ability to review insurance rates, allowing the Division to disapprove of rates that may be unreasonable.

The Governor and I have heard from many small-business owners and organizations that have been grappling with dramatic year-to-year increases in health insurance costs. As the Governor and his team work on creating the best possible environment for business expansion as we start our economic recovery, easing this burden is important.

The Division of Insurance will be holding a number of public meetings over the next few months regarding these important reforms. Those meetings haven’t been set yet, but will be soon. Visit the Division’s website for more information and announcements as we begin this process.