At Issue & In Focus

October is Domestic Violence Awareness Month

October is Domestic Violence Awareness Month. This abuse can happen to anyone, regardless of race, sexual orientation, or gender and the effects can impact many aspects of someone’s well-being. The consequences of this violence bring forth concerns for victims with regards to their health, homes, and financial security when they try to leave their abuser.

Help is available. Our office can provide assistance for victims with many of these issues.   For general concerns please contact our Office at (617) 727-2200.

For specific health insurance concerns, the Insurance & Health Care Consumer Helpline is (888) 830-6277

To receive assistance with consumer issues, our Public Inquiry & Assistance Center Hotline number is (617) 727-8400. Operators are available from 10:00 a.m. to 4:00 p.m. Monday through Friday. Alternatively you may file consumer complaints via email any day at any time by completing our Consumer Complaint form 

For information about our Victim Compensation and Assistance Division please click here or call (617) 727-2200 ext.2160

From September 2010 through August 2011 our Office responded to 206 domestic violence victim compensation claims and provided over $658,410.71 in compensation to victims.

If you or someone you know needs immediate help, please contact SafeLink at 1-877-785-2020. SafeLink is a 24-hour, free and multi-lingual hotline for programs in Massachusetts. An advocate can talk with you about your needs and help you identify appropriate resources.

10th Anniversary of 9/11: National Day of Service and Remembrance

Each year, on or around the anniversary of the September 11, 2001 attacks, thousands of Americans support charitable causes, volunteer and engage in other acts of compassion to remember and honor the 9/11 victims and survivors. We also honor all who rose in service in response to the attacks, including first responders, recovery workers, volunteers, public safety personnel, members of the military, and all of their families.

To honor this anniversary, you can consider participating in the National Day of Service and Remembrance  by organizing a service activity to pay tribute to the victims and heroes of 9/11 – and to keep alive the spirit of unity and compassion that followed the attacks.

You can find volunteer opportunities and do-it-yourself project ideas by visiting www.serve.gov, the website created by the Corporation for National and Community Service and which features more than 250,000 volunteer opportunities available throughout the year. 

The Massachusetts 9/11 Fund has also compiled a list of planned commemorations, service projects, and community events open to the public, happening on September 11th and throughout the fall season.  For additional guidance, you can also refer to the 9/11 Tribute Guide provided by the My Good Deed & HandsOn Network 2011. The guide helps activity organizers include appropriate forms of remembrance (such as a suggested moment of silence) when implementing 9/11 Tribute charitable service activities.

The Attorney General’s Office encourages generous and wise charitable giving at this special time.  To check on a charitable organization’s registration with our office, or learn more about savvy charitable giving, please visit our Non-Profit Organizations and Public Charities Division online.

Assisting Massachusetts Consumers

Some residents calling into the Attorney General’s Consumer Hotline Monday were initially surprised to learn that the familiar voice on the other end of the phone was their Attorney General, Martha Coakley.  AG Coakley spent an hour on the hotline for consumers Monday morning in order to hear personally from Massachusetts residents recovering from tropical storm Irene. She also spoke to consumers who felt that they were the victim of fraud, deception or unfair business practices and were interested in filing a complaint with the Attorney General’s Office.

The Consumer Hotline receives over 5,000 calls and over 3,000 emails and letters each month.  It can be reached at 617-727-8400 and is staffed weekdays with trained mediation specialists who can:

• answer questions and provide information; and/or
• offer referrals to appropriate organizations or government agencies for help; and/or
• provide information on the Attorney General’s consumer complaint and mediation services.

 

In the Attorney General’s Office (AGO), every consumer matters. If you could benefit from consumer information or mediation services, contact us. Last year alone, our mediators and Local Consumer Programs funded by our office were able to recover $4 million through informal mediation directly back to Massachusetts consumers.

To learn more, visit http://www.mass.gov/ago/complaints.

June is Internet Safety Month: Internet Safety Tips for Kids

The internet is a great resource for communicating with friends and family, finding information and having fun. It is also important to stay safe when online via a computer, cell phone or gaming system.  Keep these safety tips in mind when you are online, and share them with a young person who may benefit from them.

Online Safety
Unfortunately, kids have been tricked online by people who pretend to be something that they're not.  Some kids have found themselves in dangerous situations when they agreed to meet the mysterious online "friend" in person.  To protect yourself online, never give out personal information, remember that people online may not be who they say they are, and do not meet with anyone or have them visit you without talking to your parents first.  Always talk to your parents or another trusted adult if you are contacted by a stranger or you encounter anything online that makes you feel uncomfortable or scared.

Text Messages
It is also important to think before you text. Once you send a text message or a photo, even to a friend, you can’t take it back and you never know who might forward it.  Prevent embarrassing moments by thinking twice before you send or text anything that you might regret.

Cyber Bullying
Cyber Bullying may include sending hurtful, hateful, derogatory, harassing or threatening messages to others, spreading rumors, or sending personal or embarrassing information about or pictures of others – all with the intention of intimidating, frightening, ridiculing, or harming someone else.  If you are being bullied online, the best way to handle it is don’t reply or forward the message and ignore, block, or “unfriend” whoever is bullying you online. Tell a parent or trusted adult if you are being bullied online.

Keep Your Privacy
To protect your privacy, check with your parents before you create any personal profile because that information could be used for reasons you might not like.  Choose a screen name or email account name that isn't your real name and don’t share your passwords with anyone except your parents. Never reply to any email that asks for your personal information. Some emails may look official, as if it was sent by your Internet provider, but it's actually a trick to get your personal info.

For more information, visit the Cyber Crime and Internet Safety portion of our website.
 
For more cyber safety tips for kids of all ages, visit http://www.nsteens.org/.

Tornado and Storm Recovery

As residents and affected communities begin to work to repair the damage from the aftermath of the tornadoes that swept through the region, the Attorney General’s Office offers information and guidance to consumers for dealing with disaster recovery and home repair:

Keeping your Identity Safe:

If you experienced significant home damage due to tornadoes, you may have lost paperwork or material that includes your personal identifiable information.  If you can, it is important to monitor your credit and bank accounts for fraudulent activity at this time.  If you think you may have become a victim of ID theft, you have rights under Massachusetts law and you may request a credit freeze or fraud alert. 

Read our tips for ID theft victims.

More information on requesting a security freeze or fraud alert.

Homeowners Insurance:

Most standard homeowner policies cover damage from windstorms including tornadoes.  For most of these policies, you will also pay an out of pocket deductible.  The amount you pay should be listed in your policy. For more information about the types of policies and more coverage details.

If you experience damage to your home, report the loss to your agent or insurer as soon as possible. If you need assistance in determining whether you have applicable insurance coverage, or if you believe your agent or insurance company misrepresented to you the extent of your coverage or the availability of insurance protections, you can contact Attorney General’s Consumer Hotline at (617) 727-8400.

Auto Insurance: 

Not all auto insurance policies will cover damage to your vehicle from a tornado.  Damage will be covered if you have included comprehensive coverage in your policy.  Comprehensive insurance covers damage to your car if it is damaged by anything outside of an accident, such as fallen trees and debris damage.  The coverage pays to fix your vehicle minus a deductible.  The deductible will be listed in your policy.

For more information about auto insurance.

If you experience damage to your vehicle, report the loss to your agent or insurer as soon as possible. If you need assistance in determining whether you have applicable insurance coverage, or if you believe your agent or insurance company misrepresented to you the extent of your coverage or the availability of insurance protections, you can contact Attorney General’s Consumer Hotline at (617) 727-8400. 

 

Home Improvement Contractors: 

Here are some tips that can help you select a contractor to conduct repairs on your home:

• Make sure that the person you are dealing with is a licensed contractor affiliated with a legitimate business. If you have access to a computer, you can verify a home improvement contractor’s registration online on the Office of Consumer Affairs and Business Regulation’s website: http://db.state.ma.us/homeimprovement/licenseelist.asp
• You should not pay more than one third the cost of the project at the inception of the contract, with another third due half way through the project and the balance paid when the work is completed to your satisfaction. 
• Be wary of a contractor who demands full payment up front.  A reputable contractor should allow you to pay upon completion of the job, or at most, require a reasonable portion of the payment upon signing the contract and the remainder when the job is done. 
• For more tips to help select a home contractor.

 

More Resources:

The Commonwealth of Massachusetts has a website with comprehensive information about disaster recovery and consumer information relative to last week’s tornadoes. Click here to visit the state’s storm recovery site. (http://www.mass.gov/stormrecovery)

Massachusetts residents in need of emergency assistance are urged to contact the Massachusetts Emergency Management Agency, at 508-820-2000, or 800-982-6846.

To check the history of a business or to file a complaint about a scam, the Attorney General’s Office urges you to contact its consumer hotline at (617) 727-8400 or file a complaint online at www.mass.gov/ago/consumercomplaint.

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.

Japan Disaster Relief: Tips for Giving Wisely

In the wake of the devastating earthquakes in New Zealand and Japan and its aftermath, the Attorney General’s Office encourages residents to consider donating to charitable organizations that can help those who have been impacted by this devastating natural disaster.  Relief efforts are currently underway and are expected to continue through the upcoming months.  In light of this ongoing effort, the AGO warns potential donors to protect themselves from fundraising scams claiming to benefit those affected by last week's catastrophe.

To best assure that your donation will be used for its intended purpose, the AGO offers the following suggestions:

• Check to see if the charity is registered and filing with the Attorney General’s Non-Profit Organizations/Public Charities Division. Registration and filing information can be obtained online at www.mass.gov/ago/charitiesreports or by calling the division at 617-727-2200 x2101.
• Know your charity. Take the time to verify the address, phone number, contact information, and review the website and written material, when possible. If you have any doubts, well established charities with experience in disaster relief are generally a good choice.
• Do not pay by cash. Pay by check, and make it out to the charity (use its full name; don't use initials), not the fundraiser. Never give your credit card number to a fundraiser over the telephone.

All charities and fundraisers operating in Massachusetts are required by law to register with the AGO.  This requirement also applies to businesses that advertise a portion of their sales will go to earthquake relief.  While registration with the AGO does not indicate that the office approves or endorses the organization, it does provide the public with valuable information regarding how long the organization has been in existence, its financial condition and its track record of complying with state registration and filing requirements.

For more tips on giving wisely to disaster relief charities, please visit the Non-Profits & Charities portion of the AGO website.

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.

Penny Auction Sites Pose Potential Risks to Consumers

A new trend of websites, called ‘penny auctions’, are on the rise and they are posing new potential risks to consumers looking to find hard-to-believe deals online.  These websites allow consumers to bid on items for a chance to win them for a small fraction of the retail price. 

A review of past winners on a popular penny auction site reveals that one consumer bid on a Razor scooter priced at $49.99 and won it for just four cents; another consumer won an iPod Shuffle valued at $59.99 for just 17 cents; and yet another lucky bidder won a Nintendo DS for $1.24, the original price being $129.99.  However, it is important to remember that these bargains can only be offered because other bidders have bid (at a cost) and won nothing. 

The old rule “If it sounds too good to be true, it probably is,” needs to be heeded whether it be in relation to a brick and mortar store, coupon sales, or online penny auctions.  Every penny auction site has different rules, but in general, bidders must purchase bids for about 60 cents or more and are often required to buy them in initial packages, sometimes paying nearly $50 to begin bidding.  These auctions differ from traditional ones, where normally you pay only when you win a bid and are not required to cover the cost of your losing bids.  Penny auctions require you to pay the full price of your bid, despite whether you win or lose the bid. 

For some things to consider when using penny auction websites, visit the Consumer Connections post by Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation.  It is also a good idea to look for websites that offer a buyer protection plan, which may protect you if something goes wrong with a transaction or if you encounter other problems on the website.

Professional Solicitations

Today, the Attorney General’s Office released its report on Professional Solicitations for Charity in 2009.  Professional solicitors, who are paid by charitable organizations to solicit donations from the public, are required by statute to register with the Attorney General’s Office.  This report, released annually to assist consumers in making informed decisions regarding their charitable giving, found that professional solicitors raised nearly $329 million.  However, of this amount only $141 million went to the charity.  This means that on average, of every dollar that a professional solicitor raised for a charity in 2009, only 43 cents went to the charity.  

In addition to looking at the results of the report, potential donors should always do their homework if they are contacted by a professional solicitor, including asking how much of every dollar donated will go to the charity and requesting confirmation of the charity’s name and the services it offers to the public.  For more tips, review our Give, But Wisely Advisory online.  The Attorney General’s Office also maintains annual financial statements from charities and professional solicitors that operate in this state, which are available for public inspection online. Residents with concerns about solicitations they have received should contact the Non-Profit Organizations/Public Charities Division at 617-727-2200 x2120.