Page One TEXT VERSION OF “THE CONSUMER WATCHDOG” NEWSLETTER News to Use for New York Consumers From the NEW YORK STATE CONSUMER PROTECTION BOARD Volume 2, Number 2 – Fall 2008 ______________________________________________________________ The New York Giants and the CPB Team Up Against Identity Theft Countless consumers are receiving the message that they need to protect their identity through different practices. The legendary New York Giants wide receiver Amani Toomer is the spokesperson for a joint New York Giants/Consumer Protection Board (CPB) awareness campaign airing on radio and television this fall. “I have proclaimed the week of October 26 - November 1, 2008 as Identity Theft Awareness Week in the Empire State,” said Governor David A. Paterson. “I would like to thank CPB Executive Director Mindy A. Bockstein, the NY Giants and Amani Toomer for championing this cause. By getting the word out on identity theft, New York State can reduce the number of victims of this insidious crime.” “We are grateful to the NY Giants and Amani Toomer for helping us draw attention to this important consumer issue,” said Bockstein, CPB Chairperson and Executive Director. “By providing consumers with information, we are empowering them to take action to protect their identity and prevent the consequences of victimization.” The public service announcement (PSA) directs consumers to identity theft information and additional consumer resources available on the Agency’s website at: www.nysconsumer.gov. The PSA features the following message: “My identity is important to me, and I protect it just like I protect the football,” said Amani Toomer, #81, wide receiver for the NY Giants. “Don’t get sidelined by identity theft!” Protect yourself now!” PHOTO: New York Giants Amani Toomer is the spokesperson for the ID Theft Campaign. The CPB “SYDES” with Consumers as “Stretch Your Dollar” Effort Nets Effective Money-Saving Tips The Consumer Protection Board’s (CPB) Stretch Your Dollar Effort (SYDE) gained the attention of the Center for Best Practices of the National Governor’s Association. The Association touted SYDE as an effective method of helping families deal with tough economic times. The CPB launched its SYDE this summer, and turned to consumers to provide suggestions. The information is continually updated to add ideas. Ingenious consumers have risen to the fiscal challenge, devising good strategies to cut spending and save money. Consumers are sending in written, audio and video tips to the CPB’s dedicated e-mail address: my2cents@consumer.state.ny.us. You can too! For example, it’s amazing how much money people spend on eating food in/from restaurants when they could bring lunch from home to work and save their hard-earned money. Assuming that restaurants typically charge between $6 and $10 for a meal, this adds up to between $1,500 and $2,500 over the course of a year! In contrast, homemade lunches generally cost between $2 and $5. Consumers are urged to add their 2 cents to our Back To School Savings, General Savings, Grocery Shopping, Gas Savings, at Home Food Prep and Household Savings Tips. The SYDE tips can be found on the CPB’s website at www.nysconsumer.gov. Page Two A Message from Mindy A. Bockstein This newsletter highlights partnerships with both public and private entities to advocate for and empower New York consumers. There are many exciting achievements to highlight, such as our partnership with the NY Giants, featuring the legendary Amani Toomer, who is championing identity theft protections in TV and radio public service messages. The CPB is also pleased to be working with various industries to promote juvenile product safety. Additionally, we are raising toy safety awareness among children through the CPB’s Max Safetoy Club on 1.5 million milk cartons now available in New York schools every week, thanks to NYS Dairy Foods, Inc. and various dairies. We are honored to partner with the NY State Builders Association on our “Ask the Expert” home improvement initiative and have extended the Agency’s fiscal literacy initiative to colleges and career development programs. These partnerships keep costs down as the CPB is doing its part to help stave off budget woes without cutting services or efficiencies. Sincerely, Mindy A. Bockstein Chairperson and Executive Director PHOTO: Mindy A. Bockstein, Chairperson and Executive Director of the New York State Consumer Protection Board Overcharging New Yorkers for Electricity is Intolerable! When electricity customers in New York State were charged to the tune of more than $100 million this year, the Consumer Protection Board (CPB), joined by the New York Power Authority (NYPA) and the Long Island Power Authority (LIPA) demanded that the Federal Energy Regulatory Commission (FERC) investigate the matter, eliminate the loopholes that allowed it to happen and require the culprits to provide refunds for consumers if appropriate. “New Yorkers are already financially burdened due to economic hardships, and can ill-afford to bear the brunt of overcharges for their energy,” said Governor David A. Paterson. “I am counting on the federal government to act on behalf of New Yorkers. Anything less than a swift comprehensive investigation and restitution would be unconscionable.” The Governor asked the CPB, in its capacity as the consumer advocate in utility proceedings, to take the lead in protecting New Yorkers from being overcharged. The nonprofit New York Independent System Operator (NYISO) is responsible for oversight of the State's wholesale electricity market. The CPB represents consumers before the NYISO and other energy agencies, including the FERC and the Public Service Commission. According to findings first revealed by the NYISO in July 2008, some energy traders used a “seam” in market rules to sell electricity in a circuitous route around Lake Erie, through Canada and the Midwest, rather than taking a direct route, causing overcharges in New York. It is unclear whether or not this abuse of the system constitutes an illegal action or was simply unethical. The CPB’s formal comments to the FERC seeking an investigation and refunds are under consideration. Further, in an August 7, 2008 letter to NYISO President Stephen Whitley, the CPB’s Chairperson and Executive Director Mindy A. Bockstein expressed concern about their efforts to monitor the electricity market, saying, "It appears that certain market participants can engage in questionable behavior with impunity. Even when caught, there is no penalty or risk of losing legitimate gains. Such a framework is unbalanced and is a detriment to consumers." In taking an indirect route, the traders avoided substantial costs and yielded greater profits than they would have typically net on the transactions. While providers saved money by looping around Lake Erie, ultimately consumers bore the brunt of the costs, and paid more for their electricity because of it. “Paying more for already high energy prices is simply intolerable,” said Bockstein. “We can not stand idly by and watch this continue. Something must be done to restore the public trust in governance of our energy system.” FERC has begun its investigation and the CPB and New York consumers await the results. Page Three The CPB and the NYS Builders Association Advise Consumers with Innovative “Ask the Expert” Program In the wake of mounting complaints against home improvement contractors, the CPB collaborated with the New York State Builders Association (NYSBA) to bring consumers reliable project information through an “Ask the Expert” program. The CPB’s popular “Ask the Expert” Home Improvement Program has attracted attention by giving consumers an opportunity to e-mail their questions to asktheexpert@consumer.state.ny.us, where they can find the answers to their own or similar home-improvement questions on the CPB’s website (www.nysconsumer.com). "Our homes are our castles, representing one of the biggest investments people ever make” said Mindy A. Bockstein, Chairperson and Executive Director of the CPB. “With so much money at stake, our collaborative ‘Ask the Expert’ program is helping to protect consumers by providing them with reputable information they can count on upfront - - before they contract for home improvements.” Consumers should note that the CPB's "Ask the Expert" project on the Agency’s Home Improvement page of its website is for informational purposes only and is not designed to replace an actual visual inspection, evaluation or estimate for any home maintenance or improvement project. Sample Questions from the “Ask the Expert” Program Question: “Is there a resource available to the public that defines construction and architectural terms so that I can better understand a home improvement project and the terms of my contract?” Question: “We are interviewing contractors for a 3+ million job. How can we check to be sure there are no claims against them?” The answers to these questions as well as other questions from consumers on heating systems, builders and contractors, construction and architectural definitions, contracts, energy savings, paint, mechanics’ liens and more can be found on the CPB’s website. CPB Part of Eight-Agency HeatSmartNY Effort to Assist Vulnerable NYers with Heating Costs In October, Governor David A. Paterson announced a coordinated State endeavor to help vulnerable New Yorkers facing high home heating costs this winter through intervention, information and assistance. In introducing the effort, Governor Paterson said, “While we remain focused on reducing spending to address the economic downturn, we must at the same time be mindful that for many New York families, this is going to be an especially harsh and difficult winter. New Yorkers should not be endangered by falling temperatures and rising heating fuel costs.” Under the initiative, a new website (www.HeatSmartNY.org) and hotline number (877-NY-SMART) enables New Yorkers to quickly determine which programs might be available to help keep their homes and families warm through the winter. A series of workshops, around the State, informs consumers of energy efficiency steps to lower heating bills. The Consumer Protection Board (CPB) is participating in this effort along with the New York State Energy Research and Development Authority; the Division of Housing and Community Renewal; the Office for the Aging; the Office of Temporary and Disability Assistance; the Public Service Commission and, the Long Island and New York Power Authorities. “Record high home energy prices are placing a tremendous strain on the bank accounts and wallets of many New York consumers,” said CPB’s Chairperson and Executive Director Mindy A. Bockstein. “The Governor’s efforts to combine Agency resources to help more people gain access to information and assistance will prove invaluable to millions. The CPB continues to save consumers money by representing their needs before federal and New York State governing bodies, and, working together with other Agencies, saved more than $1.1 billion in avoided utility costs last year.” Snapshot Energy Efficiency Tips * Install insulation * Lower your thermostat * Lower your hot water temperature to 120o F * Weatherproof your home * Keep ducts, filters, heaters, registers, etc. clean and unblocked * Keep fireplace dampers closed when not in use For more tips, visit HeatSmartNY at www.HeatSmartNY.org. Page Three Kids Learn about Toy Safety through CPB’s Milk Carton Campaign Toy and juvenile product safety and recalls continue to get national headlines, and the Consumer Protection Board (CPB) is responding. Through a partnership with the NYS Dairy Foods Association and schools, the CPB has created the first-ever milk carton campaign to educate youngsters about toy safety. The start of the 2008-2009 school year was marked by the reintroduction of the Max Safetoy Club, a CPB program to educate students about toy safety, with activities and a secret code word of the week available online at www.nysconsumer.gov/safetoysny. This year, students whose school milk is provided by NYC Elmhurst Dairy receive Club information on 2% chocolate milk cartons. Mohawk Dairy in upstate New York debuted the toy safety message on the side panels of their half-pint 2%, 1%, nonfat white and chocolate milk cartons this September, adding approximately 20 schools to the growing list of toy safety-conscious school districts. Other community-based organizations including hospitals are receiving the milk cartons as well. Additionally, Mohawk Dairy has announced that it will be placing the CPB’s toy safety information on its half-gallon milk containers which will soon be available in upstate stores. PHOTO: (L-R) Isaiah Scarlett (1st Grade) and Michaela Barnes (3rd Grade) from Roessleville Elementary School, Albany, NY, display the milk cartons available at their school. Kids Corner Consumer empowerment and protection for children of all ages continues to be one of the CPB’s priorities. The website is full of information, tips and tools for children and their parents and care-givers. The following is a listing of some of the CPB’s Child Safety information and tips, which can be found by visiting www.nysconsumer.gov: Making Your Home Safe For Grandchildren Childhood Choking Prevention Top 5 Hidden Hazards in the Home Raising Baby on a BUDGET Childproofing Your Home "Keeping Baby Safe" Checklist When is Hot Water Too Hot? Baby Sleeps Safest Alone Be Video Wise Car Seat Safety Tips Toy Safety Tip Card Playground Safety PHOTO: CPB Chairperson and Executive Director Mindy A. Bockstein meets with Fordham Murdy, Ronald McDonald House of New York Program Manager, while touring the facility where Kidsumer newsletters and other CPB youth resources are being distributed. CPB Expands Outreach and Education to New York’s Hispanic Communities The Consumer Protection Board (CPB) has broadened its outreach to Hispanic communities and provides many of its materials in Spanish. In addition, several Hispanic newspapers including El Diario La Prensa in New York City; Hispano Americano in Nassau, Suffolk and Queens; El Especial Newspaper in New York City (Bi-Weekly); CNY LATINO - Hispanic Media consortium on the Web representing the Syracuse area; and, El Aguila News in the Hudson Valley are now publishing a Spanish Consumer News Column through which the CPB provides consumers with key information.