Ports Win OK to Cooperate on Congestion Relief
Port of Long Beach / http://www.polb.com/news/displaynews.asp?NewsID=1421&TargetID=1
Federal regulators approve expanded working pact for Long Beach, L.A.
The ports of Long Beach and Los Angeles received federal approval Thursday to cooperate more vigorously on finding new ways to prevent congestion and cargo delays, improve the transportation network and enhance air quality.
The Federal Maritime Commission’s decision to grant the expanded agreement allows the ports to pursue joint projects that will strengthen the port complex’s ability to remove bottlenecks and move cargo faster and more efficiently.
“The ports and cities of Long Beach and Los Angeles both succeed when the other succeeds. My thanks to the Federal Maritime Commission and FMC Chairman Mario Cordero for allowing our ports to join forces to address congestion and cargo delays so these issues do not occur again,” said Long Beach Mayor Robert Garcia. “This port complex is too important for us not to do everything we can to improve it.”
Harbor commissions overseeing the neighboring ports in December requested the FMC to expand existing working agreements in an effort to find long-term solutions to the congestion that had slowed the movement of cargo shipped through Long Beach and Los Angeles in recent months.
While major ports around the globe are grappling with the same problems, the difficulties have been magnified at the United States’ busiest harbor complex, which handles nearly 40 percent of the nation’s cargo. Thanks to the tentative contract agreement reached Feb. 20 by longshore labor and management, the ports are working through the backlog of containers.
“With this discussion agreement, the ports of Long Beach and Los Angeles can now focus on working together to improve the speed of cargo flow throughout the supply chain. The ports are in a perfect position — and indeed have an obligation — to bring all industry stakeholders together to identify and implement continuous improvements that deliver world-class performance on a sustainable basis,” said Jon Slangerup, Port of Long Beach Chief Executive. “Will the two Ports still compete? Absolutely, but we can and will cooperate to make our San Pedro Bay gateway stronger and more competitive than ever.”
The newly expanded agreement specifies the two ports can exchange information on “projects” and “programs” in addition to rates, charges, operating costs, practices and regulations related to marine terminal, trucking, rail and vessel operations
CBP Seizes Mercedes Benz Set to Sail Overseas
U.S. Customs & Border Protection / http://www.cbp.gov/newsroom/local-media-release/2015-03-03-000000/cbp-seizes-mercedes-benz-set-sail-overseas
Stolen vehicle featured altered ID number
HOUSTON – U.S. Customs and Border Protection officers at the Galveston seaport seized a stolen 2012 Mercedes-Benz set to be exported, Feb. 27.
CBP officers at the Port of Galveston noticed that the car’s vehicle identification number affixed on the door appeared to have been altered and that it didn’t match the authentic VIN associated with the black 2012 Mercedes-Benz ML 350.
CBP officers determined that the luxury car, valued at more than $37,000, was listed as having been stolen from New Jersey and was slated for export.
“We work with various federal, state and local law enforcement authorities to ensure unauthorized exports are not allowed to leave the country,” said CBP Port Director Dave Fluty. “CBP is the last line of defense in the export control process, and we do use our authority to ensure we inspect, search, detain and seize goods being exported illegally or without proper authorization.”
CBP officers turned over the stolen vehicle to the Galveston County Sheriff’s Office.
In a separate incident, CBP officers identified a 1990 M923 A2 military truck that was disassembled in a container set for export. The military truck was seized because a license is required to export the vehicle even though it was not assembled.
The seized military truck, valued at more than $5,000 was turned over to CBP’s seized property specialists who will determine the appropriate disposition of the truck.
Philly CBP Intercepts New Destructive Termite Species in Pineapple Shipment from Dominican Republic
US Customs & Border Protection / http://www.cbp.gov/newsroom/local-media-release/2015-03-03-000000/philly-cbp-intercepts-new-destructive-termite-species
PHILADELPHIA – The U.S. Department of Agriculture (USDA) confirmed today that a recent U.S. Customs and Border Protection (CBP) termite interception in Philadelphia was the area’s first recorded interception of that termite species.
CBP agriculture specialists discovered 20 live specimens, suspected of belonging to the infraorder Isoptera, February 10 inside the wood packaging material used to secure a shipment of pineapples from the Dominican Republic.
A local USDA entomologist identified the specimens as Cryptotermes sp (Kalotermitidae), a species from the drywood termite family that occurs in the West Indies. The entomologist also reported the interception as a first-in-port discovery. The national pest interception database verified the first-in-port claim today.
These drywood termites are also present in many tropical, subtropical and warm temperate regions of the world. Termites of the order Isoptera cause approximately $1.5 billion in damage to wood structures in the southeastern United States.
Currently, invasive species in general cause an estimated $136 billion in lost agriculture revenue annually. Visit USDA National Invasive Species for more information on invasive threats to U.S. agriculture.
“Intercepting these destructive insect pests at our nation’s borders is of paramount concern to U.S. Customs and Border Protection,” said Susan Stranieri, CBP Port Director for the Area Port of Philadelphia. “CBP agriculture specialists are very serious about protecting America’s agriculture industry. They remain vigilant at intercepting invasive insect and plant species at our ports of entry.”
In addition to the termite discovery, CBP agriculture specialists discovered heavily infested wood packaging material (WPM) – wood pallets and bracing – in this shipment. An earlier shipment of Dominican Republic pineapple February 5 also shipped with heavily infested WPM.
CBP agriculture specialists captured 43 Isoptera (termite) specimens from that earlier shipment.
CBP ordered all WPM re-exported to Dominican Republic.
CBP agriculture specialists have extensive training and experience in the biological sciences, risk analysis, and in imported agriculture inspection techniques. CBP agriculture specialists are the first line of defense in the protection of U.S. agriculture, forest and livestock industries from exotic destructive plant pests and animal diseases.
On a typical day nationally, CBP agriculture specialists inspect almost 1 million travelers to the U.S., and a significant amount of air and sea cargo imported to the United States. They intercept 4,379 prohibited meat, plant materials or animal products, including 440 insect pests.
Please visit CBP’s Agriculture Protection webpage to learn how CBP safeguards our nation’s economy by protecting our agriculture industries.
CBP agriculture specialists work closely with USDA’s, Animal and Plant Health Inspection Service (APHIS), Plant Protection and Quarantine (PPQ) to protect our nation’s agriculture resources against the introduction of foreign plants, plant pests, and animal diseases.
CBP Seizes Backpacks, Lunch Bags
U.S. Customs & Border Protection / http://www.cbp.gov/newsroom/local-media-release/2015-03-04-000000/cbp-seizes-backpacks-lunch-bags
Whimsical children's bags contained excessive lead levels
HOUSTON – U.S. Customs and Border Protection officers at the Houston Seaport in two separate incidents seized more than 6000 children’s backpacks and lunch bags after testing confirmed unacceptable levels of lead.
In both instances, the backpacks and lunch bags originated in China and were destined for the American marketplace.
In the first instance, CBP officers and a Consumer Product Safety Commission compliance investigator examined 1500 children’s backpacks and more than 4,000 lunch bags and determined that additional testing was warranted.
A sample of the shipment was sent to a CPSC laboratory for further testing. Those tests revealed lead in the metal zippers, ranging from 900 parts per million to 15,000 parts per million. The lead content threshold level under the Federal Hazardous Substance Act is 100 parts per million.
“These seizures reflect our commitment to protecting American consumers from hazardous, harmful products,” said CBP Port Director Dave Fluty. “Together with CPSC, we tirelessly search for imported products that may pose a hazard or safety concern for American consumers and we take the appropriate steps to ensure those items do not reach store shelves.”
In a separate incident, CBP officers and a CPSC compliance investigator examined a single carton of backpacks and determined additional testing was warranted. Tests conducted at the CPSC laboratory revealed excessive levels of lead in each backpack’s component parts ranging from 200-3,000 parts per million.
The backpacks and lunch bags were turned over to CBP seized property for destruction.
Import safety is a priority trade issue for CBP. In 2013, CBP opened the Consumer Product & Mass Merchandising Center of Excellence. More information about is available.
Identity Theft Tops FTC’s Consumer Complaint Categories Again in 2014
Federal Trade Commission / http://www.ftc.gov/news-events/press-releases/2015/02/identity-theft-tops-ftcs-consumer-complaint-categories-again-2014
Agency Also Notes a Large Increase in Complaints About “Imposter” Scama
Identity theft topped the Federal Trade Commission’s national ranking of consumer complaints for the 15th consecutive year, while the agency also recorded a large increase in the number of complaints about so-called “imposter” scams, according to the FTC's 2014 Consumer Sentinel Network Data Book, which was released today.
Imposter scams – in which con artists impersonate government officials or others – moved into third place on the list of consumer complaints, entering the top three complaint categories for the first time. The increase in imposter scams was led by a sharp jump in complaints about IRS and other government imposter scams. Debt collection held steady as the second-most-reported complaint.
“While identity theft remains a huge issue, consumers should also keep a close eye out for imposter scams,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “Whether it’s pretending to be the IRS during tax season, or making false promises of a lottery win, scammers are increasingly sophisticated in their efforts to deceive consumers, but the FTC will continue working to shut these scammers down.”
The Consumer Sentinel Network Data Book is produced annually using complaints received by the FTC’s Consumer Sentinel Network. That includes not only complaints made directly by consumers to the FTC, but also complaints received by state and federal law enforcement agencies, national consumer protection organizations and non-governmental organizations.
The report includes not only national data but also a state-by-state accounting of top complaint categories and a listing of the metropolitan areas that generated the most complaints. In 2014, 2,582,851 complaints were entered into the Consumer Sentinel Network. Florida was the top source of complaints per capita both for identity theft, and fraud and other complaints. For fraud and other complaints, Georgia and Nevada had the second and third highest per capita complaint rates, while Washington and Oregon were in the second and third position for identity theft complaints.
The complaint categories making up the top 10 are:
Number Percent
Identity Theft 332,646 13 percent
Debt Collection 280,998 11 percent
Imposter Scams 276,662 11 percent
Telephone and Mobile Services 171,809 7 percent
Banks and Lenders 128,107 5 percent
Prizes, Sweepstakes and Lotteries 103,579 4 percent
Auto-Related Complaints 88,334 3 percent
Shop-At-Home and Catalog Sales 71,377 3 percent
Television and Electronic Media 48,640 2 percent
Internet Services 46,039 2 percent
A complete list of all complaint categories is available on page six of the report.
The Consumer Sentinel Network’s secure online database is available to more than 2,000 civil and criminal law enforcement agencies across the country and abroad. Agencies use the data to research cases, identify victims and track possible targets.
Direct Marketer Agrees to Pay $8 Million for Deceiving Consumers
Federal Trade Commission / https://www.ftc.gov/news-events/press-releases/2015/03/direct-marketer-agrees-pay-8-million-deceiving-consumers
Company Pitched Snuggies and Other Products on TV, Often Billing Consumers without Their Consent
A direct marketing company selling “as-seen-on-TV” type products such as Snuggies and the Magic Mesh door cover has agreed to pay $7.5 million to the Federal Trade Commission for consumer restitution to settle FTC charges in connection with its deceptive “buy-one-get-one-free” promotions.
The FTC’s settlement with Allstar Marketing Group, LLC, was reached alongside actions by the New York State Office of the Attorney General, which is announcing a separate state case today. In addition to the $7.5 million paid to the FTC, Allstar will pay $500,000 to the Attorney General’s Office for penalties, costs, and fees to settle that action.
“Marketers must clearly disclose all costs. That includes processing fees, handling fees, and any other fees they think up,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Working with the New York Attorney General, we’ll return millions of dollars to consumers that Allstar collected in undisclosed fees.”
“This agreement returns money to thousands of consumers in New York and across the nation who believed they were buying items at the price advertised on television, but ended up with extra merchandise and hidden fees they didn’t bargain for,” Attorney General Eric T. Schneiderman said. “The settlement also brings much needed reforms to a major firm in the direct marketing industry. Those who use small print and hidden fees to inflate charges to unwitting consumers must be held accountable.”
According to the FTC’s complaint, since at least 1999, Allstar, based in Hawthorne, New York, has been in the direct marketing business, using television commercials to sell its products, many of which are familiar to consumers such as Magic Mesh, Cat’s Meow, Roto Punch, Perfect Tortilla, Forever Comfy, and Snuggies. While the products have varied, Allstar’s pitch is often the same -- a “buy-one-get-one-free” offer without additional costs disclosed.
In a recent commercial for Magic Mesh, for example, the company promised that it would “double the offer” for consumers, if they just paid “processing and handling fees.” While consumers were led to believe that they would then be getting two $19.95 products for “less than $10 each,” in fact, the total cost with the undisclosed $7.95“processing and handling” fees jumped from the advertised price of $19.95 to $35.85, according to the complaint.
As alleged in the FTC’s complaint, consumers who called Allstar were often immediately instructed to enter their personal and billing information, and were charged for at least one “set” of products, based on the “buy-one-get-one-free” offer, before they had a chance to indicate how many products they wanted to buy. Because the sales pitch was often confusing, some consumers purchased more “sets” than they actually wanted.
Allstar then attempted to upsell consumers additional products via automated voice prompts that requested the consumer accept the offer. Many times, the only way a consumer could decline the offer was to say nothing. At the end of the calls, Allstar sometimes routed consumers to other third-party sellers who made additional sales pitches. Once all of the offers ended, consumers were not told the total number of items they’d “agreed” to buy, or the total amount they would be billed, according to the complaint. The Commission has alleged that Allstar even charged those consumers who hung up mid-call, not intending to complete a sale.
According to the FTC’s complaint, consumers who opted to buy Allstars’ products online faced similar problems, including separate “processing and handling” fees which were only disclosed in very fine print at the bottom of the page, and a barrage of upsell offers. Consumers were not provided with the total price of their purchases, and despite a “30 day money-back guarantee” (less processing and handling fees) full refunds were difficult for consumers to obtain.
Based on this alleged conduct, the FTC’s complaint charges Allstar with two violations of the FTC Act and three violations of the agency’s Telemarketing Sales Rule (TSR), including the following:
- Billing consumers without their express informed consent;
- Failing to make adequate disclosures about the total number and cost of products before billing consumers;
- In connection with the up-selling of goods and services, violating the TSR by failing to disclose material information about the total cost of the products and that the purpose of the call is to sell goods or services ; and
- During telemarketing, illegally billing consumers without first getting their consent.
The settlement order prohibits Allstar from failing to obtain consumers’ written consent before billing them for any product or service. It also requires the company to clearly and conspicuously disclose – before billing consumers – the total number of products they have ordered, all related fees and costs, and material conditions related to the products purchased.
It also prohibits Allstar from violating the TSR by: 1) failing to disclose the true costs of any goods or products it sells; 2) failing to promptly disclose the identity of the seller to consumers and that the purpose of the call is to sell a product or service; and 3) causing billing information to be submitted for payment without consumers’ express authorization.
Finally, the order imposes a monetary judgment of $7.5 million, which, in consultation with the New York Attorney General’s Office, may be used to provide refunds to defrauded consumers.
The Commission’s vote approving the complaint and the stipulated final order was 5-0. The complaint was filed in the U.S. District Court for the Northern District of Illinois and the stipulated final order submitted to the court for approval.
The FTC appreciates the assistance of the New York State Attorney General’s Office in bringing this action.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. Stipulated orders have the force of law when approved and signed by the district court judge.
