Colorado, Utah Propose 21 As Legal Age To Smoke; Florida Mulls E-Cig Ban For Minors


Following the lead of New York City’s former health cowboy — err, mayor Michael Bloomberg, two Western states changing how wild the West can be for anyone under 21: Colorado and Utah are both considering raising the legal age to smoke tobacco from 18 to 21. Meanwhile down in Florida, legislators are proposing banning e-cigarettes for minors


Both Colorado and Utah voted favorably on proposals yesterday to treat tobacco like alcohol, reports the Associated Press, in an effort motivated by new research about how early smokers start smoking.


“By raising the age limit, it puts them in a situation where they’re not going to pick it up until a much later age,” said one Utah resident who testified in favor of the idea there.


A similar show went down in Colorado, where testimony stated that it would make it harder for teens to get into the habit and then perhaps lead to fewer adults smoking.


“What I’m hoping to do is make it harder for kids to obtain cigarettes,” said Rep. Cheri Gerou, a Republican who sponsored the measure.


There are still more votes that will need to happen before either proposal becomes law. But this is a big move — they’d be the first states that have gone this far to cut down on smoking rates. New York City’s council voted last fall to up the smoking age to 21, but that is only a citywide rule.


FLORIDA TO BAN E-CIGS FOR MINORS?

Traveling back east and south to Florida, state lawmakers are making moves to keep electronic cigarettes out of teens’ hands. A Senate panel approved a proposal yesterday that wouldn’t allow anyone under 18 to buy the devices.


“We don’t allow minors to buy cigarettes,” Sen. Lizbeth Benacquisto, R-Fort Myers, said, reports the Miami Herald. “We should certainly not allow minors to buy these products, as well.”


The bill has already done well in two other committees, winning unanimous support, so it could be among the first proposals heard on the Senate floor when the legislative session begins March 4.


Some municipalities have already outlawed the sale of e-cigarettes to minors, with Miami apparently headed that way as well.


“We became aware of the issue and felt we needed to start the discussion now, rather than waiting on the state,” Miami Commissioner Francis Suarez said. “Nicotine is an addictive substance.”


E-cigarettes are starting to earn a certain cachet among teens, apparently, perhaps partly because celebrities are often seen taking a toke off them. A recent study from the Centers for Disease Control and Prevention showed that the amount of middle and high school students using e-cigs had more than doubled in just one year, from 2011 to 2012.


“We think it’s time now that we drew the line in the sand, so children could not have access to those products and not develop those habits down the line,” Benacquisto said.


COLORADO, UTAH MOVE TO HIKE SMOKING AGE TO 21 [Associated Press]

Proposed Florida law would ban sale of e-cigarettes to minors [Miami Herald]




by Mary Beth Quirk via Consumerist

Famous Philly Eatery To Pay $8.5 Million For Short-Changing Servers’ Tips

candp More than 1,200 current and former employees of a well-known bar/restaurant chain in Philadelphia are going to share in an $8.5 million settlement over allegations that the eatery’s owner illegally demanded servers’ tips and also failed to pay minimum wage and overtime to tipped employees.


Among a number of people in the Philadelphia area, Chickie’s & Pete’s is a beloved spot to grab some beer and some crab fries while watching a game at the bar; there are even Chickie’s locations at Philly sporting venues and in the airport.


But for some of the many folks who worked at the chain, the behind-the-scenes pay issues left a bad taste in their mouths.


The Fair Labor Standards Act allows for restaurants and other businesses with tipped employees to pay the workers as little as $2.13/hour, so long as the tips they receive make up the difference between that lower wage and the $7.25/hour federal minimum wage.


But complaints from employees alleged that they were only paid $15 per shift, meaning they were making below #2.13/hour when a shift stretched beyond seven hours.


Tips are also legally the property of the employee who receives the money. The only case in which a tipped employee can possibly take home less than the amount given to them during a shift is when they are part of a legitimate, agreed-upon tip-sharing pool. In any case, non-tipped employees and management are never allowed to demand a portion of a server’s tips.


However, some Chickie’s workers claim they were required to pay the so-called “Pete’s Tax” of between 4-6% of total table sales. About 40% of that would be paid out to the restaurants’ bartenders, which may be okay under the law if the pool is agreed-upon in advance. But what wasn’t legal was that the remainder of the docked pay allegedly went into the pockets of management.


Making matters worse, this “tax” was expected to be paid at the end of each shift, regardless of whether the server had received enough cash tips to make the payment. Thus, says the Labor Dept., which investigated the allegations, some workers had to borrow cash or go to an ATM just to pay the money they should not have been required to turn over in the first place.


Investigators calculated that employees at the chain’s 12 locations lost out on a total of $4.5 million in just the 32 months leading up to Dec. 2012.


“These just weren’t violations,” explains a Labor Dept. rep. “This was part of [the] business model.”


In a statement that is presumably ignorant of the irony dripping from every syllable, the chain’s owner explains that he agreed to the $8.5 million settlement because “Our employees are the backbone of our company, and they deserve our respect and appreciation.”


According to the Philadelphia Inquirer, $6.8 million of the total settlement will be split by 1,159 current and former employees to resolve the Labor Dept investigation. Another $1.68 million is going to settle federal lawsuits filed by about 90 Chickie’s workers.


The restaurant’s owners must also pay a $50,000 civil penalty. The settlement will not be finalized until a court signs off on it.


Chickie’s & Pete’s to pay $8.5M in short-tipping case [Philly.com]




by Chris Morran via Consumerist

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Did DHL Use Color-Changing Packages To Trick UPS Into Delivering Giant DHL Ads?

Picture a McDonald’s employee seen in line at Taco Bell, or a Coca-Cola delivery driver quenching her thirst with a Mountain Dew. Now imagine those people were somehow tricked into those compromising situations. That’s the idea behind a viral video that may or may not have been produced by the package-shipping folks at DHL.


It’s a simple idea, really. Print a DHL ad on temperature-sensitive foil and wrap it around some very large boxes. Then chill those boxes down so the DHL ad vanishes and call up the competition to have those boxes delivered.


The above video shows drivers for DHL competitors like UPS and TNT trying to deliver huge yellow parcels that now clearly read “DHL is faster.”


Thing is, we’re not 100% sold on this video being authentic.


First, it’s currently not on the DHL YouTube channel, nor could we find any mention of the campaign in a DHL press release or in any of its official social media channels.


Second, the boxes don’t appear to have any shipping labels whatsoever on them. It’s possible that DHL affixed the shipping labels in just such a way as to not be visible on camera, but what about the labels that shipping companies tend to slap on the sides of boxes as they go through the routing process?


There is also the issue of the weight of the boxes. The video claims that the shipments were sent to addresses that are difficult to reach with such sizable parcels and shows delivery drivers struggling to cart these boxes up steps. But other shots show drivers easily carrying the boxes without the use of a cart. Why would a driver try to drag a box up steps on a dolly if it could be carried up by hand?


Then there is the incredibly convenient camera placement that just happens to have crystal clear footage at the precise time and location that the boxes are being delivered, including a hidden camera in an elevator and one shot where a box is coming off a truck at the exact moment that the black packaging fades to reveal the DHL message.


Finally, the deliveries in the video all appear to be occurring in DHL’s home country of Germany, but “DHL is faster” is printed in English on all the packages. Granted, many people in Germany speak English, but it strikes us as odd that DHL would choose to perform such carefully orchestrated and public stunt in a language that was a secondary or tertiary tongue for the people who witnessed it.


We’re not saying this can’t be the real deal — and we certainly hope it is, because it’s a pretty amusing prank. We’re just saying we have reason for doubt.


We’ve reached out to DHL’s media team to see if anyone there will confirm whether this is a legitimate prank or if it was staged. If we get any answer, we’ll let you know.




by Chris Morran via Consumerist

Why DirecTV and Dish Customers Should Care About Time Warner Cable/Comcast Deal

Comcast-TWCLogo While many cable subscribers around the country are dreading the impact that a merged Time Warner Cable and Comcast could have on pricing for TV and Internet service, some satellite customers have shrugged off the news. But a tie-up between the two largest terrestrial cable companies could have far-reaching consequences for all pay-TV subscribers.


In a conference call to discuss quarterly earnings yesterday, DirecTV CEO Mike White had some cautionary words about the pending marriage of Comcast and TWC.


“If the deal is approved as proposed, it clearly represents an unprecedented media concentration in one company,” explained White.


How exactly would that unprecedented concentration affect the satellite TV business?


CONTENT ACQUISITION

A combined Comcast/TWC would result in the largest subscriber base of any TV provider, giving the merged business the most leverage when it comes time to make deals with the networks and other content providers.


“A merged Comcast/TWC, with a large and growing cost advantage in content acquisition, will only make things harder” for DirecTV and Dish, industry analyst Craig Moffett said after yesterday’s remarks from White.


BUNDLED UP

While satellite subscribers can get Internet service through DirecTV and Dish, that service is ultimately coming from a third party; usually a satellite-based ISP or DSL service through local phone companies.


Thus, satellite customers often get their broadband connection through whichever terrestrial cable company services their areas. They also tend to pay more each month for their Internet than their neighbors who get both TV and Internet from the Comcasts and Time Warner Cables of the world.


As cord-cutting continues to proliferate, it only makes sense that cable operators will make an even bigger push to sell customers on TV/Internet bundles that keep them from fleeing.


Price hikes for Internet-only customers seem inevitable as doing so would help offset the revenue lost by cord-cutters. And with the lack of competition in the ISP marketplace, satellite customers may have no option but to pay more — or ditch the dish and switch to cable.


PRESSURE FOR FURTHER CONSOLIDATION

White said on Thursday that the Comcast/TWC deal “certainly creates some significant changes in the competitive landscape that we need to think hard about,” adding that DirecTV “will continue to look at options for how we could strengthen our company for the long term.”


Long before there was any talk of a Comcast/TWC merger, there were concerns about how Dish and DirecTV would ultimately fare in a world that is quickly transitioning away from traditional TV-viewing habits.


Yes, both Dish and DirecTV have substantial online content offerings, but they are not the one actually delivering that content to the end-user. As mentioned above, this content is coming through third-party ISPs. What will be the point of running a satellite TV service when we reach the point where most subscribers get their content online?


That’s why there is renewed chatter about the need/possibility of a merger between DirecTV and Dish, with some saying such a deal is necessary for the long-term survival of satellite TV.


The odds of such a merger being approved are lower than those facing the Comcast proposal, as it would leave only one major satellite provider in the U.S. and create a subscriber base that is many times larger than that of most large cable operators.


Dish is already a potential suitor for acquiring T-Mobile USA from Deutsche Telekom. It’s the kind of arrangement that could help both companies — or potentially sink them if mishandled.


WHAT’S NEXT?

Comcast plans to file its merger documents with the appropriate federal regulators by late March, kicking off antitrust and competition reviews by both the Justice Dept. and the FCC.


Stakeholders like DirecTV and Dish will certainly have their say during that process and Comcast will undoubtedly tweak its offer in ways designed to quell those concerns. The question is whether those concessions will be enough to allow the merger to be finalized.


DirecTV CEO Voices Opposition to Comcast-TWC Deal [WSJ.com]


DirecTV Urges Feds to Scrutinize Comcast-Time Warner Deal [TheStreet]


Comcast filings with regulators expected at end of March [Reuters]




by Chris Morran via Consumerist

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