Year: 2013

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One Way Fare to Heaven Gets Costly for Delta Frequent Fliers

A couple of weeks ago, Consumer World brought you a story suggesting that savvy travelers shouldn’t let their frequent flier miles die with them. The miles can be inherited and transferred to an heir in many cases.

Delta Airlines must be a regular Consumer World reader, because last week they changed the rules of the game for holders of Delta SkyMiles.

*MOUSE PRINT:

Here are the 2012 rules for the Delta SkyMiles program:

Transfer upon Death of Member

Upon the death of a Member, the Administrator or Executor of the Member’s Estate may designate one or more other Members to receive a transfer of the mileage credit in the deceased Member’s account. Only whole number amounts of miles may be transferred. The required form and other instructions for requesting a transfer of mileage under these circumstances is available on delta.com/skymilesaffidavit.

On March 20, 2013, however, Delta changed their SkyMiles rules for 2013.

*MOUSE PRINT:

Restrictions on Transfer

Miles are not the property of any Member. Except as specifically authorized in the Membership Guide and Program Rules or otherwise in writing by an officer of Delta, miles may not be sold, attached, seized, levied upon, pledged, or transferred under any circumstances, including, without limitation, by operation of law, upon death, [emphasis added] or in connection with any domestic relations dispute and/or legal proceeding.

Delta dropped the whole paragraph about the procedure for transferring miles on death, and substituted the above new “no transfer” rules. Now Delta says that your miles are not yours, you can’t take them with you when you die, and you can’t give them to anyone else in your will.

Thanks to John Materese, the consumer reporter at WCPO in Cincinnati for the story idea. Here is his video of this story.

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FTC Warns Against Mouse Print in Online Ads

Last week, the Federal Trade Commission (FTC) revised its guidelines for disclosures in online advertising, including new guidance for ads that appear on cellphone screens.

One of the most important points made by the new “rules” is that when practical “advertisers should incorporate relevant limitations and qualifying
information into the underlying claim, rather than having a separate disclosure qualifying the claim.” That means don’t advertise “all books* on sale” with a disclaimer that says “*hardcover only”, when you could have clearly advertised “All Hardcover Books on Sale” to start with.

Some of the other basic principles include:

  • Required disclosures should be clear and conspicuous;
  • They should be close to the claim to which it relates;
  • Only in rare circumstances should a hyperlink lead to the disclosure;
  • You shouldn’t have to scroll to find the disclosure;
  • Even small banner ads and tweets need appropriate disclosures.

Here are some sample ads created by the FTC to demonstrate some of their new principles:

*MOUSE PRINT:

cell ad

In this ad, 3/4 Ct. is a link that goes to a disclosure that reveal that the diamonds actually may weigh between .72 and .78 carats. The FTC wants to see that disclosure right on this screen, near the 3/4 carat claim.

*MOUSE PRINT:

cold box

There is a health disclaimer at the bottom of this ad which warns that when temperatures are over 80 degrees, this cooler is not capable of keeping foods cold enough to prevent the growth of bacteria which could cause a foodborne illness. The FTC says that something this important should be right in the ad, and in close proximity to the claim that the box keeps food “fresh and cold.”

*MOUSE PRINT:

banner ad

The FTC has separate testimonial rules that require people who are paid to express their opinion to disclose that fact. In this case, “JuliStarz” was a paid endorser. In addition, also in that set of guidelines is the requirement that the average benefit to be derived from a weight loss program be disclosed if the example given is atypical. In this case, the average person will much less than 30 pounds in six weeks, so the disclosure has to say, for example, avg weight loss = 3-lbs/wk.

Don’t hold your breath waiting to see online ads follow all these rules.

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Kiss Your Free HD TV Picture Goodbye

Last fall, the FCC issued an order allowing local cable companies to scramble or encrypt basic channels like the major broadcast networks and local TV stations. This means that every TV in your home will need to have a cable box, even if you have a brand new flat screen HDTV that currently is capable of displaying those stations in high definition without a box.

MrConsumer, for example, has small HDTVs in his office, kitchen, and guest room all of which just have the cable connected to them without a set-top box. And they all get a beautiful high definition picture thanks to the sets having a built-in QAM tuner. He doesn’t get cable channels like CNN on them, just local stations and the major broadcast networks. That’s fine, because these are secondary televisions.

Starting on April 10, 2013, however, according to a letter from MrConsumer’s cable company, RCN, they are going to encrypt these local and network stations. And MrConsumer’s HDTVs will become expensive paperweights.

FCC’s rules provide temporary relief, however.

*MOUSE PRINT

All digital cable companies that wish to encyrpt their basic channels must:

“(i) offer to existing subscribers who subscribe only to the basic service tier and do not use a set-top box or CableCARD, the subscriber’s choice of a set-top box or CableCARD on up to two television sets without charge for two years from the date of encryption; (ii) offer existing subscribers who subscribe to a level of service above “basic only” but use an additional television set to access only the basic service tier without the use of a set-top box or CableCARD at the time of encryption, the subscriber’s choice of a set-top box or CableCARD on one television set without charge for one year from the date of encryption; ” -FCC MB Docket No. 11-169

Nowhere in the FCC order do they state what type of box must be provided free for one or two years to customers. And that is where cable companies can try to weasel out of providing a high definition box free to customers with high definition televisions.

Case in point is RCN, which buries in its FAQs this important detail.

*MOUSE PRINT

“A customer subscribing to LIMITED Basic or higher level of service receiving RCN Limited Basic service on a secondary TV without RCN-supplied equipment is entitled to one standard definition box for one year.” [emphasis added]

A standard definition box by definition filters out the HD signal, so customers receiving those boxes will no longer be able to display a high definition picture on their HD sets.

MrConsumer contacted RCN and asked for and received a promise to be given an HD box free for one year. And, a subsequent discussion with an RCN executive also revealed that the company would in fact provide either a free SD (standard defintion) box or HD box to all customers. You just need to know to ask since their website does not disclose this option.

For other cable company customers, your turn to do deal with the problem is coming soon. You could be faced with receiving only an SD box for your HDTV, or having to rent an HD box for about $10 a month forever for every HDTV you own.

Of course, there is always the option of going back to rabbit ears.

Thanks, FCC.