People spending faster than they're earning

The normal American consumer spends more. This started after 2008 with the economic meltdown.

The index of spending and income shows a growth the last 6 months. An increase in expenditure of 0.6 percent in March was rather normal and we also see that the income rose, but not so fast.

"The key point is that household spending can only be supported if we get better income growth," said Joel Naroff, chief economist at Naroff Economic Advisors, in Holland, Pa.. "This is going to take lasting job gains."

On Friday the Labor Department releases the April employment report and Naroff said he expects to see a slight gain in jobs. On the other side he said that much of those gains might come from companies that are infilling jobs, which should have been filled during the last six months. They may look stronger than in reality.

The whole process of spending more and more is good to recover the economy but Naroff said this trend couldn’t be sustained.

"Since income growth fell short of the shopping spree so, to pay for everything people had to use up some of their savings," Naroff said. "That led to another decline in the savings rate."

A negative point is that despite of the increased spending, the normal consumer ‘s confidence remains very low! This can also evolve with the expected rise in unemployment.

Nowadays, the prices of products have gone up (2 percent) while people buy the same. If we look at the energy and food costs, we see a staggering increase of 18.7 percent since March 2009. While many other prices remain stable, food and energy make up large portions of the typical consumers' budget, which explains the increase in expenditure.

It’s really a worldwide problem and another result of the crisis. I think that the negative points will eventually overtake the positive points. The economy needs to recover over and over again. I hope that we will have some reserve within a few months. And we all see that the price of some products is absolutely exaggerated. Let’s hope this factor will restore itself.

By Karen Mechelinck-2 FV 4

Source: http://www.consumeraffairs.com/news04/2010/05/consumer-spending.html

Australia is to become the First country to ban branding and logos on tobacco products.

Tobacco companies would be required to use logo-free, pure (without text or colourful images) cigarettes packaging. The Australia’s government thinks that it will be then less drawing.

The plans will start off on 1 July 2012. The government wants to take place on the packets with a health warning. The brand name will be put back to the bottom.

The government also wants to lift the cigarette tax by 25%.

The prime minister knows that the cigarette companies will hate it and he’s right! They’ll take it Legal action. The reason why they take it to court is because the users won’t see the difference between the brands anymore.

Retailers said that the raise of the tax will damage the economy and that there will be a lot of people who will sell cigarettes on the black market.

Mick Daly, the chairman of the Australian supermarket chain IGA said that it’s just because the government needs to do something good for the persons health. They don’t think to much about the consequences.

The tobacco companies can demand a compensation for the changes. This will be payed with the money of the taxpayers.

I think it’s not a good idea. The change of the packaging won’t make a difference. It will be less attractive but when you smoke you don’t look a lot after the packet. Maybe it will hold people who wants to smoke.

The tobacco industries are accurate about the fact that they ask a compensation because the governement captured the property rights. I think there aren’t a lot of countries who will folow this case.

Written by: Sofie lamon

Source: http://www.guardian.co.uk/world/2010/apr/29/austra.0lia-ban-branding-cigarette-packets

Volcanic eruption: what are the rights of the consumer?

The news about the Icelandic volcano eruption came unexpectedly. All over the world, especially in Europe, flights were cancelled because of the potentially dangerous ash cloud. Thousands of travelers got stuck in the airports.

Were you one of them? And you want to know what your rights are? Then read this summary below carefully.

• Airlines will refund or rebook your flight. They also have the duty to pay your hotel and provide you with food and drink(s).
• Some of the travel insurances cover the costs, others don’t because this is a natural disaster. It depends on what is written in their policy. It is recommended to contact your insurer to find out if you are covered or not.
• These are circumstances beyond one’s control. It isn’t the employer’s or the employee’s fault. If you aren’t able to get to work, the employee may take extra paid vacation or unpaid leave.

For more detailed information:

http://www.which.co.uk/news/2010/04/iceland-volcano-what-are-your-rights-211663?src=rss156452

I recognized the situation of the stranded people immediately. Two years ago my boyfriend and I went to London. At that time there was a fire in the Eurotunnel and we couldn’t go home. No one of the employees of Eurostar was able to give us the right information about when and how we could return. We decided to make the best of it and searched a hostel and a way to return which wasn’t evident. Finally we stayed two extra nights and we returned by bus (Eurolines) and ferry.

After this adventure we sent a registered letter to Eurostar. Unexpectedly they repaid the extra nights and the Eurolines and Eurostar return tickets! They also offered us two one-way tickets from Brussels to London.

I hope that the stranded travelers will be as lucky as we were!

By Liesbeth Alliet

U.S. consumer spending on electronics rises

This week, the purchase data of April are released and you can notice some remarkable facts, It seems that U.S. consumers bought more electronic goods on the net compared with the same period last year. They also spend more on major appliances and status goods but less on clothing and footwear.

The mixed results were caused by four reasons. The first two had a positive influence on the sales and the other two weren't that good for the sales.

The first reason was the rainy weather in April. People wouldn't go to a shop because of the bad weather. They bought it on the net.
The second was the rise of consumers' confidence. People spend more because they aren't suspicious anymore.

The third reason was the volcano in Iceland. Many people weren't home because they were stuck at the airport. They couldn't buy stuff.
The fourth reason was the early Easter. People bought more good in March and less in April.

Another conclusion is the fact that net sales are doing well. Even more, it's the ninth month in a row that people bought more online.The other means of payment didn't have good results.

I have the impression that net sales are doing very well. This is due to the fact that people didn't have much time, they have to work constantly. If an enterprise has an online shop, people will use this instead of going to a shop. I also use this and I didn't have any complains.

To conclude: The economy is recovering. People buy more because they trust the economy again. But it's not enough. There are still some people which are unemployed. Economy is on the ride track again.

written by yorick stroobant

my source: http://www.cbc.ca/consumer/story/2010/05/05/con-us-retail.html

EU to lift liquid ban on airplanes in 2013

From April 2013 Europe’s air passengers will be able to take water bottles, sprays and gels on board. This will be the end for the current restrictions on liquids in cabin baggage. In all EU airports there will be installed a new technology that is capable of detecting liquid explosives.

Only drinks, gels, pastes, lotions and sprays in bottles of less than 100 ml are currently allowed on planes if they are carried in a clear plastic bag. Other liquids are not allowed. Many travelers are frustrated when they have to throw away contact lenses cleaners of expensive perfumes.

Most of the time rules on purchased items in duty-free shops before boarding are confusing, especially for people who travel in and out Europe.

Next year, passengers will be allowed to take liquids from the duty-free shop in their hand luggage, outside the EU or on board of non EU-airlines. Most liquids are sealed and screened before boarding.

Other envisaged measures are the elimination of double security checkpoint in the EU, simplifying and harmonizing procedures and ensuring common minimum standards of security training for aviation security staff.

Personally I think all the measures are necessary, especially after the attack at Ground Zero. It’s of course frustrating when you need to throw away something of your personal belongings. But with the new rule of 2013 it will be al lot essayer and there will be less misunderstanding.

By Karen Mechelinck – 2 FV 4

Source: http://euobserver.com - 30 April 2010

Should I buy or rent a house?

The question that a lot of consumers are asking in these times of economic crisis is: buy or rent a house?

The answer is not that simple.
Everyone gets told that renting a home is a waste of money and that you are better off buying a home. This is not quite true.

In these times of crisis, a lot of people are losing their homes because they can't pay their mortgage anymore. People are scared of that, they don't want to lose a house. A good option to avoid that is to rent one.

Also, if you like to change from time to time, renting has an advantage. If you don't like your current house anymore, you can just wait till the lease expires and move out. This is a lot harder when you bought a house.

These three tips can help you decide whether to buy or to rent a house.

• The 28% cap. Housing shouldn't take in more than 28% of your monthly income.
• Stay for five. If you want to buy a house, you should stay in it for at least 5 years. If you can't do that, you might want to consider renting one.
• Ownership requires work. Bear in mind that if you buy a house, you have to keep it in good condition. Like for example: painting, fixing problems,... . You can also add certain parts to your house, those items are very expensive and can be very time consuming. If you don't want to do those things, you might want to rent a house.

I think renting a house is surely worth a shot, but I rather buy a house.
When you own a house, you can change whatever you want, you can add like a garage or make an extra room. If you rent one, you have to ask permission to the landlord.
If you own a house, you are also pretty sure you can stay there. If you rent one and your landlord wants to do something else with the house, he can just kick you out at the end of the lease.

But I think that the above tips can help you decide whether to buy or to rent a house.

Written by Dieter De Smet

Source: http://www.americanconsumernews.com/2010/04/should-i-rent-or-buy-a-house-3.html (April 27th, 2010)

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Replace your cash and cards with a cell phone.

Every day, you use money and bank cards to pay your daily expenses. But sometimes, you don't have enough cash or you can't find your card back. Two American companies (Venmo and Xipwire) have found a solution for this problem. They made it possible to pay with your cell phone.

How does it work? It isn't difficult. First, you have to register your bank account so Venmo can make a Venmo account. When you go to a shop, you send the amount of payment and also the telephone number of the vendor to Venmo. They send an e-mail to the vendor and he has to accept it before Venmo sends the money.

Xipwire is almost the same. You only have to send a code to the company and they will send a message to the vendor. After this, you have to dial your secret pin code and you've paid for the product. With Xipwire, you also can send money to your friends.

At the moment, both products are free of charge. Next year, you have to pay for a transaction when you're a member of Xipwire.

I believe this is something very special. There was a moment when they tried to use this kind of payment in Belgium. This didn't work because it was too difficult. I would use it if it would come to Belgium.

Conclusion: This is something new. If it works, it will be a huge success. If it won't, it will be another useless attempt to use the cell phone as a mean of payment. We will see what the future brings.

Written by Yorick Stroobant

My source: http://abclocal.go.com/wpvi/story?section=news/consumer&id=7410319

Filmmakers fight against piracy

Some filmmakers, represented by the U.S. Copyright Group (USCG), have taken legal action against 20,000 consumers. The filmmakers accuse them of sharing and downloading copyrighted material without permission.

Since the first lawsuit against pirates in 2000, only a few of them pirates were convicted. But the USCG warned that this is just the beginning. They will start more cases against individual consumers.

Piracy has amazingly increased in the last decades. Daily millions of films and songs are downloaded all over the world. The pirates are often very young, mostly between 16 and 24 years old. Filmmakers and musicians are fed up with illegal downloading. Everybody can download their work without paying for it. They definitely want to put an end to these illegal practices.

We all know that illegal downloading is a violation of the law yet we do it nearly every day. Why? We have the feeling that no one can catch us. Do you know people who are already accused of piracy? I don’t! There is no fear. So why should we stop downloading?

I understand the frustration of musicians and filmmakers, they don’t deserve this. But I think it’s already too late to stop it, piracy will only grow more. Those recent lawsuits will punish just a limited part of the illegal downloaders.

By Liesbeth Alliet

http://www.consumeraffairs.com/news04/2010/04/film_piracy.html

How to deal with a job loss

Nowadays there are a lot of workers who lost their jobs. If this happens to you, the best thing you can do, is making a plan. Here are some tips you can use which might help you in this unfortunate situation.

Do not panic

If you lose your job and you focus on ‘how will we eat, where will we live’, it will be more difficult to dig out from this situation. The best thing that you can do is to stay calm. You must know that you are not the first person in this situation. Come together with other persons who lost their job can be a good idea. Don’t focus on the negatives but try to help each other to find a way trough this difficult time.

Cut expenses

You need to focus on the essentials to survive with your family and don’t spend on the extras that make your life comfortable. You need to make some choices to help you until you get a regular paying job.

Look for income and work

In spit of the economical crisis there are still jobs on the market. Maybe you might have to settle for a job that pays less or you don’t find a job in the same field that you were before. It is necessary to throw off your priority to find a job that pays. Because you need money for expenses so your family can live and have a small amount of comfortable live. It might be a hard time but you will get through it.

If you lose your job it’s important to stay calm and spend your money wisely. In times of economical crisis you may not be demanding. It’s important your family have everything they need. So, don’t waste your money on things you don’t need. If you end up in this situation, don’t lose your courage and keep looking.

By Karen Mechelinck – 2 FV 4

Source: http://www.americanconsumernews.com/2010/04/how-to-deal-with-a-job-loss-3.html

the shoe box will disappear

Sports brand ‘Puma’ will end the story of the polluting shoe boxes. Puma-shoes will be from now on in environmentally friendly packaging.
Trend watcher Herman Konings said that other companies will follow.

People do a lot with those shoe boxes. One put his old love letters in it, the other his pictures and postcards and another his cat sleeps in it. A shoe box can be multi functional.

And now it’s going to end because the shoes manufacturers are looking for a environmentally friendly and place saving likelihoods. Puma is the first, with it’s ‘Clever little bag’. It’s nothing more but a folded cardboard in a bright red pocket. The bag is made out of recycled plastic and they can recycle it again. With that bag Puma will economize up to 65% of paper.

The new packaging will be ready at the start of the new year. Puma already asked a patent on it but they will share their technology with others.
Trend watcher Herman Konings said that the time is now to quit with the old fashion shoe boxes. There were times that brands advertised with it but those days are over.
But it’s not only in this sector, also other sectors are looking for recycling bags.

It’s a win win win situation. People live in smaller houses so they don’t have enough place to stock everything. So when the manufacturers make their packaging smaller they respond on the question of the consumers. But smaller packaging is also cheaper for them and they have to use less material.

I think it’s good that they’re looking for better packaging because it’s less polluting. It’s good for the environment. And people will be happy that they doesn’t have to stock those old boxes again. When you can save so much paper just by using recycled plastic than I think that everybody has to look for an idea like that.
Written by: Lamon Sofie (2FV4)
Source: http://www.nieuwsblad.be/article/detail.aspx?articleid=GB62OUTNR

Goodbye winter, hello allergies!

After a very long winter, spring has finally arrived. Away with the caps, the shawls and the warm coats! We’ve longed for sun and warmer weather for such a long time. Unfortunately allergy sufferers aren’t so happy with this weather change.

Because of the long duration of the winter, the pollen allergy sufferers will sneeze and blow one’s nose more than ever before. Therefore Rite Aid, one of the leading drugstore chains in the United States, offers allergy information to the consumers for free. Anyone who suffers from allergies can pick up an allergy guide in his local Rite Aid pharmacy or can visit their website. Rite Aid works together with the American Academy of Allergy, Asthma & Immunology (AAAAI) to provide this information. This allergy information consists of the causes, the symptoms, solutions, etc.

On the one hand I’m glad to know that Rite Aid provides this information at no cost to the American consumer. I’m also sensitive to pollen and I know how annoying an allergy can be. So all the information to decrease or avoid the allergic reactions is welcome. On the other hand I think that Rite Aid only wants to attract more clients and sell more products. It’s a very smart marketing trick. It also builds up the image of the company because the consumers have the feeling that the company really cares about their health.

My belief: whatever happens, enjoy the sun and the warmer temperatures!

By Liesbeth Alliet

http://www.americanconsumernews.com/2010/03/allergy-sufferers-find-relief-at-rite-aid-nyse-rad.html

Sport drinks bad for teeth

Before or after a workout, you use a sport drink to get more energy. But are they good for your health? No, they aren't. It has been proven that the combination of acidic components, sugars and additives affects the teeth. Even more, it could lead to erosive tooth wear.

There are 2 kinds of sport drinks. First, we have the isotonic drinks. It's best to use them while you're doing a workout because the becerage ensures that the person rebalances his body fluid. The second type of sport drinks are the hypertonic drinks. You use these after you finished your workout because they rebalance your glucose level.

The reason why sport drinks have a bad influence on your teeth is because of the acidic components and the fact that while you're running, the spittle in your mouth reduces so that the spittle can't protect your teeth against the acidic components.

The problem is that the information on the bottle isn't always right. If you should believe it, you would have to drink the beverage constantly while you're doing a workout. Another reason why it's such a big problem is because of the imitation goods. They don't have the same substance as the normal sport drinks.

I also use sport drinks. Before a match, I drink one and it really gives me more energy. It's strange to hear that it's dangerous for your teeth. I never thought that it would have an influence on them.

I think that we can conclude that you may use sport drinks but not too much. If you want use something else, it's best that you use water

Written by yorick stroobant

This blog is based on the article 'Sportdrankjes slecht voor tanden' in Het Laatste Nieuws,p.81, Saturday 27th of March

What does the Flemings consume the most?

the flemings love to travel, they go frequently to the barber and they buy a lot of accessories. The are the biggest spenders of Belgium. You can read it in the Household inquiry.
The inquiry makes an analysis about the incoms and expenses of the Belgian families and that gives a lot of information about the nutrition habit, the medical care and real estate, the spendings in the hotel and catering industrie and the spending on clothes.

3700 families divided in the 3 districts were asked to map their finances of 2008.

The families in the Flemish district spended average € 34 075 that’s € 1 089 more of the national average. Of the € 34 075 is € 8 068 spend on real estate and € 5 153 on food, tobacco and drinks.
Most of the money for food is spend on fresh meat. The Walloons spend the most on fresh meat. We Belgians like to eat fresh meat and I think it’s true because everybody here like to eat a good steak.
The Flemings spend more in the hotel and catering industrie just about € 1 940 in 2008.

The medical care spendings are roughly the same in the 3 districts. The national average amounts € 1 565.
We spend € 1 592 on clothes. It’s less than in 2007 but stil we spend € 409 more than the inhabitants of brussels.

I think that it’s logical that the most of our money goes to our house. A lot of people have to pay off their houses. Also clothes and food are very important in normal life. Just like medical care. So I think the results only confirm what we already knew.

Written by: Sofie Lamon

Source: http://netto.tijd.be/budget_en_vrije_tijd/budget/Wat_consumeren_Vlamingen_het_meest-.8903026-2214.art

Watch out for "skimmers"

Attorney General Cordray warns all consumers to be very careful when using credit cards or debit cards.

There was a man in Washington DC that wanted to withdrawal some money from a local ATM that he used frequently. But he hesitated, because the card slot looked different. So he started to pull it and it came loose. It turned out to be a "skimmer". A fake card slot that is installed there by thieves. The skimmer reads all kind of card information from the magnetic strip, like debit card numbers and private account information.

Skimmers are used very often by thieves, they just install them over the actual card slot of the ATM. It's also often used at card slots at gas pumps. The goal is to make unaothorized withdrawals with the stolen information.

Consumers can avoid those scams, but it's not possible to completely mitigate the risks. There is some advice you can use though:

• Use 1 ATM at 1 gas pump on regular basis. That way it's easier to notice when something is wrong.
• Use an ATM that is located in a very public place or inside a bank lobby. Thieves often don't mess with those machines because the risk of getting caught is too high.

I think every consumer should follow the above advice. It's vey important to use the same ATM on regular basis, that way you can easily see if thieves have messed with it. Of course it's not always possible to use the same ATM, but then you must try to use a very public one.

If the thieves manage to read your card information, they can withdrawal all the money from your debit card. It will happen very fast, so before you know it, you go no money left on your card. And once it's gone, it's gone forever.

Written by Dieter De Smet

Source: http://www.consumeraffairs.com/news04/2010/04/atm_skimmers.html (April 9, 2010)

Going Out of Town? Don't Tell All Your Online 'Friends'

It's springtime again and a lot of people are discussing their travel plans.
But be warned, don't post your travel plan details on Facebook or MySpace.

There was a recent burglary in Kentucky with a rather odd cause. A woman posted on Facebook that she and her husband were gone for the evening. While they were away, one of her so called "friends" broke into her house.

Attorney General Jack Conway wanrs about the dangers that exist on the internet. Not only kids have to be cautious about what they do on the internet, also parents need to be careful.

Parents and kids shouldn't put too much personal information on Facebook or MySpace. Even an age or your hobby's could be enough for burglars to search contact with you.
You also have to be careful with what you post. Posting wrong things can jeopardize your employment (saying bad things about your boss) and your relationship with friends and family.

Mr. Conway also gives some tips for parents:

• Be a "friend" to your child on social networking sites like Facebook or MySpace.
• Ask to see their profile page to make sure it does not contain personal information that could compromise their safety.
• Keep the computer in a public area of the home such as family room or kitchen.

And some tips for kids:

• Protect your password and make sure you really know who someone is before you allow them to be an online friend.
• Blur or morph your photos a bit so they won't be abused by cyberbullies or predators.
• Remember, what you post online stays online forever.

I agree with Mr. Conway to not post too much information about yourself on social networking sites. I myself hardly post anything on Facebook, but there are other people that post every move they make on it. Those are easy victims for burglars. The burglars know where they are at any given moment and they don't have to do anything for it. The "victims" give all the necessary information voluntary.
So I think it's very important to follow the tips Mr. Conway gave. They are very helpful to lower the risk of "cyber-abuse".

Written by Dieter De Smet

Source: http://www.consumeraffairs.com/news04/2010/04/spring_break_postings.html (April 2, 2010)

Save money on groceries

A visit to the supermarket costs more and more. It seems that the prices of almost everything rose. But smart grocery shoppers find a way to cut back. Here you find four tips to save money on groceries.

Buy non-brand name products

Most of the time, consumers are seduced by the packaging of the brand name products. But private-labels are so close in quality that we hardly feel the difference. Buying non-brand name products can have a positive impact on the grocery bill total.

Be a coupon cutter

Cutting coupons can be a very annoying job but it will help you save money. But you have to pay attention. If the price of the item on the coupon is not in line with the private-label, it’s better to buy the private-label and don’t use the coupon.

Ask to match the price

In some stores and big retailers you can use a price guarantee matching. This advantage can help you to lower your bill.

Comparison shop

Before you go out for shopping, check the ads and circulars in your local paper. So you can quickly get an idea of the best prices. Most shops have a reputation of being lower on some items and higher on others. So, it’s an advantage to know the stores in which you buy your products. You can also talk with family members and friends about their experiences with prices in different stores.

Try these suggestions and see how much you will save on your next grocery bill. You will be definitely surprised.

Personally I think there are different people concerning visiting supermarkets. Some of them do it quickly and some take there time. If you do it quickly you will pay less attention to the prices and otherwise some people take time to cut the coupons and compare between different shops. It’s possible that the quality of private-labels is in the line of the original products but in my eyes there is still a difference. Obviously, if there is a big price difference, the private label is more attractive but if the difference is negligible, the original is more accepted to the public. It’s also a way of expressing yourself to the public and that’s an endless discussion…

By Karen Mechelinck – 2FV 4

April 4th, 2010

Source: http://www.americanconsumernews.com/2010/04/save-money-on-grocerie

Polaroid film again available

Good news for fans of Polaroid cameras. At the end of March, you can buy Polaroid films again. This was informed by Florian Kaps from Vienna and André Bosman from Almelo. Both are projectleader and enterpreneur of the company 'Impossible'.

The reason why a former company who produced Polaroid films stopped producing the films is because of the high sales and popularity of the digital cameras. But now Kaps and Bosman believe that there's a market for the product.

There are some little problems with the production of the films. The first problem is that at the moment, you can only take black and white photographs. In the future, you will be able to take color photos.

The second problem is the fact that the company doesn't find all the parts for producing the films. This is caused by the fact that that Polaroid films are very old and there's a chemical process that takes place inside the Polaroid camera so they have to find materials that have the same properties as the old ones.

Ibelieve that this is a big opportunity because Polaroid cameras are very famous. There a kind of heritage.

The popularity of Polaroid cameras are not extinguished. At a party, you can see some people walking around with Polaroid cameras. They take pictures and give them to the portrayed people.

Another reason why this could be success is the connection with Lady Gaga. She uses a Polaroid camera in her new music video ' Telephone'.

I think that we can conclude that some things never go out of date. If something is very popular, it stays forever.

Written by Yorick Stroobant

My source: http://www.hln.be/hln/nl/943/Consument/article/detail/1083842/2010/03/23/Opnieuw-Polaroidfilms-verkrijgbaar.dhtml

Should you buy an old or new home?

With the economical crisis raging hard homebuyers tend to buy more existing and cheaper houses.
But is that really the way to go? Or is it better to buy a new house?

A study from the US Commerce Department shows that homebuyers bought 374,000 brand new houses versus the resale of 5.1 million existing homes. So new homes make up for about 7% of the total home sales.

The reason why homebuyers tend to buy already existing homes is because they are cheaper than brand new houses. This is a really important point during the economical crisis.
But homebuyers focus too much on the price and location and don't really care about the home's condition. Which is also an important factor.

An already existing house is a lot cheaper, but it can be made of old and bad materials. The key question for buyers is if the materials were replaced or upgraded lately. If they are more than a decade old, buyers should take into account the replacement costs.

If you buy an existing home, you should take into consideration that this already has a certain style. You may not like certain parts of the house, like the kitchen is outdated or the living oom needs an update,... . Replacing or updating those parts will cost you a lot of money.

Looking at the numbers I think a lot of people are fooled by the price difference between an existing and a new house. But this is because of the economical crisis. People are really stuggling to survive and they'll be happy if they can save money. But most of the time it's a trap. The homebuyers are so focused on price and location that they forget to take into consideration the condition and age of the house, that mistake will cost them a lot of money.

So don't be fooled by the cheaper price of an already existing home. In the end it will cost you more, thanks to a lot of repairs and replacement costs, than a brand new home.

Written by Dieter De Smet

Source: http://www.bankrate.com/finance/real-estate/should-you-buy-an-old-or-new-home-1.aspx (March 31, 2010)

Consumer protection for gift cards

Over the last years gift cards have become increasingly popular. They have many advantages for both the contributor and the receiver.

Choosing the perfect present for friends, family members,… is not always easy and we definitely don’t want to give some ordinary banknotes. In that case the gift card is a good alternative. The giver only needs to choose the store and the amount of money he or she wants to spend and the recipient picks up his favorite gift in the store, that’s all.

But consumers must be aware of the hidden fees and untimely expiration dates of these cards. The U.S. government realized that consumers need more protection. Therefore they will introduce new rules for gift cards. These rules will influence the majority of these cards. The conditions and service fees will be more clearly indicated and strictly defined.

I must admit that I’m not a fan of the gift card. As a receiver, I prefer banknotes above gift cards because then I’m totally free to choose what I really want. The choice is not limited by a certain store and product assortment. If you receive cash, it will be easier to collect it for something bigger. You can also put the money on your bank account and save it for later on.

To my opinion banknotes and gift cards are very impersonal. So if you want to buy a gift for someone you like or love, choose something more personal. It doesn’t have to be necessarily a material gift but one can go for example together to a restaurant, a café,…

By Liesbeth Alliet

http://www.aolnews.com/money/article/shoppers-get-new-protection-for-gift-cards/19411613

Supermarket offers 'mislead' consumers

A lot of supermarkets (tesco, asda, sainsbury’s,…) thought to be smart, by selling thousands of items on a special offer and not lowering their prices overall.

People believe in the supermarkets! Consumers think that the supermarkets give them benefits for help them spending less. But nothing is like it seems.
You have to now that during January and February more than 1/5 of all goods in the leading supermarkets were on special offer. And that’s a record.
But! People think that they spend less through the offers, but that’s not true. People pay even more than last year. The prices in the supermarkets have increased by 1.9%.

According to Jim Dowd, head of the Parliamentary small shops group, said that everybody knows that the supermarkets are very popular and that’s their marketing is very clever!
But I think that’s unfair to the small shops, because people goes to the supermarkets for their profit. They think that’s cheaper over there but that’s not true.

The reason why supermarkets have to do this, is because of the recession and because of the other ‘new’ supermarkets like ‘Lidl & Aldi’. Because those supermarkets have a lower price. There’s a too big competition between the retailers.
John Bridgeman, General Director of the Office of Fair Trading (until 2000) said that isn’t good for the consumers that supermarkets change their prices so often. He says that there can’t be competition if you change them every week. But the explanation for that is that they look for the needs of the families like seasons, holidays,… They take products that families often buy like eggs, vegetables, cookies,..

I believe that people should look more carefully to the prices, when they see a discount they will buy it quicker even if they didn’t want to buy it before. It’s like a carrot for the consumers. They always think that they do profit, without thinking.

Written by: sofie lamon

Source: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/7466837/Supermarket-offers-mislead-consumers.html

Seven things that will cost more this April

April is the month of a new financial year and for some of us, this might be good news.

Advantages of this can maybe a small pay rise, but April can also be a whole host of price increases on everyday products. On the other hand, April is the month where tax and duty increase has effect.

Here are seven things that will cost more from April 2010.

1) Stamps

On April 6, stamps from first- and second-class will increase in price by two Pence. They will cost 41 Pence and 32 Pence. But if you are a regular letter-writer you can buy nowadays a stock, because the old stamps are still usable after the price rises happen.

2) BT phone calls

If you’re signed up to BT’s Evening & Weekend plan or Weekend plan, the time will change when you are able to do free calls. The customers know the upcoming change. The daytime calls will also increase but they have no effect on the telephone plans. The solution the cut the phone costs is to bundle TV, phone and Internet.

3) Your TV licence

On 1 April, the cost of a colour TV licence will increase by £ 3, while the cost of a black and white only licence will go up by £ 1.

4) Fuel duty

The prices at the pumps are already very high; the government will add 3p in fuel duty, VAT and to the cost of petrol and diesel.

5) Council tax

In different places, the council tax might increase from April. Depending on where you live, it’s possible your council tax might increase from April.

6) Bankruptcy fees

The Insolvency Service will increase its bankruptcy petition fee by £ 90, from £ 360 to £ 450 on April 6. The county court fee will be kept (£150) and the total cost of going bankrupt will be £600, which is an increase.

7) Income tax for high earners

This tax will also increase and the new 50% tax rate will be used for those with an annual income of more than £150.000.

I think that some measures are obvious and others are exaggerated. The adjustments are an answer on the worldwide problem of inflation. All products become more expensive and people have more problems to pay all there goods. There is noting to do about it, which is regrettable. But on the other hand, some people have a bigger income. My conclusion is that the poorer people are punished.

By Karen Mechelinck – 2 FV 4

Source: http://www.which.co.uk/news/2010/03/seven-things-that-will-cost-more-this-april-207090

Consumer confidence best in two years as recession ends

According to a poll the confidence of the British consumers raise because of the recovery.

The consumer confidence index from Nationwide has climbed up to 80. You should know that this is the highest figure since January 2008. And that it’s almost doubled in comparison with last year.

And that’s a good point! When people feels that the economy is getting better and better recovery their faith will grow. And the bigger their confidence is, the more they will buy and the quicker the recession will end. And that’s what the consumer confidence also saw, that there’s more economic optimism. There’s even 39% that thinks that the economy will be better within 6 months. In September 2008 50% of people thought that there will be a job shortage while now ‘only’ 43% of people think this.

People also believe in the fact that their income will stay the same of even will be higher! And that’s a good point because here you can see that they believe in a recovery.

Now people see that the recession will end and they are optimistic for the future. According to Martin Gahbauer ( Nationwide’s chief economist) this factor is due to the fact that the UK is climbing out of its longest recession of 6 quarters.

It’s good to see that the confidence in growing. You can see it a lot of numbers. When the confidence is getter bigger their spending will also get bigger and that’s good for the recovery. Because people will earn more and they will be happier!

Written by: Sofie Lamon

Source: http://www.thisislondon.co.uk/standard-business/article-23811398-consumer-confidence-best-in-two-years-as-recession-ends.do

Extreme obesity among kids

We all know that obesity is a major problem in America today, but what if it's even worse than we thought?

A recent study of 710,949 children and teens (aged 2-19) revealed that 7.3% of boys and 5.5% of girls are extremely obese. This translates into about 45,000 extreme obese kids. The peak is at 10 years for boys and 12 years for girls.
You are considered extremely obese if you got a Body Mass Index (BMI) of over 35.

Of course being obese at that age is not healthy. If they go on like this, they can have their life expectation shortened by 10 to 20 years.
But that's not everything, they will also develop health problems in their twenties, while normal people will only face those when they are 40-60 years old.
Extremely obese kids are also at higher risk of getting heart diseases, diabetes, liver diseases and joint problems.

Specialists warn them and their families to change their lifestyle fast, because this has to be treated as a family issue. You'll never see an extremely obese child surrounded by a completely healthy family.

I think the families should be a lot more careful with what they give their child. If you look at the percentages of extremely obese kids, it's ridiculously high. Also the age at which they peak is really low.
If you are that obese at that age, it's no wonder your life expectation drops dramatically. This can't be good for a young body.

The effects that extreme obesity causes are really frightening too.
A higher risk for heart diseases, diabetes, liver problems,... . They are all lethal. No wonder that your life expecation drops by 10 to 20 years.

The main reason why kids are that obese is the lifestyle of their family, their parents in particular. They are the ones to blame. The kids grow up with fastfood and microwave meals, they are very unhealthy.
So to let the obesity drop, you have to change the parents' lifestyle first.

Written by Dieter De Smet

Source: http://www.consumeraffairs.com/news04/2010/03/obese_kids.html

Dishing out some truth

Most of the people believe that our meat, dairy products, eggs,... are produced in farms. In fact food is fabricated in huge factories. The documentary “Food, Inc.”, broadcasted on television, gives a straight view on the American food industry. The real reality has been hidden too long.

It all started with McDonald’s who wanted to offer their products on the market place at the lowest prices. They actually invented mass food production. They bought little farms and transformed them into huge production plants. Other companies adopt this idea and now only a few multinationals control the whole the food chain. They raised the production efficiency to such a level that at the end in fact they only produce unhealthy products, which lead to health risks for consumers of their products.

The consequences are proven to be enormous:

• The food has become much more dangerous. Some people died by eating fast food that contains Salmonella or E Colli.
• Poor people have no choice and buy these products because they are cheaper.
• More and more people suffer from obesity and diabetes.
• Farmers are totally controlled by the multinationals and have no rights anymore.
• The industry causes pollution.
• ...

So why do the FDA and USDA refuse to intervene? Well, curiously enough these organisations are led by people who have strong connections with the food multinationals.

The FDA and USDA are supposed to protect us and control our food. In my opinion everyone who can be linked with one of these food multinationals should be immediately discharged from any government’s function.

I’m convinced that if more people would know the truth, this system could be changed. You can for example buy products of companies which respect their workers, the environment, the animals and choose for organic and locally grown products. It won’t be easy but there is hope.

Food, Inc. is a very confronting movie. I will never look at my meal the same way, that’s for sure!

By Liesbeth Alliet

Source: Food, Inc. (documentary directed by Robert Kenner)

Which is better, store brand or name brand?

If you go to a shop and you can choose between a store brand and a name brand. What would you choose? The name brand because the quality is better? If you do this, you are wrong. The only difference between both brands is the part of the manufacturer of the good. He uses more money to promote the name brand. This is why costumers have to pay more for a name brand.

The quality of both goods is the same. Even more, some people don't even taste the difference between both products and sometimes, they think that store brands are name brands. In a inquiry, 51% of the participants preferred the taste of the store brand instead of the name brand.

In the past, people didn't buy much store brands. But nowadays, they buy them more because they know that both brands have the same quality so they have to pay less for the same product.

Another reason why people buy more store brands is because the crisis hits every family. They buy less name brands and more store brands because they have to economize.

I think that it's obvious why people buy store brands. They know that it has the same quality as name brands and it costs less. I also buy store brands because, as a student, you don't have much money to buy name brands every time I go to a shop.

My conclusion: Store brands are better for the consumer because you don't have to pay much and it has the same quality as name brands.
Name brands are better for manufacturers because they can earn more if they sell them.

Written by Yorick Stroobant

My source: http://www.consumeraffairs.com/news04/2010/03/brand_comparison.html

Huge phone bills incoming

According to the consumers' association "Which?'" a lot of people that use smartphones abroad can get huge bills.

If you use a smartphone in your own country, to go on Facebook for example, you don't really need to worry about your bills. But if you do that abroad, you can pay a lot more.
Some say it can cost up to 8 pounds per megabyte downloaded and downloading one 10 minute movie + 5 music tracks can cost you up to 200 pounds.

Most people think they are safe if they don't download anything via their smartphones abroad, but they are wrong. Turning on your phone will cause it to connect with the internet, so if you get an e-mail you'll have to pay for it, if you try to search for the nearest restaurant, you'll pay.

I think those prices are ridiculous. Up to 8 pounds for 1mb is a lot. People easily download several megabytes when connected with the internet, so they'll have to pay a lot without them even knowing it.
I also don't see a reason why you have to pay a lot more for downloads than the people from that country. I think it's unfair.

The EU responds to the many angry reactions from customers and comes up with a new set of rules.
If you download anything fomr within the EU27 (+Switzerland), you'll be protected by a rule that will limit the bills you have to pay to a maximum of 50 euros. The limit is changeable, but you'll have to contact your phone company. People will be warned when they reach 80% of their limit, and they can't download anything once they reached it.

I think those rules are very good. It will stop people from getting huge phone bills. It's also nice that it gives a warning first, this means people know when to stop.
It would be better if it gave a warning at 30% and 50% of your limit. So people get an idea of how much they have to pay and how much they can still download.
A negative side is that the rules only apply to the EU27, so not in like Asia or Africa. It would be better if they had a worldwide rule for this problem.

Written by Dieter De Smet

Source: http://news.bbc.co.uk/2/hi/business/8576941.stm

How many chickens does it take to make Mc Donald’s breakfast?

Each morning, McDonalds serves numerous numbers of Egg McMuffins, McGriddles and other popular breakfast items to their customers. The ingredients such as the bread, sausage, ham, bacon, cheese and eggs that are used several times in 1 dish don’t appear from thin air. They discovered that it takes more than 1.1 million hens to produce the amount of eggs McDonalds needs to feed their customers in the United States which is just the west of the Mississippi river!

In this role we have the exclusive supplier for McDonald’s, Sparboe Farms. They supply all the eggs and liquid eggs for the big fast-food restaurants west of the Mississippi river in the United States. Today there are approximately 500.000 hens producing eggs in the facility but McDonalds has asked Sparboe to expand the number of hens because they can’t keep up the?

Of course, Sparboe followed the advice and is now in the process to expand in its facility near Eagle Grove, MN. They hope to complete the extra 2 buildings on June 1^st. The new buildings will add 600.000 more hens to Sparboe’s production number. Sparboe has around 100 employees at the 2 sites and with the upcoming expansion they will create 7 new jobs. The company’s west facility is currently producing approximately 2 million eggs a day, which means about 14million a week.

If we look closer at McDonalds we see that they where the first who started offering breakfast foods in 1973 which was the Egg McMuffin. After that they invented new products and today they sell the most breakfast items of all fast-food suppliers in the United States.

I think that it’s rather normal that they offer breakfast but why are most items based on eggs. It’s possible to introduce other non-egg products to the menu. On the other hand it’s business as usual and more profit with the same items is normal.

By Karen Mechelinck – 2 FV 4

Source: http://www.americanconsumernews.com/2010/03/how-many-chickens-does-it-take-to-make-mcdonalds-breakfast.html

March 15^th 2010

5 reasons to use mobile banking

According to Frost & Sullivan, a business research & consulting, more and more people are using mobile banking. In 2009 12 million people worldwide used mobile banking services. By 2010 this number will rise up to 45 million.

The users have 5 good reasons to use mobile banking:
1) Experts pretend that mobile banking is more secure than Internet banking.
2) They don’t have to pay the banks fees.
3) They can consult their account balance, transactions,… anytime, anywhere. So they have more control over their financial affairs.
4) Mobile banking is increasing very fast.
5) There are more ways to access accounts: texting, mobile browsers or downloadable applications.

But at this moment mobile banking is still in his infancy:
- The number of services is limited in comparison with Internet banking and only basic services such as checking your account, translations, pay bills,…, are offered.
- Besides, most banks concentrate on the smart phones users (Iphone, Blackberry) and develop applications mainly for these devices. So for those who don’t have Iphone or Blackberry is not always possible to make use of mobile banking.

I believe in the future of mobile banking. It seems to me that mobile banking will even replace the Internet banking at long notice. In a few years everyone will have a smart phone and will be able to use mobile banking services. But first the banks should invest more in new applications so that everyone can take advantage of mobile banking.

Thanks to these technologies our live becomes easier. We adapt new technologies easily and we can’t even live without anymore.

To conclude, the future for mobile banking seems to be promising.

By Liesbeth Alliet

http://www.bankrate.com/finance/savings/5-reasons-to-use-mobile-banking-1.aspx
http://www.bankrate.com/finance/savings/5-reasons-to-use-mobile-banking-2.aspx

Prices of consumer goods holds steady, indicating that inflation is at bay

Because of the recession people looks after the prices of their goods. According to the government the price of the consumers goods held steady in February. The labor department announced that there’s no movement in the prices. But with fuel and volatile food it rose with 0.1%

A few facts:
• Cars: - used vehicles rose with 0.7 %
           - new vehicles rose with 0.4 %
• Medical care costs: + 0.5 %
• Food prices: + 0.1 %
• Energy: reduced with 0.5 %

The US had to do something to keep the constancy in the prices. There a lot of efforts to stimulate the economy but they haven’t achieved a lot yet.
The federal reserve want a maximum increase of 2% and in comparison with last year there’s a grow of 1.3%. But it’s getting better because the inflation is stabled.

When there’s a weak demand for goods the prices will fall which will cause a deflation. But because there’s a recovery the demand will not drop.

The prices maintain the same because of the high unemployment rate. When people doesn’t have a job, they haven’t a lot of money to buy goods with, so the companies doesn’t earn a lot of money. So they have to raise the prices.

I think it’s difficult to lower the prices in times of recovery. Cause the economy isn’t strong enough to drop the prices. When they decrease the prices the companies will earn less and that’s not good for the economy. Like a lot of economists said it will take another 2-3 years until the economy will be strong again. It’s because the recovery that some interventions are stopped so they have to do it on their own again and that’s not always that easy. And due to the fact that a lot of people has lost their jobs it’s difficult to raise the prices because they can’t effort them a lot.

Written by Sofie Lamon (2fv4)
source:  http://www.nytimes.com/2010/03/19/business/economy/19econ.html