Category Archives: Latest In Consumer News
CPUC Reform Veto Vexes Brown Backers
by Jeff McDonald, San Diego Union-Tribune
Richard Holober, executive director of the Consumer Federation of California, has praised Brown in the past for action on privacy, food safety, credit reports and residential care facilities for the elderly. Holober is not happy with the vetoes of CPUC bills. “Until we saw the vetoes, we were keeping our fingers crossed that he would make the Governor’s Office part of the solution,” Holober said. “Now we are really scratching our heads. The loss of public trust, the scandalous collusion is troubling.” Read More ›
Beware The Fine Print: Arbitration Everywhere, Stacking The Deck Of Justice
by Jessica Silver-Greenberg and Robert Gebeloff, The New York Times
The move to block class actions was engineered by a Wall Street-led coalition of credit card companies and retailers, according to interviews with coalition members and court records. Strategizing from law offices on Park Avenue and in Washington, members of the group came up with a plan to insulate themselves from the costly lawsuits. Their work culminated in two Supreme Court rulings, in 2011 and 2013, that enshrined the use of class-action bans in contracts. The decisions … upended decades of jurisprudence. Read More ›
Call Kurtis Investigates: Some Jeep & Dodge SUVs Are Catching Fire After Recall Repairs
The Hanson family brought their 2012 Jeep Grand Cherokee into the dealer for a recall repair expecting to take away the danger. Instead, the family is just one of at least nine that have had fires after the recall repairs. … Stacie Hanson says she and her two kids were just sitting down to eat at Taco Bell, when her daughter yelled, “mom your car has smoke coming out of the whole inside of it,” said Stacie. Eric points out his family was sitting in the SUV just minutes earlier. Read More ›
Utilities Spend Lots Of Public’s Money To Influence State Politics
by Teri Sforza, The Orange County Register
“Your No. 1 example, PG&E, is textbook!” [said Chapman University political science professor Mark Chapin Johnson.] “They answer to the state through the PUC, not their shareholders. … Whenever PG&E wishes to contribute vast sums of ratepayers’ monthly payments to the political process, all PG&E needs do is gain permission to raise rates with the PUC to cover such contributions. Public shareholders or ratepayers have no say in the process. Is this a great system or what? Talk about incestuous!” Read More ›
FBI Hits Nursing Home With Search Warrants
by Marjie Lundstrom, The Sacramento Bee
California’s largest nursing home owner is facing a new round of government scrutiny as the FBI served search warrants last week at his Riverside facility. … The latest investigations shine the spotlight again on [Shlomo] Rechnitz, a 44-year-old Los Angeles entrepreneur whose facilities have been the focus of multiple local, state and federal probes, along with stepped-up scrutiny by health officials. The Bee found that homes he owned for all of last year were tagged with nearly triple as many serious deficiencies per 1,000 beds as the statewide average in 2014. Read More ›
Corinthian College Students Sort Through Confusion, Bureaucracy After Company’s Fall
by Katy Murphy, Contra Costa Times
The Department of Education created a special claim form for students who as far back as 2010 attended Heald programs it found to have inflated job-placement numbers – about 80 percent of all of the chain’s offerings. Roughly 6,100 such claims had been filed as of mid-October compared with only a handful in the past. … The department has estimated that roughly 40,000 former Heald students alone were defrauded because of their programs’ phony job placement rates and are eligible for the relief. Read More ›
Rise Of The Business Democrat
by Laurel Rosenhall, CalMatters
Since 2013, the group’s political action committee has taken in more than $4 million, with nearly one-third of that coming from Chevron, PG&E and other oil and gas companies. Other major donors include Wal-Mart, a hospital association and a realtors group. … Overall, the moderate Democrat committee has spent $2.3 million on campaign efforts since 2013 – more than half of it focused on five legislative races in the Central Valley, Orange County and Los Angeles. Voters elected three of the five candidates on which the committee spent the most in the last election. Read More ›
San Diego U-T Editorial: Gov. Brown And The PUC: What, Me Worry?
by The Editorial Board, San Diego Union-Tribune
This is maddening. At any point over the past year, Brown could have given guidance to lawmakers on how to structure PUC fixes that he thought appropriate. Instead, apparently discerning a world in which it’s cool for regulators and utilities to have a buddy-buddy relationship, the governor ended up blocking all reforms. … Despite [scandalous] revelations, the PUC has shrugged off calls to reopen negotiations on San Onofre and has done little to cooperate with investigators… [and] pretends that $850 million in already-planned PG&E infrastructure improvements are a penalty. This is the corrupt, petty culture that Jerry Brown thinks is worth preserving. Read More ›
San Jose Mercury News Editorial: Brown’s Veto Damages PUC Reform Effort
by The Editorial Board, San Jose Mercury News
Gov. Jerry Brown’s rejection of crucial reforms of the scandal-plagued California Public Utilities Commission is appalling. … The six bills Brown vetoed would have tightened the rules on communications between utility executives and PUC members to try to halt the pattern of wink-and-nod backroom deals. The most egregious example was helping PG&E get the judge it wanted for a rate-setting hearing. The legislation also outlined simple standards for when a commissioner should be disqualified from a case and added requirements for public meetings. Read More ›
California Increases Scrutiny Of Cellphone Surveillance
by Ali Winston, The Center For Investigative Reporting
The Electronic Communications Privacy Act means law enforcement will need a search warrant for access to digital records, including data, content, metadata and geolocation information stored on a device or server. The law also calls for warrants to search electronic devices, a requirement previously affirmed by the U.S. Supreme Court in a 2014 decision. … The other recently passed law requires local government agencies to notify the public when law enforcement seeks to acquire a cell-site simulator to track transmissions and the location of individual mobile devices. Privacy policies also must be published before such devices can be used. Read More ›
For-Profit Colleges Accused Of Fraud Still Receive U.S. Funds
by Patricia Cohen, The New York Times
For-profit schools enroll about 12 percent of the nation’s college students, yet they account for nearly half of student loan defaults. … Kaplan [Career Institute’s] schools, including its online California law school, where only one in five students graduates, received $776.3 million worth of federal student loans and grants last year. Because it lacks bar association accreditation, most graduates outside California are not allowed to take a bar exam. Read More ›
California Now Has The Nation’s Best Digital Privacy Law
by Staff, Wired magazine
[CFC-backed SB 178] enjoyed widespread support among civil libertarians like the American Civil Liberties Union and the Electronic Frontier Foundation. … California has long led the way in privacy protection. Voters amended the state constitution in the 1970s to provide explicit privacy rights far more robust than those guaranteed by the Fourth Amendment of the US Constitution. But while the state amendment ensured a right to privacy for all Californians, lawmakers couldn’t envision the technological advances that would come in the decades to follow. Read More ›
San Bruno Officials Denounce Gov. Brown’s Veto Of CPUC Reforms
by KPIX 5, CBS Local San Francisco
One of the bills Brown vetoed Friday, Senate Bill 660, would have banned ex parte, or private communications, between regulators and utility executives in some proceedings.
Leno, the bill’s author, said it was intended to rebuild public trust in the CPUC. “Ratepayers have already paid dearly for California’s failure to act, and the status quo is simply unacceptable,” Leno said in a statement Friday. “Revelations of backroom deals and breaches of transparency have undermined public trust and weakened public safety. Our efforts to reform the CPUC will continue.” Read More ›