AMERICAN COUNCIL CONSUMER INTERESTS ~ACCI NEWSLETTER VOL. 43, No. 1 January/February 1995 * CONSUMER SATISFACTION, DISSATISFACTION, AND COM- PLAINING BEHAVIOR CONFERENCE. The 1995 CS/D&CB Con- - IOCU becomes “Consumers International” ference (held in odd-numbered years) will be June 1-4 at Snowbird Resort, Utah. Completed paper deadline: March 15. For informa- Consumer Advocate Appointed in Tennessee .............::::0++++: p. 2 tion: H. Keith Hunt, Marriott School of Management, 632 TNRB, Brigham Young Univer., Provo, UT 84602 (801-378-2080; fax: 801- PAIN ok ciciinas nit iladdscctseapdaiisanag aascdiarandadeenaicinashansge s p. 4 378-5984; e-mail: hunthk@msm1 .byu.edu). Free and Inexpensive Consumer Resources * INTERNATIONAL FAMILY BUSINESS PROGRAM ASSOCIA- Income Tax Resources TION. The second annual IFBPA Conference will be July 21-22 at the Hermitage Hotel in Nashville, TN. For additional information: Potential Hot Dog Dangers Ramona Heck, Cornell Univer., 102 MVR Hall, Ithaca, NY 14853- 4401 (607-255-2591 ; fax: 607-255-07e9-m9a;il : [email protected]). * NATIONAL ASSOCIATION OF CONSUMER AGENCY ADMIN- ISTRATORS. NACAA recently produced a new edition of the Health Fraud Information Exchange. This publication highlights regulatory * 1995 CONFERENCE. The 41st Annual ACCI Conference will be in actions and educational programs of state and local consumer Washington, DC, March 15-18, 1995. The 1995 conference will be agencies on health-related issues. Materials are divided by subject held in conjunction with Consumer Federation of America’s Con- and presented in a three-hole punched format. For information: sumer Assembly. Conference registration and hotel reservation NACAA, 1010 Vermont Ave., NW (#514), Washington, DC 20005 materials have been sent to ACCI members; to obtain a copy contact (202-347-6395). the ACCI Executive Director at 314-882-3817; fax: 314-884-6571; e-mail: acci@mizzou1 .missouri.edu. * NATIONAL COALITION FOR CONSUMER EDUCATION. The new address for NCCE is 295 Main St. (#200), Madison, NJ 07940- * ADDRESS CHANGES. Please notify ACCI Executive Director of 2369 (201-377-8987; fax: 201-377-4828). any address changes or corrections to prevent a delay of mailings, and to save ACCI postage costs. * NATIONAL FRAUD INFORMATION CENTER. The NFIC toll-free hotline now also has Spanish-language consumer assistance and MER ORGANIZATIONS publications available. These services are available Monday-Friday, 9 a.m. to 3 p.m., Eastern Time. The hotline number is 1-800-876- * ACADEMY OF FINANCIAL SERVICES. The 1995 AFS annual 7060. meeting will be at the Marriott Marquis Hotel in New York City on * NATIONAL INSTITUTE FOR CONSUMER EDUCATION. Gwen October 18. The deadline for completed papers, abstracts, and Reichbach is the new associate director of NICE. She replaces session proposals is March 1. For information: Robert McLeod, Box Patricia Bonner, now executive director of Economics America- 870224, Univer. of Alabama, Tuscaloosa, AL 35487-0224 (205- Michigan. For information: National Institute for Consumer Educa- 348-8993; fax: 205-348-0590). tion, Eastern Michigan Univer., 207 Rackham Bldg., Ypsilanti, MI * CONSUMER FEDERATION OF AMERICA. Consumer Assembly 48197 (1-800-336-6423; fax: 313-487-7153; e-mail: ’95 will meet March 16-17 atthe Dupont Plaza Hotel in Washington, [email protected]). DC. The Friday morning sessions will be joint sessions with the * NUTRITION LABELING CONFERENCE. The Marketing and American Council on Consumer Interests as part of the ACCI Society Special Interest Group of the American Marketing Associa- conference. For information: Adele Ellis, CFA, 1424 - 16th St., NW tion is holding a conference on August 12 at the Washington DC (#604), Washington, DC 20036 (202-387-6121). Hilton. The topic is “Consumer and Market Implications of Informa- * CONSUMERS INTERNATIONAL. Formerly the International tion Provision: The Case of the Nutrition Labeling and Education Act Organization of Consumers Unions, I|OCU is introducing a new of 1990.” For information: Ida Berger, Queen’s University,-Kingston, name: “Consumers International. “ For Information: Consumers Ontario, Canada K7L 3N6 (613-545-2337; fax: 613-545-2321). International, 24 Highbury Crescent, London N5 1RX, UK (phone: * PUBLIC VOICE FOR FOOD AND HEALTH POLICY. Public +44 71 226 6663; fax: +44 71 354 0607). Voice’s 1995 National Food Policy Conference will be March 6-7 at * CONSUMER REPORTS TELEVISION. Consumers Union has ten the Loews L’Enfant Plaza Hotel in Washington, DC. The theme is videos available related to advertising aimed at young consumers, “Setting Food Policies for the 21st Century—Will the Consumer elderly caregivers, lead hazards in the home, a history of the Come First?” For information: Public Voice, 1101 - 14th St., NW consumer movement, and the hazards of dieting. For information: (#710), Washington, DC 20005 (202-371-1840; fax: 202-371-1910). Joan Davict, Consumer Reports Television, 101 Truman Ave., Yon- * QUALITY OF LIFE/MARKETING CONFERENCE. The Fifth QOL kers, NY 10703-1057 (914-378-2451; fax: 914-378-2901). Conference will be Nov. 30-Dec. 2, 1995 in Williamsburg, VA. Competitive papers or detailed abstracts related to consumer and Page 2 ACCEH NEWSLETTER JANUARY/FEBRUARY 1995 household management, household technology, time use, changing family roles and relationships, and resource management are in- vited. The deadline is April 1. For information: Mary L. Carsky, Marketing Dept., Univer. of Hartford, West Hartford, CT 06117- * CALIFORNIA. As of this year, anyone in the state who sells travel 0395 (203-768-4760; fax: 203-768-4198; e-mail: services must register and cite the registration number in advertising. carsky%uhavax.hartford.edu). California-based travel sellers must also pay a one-time fee of $225, which will be used to build a $1.6 million fund to reimburse travelers R ACTIVITIES if a registered agency or tour operator fails. (Source: Consumer Reports Travel Letter, Dec., 1994, p. 267.) * BUREAU OF THE CENSUS. The U.S. Senate has confirmed Martha * HAWAII. The Department of Commerce and Consumer Affairs Farnsworth Riche as director of the Census Bureau. She previously reports that several residents have been contacted by at least three served as editor of American Demographics, director of policy different individuals representing themselves as high ranking offi- studies for the Population Reference Bureau, and as an economist cials of the Nigerian government who are actively seeking a foreign with the Bureau of Labor Statistics. partner with an offshore bank account to help settle a foreign loan The Census Bureau seeks comments about the questionnaire to be agreement. This scam has been reported by several state consumer used for the 2000 census. For information: Doug Lee, Bureau of the protection departments. Census, Room 3555/3, Washington, DC 20233 (301-457-4030; fax: * MISSOURI. The state’s Office of Attorney General has issued five 301-457-3768; e-mail: [email protected]). consumer information brochures: Home Repair Fraud, Pyramid * BUREAU OF LABOR STATISTICS. BLS has Consumer Expenditure Schemes, Health & Fitness Clubs, Consumer Action, and Consumer Survey data available on disk (in ASCII or Lotus 1-2-3 formats) Action Contacts. For information: Office of Attorney General, Box classified by standard characteristics including income, age, size of 899, Jefferson City, MO 65102 (314-751-3321). consumer unit, composition of consumer unit, number of earners, * NORTH CAROLINA. As a result of high-visibility enforcement of housing, race, region, and occupation. For information: Bureau of its safety belt law, including thousands of checkpoints, driver belt use Labor Statistics, Division of Financial Planning and Management, now exceeds 80 percent. The safety belt program has saved an Room 4135, 2 Massachusetts Ave., NE, Washington, DC 20212- estimated 45 lives and prevented another 320 serious motor vehicle 0001. injuries during its first six months. (Source: Status Report, Oct. 29, * FEDERAL TRADE COMMISSION. In its first case targeting adver- 1994, Insurance Institute for Highway Safety, 1005 N. Glebe Rd., tising on the “information superhighway,” the FTC has charged Arlington, VA 22201; 202-247-1500). Chase Consulting with making false claims when promoting its credit * TENNESSEE. Assistant Attorney General Vincent Williams has repair program on an on-line computer service. been appointed to the position of Consumer Advocate. The Con- For the latest FTC news, the FTC Newsphone is available at 202-326- sumer Advocate division was established July 1 by the General . 2710. Assembly, and “shall have the duty and au‘ority to represent the interests of Tennessee consumers of public utilities services. The * FOOD AND DRUG ADMINISTRATION. FDA has announced division may, with the approval of the Attorney General, participate steps to provide health care professionals with the information or intervene as a party in any matter or proceeding before the necessary to prescribe medications more safely for children. The [Tennessee Public Service] commission or any other administrative, new rule revises the “Pediatric Use” subsection for prescription drugs legislative, or judicial body and initiate such proceeding, in accor- labeling and makes it easier, in some situations, for manufacturers to dance with the Uniform Administrative Procedures Act and the rules include pediatric information on the label of their prescription of the Public Service Commission.” The Consumer Advocate products. division can also initiate appeals of the TPSC decision that are FDA has approved a heart-assist device that helps keep patients alive adverse to ratepayer interests. For information: Office of Attorney while they await heart transplant; it is the first such device to receive General, 450 James Robertson Parkway, Nashville, TN 37243-0485 approval. (Source: Medical Devices Bulletin, Dec., 1994, FDA, (615-741-5860). 5600 Fishers Lane, Rockville, MD 20857; phone: 301-443-6119). * TEXAS. J. Robert Hunter, Texas Insurance Commissioner, has * OFFICE OF CONSUMER AFFAIRS. Polly Baca resigned November resigned for family reasons, and has returned to the Washington, DC 1, 1994, as Special Assistant to the President and Director, U.S. area. He had previously served as president of the National Insur- Office of Consumer Affairs. Bernice Friedlander is serving as acting ance Consumers Organization (NICO), which he founded. Under director for the office. Hunter’s leadership, the Texas Department of Insurance (TDI) had * PUBLIC HEALTH CONFERENCE ON RECORDS AND STATIS- expanded its regulatory and informational activities to better serve TICS. The Public Health Service, Centers for Disease Control and consumers. Prevention, and the National Center for Health Statistics will hold a TDI makes available more than 30 publications for consumers conference on July 17-20 at the Mayflower Hotel in Washington, related to auto insurance, property insurance, and consumer protec- DC. The focus is “Data Needs in an Era of Health Reform.” For paper tion. For information: Texas Department of Insurance, Distribution/ guidelines and other information: Barbara Butler, National Center for MC 302-4B, Box 149104, Austin, TX 78714-9104. Health Statistics, 6525 Belcrest Rd. (#1100), Hyattsville, MD 20782 (301-436-7122). The ACCI Newsletter (ISSN 0010-9975) is published bi-monthly. The American Council on Consumer Interests is a non-partisan, non-profit, tax-exempt organization serving professionals in consumer affairs and consumer education through conferences, newsletters, the Journal of Consumer Affairs, and Advancing the Consumer Interest journal. Contact the Executive Director for membership information. ACCI Executive Director: Anita Metzen, ACCI, 240 Stanley Hall, University of Missouri, Columbia, MO 65211. (314-882-3817; fax: 314-884-6517; e-mail: [email protected]). ACCI Newsletter Editor: Les Dlabay, Lake Forest College, Lake Forest, IL 60045. (708-735-5145; fax: 708-735-6291; e-mail: [email protected]). Statement of Purpose: This newsletter is provided to ACCI members and subscribers; the content is the sole responsibility of the editor. The listing of a resource does not constitute an endorsement of the item or the validity of its content. JANUARY/FEBRUARY 1995 ACCH NEWSLETTER Page 3 investments, real estate mutual funds, inflation, global investing, RCE MATERIALS reducing taxes, financial planning software, and selecting a stock broker. This is a very comprehensive resource for current investment Note: Materials listed should be ordered directly from the publisher and financial planning information. or your local bookstore, not from A.C.C.I. * “Used Car Shopping by Telephone,” by Matthew Lewis, Consum- M/A < Periodicals, Articles A ers’ Research, Dec, 1994, pp. 24-26. This very useful article * “Seize Control of Your $$$: Personal Finance Software,” by Holly provides a discussion of 18 key questions to help consumers assess McL. Ketron, PC Magazine, Jan. 10, 1995, pp. 185-212. This is a the condition of a used car before going to see it. The checklist can comprehensive review of 8 personal financial planning software help save time when doing preliminary research for a potential packages and 9 on-line investment programs. The personal finance vehicle purchase. programs were assessed in the areas of checkbook management, * “Hospital Billing Errors: How to Catch Them and Fix Them,” budgeting, tax and financial planning, portfolio management, and Consumer Reports on Health, Dec., 1994, pp. 139-141. “Studies electronic connections (including bill-paying services and on-line have shown that the vast majority of hospital bills contain errors.” stock quotes). Investment software was evaluated based on setup, The common billing errors include incorrect basic charges, dupli- information gathering, analysis of investments, and the ability to buy cate charges, phantom services, and keystroke slips resulting in an and sell on-line. The highest ratings went to Quicken 4 for Windows, incorrect code or being charged for 44 units of blood instead of 4! Wealthbuilder (both DOS and Windows versions), and Windows on WallStreet, Version 2.1. / 4 ¢ Books, Other Publications / / / * “Is the Debit Card Revolution Finally Here?”, by John P. Caskey * YOUR AND YOUR CREDIT: Tools for Understanding & Repairing & Gordon H. Sellon, Jr., Economic Review, Fourth Quarter, 1994, Your Own Credit, 1994, by Darryl R. White, 486 pp., $29.95 paper, pp. 79-95, free, Federal Reserve Bank of Kansas City, ATTN: Public $39.95 hardcover, Pyramid Publishing, 110-64 Queens Blvd. (#227), Affairs Dept., 925 Grand Blvd., Kansas City, MO 64198-0001. “For Forest Hills, NY 11375-6347 (1-800-247-6553). While this book three decades, experts on payments systems have forecast the includes basics of obtaining credit and types of loans, a major portion imminent arrival of a completely electronic, paperless payment is on credit problems—being denied credit, improving a bad credit system. In this vision of the future, households, businesses, and rating, credit repair scams, and bankruptcy. Includes sample letters, government agencies would replace paper transactions with faster, forms, and worksheets of the various items discussed, along with more efficient electronic payments. The centerpiece of this new information on 70 agencies, a 187-item bibliography, and a glossary. payment world is the debit card, a magnetically encoded plastic card Overall a very useful reference for teachers, financial counselors, that would eliminate the use of cash, checks, and even credit cards and others. by consumers in most retail transactions.” * SURVEY RESEARCH HANDBOOK, Second Edition, 1995, by * “The New Food Label: Better Information for Special Diets,” by Pamela L. Alreck & Robert B. Settle, 470 pp., paper, $31.95, Richard Paula Kurtzwell, FDA Consumer, Jan.-Feb., 1995, pp. 19-25. This D. Irwin, Inc., 1333 Burr Ridge Parkway, Burr Ridge, IL 60521 (1- article highlights the benefits of the food label for those with special diets, including kidney disease, liver disorders, food sensitivities, celiac disease, cancer, and osteoporosis. * “The Future of Spending,” American Demographics, January, ARTICLES OF SPECIAL INTEREST... 1995, pp. 12-19. Despite recent declines in household spending, FOR JANUARY-FEBRUARY growth (although slow) is expected over the next five years. “In- * “Storm Warnings: Climate Change Hits the Insurance Indus- creases fueled by householders entering their peak earning years will try,” by Christopher Flavin, World Watch, Worldwatch institute, be largely offset by growing numbers of retired people and other low- 1776 Massachusetts Ave., NW, Washington, DC 20036 (202- income households. Changing demographics will boost spending in 452-1999), Nov.-Dec., 1994, pp. 10-20. “Staggered by an areas like entertainment and charities, but they could cut into unprecedented series of hurricanes, floods, and fires, insurers are spending on restaurants and rental housing.” weighing the possibility that these catastrophes are the first real * “Healthy Dividends: A Business Ethics Guide to Social Investing,” effects of human-induced climate change—and that the worst is Business Ethics, Jan.-Feb., 1995, pp. 27-34. This feature reviews the yet to come. Their response could pit them squarely against the financial performance of socially responsible mutual funds. An giant fossil fuel industry in the battle over reducing carbon interesting note: one of the “articles” with the “Healthy Dividends: emissions.” A Business Ethics Guide to Social investing” heading is actually an * “Bitter Lemons,” by David J. Morrow, Smart Money, January, advertisement for Progressive Portfolio Services! 1995, pp. 106-113. All 50 states have passed lemon laws to * “Where to Invest 1995,” Business Week, Dec. 26, 1994, pp. 91- protect car buyers from being stuck with a malfunctioning, 199. This special section presents 23 articles and other data related problem-ridden vehicle. This article, however, documents sev- to investment possibilities. Topics covered include suggested portfo- eral exampleso f unsatisfied consumers who purchased defective lios, global investments, investments to avoid, municipal bonds, real Cars. estate, and precious metals. Also useful is the “Winners & Losers” of * “Product Recalls: Less Than Meets the Eye,” Consumer Re- 1994 and the “Investment Outlook Scoreboard” for 900 companies. ports, Nov., 1994, pp. 732-735. “Each year, more than 28 * “Investment Outlook ’95: The Global Money Machine,” U.S. million Americans are injured by consumer products, not includ- News & World Report, Dec. 12, 1994, pp. 84-103. “In East Asia, ing automobiles. Apart from auto accidents, about 21,000 people where growth rates should reach 8 percent in 1995, factories, are killed in tragedies that involve everything from toy blocks to highways and power plants are going up at a head-spinning pace.” chain saws.” This article examines the current effectiveness of A series of articles address international investment prospects for the U.S. Consumer Product Safety Commission, the National various industries. Highway Traffic Safety Administration, and the Food and Drug Administration. * “1995 Investor’s Guide,” Fortune, Dec. 26, 1994, pp. 47-166. Includes several articles on suggested stock investments, high-yield Page 4 ACCE NEWSLETTER JANUARY/FEBRUARY 1995 800-323-4560). This excellent resource would be appropriate as Well-Being, 1993, by Alexandra Armstrong & Mary R. Donahue, either a reference or as a textbook in a research class. Includes over $19.95, hardcover, Dearborn Financial Publishing, 155 N. Wacker 300 exhibits with examples, checklists, and illustrations related to Dr., Chicago, IL 60606-1719 (1-800-829-7934). Using a compas- research project planning, sampling designs, creation of data collec- sionate writing style, the authors offer clear, practical suggestions tion forms, and gathering, processing, and reporting data. related to organizing personal finances, using financial advisors, creating a budget, protecting assets, and making investments. A very * HOME FILING MADE EASY, 1994, by Mary E. Martin & J. Michael useful book for the many women who may encounter this difficult, Martin, 186 pp., paper, $15.95, Dearborn Financial Publishing, 155 yet common, financial situation. N. Wacker Dr., Chicago, IL 60606-1719 (1-800-829-7934). The authors present a visually appealing and easy-to-follow method for * COMPLETE DRUG REFERENCE: 1995 Edition, 1780 pp., hard- creating a home filing system with personal records and documents. cover, $39,95, Consumer Reports Books, 101 Truman Ave., Yon- Also available: The Budget Kit: The Common Cents Money Manage- kers, NY 10703-1057 (1-800-500-9760). This reference provides ment Workbook, 1993, by Judy Lawrence, 97 pp., paper, $15.95, details on more than 9,000 brand name and generic drugs consisting with monthly budget worksheets, debt payment records, purchase of common names, intended uses, precautions, and possible side registers, and monthly expense records. effects. Includes a 24-page full-color chart to help consumers visually identify common prescription medications. * ON YOUR OWN: A Widow’s Passage to Emotional & Financial * SUPERMARKET BUYING GUIDE, 1994, by Kent B. Banning, Mary Weber & the Editors of Consumer Reports Books, 291 pp., paper, $14.95, Consumer Reports Books, 101 Truman Ave., Yonkers, NY 10703-1057 (1-800-500-9760). The authors offer many practical CONSUMER RESOURCE FEATURE... suggestions for buying meat, fruits, vegetables, dairy products, and AUTO LEASING other grocery items. Also includes food safety tips and ratings of brand-name items for various products—cereal, frozen desserts, In 1994, approximately one-fourth of the new cars and small frozen dinners, hot dogs, pancakes, spaghetti sauces, tea, tuna, trucks sold went out the door under lease. As a result of bottled water, and yogurt. marketing gimmicks and a lack of information, people have been known to pay over $24,000 to lease a vehicle that was * KIDS, MONEY & VALUES, 1994, by Patricia Schiff Estess & Irving only worth $20,000 at the start of the lease agreement. Barocas, 133 pp., paper, $10.95, Betterway Books, 1507 Dana Ave., Cincinnati, OH 45207 (1-800-289-0963). The subtitle of this book, * “Driving a Hard Bargain,” by Douglas Lavin, Smart Money, “Creative Ways to Teach Your Kids About Money,” is very appropri- October, 1994, pp. 104-109. The author recommends that ate. Includes chapters on allowances, spending, earning money, consumers consider four factors when evaluating an auto saving and investing, and consumerism with many ideas for money lease: (1) capitalized cost, price of the vehicle; (2) money management instruction at home and in school. factor, which is the interest rate being paid on the capitalized cost; (3) the monthly payment and number of payments; and / / & Free and Inexpensive Materials / / / (4) residual value, the expected value of the vehicle at the end of the lease. In addition, Lavin suggests the “two percent * CONSUMER ECONOMICS & HOUSING TOPICS: KIDS IN THE rule’”—a two-year, no-money-down lease may be a good deal MARKETPLACE, by Lois Wright Morton, 1994, $1.20 each or $6 for if the monthly payment is two percent or less of the car’s the set of five, Cornell Cooperative Extension, Media Services suggested retail price. Educational Resource Center, 7-8 Business & Technology Park, Cornell Univer., Ithaca, NY 14850. These five newsletters address * “Steering Your Way to the Best Lease Deal,” by Ed Henry, the topics of “Kids’ Decision Making with Dollars,” “Getting the Kiplinger’s Personal Finance Magazine, May, 1994, pp. 69- Money to Spend,” “Preschoolers in the Marketplace,” “Kindergarten 72, 76-77. The author offers several warning signs to heed to Preteen in the Marketplace,” and “Teens in the Marketplace.” when considering a lease. For example, “be wary of any dealer Besides an analysis of the marketplace faced by young consumers, who questions whether you can qualify for a car loan and a variety of instructional exercises and supplementary resources are suggests leasing.” provided. These materials would be very beneficial for parents, teachers, and community youth workers. * “When to Re-Lease or Release Your Leased Car,” by Earl C. Gottschalk, Jr., The Wall Street Journal, Aug. 19, 1994, pp. * CONGRATULATIONS!! YOU MAY HAVE JUST SAVED MONEY C1, C15. “Be wary when dealers call before the lease is up, & LOTS OF GRIEF, Senior Consumer Alert, Fall, 1994, 8 pp., free, offering to get you out of your lease early and to put you into American Association of Retired Persons, ATTN: Consumer Affairs, a new car at a similar monthly payment. Although it could be 601 E St., NW, Washington, DC 20049. An lowa woman in her 80s a good deal, it also could be that the dealer figures he can make once received 44 official-looking notices exclaiming she already more money selling your car to another buyer than from selling won a prize from one company in just two days! Direct mail and it to you at your residual value.” telephone sweepstakes are commonly targeted to older people because they are more likely to be home during the day and may be * “Cracking Down on Fraudulent Car Leases,” by Douglas more likely to respond to prize promotions. This newsletter offers Lavin, The Wall Street Journal, Sept. 28, 1994, pp. B1, B9. many examples of deceptive sweepstakes and provides suggestions Florida’s attorney general reviewed 15,000 motor vehicle for avoiding these scams. leases and estimates that some sort of deception or fraud occurred in 10 percent of the cases. * MAKE KNOWLEDGE YOUR PARTNER IN MAIL OR TELEPHONE ORDER SHOPPING, 1994, 20 pp., free, Direct Marketing Associa- * Reality Checklist, $1, Consumer Task Force For Automotive tion, OWL Booklet, 1101 - 17th St., NW (#705), Washington, DC Issues, Box 7648, Atlanta, GA 30357-0648. This form, en- 20036. This booklet includes shopping suggestions before buying by dorsed by attorneys general from more than 20 states, provides mail or by phone, along with actions to take once the purchase is an easy-to-follow format for determining the true cost of leasing a motor vehicle. made. Also includes a brief list of agencies and organizations that may be of value if a problem is encountered with a mail order purchase. JANUARY/FEBRUARY 1995 ACCE NEWSLETTER Page5 * HOW TO WRITE A WRONG, 1994, free, Federal Trade Commis- 20049. This paper advocates various initiatives for the protection of sion, Bureau of Consumer Protection, Office of Consumer and retirement income including regulation of financial advisers, added Business Education, Washington, DC 20580 (202-326-3650). Pro- responsibilities for the Securities and Exchange Commission, and vides an overview of actions that may be taken to resolve consumer supervision of bank sales of mutual funds and other financial complaints. products without deposit insurance. * THE NEED TO SAFEGUARD CONSUMER SAVINGS FOR RETIRE- * HOW HEALTHY IS THE AIR IN YOUR HOME?, 1994, 8 pp.., free, MENT INCOME, 1994, 12 pp., free, American Association of Retired with self-addressed, stamped envelope to CFA, IAQ Checklist, Box Persons, ATTN: Consumer Affairs, 601 E St., NW, Washington, DC 12099, Washington, DC 20005-0999 (for multiple copies, contact: K. Hanemann, CFA, 1424 - 16th St., NW, Washington, DC 20036). This brochure provides a room-by-room checklist with potential dangers and suggested remedies. Includes discussion of health BOOKS OF SPECIAL INTEREST... effects of common indoor pollutants such as asbestos, carbon FOR JANUARY-FEBRUARY monoxide, tobacco smoke, lead, formaldehyde, pesticides, and * CONSUMER SOURCEBOOK, 1994-95, Eighth Edition, 1993, radon. Also available from CFA is a newsletter, Indoor Air News. Shawn Brennan, ed., foreword by Ralph Nader, 1222 pp., * “Should Information/Service Providers Bill Consumers for 800 $210, hardcover, Gale Research, 835 Penabscot Bldg., De- Numbers?,” AT HOME WITH CONSUMERS, December, 1994, 12 troit, MI 48226 (1-800-877-4253). Includes over 10,000 list- pp., free, Direct Selling Education Foundation, 1666 K St., NW ings of government agencies, public interest organizations, (#1010), Washington, DC 20006. As a resulto fa loophole in the law, publications, and media contacts. The 17 categories of infor- some entertainment and information telephone services have begun mation include listings related to general consumerism, auto- charging consumers for 800 phone calls. This newsletter provides motive matters, credit and personal finance, education, em- both a consumer perspective along with an industry viewpoint. ployment, environmental concerns, food and drugs, govern- Currently, MCI has a fee for its 1-800-CALL-INFO which is a national ment, health care, insurance, legal affairs, product safety, directory assistance and call completion service. communications, real estate, retailing, transportation, and utilities. Each topic area opens with several pages of consumer * AUTO INJURIES: Claiming Behavior and Its Impact on Insurance tips. The index is 205 pages long! No other reference book Costs, 1994, 8 pp., free, Insurance Research Council, 1200 Harger provides the comprehensive coverage of resources available Rd. (#310), Oak Brook, IL 60521 (708-572-1177). “Major changes for consumers. Also available in diskette format upon request. are occurring in the number and kinds of injuries being reported by persons in automobile crashes in the United States.” The incidence * WHAT ARE WE FEEDING OUR KIDS2, 1994, by Michael of bodily injury claims increased 16 percent between 1987 and Jacobson & Bruce Maxwell, 309 pp., $8.95, paper, Workman 1992. This study concludes that “people involved in crashes were Publishing Co., 708 Broadway, New York, NY 10003 (1-800- about 32 percent more likely to file a bodily injury liability claim in 722-7202). “Assaulted by television, enticed by fast foods, 1992 than they were five years earlier.” betrayed by the school cafeteria, the average American child consumes a diet that suffers from the same villains that afflict American adults: too much fat, cholesterol, sugar, and salt.” With the rate of obesity in children doubling since 1980 and Books and Periodicals fast-food outlets invading school cafeterias, the authors warn about the many forces influencing the diets of young people. * GUIDE TO FREE TAX SERVICES (Publication 910), free, Internal Includes an.ass=ssment of food content, marketplace and in- Revenue Service, Box 8903, Bloomington, IL 61702-8903. This school promotions, advice for healthier eating habits along booklet details telephone service, walk-in service, educational pro- with suggestions for community action. grams, assistance programs, audio-visual materials, publications, and other free information services of the IRS. Also includes tax tips * THE GREEN BUYER’S CAR BOOK: Environmental Ratings of on electronic filing, amending a return, withholding, and common 1994 Cars & Light Trucks, 1994, by Christopher Dyson, 237 filing errors. pp., paper, $75 ($35 for non-profit organizations, educators, and individual consumers), Public Citizen, ATTN: Publica- * CONSUMER REPORTS BOOKS GUIDE TO INCOME TAX PREPA- tions, 2000 P St., NW (#600), Washington, DC 20036 (202- RATION, 1995 Edition, 633 pp., $13.99, paper, Consumer Reports 833-3009, ext. 302). This reference manual includes detailed Books, 101 Truman Ave., Yonkers, NY 10703-1057 (1-800-500- data on the environmental impact of vehicles with regard to 9760). This user-friendly book is well organized and has many fuel economy, emissions, oil spills, and recycling of vehicle examples of completed IRS forms-and schedules to help you prepare parts. In addition, suggestions are presented for operating a your federal tax return. motor vehicle in an environmentally-friendly manner. A con- * 1995 U.S. MASTER TAX GUIDE, 660 pages, $29.50 paper, $45 densed version of this publication, called The Green Buyer’s hardcover, CCH Incorporated, 4025 W. Peterson Ave., Chicago, IL Car Guide (48 pages), is available for $5. 60646-6085 (1-800-835-5224). As stated in this newsletter in previ- * VANCE PACKARD AND AMERICAN SOCIAL CRITICISM, ous years, this Commerce Clearinghouse publication is “the ‘stan- 1994, by Daniel Horowitz, 375 pp., hardcover, 34.95, Univer- dard’ for current tax information among accountants and tax sity of North Carolina Press, Box 2288, Chapel Hill, NC 27515- preparers.” While it does not give line-by-line directions for complet- 2288 (1-800-848-6224). Packard’s classic books, The Hidden ing your tax return, this reference clearly answers many questions not Persuaders (1957), Status Seekers (1959), and Waste Makers addressed in other tax books. Your newsletter editor once visited an (1960), strongly infiuenced American attitudes toward adver- IRS office to ask a question; the IRS staff member looked it up in the tising, consumer buying, and environmental issues. In this Master Tax Guide! Also available on disk. excellent biography, Horowitz provides further insight into the * THE PRICE WATERHOUSE PERSONAL TAX ADVISER, 1994- mind of Vance .Packard. The effort is meticulously docu- 1995 Edition, 347 pp., $15, paper, Irwin Professional Publishing, mented with over 1,200 reference notes. 1333 Burr Ridge Parkway, Burr Ridge, IL 60521 (1-800-323-4560). Readers of this book are provided with many brief, yet helpful, tax examnles. tins. and warnings. A well-organized oresentation with Page 6 ACCE NEwsLeETTER JANUARY/FEBRUARY 1995 the following main topics exemptions, deductions, capital gains, * In an audit, keep your answers aimed at the auditor’s questions. Be retirement plans, alternative minimum tax, and using a tax preparer. as brief as possible; you can never tell an auditor too little. People under stress tend to talk too much. IRS auditors are trained to create * STAND UP TO THE L.R.S., 1994, by Frederick W. Daily, 222 pp., silence and listen in case the taxpayer blurts out damaging informa- paper, $21.95, Nolo Press, 950 Park St., Berkeley, CA 94710-9867 tion. The five best responses to question during the audit are: “Yes,” (1-800-992-6656). Tax attorney Daily provides many practical sug- “No,” “I don’t recall,” “I'll have to check on that,” and “What specific gestions for preparing for an audit. The appendix includes reproduc- items do you want to see?” tions of relevant forms and IRS information along with commonly asked audit questions and a glossary. CONSUMER NEWS AND RESOURCE MATERIALS REQUESTED. Consumer groups, government agencies, publishers, and other * THE ERNST & YOUNG TAX-SAVING STRATEGIES GUIDE 1995, organizations are invited to submit news items and materials for 290 PP., PAPER. $7.95, John Wiley & Sons, Inc., 605 Third Ave., review in the ACCI Newsletter. Information and samples of books, New York, NY 10158-0012. This concise, yet very comprehensive, periodicals, other publications, videos, software, and other con- book provides clear explanations of income, deductions, filing sumer resources may be sent to ACCI Newsletter, Box 589, Grayslake, status, capital gains, estate planning and gifts, and business deduc- IL 60030-0589. tions. Includes highlighted “Tax Alert,” “Tax Saver,” and “Tax Organizer” features with important tips and examples. * STATE TAX REVIEW, weekly, $49 a year, CCH Inc., 4025 Peterson Ave., Chicago, IL 60646-6085 (1-800-835-5224). This publication * SUPERMARKET SHOPPING BEHAVIOR. According to a survey of provides details of recent state tax law changes and rulings related to 4,000 shoppers conducted by the Point of Purchase Advertising income, sales, property, and excise taxes. teotit- te 55 percent of supermarket shoppers use a shopping list. ndents in the study planned to spend an average of $43.41 in * J.K. Lasser’s Monthly Tax Letter, $24 a year, J.K. Institute, Simon supermarket and planned to buy an average of 10.5 items; actual & Schuster, 15 Columbus Circle, New York, NY 10023. Provides a spending resulted in purchases costing $45.45 and buying 19.8 good summary of recent tax changes and tax court rulings. items. (Source: Brandweek, Jan. 9, 1995, p. 17.) * “IRS Audits,” Money Insider, Dec., 1994, pp. 1-5, monthly, $49 a * POTENTIAL HOT DOG DANGERS. Preliminary research findings year, Reliance Enterprises, Inc., Box 413, Marengo, IL 60152. This conclude that children who eat 12 or more hot dogs a month face article provides suggestions that are likely to help reduce your odds almost 10 times the risk of leukemia as children who eat none. of being audited. Fathers who eat hog dogs often also give their children an increased * “Beware of IRS’s Audit Triggers,” by Elizabeth McDonald, Worth, leukemia risk. (Source: John Peters, MD, Univer. of Southern Califor- Feb., 1995, pp. 130-132. The author cautions about common audit nia in Bottom Line/Personal, Aug. 15, 1994, p. 15.) red flags such as under-reporting income, not paying self-employ- * PHONY SURVEYS. Research companies may use a consumer ment tax, fake dependents, and questionable casualty losses. survey to obtain or validate other household data. One company Tax Tips asked about ice cream flavor preferences in an effort to check the accuracy of the ages on the voter lists. The use of voter registration * Investors are warned to beware of individual retirement accounts data for commercial purposes is prohibited in many states. (Source: that are promoted as having Internal Revenue Service approval. “A Research Company Got Consumer Data from Voting Rolls,” by Rick Wartzman, The Wall Street journal, Dec. 23, 1994, pp. Al, * Make any checks payable to the “Internal Revenue Service” not A12.) “IRS” which could be altered to “MRS” and someone’s name. * STUDENT CREDIT UNION. The National Credit Union Admin- * Taxpayers in ten states (northern California, Colorado, Florida, istration has approved a charter for the First Toledo Student Federal Indiana, Kentucky, Michigan, Ohio, South Carolina, southern Texas, Credit Union; its field of membership is the students and alumni of and West Virginia) are able to file their federal tax return by the University of Toledo. Besides First Toledo, there are 23 other telephone. The TeleFile system, available to single persons who college student credit unions. would otherwise file Form 1040EZ, allows the caller to enter various amounts by touch-tone phone. S661 AYVNYG34/ANVNNVE L “ON Eb “IOA OOSI-LOlLSP IW 4oquy Uy peoy 9997 ‘N OO UM0Ug essije,) WwyyY Suoipsinboy Sees Su oudip,y ApSsaatur) Ss 6699 GiLsINOIS NOILIIAMOD SsIAGaV LLZS9 UNOssI; ‘eIquunjo> LINOSSI- JO AyIsJOAIUL) ‘{JeH AajueIsS OZ LL “ON WUWdeq Ow ‘eiquinjo> S1SAYSLNI YIWNSNOD NO TIONNOD NVIIWIWV dlvd a8e}sog *S'N YALLATSMAN] IOV UuONeZIULZIO WjO1g-UON