Business Week reports that two ex-employees at an Iowa egg farm stated that federal workers at the two facilities disregarded complaints regarding the shoddy surroundings at one of the locations. The two employees working at Wright County Egg stated that they complained about seeping manure and dead chickens to U.S. Department of Agriculture employees, but no action was taken to address the problem. However, a representative of the Agriculture Department stated that the USDA employee in charge of overseeing grading at the farm did not report employees presenting any concerns about the facility’s conditions.

Some of the major violations noted by U.S. health investigators include manure pits overflowing into hen houses, rodent easy entry into poultry houses, a significant amount of dead flies, standing water near manure piles, loose hens that tracked manure from the manure pit to the caged sections, and the failure to manage waste from animals. All of these issues contributed to creating a risk for salmonella contamination.

Salmonella poisoning caused by contaminated food products is a serious calamity that can be life-threatening to young children, the elderly, and those with weakened immune systems. In many instances, salmonella lasts four to seven days and causes fever, abdominal cramps and diarrhea.

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According to the New York Daily News, the recalled food products were shipped to Wal-Marts nationwide and include the 1 pound, 13-ounce bag of “GREAT VALUE Fully Cooked Chicken Nuggets.” The contaminated chicken nuggets have a “BEST IF USED BY” date of June 9, 2011 and consumers should check their freezers for bags of these products that are labeled with the establishment number “P-33944” and product code of “89008 A0160.” If you have experienced any signs of illness or injury after consuming this recalled food product, you should seek medical attention right away and may also want to consult with a Pennsylvania food recall attorney. Consumers with any questions about the recall can reach Perdue Consumer Relations by calling (877) 727-3447.

Consumers are being advised to use extreme caution since the precise locations where these products are sold is unknown because Wal-Mart distributes them nationwide. The Food Safety and Inspection Service (FSIS) has not received any reports of injury; however, consumers may still be at risk if they consume the potentially contaminated food product. As an agency of the U.S. Department of Agriculture, the FSIS is in charge of ensuring that the nation’s commercial supply of meat, poultry, and egg products is safe, wholesome, correctly labeled and packaged.

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According to a news report in the Daily Record, Holt and three other House members have stated that the proposed new consumer protection agency must not be set up in the Federal Reserve as the Senate has proposed. Instead, they say, this should be an independent agency, which has the power to put in writing and implement regulations that will protect consumer rights.

The Senate version of the bill would make the agency subordinate to the Federal Reserve. That, House members say, would defeat the purpose of creating an agency to protect consumers against the type of financial crisis and recession we saw in recent years that dragged the American economy down.

The House version of the bill may be the better bet for consumers because the agency would then have more leeway as well as the necessary resources to be a consumer advocate. It would help prevent consumers, for example, from being tricked into buying a home they cannot afford. The agency will also help make sure that credit card applications are comprehensible and that the terms are fair and reasonable. A group of negotiators from both the House and Senate are trying to arrive at a consensus so a final version of the bill can be passed and this agency to protect consumer rights can be created.

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But several legislators are supporting the increase of the National Highway Traffic Safety Administration’s powers and also removing the limit on fines imposed on auto makers for violating the law. The proposed auto safety bill also requires widespread safety changes in vehicles including mandating brake override systems, data recorders and a pedal placement standard to prevent entrapment under floor mats. The bill will give the NHTSA the power to halt vehicle sales and production if it determines a vehicle is an imminent danger to consumers.

The silver lining in the Toyota episode is the attention it has drawn to the important issue of auto safety. Civil litigation has been an integral part of forcing auto makers to manufacture safer vehicles. These new laws will hopefully provide more of an incentive for auto makers to put consumers ahead of profits.

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An LA Times article reports that under the new Department of Transportation regulations, an airline can be fined up to $27,500 per passenger if passengers are stuck on a delayed plane for over three hours without being allowed to exit the plane. This could amount to millions of dollars in fines in some cases for a single aircraft found to have violated the new rules. Based on the story, JetBlue, Delta and American Airlines requested to be exempt from any fines for delays at JFK Airport in New York due to runway construction scheduled to end in December. In supporting the argument that construction at JFK would lead to more delays within the region, Continental airlines also requested to be let off the hook for delays at LaGuardia Airport and Newark International Airport. In addition, U.S. Airways asked to be excused from penalties for delays at Philadelphia International Airport.

The U.S. Department of Transportation denied the request in defense of consumers so that airlines can figure out solutions for delayed flights in rerouting or rearrangement of flights at JFK and neighboring airports. U.S. Transportation Secretary Ray LaHood stated, “Passengers on flights delayed on the tarmac have a right to know they will not be held aboard a plane indefinitely.”

A Dallas Morning News article mentions that the new regulation for holding passengers on delayed flights makes certain exceptions for safety or security circumstances or when air traffic controllers believe that a return to the gate would throw-off airport operations. Airlines will also be required to supply passengers with potable water and food if a flight is on the runway for two hours. According to the article, a spokesman for the Air Transport Association of America, David Castleveter, voiced his disapproval of the new rule, stating it would bring about more cancellations, missed connections, mishandled bags, and an increased amount of passengers who will not be able to get to their destinations. The article also states that airline officials will continue to meet with Transportation and Federal Aviation Administration officials to get more specifics as to the enforcement of the rule and whether airlines will take the blame for delays that result from outside causes.

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Republicans oppose the new agency, saying it is an example of big government run amok, whereas Democrats claim the agency is essential for protection against the kind of business practices that led to the current financial downturn. Alabama Sen. Richard Shelby is working on a competing version of the bill that replaces the Consumer Protection Agency with a new bank regulator, a move intended to help save taxpayer dollars.

Oversight of financial firms has become a chief concern of Congress since the collapse of the subprime mortgage market contributed to the failure of major investment groups, which the government bailed out to the tune of $182.3 billion. Frank, who proposed the consumer agency legislation in December, stated that as of now, the government institution assigned to protect consumers is the Federal Reserve, a job they are not performing adequately.

The Obama administration’s proposed watchdog to protect against abuses in lending is at the center of Senate negotiations on the bill, which would create new regulations for financial institutions. Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, expects an unveiling of a new version of the bill with amendments being discussed in early March. Dodd is reportedly seeking a bipartisan compromise on the bill.

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The CARD Act, which was signed into law nine months ago but only just recently went into full effect, was designed to give consumers relief from the high costs of credit and deceptive or confusing credit card marketing tactics. However, in the meantime, credit card companies have taken actions that ended up hurting customers by increasing rates, cutting down credit limits and imposing annual fees. They took these measures in anticipation of the new credit card laws that would be put into place, which ultimately may make the CARD Act detrimental to consumers.

Some of the preemptive actions taken by credit card companies include:

• Annual fees making a comeback after a majority of cards required no such yearly fee for the last 10 years.
• Creation of new fees and increased penalties for other fees (processing fees for paper statements, inactivity fees and increased balance transfer fees).
• Raising interest rates or switching cards to variable interest rates.
• Cutting credit limits on about 40 percent of existing accounts.

The new legislation also may make it harder for borrowers with poor credit (subprime borrowers) to get credit cards because credit cards will now be much less profitable. For now, these consumers may have to rely on other methods such as PayPal, prepaid cards, payday lenders and debit cards.

Because of the reaction to the Credit CARD Act, many industry analysts are calling this new reform a “mixed blessing” for consumers.

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Consumer protection advocates praised the bill as giving the State’s Attorney General the necessary means to pursue companies engaging in unethical lending practices. However, financial institutions such as banks and credit unions said the bill will hike up the cost of business and will not help consumers. Specifically, opponents noted that the bill permits lawyers to accept hefty charges for winning consumer litigation cases against lenders. They also claim that the federal government already regulates abusive lending, which makes the state laws unnecessary. Some legislators said the bill was merely made to sound good and would add another layer of bureaucracy to the process.

However, one proponent of the bill said that it would allow the State’s Attorney General to become a part of multi-state investigations of abusive lending practices. The state of Florida recently announced a $16.9 million agreement that it reached with Countrywide Financial, which will result in payments of $6,000 or more to 2,700 residents of that state. Countrywide was found to have provided misleading information about mortgage rates and participated in other unethical business practices. Proponents also claim the provisions on lawsuits will help consumers in court cases against abusive lenders. The new law would make Oregon the 28th state to regulate lending practices.

The bill had originally died in one committee, but Democratic leadership resurrected it, passing it in another committee before it reached the House floor. Some Republicans claim that Democrats sidestepped the legislative process just to pass the bill and that the bill was not well vetted. The Senate will consider the bill before it becomes law.

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At issue, according to the report, is an accelerated process currently used for devices that have some similarity to other devices already on the market and approved by the FDA.

FDA officials say it can be difficult to measure how similar a new product may be to others, and that this lack of clarification can cause significant problems related to the approval of new devices.

Many who are making medical devices for the market urge the FDA not to conduct a major overhaul of their policies, saying this could create deterrence for new technologies that can help heal the public.

The FDA division in charge of this approval process, called 510(k), must figure out a way to thoroughly evaluate medical devices to make sure they are safe for the market. Consumer advocacy groups claim that loopholes like the accelerated process can allow potentially harmful products to slip through to the market.

A look into the industry shows that many companies are submitting a series of similar products and devices to the FDA, hoping that newer engineered products will be judged similar to those already on the market. One problem is that these devices can include more extreme treatment methods, meriting further investigation by the regulatory agency. Consumer advocates point to significant cases of recalls within the medical device industry to show that some FDA approved medical devices are later found unsafe for public use. Those involved in handling product liability insurance for large medical device manufacturers will want to be acquainted with any future changes in FDA approval. Experts in product insurance law also need to know how recalls will affect a company and how class action suits or other events can change realities within an industry.

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The survey also showed that 91 percent of consumers have never had an issue with getting their cars serviced by independent car repair locations because the shop could not acquire information or necessary tools from auto manufacturers, according to a report posted on The Auto Channel. Fifty-eight percent of people surveyed said they bring their vehicles to an independent auto repair shop rather to the dealership after the warranty has expired. About 26 percent of people bring their cars to the dealership after their warranty has expired, with the remaining percentage working on their cars on their own. All respondents in the survey were 18 years of age or older. The survey was completed by the Clarus Research Group.

The survey was conducted in response to two bills that the Massachusetts legislature will be considering. One bill would require manufacturers to give independent auto shops information and diagnostic tools that they currently offer to franchised service centers. Manufacturers oppose the legislation, claiming that it is funded by chain auto part stores like Napa and Auto Zone that are seeking access to car manufacturer designs in order to reproduce car parts in overseas facilities. They also claim that the results of the survey illustrate the point that the Right to Repair bill is the answer to a problem that does not exist.

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