Tag: Consumer advocacy

The Bottled Water Scam

Some beverage companies secretly bottle tap water and then charge 1,900 times more for it

People who buy bottled water pay up to 1,900 times what tap water costs, but get less access to key information about the pricey water than they do for tap water. Big companies that sell bottled water, like Pepsi (Aquafina) and Coke (Crystal Geyser), want you to think their water is special, but refuse to reveal where their water comes from, the methods used to purify it or whether their own testing revealed any contaminants in the water. According to the Environmental Working Group (pdf), the makers of the top ten best-selling brands of bottled water refuse to answer at least one of those questions. Only one — Nestle, maker of Pure Life Purified water — willingly discloses the specific source of its water, treatment method and gives consumers access to a water quality test report. Digging for information reveals that at at least one brand of bottled water, Aquafina, is bottled from a public water source. California passed a law in 2007 ordering bottle water manufacturers to publicly disclose quality information about their bottled water, but as of 2011 only 34 percent of companies were complying with the law. When asked to supply water quality information, the makers of Aquafina claimed it was “proprietary information” that was “not for the public.” Bottled water companies make claims like their water is purely from rainfall, purified by “equatorial winds” (Fiji Water) or can help you live longer, but cannot and do not substantiate these claims. In the mean time, every 27 hours, Americans drink enough bottled water to circle the Earth with plastic bottles stacked end to end. EWG recommends drinking filtered tap water instead of bottled water. Municipalities issue annual tap water quality reports that are always available to the public.

Source: Environmental Working Group report 2011 Bottled Water Scorecard (pdf)

How Many Millionaires Pay a Higher Tax Rate than You?

The White House Buffett Rule calculator

The White House has posted a new online tool people can use to calculate how many millionaires pay a lower effective tax rate than they do. Citizens enter their wages, salary and other income and how much income tax they have paid, click a button and see the estimated number of millionaires who paid a lower effective tax rate than they did in 2009. The calculations demonstrate how under the current U.S. tax system, many millionaires are paying a lower effective income tax rate than most middle class families. In 2009, fully 22,000 American households made over $1 million, but paid the lowest effective tax rate such top earners have paid in 50 years. Of those top-earners, 1,470 paid no federal income tax at all on their million-dollar-plus incomes, according to data supplied by the Internal Revenue Service.

Campaign Urges Hospitals to Evict McDonalds Restaurants

Corporate Accountability International (CAI), a group that challenges corporate abuses, posted an  open letter on its website asking hospitals that house McDonalds restaurants to end their contracts with the fast food chain to “stop fostering a food environment that promotes harm, not health.” The letter points out that the rates at which children suffer from diet-related illnesses like diabetes are “staggering,” and the problem is related in part to the consumption of junk food. Locating McDonalds stores in  hospitals is part of a marketing strategy, CAI says, that is aimed at imparting an aura of healthfulness to the food — a goal that is inconsistent with the goals of a health institution.  “Health professionals are devoted to caring for sick children and adults and to preventing illness. But these efforts cannot compete with the profit-driven mechanisms by which McDonalds and the fast food industry operate their business, and the toll that McDonalds’ practices have had on children’s health,” the letter states. CAI’s petition to get McDonalds out of hospitals is here.

DirecTV’s Disappearing-Channels Scam

Thinking of subscribing to DirecTV? Think again. DirecTV pulls a fast one on subscribers to push them into more expensive packages after they sign up. Here’s how it works: Like all cable and satellite TV providers, DirecTV offers different levels of programming that include specific channels. New subscribers select the package with the channels they want — or so they think. A few months after you subscribe to their service, DirecTV pulls some of the channels originally included in your package. All of a sudden when you try to watch those channels, you get a “Channel Not Purchased” message on your screen. When you call DirecTV to tell them about the suddenly-missing channels, they say they’ve taken them out of your package and you’ll need to upgrade to a pricier package to get them back. DirecTV makes little effort to notify subscribers in advance of this change. They don’t announce the changes, for example, in any of the regular emails they send customers announcing special deals and “free” weekends of premium channels. They don’t add any more channels to your package to make up for the ones they’ve removed, and they don’t compensate customers financially for the loss by adjusting your bill for the channels you no longer get. On their website, they explain the loss by saying they took the channels away to help “manage rising programming costs.” Their website also says, “At DIRECTV, we strive to bring you the best entertainment experience available.” All you have to do is subscribe, or peruse the comments at CustomerServiceScoreboard.com/DIRECTV to find out that DirecTV pulls this scam with relative frequency. DirecTV also charges you $10.00/month extra to get a high-definition receiver, where most other pay TV services provide HD to all customers as part of the deal.