At Issue & In Focus

National Slavery and Human Trafficking Awareness Day

Wednesday, January 11^th has been proclaimed as National Slavery and Human Trafficking Awareness Day.

Human trafficking is one of the most egregious human rights violations we see. It is a heinous crime of exploitation that involves forcing people to work for others for profit, whether through traditional types of labor or sexual exploitation.  Victims are men, women, and children from our state, our country, and across the globe.  Experts estimate that world-wide, 27 million people are trafficked annually bringing in $32 billion dollars. It is the fastest growing and second largest black market.

This past year, our office worked with legislators to enact a law that makes human trafficking a felony in our state and creates services for victims. The passage of this law has given us some important tools to combat trafficking, but more work needs to be done. To that end, we are beginning the work of our state wide task force made up of government and non-profit agencies to examine and address all aspects of trafficking.

Everyone has something to offer in the fight against human trafficking. Hospital, hotel, and transportation staff are in a unique position to identify victims.  Educators and parents can encourage prevention and internet safety education. Today, everyone can take a moment to learn about the signs and consequences of human trafficking and all that we can do to prevent this exploitation.

To learn more about human trafficking and what you can do, visit the Attorney General’s website.

Gas Prices on the Rise

As most consumers have noticed, gas prices are on the rise. Many factors contribute to the increases we see at the pump, including major world events. We know that high gas prices continue to impact families and businesses, but that rising gas prices alone, however, are not necessarily an indication that gas station retailers are engaging in unlawful conduct.

The Attorney General’s Office is committed to providing consumers helpful information, and to fighting higher gasoline prices if those price increases violate the law.

Here’s some basic, helpful information to help you deal with rising prices:

Unlawful practices: It is unlawful for companies to collude to raise prices or to take advantage of market emergencies, such as hurricanes or other severe storms, to charge unconscionably high prices. If you have concerns or evidence of collusion or price gouging, please contact us at 617-727-8400, or file a complaint online.

Credit v. Cash at the Pump: Consumers should be aware that stations can charge different prices for using cash to pay versus using a credit/debit card. Massachusetts law, MGL c. 140D § 28A, allows gas stations to discount their price for consumers paying with cash.  The gas station should be advertising the higher price.  If a discount is offered for cash sales, the word “cash” must be included in the applicable portion of the sign.  You can read more about guidelines for signage of the cash sale option. If you have concerns or evidence of discrepancies in prices, please contact us at 617-727-8400, or file a complaint online.

Educate Yourself: You can research gas prices before filling up your tank. Various websites and smartphone apps are available to help you identify rates at service stations near you. Some of the information is provided by other users who are on the lookout for their fellow commuters. While we’re not responsible for the content of any of the links below, you may find them useful:

 

Websites:

Massachusetts Gas Prices
Fueleconomy.gov
AAA Fuel Gauge Report
MapQuest Gas Prices

 

Smartphone Apps:

GasBuddy Mobile Apps (various platforms)
AAA TripTik (iPhone) 
FuelFinder (iPhone) 
Gasbot (Android and Blackberry)

 

FAQs about Gas Prices

As prices at the gas pump continue to rise, the Attorney General’s Office is committed to providing consumers helpful information.  AG Coakley has issued an advisory to consumers on gas prices, and offers the below answers to frequently asked questions. 

The Office of the Attorney General intends to monitor compliance with the regulations governing the retail advertising and sale of gasoline and will enforce these regulations against any noncompliant retailers.  AG Coakley asks drivers with allegations of unlawful behavior regarding gas prices to contact her office’s consumer hotline at (617) 727-8400. 

 

How can I shop around for the lowest gas price in my area, without driving around and wasting gas?

Various websites and smartphone applications are available to help you identify rates at service stations near you. See above for a sample of some of the options available.

 

Is it legal for oil companies and gas stations to keep increasing their prices? 

The United States has long embraced a free market economy.  Free market principles, such as supply and demand, establish the price for most goods and services, including gasoline.  The government—state or federal—does not set the price for gasoline.  A large number of factors determine how gas producers, refiners, wholesalers and retailers set their prices.  Those prices are then subject, in a free market economy, to competition from other businesses.

Rising gas prices alone are not evidence of illegal or improper conduct by gas retailers. It is, however, unlawful for companies to collude to raise prices, such as an explicit agreement among competitors to raise or fix prices.  In addition, in cases where a market emergency exists, such as in the event of a natural disaster or world conflict, it is illegal for a company to take advantage of that emergency by charging unconscionably high prices—which constitutes “price gouging.” 

 

What factors influence gasoline prices?

Factors range from the costs of exploring for oil and extracting it from the earth, to the costs of refining oil into gasoline, shipping oil or gasoline from around the world to major distribution hubs, transporting gasoline from refineries to local retailers, to making it available at your local gas station or convenience store.  Supply and demand factors influence prices at every level of production and distribution, including events across the globe that may affect supply. In 2007, Attorney General Martha Coakley and several other Northeast States commissioned a report on the structure of petroleum markets in the Northeast, including factors that influence how gasoline prices are set.  For detailed information you can review the Report on Petroleum Products Markets in the Northeast.  This Report was prepared in 2007 for Attorney General Coakley as well as the Attorneys General of Maine, New Hampshire, New York and Vermont.

 

Is there a law which requires gas stations to accurately display their prices for gas?

Yes.  Pursuant to G.L. c. 94, section 295E, no retail dealer may sell motor fuel at any price other than the price posted at the pump at the time of the sale.

 

A local station charges a lower price for cash only purchases.  Is this legal?

Massachusetts law (G.L. c. 140D § 28A) allows gas stations to discount their prices for consumers paying with cash.  However, the gas station should be advertising the higher credit price clearly and conspicuously in its signage.  If a discount is offered for cash sales, the words “cash” should be included in the applicable portion of the signs.  When “cash” sales and other types of sales are made from the same dispenser, both prices must be posted and clearly labeled with the type of sale the price refers. i.e. “cash”, “credit”, “credit/debit”.  You can read more about guidelines for signage of the cash sale option at http://www.mass.gov/Eoca/docs/dos/202CMR2%2000final_clean.pdf. 

 

What types of conduct would violate the antitrust laws?

Price-fixing and other forms of collusion violate the antitrust laws.  Price-fixing includes an explicit agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services, including gasoline, are sold to the detriment of either the competitive marketplace or consumers.  Consumers can help by alerting the Massachusetts Attorney General’s Office if they know of any efforts by competing firms to fix or manipulate prices.  Business mergers and monopolistic practices that would result in reduced competition and harm to consumers may also violate the antitrust laws.  The Attorney General’s Office closely monitors proposed mergers to maintain competition.

 

If a “market emergency” existed due to a natural disaster or world conflict, what conduct would constitute “price gouging?”

A price may be deemed unconscionably high, and “price gouging,” if  the amount charged represented a gross disparity between the price of the petroleum product and 1) the price at which the same product was sold or offered for sale by the petroleum-related business in the usual course of business immediately prior to the onset of the market emergency, or 2) the price at which the same or similar petroleum product is readily obtainable by other buyers in the trade area; provided that the disparity is not substantially attributable to increased prices charged by the petroleum-related business suppliers or increased costs due to an abnormal market disruption.

AG Coakley Announces Legislative Agenda

Attorney General Martha Coakley today announced the filing of nine bills as a part of her legislative agenda. The series of bills seek to better protect public safety, combat fraud and corruption, and address the foreclosure crisis in Massachusetts. The bills include legislation that would establish standards and require banks to engage in loan modifications when they are financially beneficial to the bank before foreclosing on a property.  The AG’s Office also filed comprehensive human trafficking legislation that would establish human trafficking for sexual servitude or labor as a crime in Massachusetts, one of only five states in the country without human trafficking laws. Additionally, the AG’s Office filed comprehensive economic crime legislation designed to give law enforcement the necessary tools to investigate and prosecute sophisticated criminal activities and enterprises in the 21^st century.  Other bills filed relate to drug trafficking in methamphetamine, corporate manslaughter, dissemination of harmful materials to minors, manufactured housing, metals dealing, and the failure to have workers’ compensation insurance.  To see the full press release, click here.

Beware of Early Tax Refund Services

Anticipating a tax refund? You may be asked if you are interested in a refund anticipation loan (RAL). RALs allow you to receive a check from a commercial tax preparer in the amount of your anticipated refund. Almost sounds too good to be true? It may be. 

The Massachusetts Office of Consumer Affairs and Business Regulation (OCABR) and Department of Revenue (DOR) has issued a consumer warning advising taxpayers to steer clear of these loans. RAL’s are secured by and repaid from your pending federal tax refund and can be risky because it must be repaid even if your refund is denied, is less than expected, or is frozen. If you cannot pay back the RAL, the lender may send the account to a debt collector.  And because the loans are short term, you may not realize that the effective annualized interest rates can range from 40% to 700%.

For more information, view the advisory on the OCABR website. 

It’s Officially Tax Season!

Employers will be soon sending out W-2 statements, banks and investment companies will be sending out mortgage and interest statements and Massachusetts residents will begin their annual quest to compile the documentation necessary to  file their annual tax return.

There are several free resources available to help navigate this process:

Free Tax Preparation: Low- to moderate-income tax payers can take part in the Volunteer Income Tax Assistance (VITA) program, which is coordinated by the IRS. VITA sites can be found in libraries, community centers, and other locations during tax season.

The AARP Tax-Aide program provides free tax preparation and assistance services to millions of low- and middle-income taxpayers, with special attention to those ages 60 and older. See http://www.aarp.org/money/taxaide for more information.

Free Tax Filing: If your income is $57,000 or less you may be eligible for free tax preparation software and free electronic filing. The IRS partners with 20 tax software companies to create this free service. Visit IRS.gov to learn more.

Merrill Lynch Repays Springfield

Last week, the Attorney General’s Office announced that investment bank and financial services firm Merrill Lynch will make a $300,000 payment to the Commonwealth related to its sales of auction rate securities to the city of Springfield.  The payment stems from an investigation conducted by the Attorney General’s Office regarding whether Merrill representatives misled the city into investing in funds the company should have known were impermissible under Massachusetts state law.

In January 2008, after discussions with the Attorney General’s Office, Merrill repaid Springfield the amounts it had invested, which totaled nearly $14 million.  The $300,000 payment includes $225,000 for fees and investigative costs, as well as $75,000 to educate and train town treasurers and other municipal financial officials on investment management practices and to review Massachusetts entities’ investments to determine their appropriateness.  In the past month, the Attorney General’s Office conducted a series of 4 regional meetings  with municipalities throughout the Commonwealth designed to provide information and resources to support careful decision-making and identification of scenarios that might create significant risk. 

This week’s payment follows earlier recoveries by the Attorney General’s Office in the auction rate securities arena.  In 2008, the Attorney General recovered more than $75 Million from UBS , Merrill Lynch, Citigroup  and Morgan Stanley for Massachusetts governmental entities. 

Question of the Week: ‘Green Collar Jobs’ Reviving the Economy

While many industries have shed jobs and laid off workers as a result of the global economic slowdown, a new study by the Pew Charitable Trusts predicts that the clean energy economy will be a decisive factor in the future health and growth of the economy. According to the report (The Clean Energy Economy: Repowering Jobs, Businesses, and Investments Across America), between 1998 and 2007, clean energy jobs grew at a faster rate than any other industry and could be the answer to America’s economic woes if investments continues to flow into these industries.

This state-by-state study came about after researchers observed an emerging trend of states and the federal government offering tax credits, incentives and passing legislation to increase so-called green jobs in their states and communities. For example, Massachusetts passed the Green Communities Act in 2008 which offers benefits to municipalities that make a commitment to efficiency and renewable energy.  The Green Communities Act also made energy efficiency programs compete in the market with traditional energy supply.  Utility companies are now required to purchase all available energy efficiency improvements that cost less than it does to generate power, ultimately saving money on consumers’ electricity bills.  Customers who take advantage of these incentives will save money as they reduce how much energy they use.  The goals of this economic movement in Massachusetts and beyond are to both further environmental goals and increase jobs and investments in their states.

According to the study, Massachusetts had a total of 1,912 clean businesses and 26,678 clean jobs in 2007. The study also found that Massachusetts saw a 4% increase in clean job growth from 1998 to 2007.  The study says clean energy jobs encompass these five categories: 1) clean energy; 2) energy efficiency; 3) environmentally-friendly production; 4) conservation and pollution mitigation; and, 5) training and support.

We want to know:

Would you like to see more green jobs added to the Massachusetts business community?

Do you currently hold a green energy job; and if so, what is your profession?

TJX Settlement

You may recall that back in 2007, consumers were told of a large data breach by TJX Companies, Inc. – parent company to popular store chains Marshalls, TJ Maxx, and Home Goods.  Millions of consumers faced the possibility of identity theft when their confidential and personal financial data had been compromised.  This incident, and other significant security breaches (Hannaford Brothers, Countrywide Financial, and Bank of New York Mellon, to name a few), spawned increased consumer awareness of the identity theft and changes in laws for businesses in the event of a security breach.

Today, a group of 41 Attorneys General, led by Attorney General Martha Coakley, announced a settlement with TJX, marking the most comprehensive relief achieved to date following a data breach investigation. 

TJX has agreed to pay $9.75 million to the states and to implement a comprehensive information security program to safeguard consumer data.  Under the terms of the settlement, Massachusetts will receive $951,000 to cover the cost of the investigation and aid in efforts to protect consumers’ personally-identifiable information. 

View Attorney General Coakley’s statement on the settlement:

What Should I Do If My Personal Data Has Been Compromised?

As 21st Century society becomes more reliant on computers to conduct business and manage information, and consumers more likely to conduct transactions online, it is imperative that safeguards are put in place to protect against data breaches and identity theft. In some instances, consumers may not know that a company, organization, or even a school, had access to their personal information, such as social security number and date of birth, until they have been notified that this data has been compromised.

If you’ve been notified that your personal or financial data has been compromised due to a data breach, here are some steps you should take:

1. Contact one of the three major credit bureaus and place a fraud alert on your credit report.  The three credit bureaus are: Equifax, Experian, and TransUnion. You only need to call one of the three credit bureaus; the one you contact is required by law to contact the other two.  This one-call fraud alert will remain in your credit file for at least 90 days. The fraud alert requires creditors to contact you before opening any new accounts or increasing credit limits on your existing accounts. When you place a fraud alert on your credit report, all three credit bureaus are required to send you a free credit report.  
2.  Order a copy of your credit report, and look for unauthorized activity. If you believe there is unexplained activity, consider placing an extended fraud alert on your credit report. To do this, you need to file a police report with your local police department, keep a copy for yourself, and provide a copy to one of the three major credit bureaus. An extended fraud alert can then be placed on your credit file for seven years. This means that any time a user of your credit report - like a credit card company or lender - checks your credit report, it will be notified that you do not authorize any new credit cards, increases in credit limits, new cards on an existing account, or other increases in credit, unless the user takes extra precautions to ensure that it is giving the additional credit to you (and not to an identity thief).  
3. Monitor your financial accounts for suspicious activity.  Look carefully for unexplained activity on your bank, credit and other financial statements. If you believe there is unexplained activity, contact the fraud department of your financial institution. These financial institutions can and should monitor the account for any unusual or suspicious activity.

For additional information about what to do if you believe you are a victim of identity theft, view the Attorney General's Guide on Identity Theft for Victims and Consumers on the AGO website or contact the Public Inquiry & Assistance Center at (617) 727-8400.

 

Chrysler/FIAT to Honor Lemon Laws

Massachusetts was part of a group of Attorneys General that negotiated an agreement with Fiat and the new Chrysler Group LLC to honor the Lemon Law rights of Chrysler buyers once the company takes control of the U.S. auto maker.

The agreement is reflected in the bankruptcy court order, which was filed Monday, June 1, 2009, in the U.S. Bankruptcy Court for the Southern District of New York. Fiat and the new Chrysler Group LLC agreed to honor all the rights consumers had under Chrysler to seek and obtain a refund or replacement vehicle if their vehicle has a significant or recurring problem. The new Chrysler Group LLC has agreed to honor and pay liabilities under Lemon Laws for additional repairs, refunds, partial refunds or replacement of a defective vehicle on vehicles manufactured by Chrysler in the four years prior to the company filing bankruptcy. The court order also provides that the new Chrysler Group LLC has agreed to continue addressing Lemon Law claims using the same or similar mechanisms previously utilized by Chrysler. This means state-run or third-party Lemon Law dispute arbitration programs set up under individual state Lemon Laws will continue to help consumers and manufacturers settle Lemon Law disputes. In Massachusetts, that program is administered by the Office of Consumer Affairs and Business Regulation.