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SSA Email Misleads on Elimination of Tax on Social Security

The day after the federal “Big, Beautiful Bill” was passed by Congress, the Social Security Administration sent out this email to recipients:

Email from the Social Security Administration

Besides sounding somewhat political for a federal agency, it gave the false impression that the bill eliminated federal income tax on social security benefits:

The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples.

Before the bill passed, the Senate parliamentarian ruled that changes to social security could not be made in this type of bill and the provision to not tax social security benefits was completely removed from it.

*MOUSE PRINT:

So how can the Social Security Administration claim the new law includes such a provision? They point to another measure in the law — a new $6,000 senior deduction — that would supposedly offset the income taxes that would otherwise be due on social security earnings for most people. The deduction is applied against other income too, however. And as their income rises, the deduction decreases to zero and is completely phased out after 2028.

Many major media outlets over the weekend reported on the misrepresentation in the email from the Social Security Administration. (See stories from NBC, Washington Post, the New York Times, and CNN.)

I know, some of you will say these are liberal media outlets and are not objective. So, MrConsumer uploaded the entire SSA email to Google Gemini and Microsoft CoPilot and asked these AI services to “evaluate the veracity and factual accuracy” of that email.

Here is what each said about the key claim that the new law contained a provision eliminating income tax on social security benefits:

*MOUSE PRINT:

“The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries…”:

This statement is inaccurate in its phrasing. As noted above, the law does not eliminate the taxation of benefits, but rather provides a deduction that can lead to many beneficiaries paying no tax on their benefits due to reduced overall taxable income. —Google Gemini

Claim: “The bill eliminates federal income taxes on Social Security benefits for most beneficiaries.”

– Misleading. The bill does not change the underlying tax code that governs how Social Security benefits are taxed.
– Instead, it adds a temporary deduction that applies to all income, not just Social Security. This means the tax is still technically in place, but many seniors will owe nothing due to the deduction.
– The deduction phases out for individuals earning over $75,000 and couples over $150,000, and it expires after 2028 unless renewed. — Microsoft CoPilot

What do you think? Did the SSA email cross the line? Offer your comments below, but please do not turn this into a pro or anti Tr–p rant, or a pro or anti political party diatribe.

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Kroger Makes Digital Coupons Easier to Use

For the past three years, consumer groups including Consumer World have called on big supermarket chains to make digital coupons easier to use for seniors, poor folks, and others who either don’t use the internet or smartphones or who are not particularly tech-savvy.

Normally, a shopper has to use the supermarket’s website or app to individually select and load each digital-only offer or coupon onto their store loyalty card account before they shop in order to get the advertised discount.

CherriesConsumer World photo illustration

Now Kroger and some of its various supermarket brands like King Soopers have come up with a simple and cheap solution. They are making available digital deal savings sheets — a “super coupon,” if you will — that is a two-sided piece of paper that you pick up as you enter the store or at the courtesy desk. All that week’s advertised digital deals from the store’s current circular are summarized there, and a small barcode is provided on the back. The shopper need only scan that barcode at the checkout, and then all that week’s advertised digital coupons will be loaded onto the customer’s account and the savings automatically deducted from their bill.

*MOUSE PRINT:

Kroger Digital Deals Sheet (small) Sample Kroger Digital “Super Coupon” (click to enlarge)

Consumer World asked the company for details about which of their chains have implemented these deal sheets, but they did not respond to multiple requests. Nonetheless, we salute Kroger for finally heeding the call to make digital coupons easier to use and available to digitally-disconnected shoppers.

We also asked The Consumerman, Herb Weisbaum, to check the stores in the Seattle area — QFC and Fred Meyer. He reports that both stores had displays of the “super coupons” near the store entrance.

QFC Deals Sheet

If you shop at a Kroger-owned store (Kroger, Baker’s, Dillons, Food4Less, Fred Meyer, Fry’s, Harris Teeter, King Soopers, Mariano’s, Payless, Pick’n Save, QFC, Ralph’s, or Smith’s), please post a comment noting whether your store now has the “super coupon,” and if it was near the store entrance or if you had to request it. (Some locations reportedly are keeping them hidden behind the service desk, believe it or not.)

Kroger’s move follows an initiative by Stop & Shop at the beginning of 2025 to install “Savings Center” kiosks in the front of their 350+ stores where all a shopper need do is scan her loyalty card and then all that week’s advertised digital coupons are automated loaded onto her account.

Some of these efforts by supermarket chains to make digital coupons easier to use are the result of consumer complaints by customers, the advocates’ campaign to end digital discrimination, and legislative efforts requiring that non-digital alternatives be offered.

In regard to legal initiatives, San Diego’s new ordinance that requires supermarkets to make available printed versions of digital coupons in the store just hit a road block because retailers are opposed it. They lobbied for an amendment that would completely gut the new requirement. See Coupons in the News. It is scheduled for a new hearing this week. Stay tuned.

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UPDATE
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Without going into great detail here, MrConsumer wrote to the entire San Diego city council pointing out the issue with their proposed amendment. And they listened and voted approval of a revised amendment. Now stores need provide “an in-store alternative” for all publicly available digital-only deals and digital coupons (instead of the only option being printed versions of digital coupons). They dropped the explicit exclusion of digital offers in store loyalty programs that would have been fatal to the original amendment. The new ordinance gets a second reading soon, and goes into effect in October.

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Mondelez Sues Aldi Over Lookalike Cracker Packages

Mondelez, the maker of many famous cookie and cracker brands like Oreo, Chips Ahoy!, Ritz, and Wheat Thins is suing Aldi, the deep discount retailer, for deceptive practices in that Aldi’s store brand versions of these products look confusingly similar to the famous brands. [See lawsuit.]

Mondelez vs. Aldi crackers

For example, with respect to Oreos, the Mondelez lawyers assert:

*MOUSE PRINT:

Mondelez has spent hundreds of millions of dollars in the last five years alone in connection with advertising and promoting its goods featuring the OREO Trade Dress [the design and appearance of the packaging] in the United States market and has enjoyed substantial sales and success. To benefit from the reputation, fame and prestige of the OREO Trade Dress and exploit Mondelez’s marketing effort, [Aldi] is marketing and selling private label packaged cookie sandwiches using packaging that blatantly copies the distinctive and iconic elements of the OREO Trade Dress. Aldi adopted the Infringing Sandwich Cookie Packaging with knowledge of Mondelez’s prior rights in the OREO Trade Dress and with intent to mislead or confuse consumers into believing that Defendant’s goods are provided, sponsored, or approved by, or affiliated with, Mondelez.

Of course, Aldi is not the only company that makes their store brands look similar to the name brand they are imitating.

Mondelez lookalikes

Mondelez is alleging trade dress infringement, trademark dilution, and unfair competition.

What do you think? Are shoppers misled into thinking they are buying the name brand at Aldi when they are really purchasing the store brand? Do the lookalike packages somehow imply they are made by or endorsed by the name brand?

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