Latest news with #ConsumerWatchdog
Newsweek
16 hours ago
- Business
- Newsweek
California Proposes Major Insurance Reform
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. California Insurance Commissioner Ricardo Lara is pursuing sweeping reforms for California's FAIR plan to stabilize the state's insurer of last resort. In a press release issued on Wednesday, the California Department of Insurance said FAIR Plans' expansion in the last 10 years has revealed "flaws in a system that was never designed to bear the weight it now carries." Under Proposition 103, insurance companies have been allowed to bypass high-risk areas including those prone to wildfires, leaving many homeowners and businesses in the state resorting to the FAIR Plan for coverage. "The FAIR Plan needs to be a temporary option, not the only option," Lara said in the press release. "My top priority is for people to have more choices in a competitive market. And for those unable to find coverage right now, the FAIR Plan needs to provide the services and benefit payouts they deserve, quickly and fully." Why It Matters The reforms come amidst a crisis in California's insurance market, where increasing wildfire risk has led many providers to limit or abandon coverage. The number of policies held on the FAIR Plan, which offers insurance to those who cannot find coverage on the market, has boomed in recent years. As of March 2025, the FAIR Plan's total policies in force is 573,739—a 23 percent increase since September 2024, and a 139 percent increase since September 2021. What To Know Through Lara's Sustainable Insurance Strategy, he is aiming to restore the FAIR Plan to a "temporary solution, not a permanent one," and to give Californians "more options and stronger protections." His reforms include: Expanded coverage : Starting July 26, 2025, the FAIR Plan will temporarily offer high-value commercial coverage—up to $20 million per building and $100 million per location—through 2028, including coverage for HOAs and affordable housing. : Starting July 26, 2025, the FAIR Plan will temporarily offer high-value commercial coverage—up to $20 million per building and $100 million per location—through 2028, including coverage for HOAs and affordable housing. Increased transparency : As of July 1, 2025, the FAIR Plan must publicly report exposures, policy counts, and financial data to inform policymakers and the public. : As of July 1, 2025, the FAIR Plan must publicly report exposures, policy counts, and financial data to inform policymakers and the public. Market stabilization : In response to insurer withdrawals, Lara moved to stabilize the market and on June 23, 2025, urged dismissal of a lawsuit by Consumer Watchdog that he says undermines reform efforts. : In response to insurer withdrawals, Lara moved to stabilize the market and on June 23, 2025, urged dismissal of a lawsuit by Consumer Watchdog that he says undermines reform efforts. Wildfire claims oversight : The Department of Insurance is investigating FAIR Plan responses to smoke damage claims from the Los Angeles wildfires and has directed improvements in staffing and claims handling. : The Department of Insurance is investigating FAIR Plan responses to smoke damage claims from the Los Angeles wildfires and has directed improvements in staffing and claims handling. Operational review : A financial examination report on FAIR Plan operations, based on 2022 recommendations, is expected soon to assess progress on governance and service reforms. : A financial examination report on FAIR Plan operations, based on 2022 recommendations, is expected soon to assess progress on governance and service reforms. New financial tools: Lara has co-sponsored Assembly Bill 226, allowing the FAIR Plan to seek bonds, loans, and credit lines—pending Insurance Commissioner approval—to expand fire insurance access. An aerial view of a mobile home park destroyed by the Palisades Fire on May 7 in Pacific Palisades, California. An aerial view of a mobile home park destroyed by the Palisades Fire on May 7 in Pacific Palisades, California. Justin Sullivan/GETTY What People Are Saying Commissioner Lara said in Wednesday's press release: "Decades of neglect have created a crisis of availability. We want homeowners and business owners to have choices – not just a last resort. We cannot accept the growth of the FAIR Plan as inevitable. My continued reforms create the first-ever requirement for insurance companies to write policies in wildfire-distressed areas if they want to use forward-looking models or the cost of reinsurance in their rates. This is about reforming the limits of Proposition 103 and delivering on the promise of insurance access for every Californian." What Happens Next? Researchers at the comparison website Insurify have estimated that homeowner insurance premiums on the market will continue to rise this year, by as much as 21 percent throughout 2025, with an estimated average annual premium of $2,930, compared to $2,424 paid by California homeowners in 2024.
News.com.au
3 days ago
- Business
- News.com.au
Dendy Cinemas fined for ‘drip-pricing' tickets, ACCC to investigate industry ticket prices
Australia's consumer watchdog says they investigating movie ticket pricing across the industry, after a major chain was fined almost $20,000 for their pricing practices. The parent company of Dendy Cinema, which operates six locations on Australia's east coast, has paid $19,800 after the Australian Competition and Consumer Commission (ACCC) alleged it had been engaging in 'drip-pricing'. The ACCC says Dendy allegedly failed to prominently display the total single price for tickets - including the unavoidable booking fee - at the earliest opportunity in the booking process. 'Instead, Dendy displayed prices that did not include the unavoidable per-ticket booking fee, and did not display a total price for tickets until consumers reached the final stages of the online transaction,' the watchdog said. ACCC deputy chair Catriona Lowe said businesses needed to be upfront about the minimum cost of their products under Australian Consumer Law. 'By initially only displaying part of the total price for a movie ticket, Dendy has reduced the ability of consumers to make an informed purchasing decision,' Ms Lowe said. 'Consumers are sometimes lured into purchases they would not otherwise have made when businesses display only part of the price upfront, and reveal the total price only towards the end of the purchasing process.' Following the action, the ACCC is looking industry-wide at cinema ticket pricing practices to ensure theatres are complying with the law. 'We encourage all businesses to review their online pricing practices to ensure they are complying with their obligations under the law, including providing the total minimum quantifiable price of products and services in their advertising and at the earliest opportunity in the booking process,' Ms Lowe said. The ACCC has previously taken action against online travel agent Webjet for similar practices in November last year.
Yahoo
4 days ago
- Business
- Yahoo
California Oil Refiners' Gasoline Profit Margin Hit 97 cents Per Gallon in April, Retail Refining Margin Is $1.02, Says Consumer Watchdog
SACRAMENTO, Calif., June 24, 2025 /PRNewswire/ -- As oil refiners make a case in Sacramento for a bailout, new data published by the California Energy Commission shows oil refiners making 97 cents per gallon in gross profit from California gasoline in April – more than double their historical norms. Consumer Watchdog said oil refiners are crying wolf in Sacramento seeking a bailout, while raking in big profits at the pump. Energy Commission data, produced under Senate Bill 1322 (Allen), shows gross refining margins – the profits indicator for refiners – at 80 cents per gallon in February, 75 cents per gallon in March and 97 cents per gallon in April. "These are extraordinary margins for California oil refiners and they come as the Middle East crisis will give refiners an opportunity to raise prices higher and, when pump prices spike, oil refiners' profit margins tend to spike as well," said Jamie Court, president of Consumer Watchdog. "Governor Newsom must order the Energy Commission to establish a price gouging penalty immediately, as promised under his special session legislation two years ago, or Californians are in for even more gouging this summer. It's time to stop feeling sorry for the oil refiners and to finish the job of reining them in. These refining margins are Exhibit A for the fact that the refiners are playing possum." The gross margins are what the refiners keep after the cost of crude oil, environmental fees, and taxes are deducted. The only refiner cost included in the gross margin is the operating costs for the refinery, which are reported by the refiners to the SEC at about 20 cents per gallon. The data understates the gross profit margins made off consumers because it includes in the average the margins made on wholesale trades between refiners that sell at less cost. Another set of newly posted data from CEC now shows the higher margins made off consumers from retail sales alone. In April, for example, the CEC puts the retail gross refining margin at $1.02 per gallon. The breakdown also shows the gross profit margin from distribution of gasoline, which is shared by branded refiners and retailers, and is .69 cents in April – this includes the so-called Mystery Gas Surcharge. The margin is twice as high as the average distribution margin nationally. "Thirty to forty percent of what California drivers pay at the pump goes to the profits and overhead of the oil refining and distribution companies," said Court. "That's highway robbery and the state needs to crack down on this gouging by implementing the price gouging laws passed in 2023." The graphic produced by the CEC shows the breakdown of costs for a gallon of California gasoline sold retail from April. View original content to download multimedia: SOURCE Consumer Watchdog Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Sun
4 days ago
- Health
- The Sun
Major warning to parents over illegal sunglasses sold in UK that are ‘harmful to children' as 6 worst brands revealed
A MAJOR warning has been issued to parents over illegal sunglasses sold in the UK that are harmful to children. A third of the kids' sunglasses bought from online marketplaces including Amazon, AliExpress, eBay and Temu can't provide the eye protection required and are unsafe for children to wear, new research revealed. This can cause major eye problems for children later in life. Consumer watchdog Which? bought 20 pairs of sunglasses from six online marketplaces. It then put them through standard lab-based tests and stated that "UV test and compliance failures combined mean that none of the 20 pairs of sunglasses we tested from online marketplaces can be sold legally in the UK". The watchdog discovered two pairs let through too much ultraviolet light (UV), which could damage a child 's eyes. On five pairs – including one with dangerously low UV protection – the watchdog found significant differences between the amount of protection provided by one lens compared to the other. On its website, Which? reported: "Good glasses have the same level of protection across both lenses. "And all the kids' sunglasses bought from marketplaces were missing key information, labels and markings required for them to be sold in the UK legally." "The Government's Product Regulation and Metrology Bill presents a once-in-a-generation opportunity to protect online shoppers and to give online marketplaces clear legal responsibilities to keep dangerous products off their sites." Which? added that "the most important thing" that a pair of kids' sunglasses can do is to protect young and still-developing eyes from the harmful effects of the sun's ultraviolet (UV) rays. It went on to say: "But worryingly, two pairs bought from Amazon and eBay failed to effectively filter the sun's rays, despite both claiming to provide sufficient UV protection." "Children are exposed to more UV than adults, their eyes are still developing, and this increases the risk of UV damage. "Overexposure to UV over many years can lead to cataracts and macular degeneration." Amazon, eBay, AliExpress and Temu were approached for comment. Ones to look out for Of all the sunglasses the watchdog tested, the ones they were most concerned about were the first two in this list: Cute Cat Kids' Sunglasses UV Protection, which cost £1.59 (bought from Amazon). Researchers noted the lenses let through between 19 and 22 times too much UVB, which means they're providing hardly any eye protection. Classic Vintage Holiday Sunglasses UV400 £3.99. Researchers note that since their investigation began, this pair of glasses is no longer listed by the seller. But the eBay store they bought them from lists another 34 different models and claims more than 5,000 sales of sunglasses. Others tested by Which? included a heart-shaped pair of glasses bought from a seller on eBay (Retro Love Heart shape UV400, £2.83). The lenses aren't consistent in the way they filter UV. Another heart-shaped pair of glasses from eBay (Heart Pattern UV400, £5.28) has exactly the same problem. One lens filters more UV than the other. As light doesn't pass through the lenses evenly, this could lead make it uncomfortable for a child wearing them. A pair of kids' aviators on AliExpress (New fashion Pilot sunglasses for kids children, £1.16) were equally problematic. Researchers tested them twice, and they failed both times as the lenses let through different levels of UV. Which? also tested a cheap pair of kids' sunglasses from Temu (Trendy And Vibrant Glasses for Kids, £1) that couldn't consistently filter UV across both lenses.
Yahoo
5 days ago
- Business
- Yahoo
Price hike coming for Australia Post stamps
The price of Australia Post stamps will be hiked next month following approval from the country's consumer watchdog. A stamp for a basic small letter will increase from $1.50 to $1.70, which the Australian Competition and Consumer Commission says is still less than in comparable countries. Across the board, prices are going up a little over 13 per cent. 'We are especially mindful of the impact price changes can have on vulnerable Australians and so our decision paper recommends that Australia Post increases the number of concession stamps per customer, which is currently capped at 50 per year,' ACCC commissioner Anna Brakey said. 'We understand that these price increases will mean extra costs for consumers,' she said. However, Australia Post loses money running the national letter service, Ms Brakey said. Following the ACCC's approval, announced Monday, Communications Minister Anika Wells can still reject the price increase. NewsWire has contacted the Minister's office for comment. Fewer and fewer Australians send and receive letters. In submissions made to the ACCC, Australia Post says each household receives only two letters each week. But the ACCC wants Australia Post to work out ways to make letters cheaper for businesses that are required to send them. 'As there are many businesses in Australia that still rely on sending letters, it is crucial that Australia Post has a transparent dialogue with these customers so they are aware of potential pricing changes well ahead of time,' Ms Brakey said. 'While Australia Post has been working constructively with the ACCC on these recommendations, in most instances, we expect full implementation to be reached, so that we can conduct rigorous cost-based assessments going forward,' Ms Brakey said. The average price of a single postage stamp in OECD countries is $1.93. From next month, large letters up to 125g will increase from $3.00 to $3.40. Ordinary large letters between 125g and 250g are going up from $4.50 to $5.10. Concession stamps will remain $3 for five stamps, and seasonal greeting cards are staying at 65c.
