Consumer Protection

SAN FRANCISCO – Attorney General Kamala D. Harris today issued a consumer alert to Californians regarding potential sports ticket scams targeting consumers attending the Super Bowl and related events.  As part of her commitment to modernizing government as well as better serving the visually impaired, Attorney General Harris has also released the first in a series of radio stories on consumer issues across the state.  This feature includes a fan’s perspective plus information and tips from the California Department of Justice, StubHub, Fan Freedom, and the Better Business Bureau, to avoid becoming the victim of a ticket scam.

Radio Story (5:00):  Listen on SoundCloud             

Public Service Announcement (0:30):  Listen on SoundCloud         

Many Californians are no doubt eager to purchase tickets to Super Bowl 50, which will take place on February 7, 2016, at Levi’s Stadium in Santa Clara, California.  The demand for Super Bowl tickets far exceeds the supply.  In light of this, scam artists take advantage of sports enthusiasts by selling counterfeit, void, or stolen tickets.  The Attorney General reminds Californians to purchase tickets through legitimate sellers in order to protect their personal information and ensure the authenticity of their tickets.

Regardless of the sporting event, consumers should be aware that purchasing tickets from individual, third-party sellers could also subject them to identity theft and fraud.  Consumers who purchase tickets online based on classified ads could have their personal information misused.  Additionally, those who buy sports tickets from unguaranteed sources may receive invalid tickets, may not receive tickets on time, or may receive tickets for a different event.  Legitimate ticket resellers typically guarantee that sports tickets are authentic and clearly describe how refunds are handled.  And in the event you are the victim of a ticket scam, even if you do receive a refund from the seller or your credit card company for the cost of the ticket, you may still be stuck with airfare and hotel costs.  This consumer alert offers tips for safeguarding consumers from sports ticket scams. 

What to look out for

The Attorney General offers California consumers the following tips in order to avoid falling victim to sports ticket scams:

• Consumers should attempt to purchase sports tickets from official sources, such as NFL.com, or other official ticket providers, in order to protect themselves from sports ticket scams.
• Utilize credit cards or a PayPal account when purchasing sports tickets online, in order to ensure that you have an opportunity to challenge the charge if the ticket sale is fraudulent.  Sports ticket sellers who require payment via a prepaid card, or who request the wiring of money, may be engaging in a scam.     
• When purchasing sports tickets online, consumers should ensure that the web address begins with https://, which means that the site is secure and your credit card and billing information will be protected from being intercepted by a third party. 
• Research the seller’s reputation by searching online for reviews regarding the seller and any potential consumer complaints regarding prior scams.
• Purchase from resellers who provide authentic sports tickets.  Look into the reseller’s refund policy, and whether the reseller offers a guarantee regarding the authenticity and timely arrival of the tickets.   
• §  Be wary of sports tickets that are advertised at a price that is below market value, or that appear to be an unusually good deal.  Scam artists may advertise tickets that they do not possess, and take money from consumers without providing any tickets at all.
• §  Examine your sports ticket to ensure that the event information is correct, and look out for abnormalities such as illegible text or uneven margins.  Fake tickets may have incorrect information printed on them, and could utilize a photocopied barcode. 
• Be wary of purchasing sports tickets based on an online classified advertisement.  Avoid providing your credit card information to an unknown person, and meet the seller at a safe location such as a local police station, if you intend to pay the seller in person.    

HELPFUL RESOURCES 

The NFL provides tips for purchasing a legitimate Super Bowl ticket, and describes How to Tell if Your Super Bowl Ticket is Legit.

The NCAA Reminds Fans Only to Purchase Tickets from Authorized Sources.

For information on Super Bowl 50 and the availability of tickets for the game, please go to Levi’s Stadium Super Bowl 50, and for more details about the event see Super Bowl 50 Frequently Asked Questions. 

What to do if you are the victim of a SPORTS TICKET scam

The Better Business Bureau (BBB) offers resources for those who have purchased a counterfeit sports ticket.  If you have been a victim of a sports ticket scam, immediately File a Complaint with the BBB.

Finally, the California Department of Justice protects the rights of consumers and collects complaints on sports ticket scams in order to identify patterns of wrongful activity.  To submit a complaint to the California Department of Justice regarding a sports ticket scam, please use one of the following complaint forms:

English: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company. 

En Español: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_sp.pdf? 

中文: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_chin.pdf? 

Tiếng Việt: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_viet.pdf?

SAN FRANCISCO – California Attorney General Kamala D. Harris is commemorating international Data Privacy Day by reminding consumers of three easy steps to take to protect against identity theft in 2016. Attorney General Harris is also partnering with Facebook to share privacy tips for Facebook users, as part of her commitment to incorporating technology into government. The Attorney General’s Facebook video message can be found here: http://on.fb.me/dataprivacydaycalifornia. January 28, Data Privacy Day, is observed in the U.S., Canada and Europe as an opportunity to promote privacy awareness.

Identity theft is a privacy crime that cost individuals and businesses $16 billion in 2014,the last year for which information is available.[1] There were 12.7 million victims of identity theft in the U.S. – that is one victim every 2.5 seconds. Over 1.5 million victims were in California.

The following three Data Privacy Day tips are a good starting point for consumers to begin to protect themselves from identify theft.

1.     Order your credit reports (free).  

Consumers are highly encouraged to regularly monitor their credit files. Proactive credit monitoring can help consumers catch errors and quickly identify potential identity theft issues. Consumers are entitled by law to get a credit report from each of the three major credit bureaus every year, at no cost.

FREE annual credit reports can be ordered online at www.annualcreditreport.com or through the toll-free phone number:  (877) 322-8228. After receiving the reports, make sure to review them thoroughly for information that is not recognized and take action on anything suspicious. For more information, please visit: How to Order Your Free Credit Reports: Tips for Consumers.  All consumers are entitled to one free credit report every 12 months, from each credit reporting company, and should not have to input or share credit card information for these reports.

2.     Protect your electronics with strong passwords (free).

Smartphones and tablets contain a lot of personal information, such as banking, shopping, and location information in apps and emails. Consumers should make a habit of locking their devices just as they lock their homes and vehicles. Additionally, rather than using a 4-digit passcode which can be cracked in minutes, consumers should use a strong password that contains at least 8 characters, including letters, numbers and symbols. Consider using a phrase and substituting numbers and symbols for letters. For example, “how much wood would a woodchuck chuck?” might be Hmww1wcc? (Don’t use that one!)  

Many smartphones, including both Apple and Android phones, provide lock or passcode tools in the “Settings” feature of their devices. Device manufacturers today offer advanced technologies like fingerprint sensors and “lock patterns” that can make it very difficult to access a stolen device.

General screen lock information:

• iPhones and iPads (iOS)

New Apple products protect devices with a thumbprint or a numeric passcode, or a combination of both.

From home screen, select SETTINGS, then TOUCH ID & PASSCODE. On older products, select SETTINGS, then GENERAL, then PASSCODE.  Follow instructions and remember to set how quickly you want the device to lock (one minute, five minutes, etc.)

More on Apple locks: www.support.apple.com/en-us/HT204060 

• Android devices

Depending on your type of device, Android allows you to use a pattern unlock, a personal identification number (PIN), or an alpha-numeric password. Though the language varies in different Android devices, you can generally follow this path:

Select MENU on the home screen. Select SETTINGS, then SECURITY, then CHANGE SCREEN LOCK.

Check the version of your Android device: www.support.google.com/nexus/answer/4457705

More on Android locks: www.support.google.com/nexus/answer/2819522?hl=en

For more information on strong passwords, please visit:  Safe Password Practices - Refresh Here!

3.     Freeze your credit files ($30) – or place a fraud alert (free).

Consumers who believe they may be victims of identity theft should consider freezing their credit files. A credit freeze is the strongest consumer protection against serious types of identity theft that involve Social Security numbers. It prevents the opening of new accounts but does not affect existing credit accounts. Credit freezes remain on accounts until the account holder temporarily or permanently lifts the freeze.

To activate a credit freeze, consumers must contact each of the three credit bureaus. Once the credit bureaus have frozen the requested credit records, a potential thief cannot open a credit account, get a loan, or do certain other things in the account holder’s name. Consumers who need to open a new credit account during the freeze can “lift” the freeze in advance for a limited period of time by contacting the credit bureau (sometimes for a small fee).

Credit freezes are free to victims of identity theft who have a corresponding police report.  Otherwise, freezes cost $10 per credit bureau.  For consumers 65 and older, each freeze is $5. For more information, please visit: How to “Freeze” Your Credit Files

An alternative to a freeze is a fraud alert. Consumers who are in the market for new credit, insurance, or employment may find a credit freeze cumbersome as the freeze must be lifted every time a request is made for new credit. Instead, consumers looking for new credit may want to consider placing a fraud alert on their accounts. Fraud alerts offer a free, fast, and effective way to protect against a potential identity thief opening new credit accounts under an account holder’s identity. A fraud alert signals to credit grantors that requests for new credit accounts or credit extensions may be coming from an identity thief and it requires merchants to take extra steps to verify the identity of the applicant. To place a fraud alert, consumers only need to contact one of the three credit bureaus, which will result in all three placing the alert. A fraud alert lasts 90 days and can be renewed.

For more information on fraud alerts, visit: Breach Help: Consumer Tips from the Attorney General

ADDITIONAL INFORMATION

California Attorney General identity theft information:  www.oag.ca.gov/idtheft

California Attorney General privacy information:  www.oag.ca.gov/privacy

Data Privacy Day: https://www.staysafeonline.org/data-privacy-day/about.

[1] Javelin Strategy & Research, 2015 Identity Fraud Study, available at www.javelinstrategy.com.

LOS ANGELES - Attorney General Kamala D. Harris today announced the kick off of a series of statewide public forums in partnership with Univision Los Angeles, the Service Employees International Union of California and iAmerica to provide Californians applying for U.S. Citizenship with information on the application process and how to avoid immigration services fraud.  

The forums are a continued effort by the Attorney General’s Civil Rights Enforcement Section (CRES), which last year hosted and presented at forums across the state to warn immigrant communities of scams targeting immigrants and con artists perpetrating immigration services fraud. At the forums, CRES will also educate attendees about wage theft, a crime that is often targeted at immigrant populations.

"The first step to protecting immigrant communities from scams is to provide education on how to avoid them,” said Attorney General Harris. “These forums are a crucial opportunity for immigrants to learn about the benefits and responsibilities of U.S. citizenship and learn how to avoid becoming a victim of wage theft and immigration services scams.”

The public forums will be hosted in eight California cities including: Los Angeles, Riverside, Fresno, Sacramento, San Jose, San Marcos, Oakland and Modesto. The statewide public forums will provide community members an opportunity to receive information about the citizenship process, set up an individual appointment for free assistance with citizenship applications, and hear from the Attorney General’s Office on how individuals can avoid being a victim of immigration services scams and wage theft.

“SEIU members are proud to partner with Attorney General Harris to protect Californians and aid immigrant families in achieving their dreams of U.S. Citizenship,” said SEIU California President Laphonza Butler. “Together we are working to break down barriers that stand in the way of immigrants initiating their pathway towards citizenship. We hope that the steps we are taking as a community will help empower the close to 2.5 million immigrants eligible to naturalize in California initiate the process and make their voices heard in our nation’s democratic process.”

Information about more upcoming forums will be announced in the coming days.

UPCOMING FORUM DATES  
Riverside:
April 30, 2016
SEIU 721
6177 River Crest Dr. #B
Riverside CA, 92507

FORUMS ALREADY HELD

Riverside:
Saturday, February 27, 2016 from 9AM to 1PM
Our Lady Of Perpetual Help Church
5250 Central Ave
Riverside, CA 92504

Hayward:
Saturday, March 5, 2016 from 9AM to 4PM
Glad Tidings Church-North Campus
27689 Tyrrell Ave.
Hayward, CA 94844

Los Angeles:
Saturday, January 30 from 9AM to 2PM
Mendez High School
1200 Plaza Del Sol E
Los Angeles, CA 90033

Major changes to United States immigration policy, like those contained in President Barack Obama’s Immigration Accountability Executive Actions announced in November 2014, often lead to con artists emerging to prey on vulnerable consumers seeking help with immigration services.

Attorney General Harris issued a consumer alert informing Californians of these scams and providing tips to help consumers protect themselves. In addition, the Attorney General issued a consumer alert informing Californians about possible scams targeting immigrants attempting to obtain a driver’s license under Assembly Bill 60 (Alejo, 2013).

On December 3, 2015, California, along with 15 other States and the District of Columbia, joined an amicus curiae brief authored by the State of Washington supporting the United States’ petition for certiorari in the U.S. Supreme Court, to overturn a nationwide preliminary injunction blocking President Obama’s November 2014 executive actions on immigration. The court granted review and it will hear the case later this term. The States’ brief argued that, by preventing these policies from going into effect, the injunction harms States by preventing undocumented immigrants from working and generating taxes, by decreasing public safety, and by creating social harms such as displacing the undocumented parents of U.S. citizen children. 

For additional information regarding these forums please contact SEIU's media contacts:

English Language

Michael Roth

Email: Mike@paschalroth.com Phone: 916-444-7170

Spanish Language

Maria Elena Jauregui

Email: mjauregui@servimediainc.com Phone: 818-355-5291

LOS ANGELES – Today, Attorney General Kamala D. Harris, in conjunction with eleven California District Attorneys and the nonprofit Center for Environmental Health, announced a landmark settlement with food industry giant Mondelēz International, Inc., formerly Kraft Foods, for selling ginger snap cookies containing lead in excess of California limits without the warning required by California’s Proposition 65.  A consent judgment was filed Thursday in Orange County Superior Court and is awaiting approval by a judge. 

“The levels of lead found in Nabisco’s Ginger Snap cookies posed a serious public health threat, potentially impacting the brain development of our children,” said Attorney General Harris.  “Parents need accurate information to make educated food choices for their children.  My office will continue to enforce Proposition 65 to guarantee that all Californians are fully informed when hazardous substances and chemicals can be found in consumer products.”

Under the settlement, Mondelēz will agree to strict product sourcing and testing protocols that limit lead in its Nabisco Ginger Snap cookies to no more than 30 parts per billion per serving and will pay approximately $750,000 in civil penalties, costs and attorneys’ fees.  Additionally, the company will hire a food quality auditor to train personnel, will fund ongoing independent auditing of its products to monitor for lead, and will monitor supply chains to ensure raw materials are within acceptable limits. 

Lead is a neurotoxin that primarily affects the central nervous system, putting children with developing brains at a greater risk of suffering from the neurotoxic effects of lead.  While no safe lead exposure threshold has been identified, California’s Proposition 65 requires a warning to consumers if they are exposed to 0.5 micrograms of lead per serving per day. The FDA recommends that children do not ingest candies that contain more than 100 parts per billion of lead.

The Attorney General’s office and District Attorneys began their investigation of Nabisco Ginger Snaps in 2013, after a Center for Environmental Health investigation into these and other cookies containing ginger.  Testing revealed that a serving of Nabisco brand Ginger Snaps contained lead levels up to 9 times the level that requires a warning under Proposition 65.  Mondelēz was not providing any Proposition 65 warnings to its customers.

The ginger snap cookies have since been reformulated.  Lead sources in the cookies were linked to ginger and molasses.  Experts have linked high lead levels in molasses to soil in which sugar is grown, and also to the manufacturing process.  Sources of lead in powdered ginger have also been linked to contaminated soil in which ginger is grown, and to the brining process in which it is dried.

Mondelēz is the world’s largest manufacturer of processed snack foods. Mondelēz brands include Nabisco, Oreo, Cadbury and Trident.  Nabisco brand ginger snap cookies were the subject of the lawsuit.

Proposition 65, "The Safe Drinking Water and Toxic Enforcement Act of 1986,” is California’s landmark law which serves to protect public health and the environment by requiring businesses to provide warnings if they expose individuals to any listed carcinogens or reproductive toxins.  At least once a year, the state must update a list of chemicals known to cause cancer or birth defects or other reproductive harm. This list includes approximately 800 chemicals.  Proposition 65 mandates that businesses notify Californians about significant amounts of chemicals in the products they purchase, in their homes or workplaces, or that are released into the environment.  It also prohibits California businesses from knowingly discharging significant amounts of listed chemicals into sources of drinking water. 

This settlement is part of a series of cases that Attorney General Harris and her predecessors have successfully prosecuted under Proposition 65, in order to remove lead from a wide variety of consumer products, including Mexican candy and soda, artificial turf, jewelry, and vitamins and nutritional supplements.

The eleven District Attorney’s Offices in the action are part of the California Food, Drug and Medical Device Task Force, which prosecutes multi-jurisdictional actions involving product safety and labeling of food, drug and medical devices in California.  Consumer-protection prosecutors from Orange, Santa Clara, Santa Cruz, Alameda, Sonoma, Napa, Shasta, Solano, Marin and Monterey Counties participate in the task force.

In early 2015, Attorney General Kamala D. Harris announced the formation of the Bureau of Children’s Justice (BCJ) at the California Department of Justice.  BCJ’s mission is to protect the rights of children and focus the attention and resources of law enforcement and policymakers on the importance of safeguarding the rights of every child so that they can meet their full potential.  Staffed with civil rights and criminal prosecutors, and working across all sectors of the Department of Justice, including Legislative Affairs, Native American Affairs, the Division of Law Enforcement and other sections, BCJ focuses its enforcement and policy reform efforts on several key areas, including discrimination and inequities in education; systemic reform of foster care, adoption, and juvenile justice systems; and consumer protection relating to services and products for children or families with children.

LOS ANGELES – Attorney General Kamala D. Harris today issued a consumer alert to Californians regarding new requirements for the registration and regulation of drones, also known as small Unmanned Aircraft Systems (sUAS), due to the increased popularity of the technology.  According to the Federal Aviation Administration (FAA), effective December 21, 2015, drone operators who owned their drones prior to December 21 have until February 19, 2016 to register their drones with the FAA; those who purchased a drone on or after December 21 must register their drone prior to flying it outdoors. 

There is a $5 registration fee, however, individuals who register their drone before January 20 will have this fee refunded.  These new requirements apply to drones weighing more than 0.55 pounds; drones under this weight requirement need not be registered.  Drone operators who fail to properly register their drone may be subject to civil and criminal penalties.

These new requirements were issued to address safety concerns stemming from the rising popularity of drones.  It is projected that in 2016, 1 million drones subject to this registration requirement will be sold in the U.S., a 145 percent increase from 2015.  In 2014, according to the FAA, there were 238 total drone incidents reported; in 2015, this number had jumped to over 650 by August.

PROPER REGISTRATION AND SAFE USE OF DRONES

You can find complete directions for registering your drone here: https://registermyuas.faa.gov/.  The Attorney General offers California consumers the following highlights regarding the registration process and the safe use of drones:

• Drone registration should be completed online at https://registermyuas.faa.gov/ when: 1) a drone weighs between 0.55 pounds and 55 pounds, 2) the drone is owned by an individual, and 3) the drone is used for recreation.  Drones that weigh less than 0.55 pounds need not be registered with the FAA.  The weight limit applies only to the flying portion of the drone.
• Drone operators who owned their drones prior to December 21, 2015 have until February 19, 2016 to register their drones.  Those who purchased a drone on or after December 21, 2015 must register their drones with the FAA before flying outdoors.  The drone registration fee is $5.  This fee will be credited back to those who register before midnight, Eastern Standard Time, on January 20, 2016.   
• Drone registration should be done by paper (rather than online) when a drone is greater than 55 pounds, when a drone is used for commercial purposes, or when a drone is used for reasons other than merely a hobby or recreation.  
• A drone operator should always have the FAA registration certificate available, either in print or electronically, when flying a drone.  The registration certificate contains the FAA registration number, the registration’s expiration date, and the name of the drone certificate’s registrant.  
• Consumers who own multiple drones only need to register once with the FAA, and may use the same registration number on all of their drones.  Drone operators should visibly and legibly place their unique registration number on their drones. 
• To register a drone, a person must be at least 13 years old (if a drone’s operator is younger than 13 years of age, a person 13 years of age or older – such as a parent – must register the drone).  Additionally, you must be a U.S. citizen or permanent resident in order to receive a registration certificate from the FAA. 
• If a drone is not registered and is used outdoors, the FAA may impose penalties of up to $27,000.  Criminal penalties for the failure to register a drone include fines of up to $250,000 and/or imprisonment.
• A drone should be flown cautiously and safely.  It should not be flown near crowds of people or stadiums.  The FAA’s Advisory Circular on the use of model aircrafts may be found at http://www.faa.gov/documentLibrary/media/Advisory_Circular/AC_91-57A.pdf, and it provides that operators should fly drones below 400 feet and within their vision.        
• A drone should not impede, and should make way for, any manned aircraft.  Additionally, a drone should not be flown within 5 miles of an airport, unless the airport’s operator and control tower are contacted in advance.  For a list of California airports, go to http://www.faa.gov/airports/airport_safety/airportdata_5010/.  Consumers are also encouraged to review local ordinances that may be applicable to drone usage.

HELPFUL RESOURCES

The FAA’s YouTube videos on safe drone usage and drone registration are available at https://www.youtube.com/watch?v=l38WN5717jc, https://www.youtube.com/watch?v=XF5Q9JvBhxM, and https://www.youtube.com/watch?v=3jwPaFp8nMg.

Information regarding the FAA’s drone registration process is available at http://www.faa.gov/uas/registration/.  

Questions regarding the registration of drones with the FAA may be directed to UAShelp@faa.gov.  Live telephone assistance will be provided starting on December 25, 2015, at (844) 244-3565.  For additional facts regarding the drone registration requirements, go to https://www.faa.gov/uas/registration/faqs/.

What to do if A DRONE VIOLATION OCCURS

The FAA should be contacted immediately if you suspect that a drone violation has occurred.  The FAA’s Western Regional Operations Center may be reached at (425) 227-1999, or at 9-wsa-opsctr@faa.gov.

Additionally, if you suspect that a drone is unregistered, or is being utilized in a hazardous manner, contact your local police department or sheriff’s office.  In the case of an emergency, call 911.

Finally, the California Department of Justice protects the rights of consumers and collects complaints on a wide range of issues, including drone violations to identify wrongful activity.  To submit a complaint to the California Department of Justice regarding the dangerous or unlawful use of a drone, please use one of the following complaint forms:

English: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company.  

En Español: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_sp.pdf

中文: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_chin.pdf? 

Tiếng Việt: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_viet.pdf?

LOS ANGELES -- Attorney General Kamala D. Harris today issued a letter urging the Consumer Financial Protection Bureau (CFPB) to adopt regulations that strengthen protections against harmful payday and small-dollar lending practices. The CFPB is proposing to create the first nationwide regulatory floor for the payday lending industry that can work in harmony with California’s laws and regulations to further protect vulnerable consumers from falling into vicious cycles of debt.

“Together with California’s existing lending laws, the Bureau’s proposals would bring needed protections to vulnerable California consumers who take out small-dollar loans, which too often are predatory and create a debt trap for fixed- and low-income borrowers. Californians who need short-term emergency access to cash are getting stuck in a destructive and unaffordable cycle of repeat high-interest loans that they cannot afford to repay,” Attorney General Harris stated in the letter to the CFPB.

In 2014, 1.8 million California consumers took out 12.4 million payday loans, borrowing $3.38 billion.  There are over 2,000 licensed payday loan locations in California (substantially more than the number of McDonald’s restaurants).  Moreover, many locations are in counties with high poverty rates and low education levels, effectively targeting communities most in need of emergency access to cash and most at risk of becoming trapped in crippling cycles of debt.

In the letter, Attorney General Harris strongly supports the CFPB’s proposals to curb the abuse stemming from traditional, high-cost payday loans and collections and urges the CFPB to consider additional measures that would provide a meaningful alternative for Californians who need small-dollar loans.

Attorney General Kamala D. Harris’ Comments on the CFPB’s Proposed Actions

• Require a meaningful “ability to repay” standard: Attorney General Harris strongly supports the CFPB’s proposed “ability to repay” standard. This would require lenders to make good-faith, reasonable determinations that a consumer has the ability to repay the loan, after satisfying financial obligations and living expenses. Requiring an ability to repay analysis for payday and small-dollar loans would help ensure consumers are provided with loans they can afford without needing to re-borrow or default.

• 60-day “cooling off” period: Attorney General Harris supports the proposed 60-day “cooling off” period between short-term loans, which presumes an inability to repay subsequent loans made within 60 days of another loan, and a mandatory 60-day “cooling off” period after consumers take out three short-term loans in a row. This would help protect consumers from falling into debt cycles.

• Implement an “off-ramp” to taper of indebtedness: If the CFPB decides to allow an alternative to an “ability to repay” standard, Attorney General Harris would support increasing screening requirements, structural protections, and potentially phasing out alternative loans that do not require an “ability to pay” standard over time. Attorney General Harris would support the CFPB’s “off-ramp” proposal, which would allow consumers to repay certain short-term loans over additional installments without incurring additional costs, so they may better avoid taking out additional loans. Lenders should also be required to notify consumers of their right to take the off-ramp, and should not discourage borrowers from using the off-ramp.

• Curbing harmful payment collection practices: Attorney General Harris strongly supports proposals requiring notification before lenders attempt to collect payment from consumers’ accounts. Lenders should also be limited to two attempts to collect payment unless they obtain new authorization. This can help protect consumers from excessive account fees following unsuccessful withdrawal attempts.

• Protect consumer privacy: Attorney General Harris encourages the CFPB to require strict limitations on information entered into databases. Use of this data should be restricted to confirming eligibility for new loans, and access should only be granted to the necessary parties. Borrowers should receive notice that their data will be collected and stored in the database.

• Permit states to adopt more restrictive laws and regulations: The CFPB is strongly encouraged to take the necessary steps to clarify that it does not intend to undermine or preempt stricter state and local laws governing payday and small-dollar loans. Following assessment of need, further regulations may be deemed necessary for certain states and localities. The ability to implement additional restrictions should remain available.

India-Based Company to Pay $100,000 Over Unfair Business Practices, Use of Pirated Software, in First Legally Enforceable Judgment by a State Against a Foreign Company

LOS ANGELES - Attorney General Kamala D. Harris today announced a settlement resolving allegations that Pratibha Syntex Ltd., a company based in India, gained an unfair competitive advantage over American-based companies by using pirated software in the production of clothing imported and sold in California. The case marks the first time a state has secured a legally enforceable judgment against an international company for these types of violations. 

The settlement, which was filed in Los Angeles Superior Court and has been approved by a judge, requires Pratibha Syntex to pay $100,000 in restitution within 30 days.

In 2013, Attorney General Harris sued Pratibha Syntex on the basis that it did not pay licensing fees for software it relied on for its business, including products manufactured by Adobe, Microsoft, and others, giving the company a significant cost advantage in the low-margin business of apparel manufacturing, shipment and sales.

“Pratibha Syntex engaged in illegal business practices that placed California garment companies at a disadvantage, while hurting American software companies’ ability to develop new and innovative products, ” Attorney General Harris said. “Businesses around the globe should be on notice that the state of California will hold them accountable for stealing intellectual property to unfairly undercut their competition.”

Other terms of the landmark settlement prohibit Pratibha Syntex from using unlicensed software or reproducing any part of a copyrighted software program without the permission of the legitimate copyright holder, and further require the company to perform four complete audits of the software on their computers and fix any violations within 45 days.  In addition, Pratibha Syntex must draft an information technology policy statement regarding the use of licensed software and distribute this policy to all employees.

The complaint alleges that Pratibha Syntex obtained an unfair advantage because they were able to redirect money saved by using pirated software to hire employees and invest in research and development efforts.  The use of pirated software not only provides companies with an unfair business advantage, but also deters American software companies, particularly those developing software used in the garment industry, from investing in new technology and products.

“Our software is a key differentiator in the business operations of the fashion industry. Companies using software without paying for it should not be rewarded with lower costs, especially when this comes at the expense of hardworking American companies,” said Shahin Kohan, president of AIMS360, which designs and develops powerful and state-of-the-art software solutions for apparel manufacturers, wholesalers, and importers. “This landmark settlement will allow us to continue innovating and help our customers grow their businesses and create new jobs.”

California’s apparel industry, which is largely based in Los Angeles County, employed nearly 100,000 people in 2012-2013.  A 2011 study by the Orange County Business Council found that California had lost nearly 400,000 manufacturing and technology jobs over the past decade to countries where piracy rates are as high as 80 percent. This activity resulted in a loss of $1.6 billion in economic activity and $700 million in tax revenue for California.

Copies of the complaint and stipulated judgment are attached to the online version of this release at www.oag.ca.gov/news.

SAN FRANCISCO – Attorney General Kamala D. Harris today issued a consumer alert urging  older Californians to be on the lookout for the “Grandparent Scam” and other scams targeting seniors and others that have been reported to the California Department of Justice.  During the holidays, older Californians are especially vulnerable to scams perpetrated by individuals who prey on their good will.

Earlier this month, Attorney General Harris and AARP California hosted a telephone town hall with thousands of older Californians to discuss the ‘Grandparent Scam’ and other common scams.  According to estimates from the AARP, fraud costs American seniors billions of dollars a year.

“The perpetrators of these cruel scams and fraudulent schemes prey on the bond between grandparents and their grandchildren,” said Attorney General Harris.  “My office will continue to work with AARP and our law enforcement partners to educate Californians about the threat of these scams and to prosecute those who victimize our families, friends and neighbors.”

“AARP is committed to helping older Californians protect their financial well-being by arming them with knowledge,” said AARP California State Director Nancy McPherson. “That’s why we’re proud to join Attorney General Harris and the Department of Justice in spreading the word about these nefarious schemes.”  

 Be on the Look out for These Scams

• The “grandparent scam” is a common scam targeting older Californians.  In this scheme, scam artists pretend to call on behalf of a relative – often a grandchild – who purportedly needs money.  Scammers will create stories of this relative being in jail or stranded in a far away city. Conveniently, the scam artists will insist that you do not have time to call anyone or that your relative does not want you to alert anyone about their circumstance.  Remember, scammers often depend on creating a false sense of urgency.  Do not send money or offer any help without first calling other family members to make sure that the emergency is real.  If the caller says your relative is being held in jail, call the jail or police station yourself to make sure your relative is there and ask for the amount of money needed for bail.

• Some scammers pretend to be from the IRS.  These scammers will call you and say that you owe the IRS money and that you will go to jail if you do not pay immediately.  Again, notice that the caller is creating a false sense of urgency.  The IRS will first send you a letter before attempting to contact you.  The IRS will never call and ask for money and threaten to send you to jail.  Moreover, the IRS will never ask you for personal information through email.  If you receive such an email, delete it – it is from a scammer.  You can report potential fraud to the IRS and Treasury Department at 1-800-366-4484 or https://www.treasury.gov/tigta/contact_report_scam.shtml.

• Similar to the IRS scheme is the debt collector scam.  Here, con artists pretend to be debt collectors and say that if you do not pay immediately, you will go to jail.  Again, note the sense of urgency the scammers try to create.   Under state and federal law, it is illegal for debt collectors to threaten to send you to jail if you do not pay a debt.  You will not go to jail if you do not pay them money.  If you receive such a call, you should immediately report it to the California Attorney General’s Office at http://oag.ca.gov/contact/consumer-complaint-against-business-or-company.

• Finally, if you receive a telephone call or email giving you news that is too good to be true, like winning the lottery or making easy money from home, it is likely just that – too good to be true!  Do not share your personal information with these scammers.

How to Avoid Being a Victim

Attorney General Kamala D. Harris offers the following tips for older Californians to avoid becoming a victim of these scams:

• The most important thing to remember is that scammers rely on pressuring people to act quickly.  By instilling a false sense of urgency, scammers take advantage of the good will of senior citizens who want to help their family and friends.  Remember that you can take your time and do your research before sending money or personal information to another individual. 

• Remain vigilant and be wary of calls or emails from people who you do not know asking for money or for personal information.  Just because someone knows things about you or your family does not mean that you should trust them.  The Internet, including websites like Facebook and other social networks, can give scam artists all of the information they need to pretend to be a trusted family friend. 

Additional Consumer Resources

Consumers can file a complaint with the Department of Justice by using the following form: http://oag.ca.gov/contact/consumer-complaint-against-business-or-company

Consumers can find additional information regarding fraud targeting seniors through AARP Foundation ElderWatch:
http://www.aarp.org/aarp-foundation/our-work/income/elderwatch/

SAN FRANCISCO - Attorney General Kamala D. Harris and Alameda County District Attorney Nancy E. O’Malley today announced a settlement with Comcast Cable Communications LLC (“Comcast”) to resolve allegations that Comcast both unlawfully disposed of hazardous waste and discarded records without first omitting or redacting private customer information. As part of the settlement, Comcast will pay a total of $25.95 million. 

“Comcast’s careless and unlawful hazardous waste disposal practices jeopardized the health and environmental well-being of California communities and exposed their customers to the threat of identity theft,” said Attorney General Harris. “This agreement holds Comcast accountable for breaking the law and puts strict measures in place to prevent them from putting Californians and our environment at risk in the future.”

“Today’s settlement represents a victory in California’s ongoing efforts to ensure that hazardous waste is disposed of in a safe, legal and environmentally sustainable manner,” states Alameda County DA Nancy E. O’Malley. “Not only will my office pursue all necessary legal action against entities that pollute our environment, but we will also use all legal means to ensure California’s consumers’ private information is protected.  My office will continue to work together with state and local agencies to investigate and prosecute violations against our environment.”

The civil enforcement action and proposed settlement against Comcast were filed today in Alameda County Superior Court by Attorney General Harris and District Attorney O’Malley. The settlement requires court approval before it becomes final.

Today’s announcement stems from a robust investigation by the offices of Attorney General Harris and District Attorney O’Malley, assisted by the Department of Toxic Substances Control and the California Highway Patrol. According to the investigation, since 2005, Comcast warehouse and dispatch facilities and customer service centers throughout the state unlawfully handled and disposed of various hazardous waste products, routinely and systematically sending these materials to local landfills that were not permitted to receive these items. The majority of the hazardous waste was electronic equipment such as remote controls, splitters, routers, modems, amplifiers, and power adapters. The investigation also uncovered that Comcast discarded documents containing sensitive customer information, including names, addresses and phone numbers, into the trash without shredding them or making them unreadable, potentially exposing the information to identity thieves.

If approved by the court, under the final judgment, Comcast must pay $19.85 million in civil penalties and costs. An additional $3 million will fund projects furthering environmental and consumer protection and enforcement in California. Comcast will also be providing CalRecycle with $2.25 million in airtime over a four-year period and $150,000 to develop and produce public service announcements that educate the public on the proper handling and disposal of hazardous waste they might generate, including electronics. Finally, Comcast will spend a minimum of $700,000 to enhance its environmental compliance and will be prohibited from violating these laws in the future, under the terms of a permanent injunction.

Upon notice of the investigation, Comcast agreed to cooperate and, at the request of the Attorney General and the Alameda County DA, took interim steps to improve its hazardous and universal waste management compliance programs. As part of the settlement, Comcast has committed to fund multiple measures over the next five years to enhance its environmental compliance. Comcast will also be required to hire an independent auditor to conduct three audits of its environmental and customer privacy compliance over the next five years. There are ten Comcast facilities in Alameda County and all ten facilities are subject to the terms of the settlement.

Last year, Attorney General Harris and District Attorney O’Malley reached a $23.8 million settlement with AT&T over similar hazardous waste disposal violations.

Copies of the civil enforcement action and proposed settlement are attached to the online version of this release at oag.ca.gov/news.

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