Thursday, January 31, 2008

Digital Television Confusion

Much of what consumers are learning about the looming shift to digital broadcasting is just plain wrong and could end up costing them money, according to a survey.

Some people think they need to buy new equipment when they don't, according to a Consumers Union survey, and others say they don't plan on taking any steps to deal with the change when they should.

"Confusion about the digital television transition will cost consumers a lot of money for equipment they may not want or need," Joel Kelsey, policy analyst for the Consumers Union, said Wednesday.

Starting Feb. 18, 2009, full-power television stations in the U.S. will turn off their old-technology analog signals and broadcast only in a digital format, potentially leaving millions of televisions displaying nothing but snow.

Consumers Union, the nonprofit publisher of Consumer Reports magazine, says 36 percent of respondents in its survey were unaware of the transition - a big number, but much lower than what has been reported in studies from a year ago.

The great majority of consumers - anyone whose television is hooked up to a cable or satellite service or owns a digital set - will not be affected. Anyone who owns an older television that gets its signal via antenna, however, will need a converter box, which the government will help pay for.

As of December 2007, the Nielsen Co. reported that 13.5 million television households, or about 12 percent, rely on over-the-air television broadcasts for programming.

Among those consumers who are aware of the transition, 58 percent believe all televisions will need a converter box to function. Forty-eight percent believe that only digital televisions will work after 2009, and 24 percent believe they will need to throw away all of their analog television sets. However, none of these presumptions are true.

The government has allocated $1.5 billion to the National Telecommunications and Information Administration to pay for coupons that will subsidize the cost of converter boxes. But only $5 million of that is for consumer education. Another $1.5 million has been allocated to the Federal Communications Commission for public education efforts.

While more Americans are becoming aware of the transition, 73 percent of those surveyed were unaware of the government coupon program, according to the Consumers Union survey.

Each household is eligible for two coupons, regardless of whether they have pay-television service or not. To request a coupon, consumers can apply online at www.dtv2009.gov or call the 24-hour hotline, 1-888-DTV-2009 (1-888-388-2009).

Also on Wednesday, the National Association of Broadcasters released its own survey on consumer awareness. The broadcast lobbying organization reported 79 percent of respondents said they had "seen, read or heard something" about the transition. The number was more than double the 38 percent reported in January 2007.

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Wednesday, January 23, 2008

TV Ads Pulled For Vytorin

Merck & Co. and Schering-Plough Corp. said Tuesday they have suspended TV ads for Vytorin, a week after a study revealed the cholesterol drug is no more effective than a high dose of one of its components available generically at a third of the cost.

Vytorin, developed by Merck and Schering-Plough, is a combination of Zetia and Merck's Zocor, which lost patent protection in 2006.

The ads tell viewers that about the genetic and dietary causes of high cholesterol - "food and family" - and show "family members" interspersed with food. Ads have also been pulled for Zetia, said Skip Irvine, a spokesman for Merck/Schering-Plough Pharmaceuticals. "We've made the decision to voluntarily and temporarily suspend direct-to-consumer broadcast advertising in light of mischaracterization and misinterpretation of the enhanced trial results," he said, declining to elaborate or comment on the data. However, he said print ads will continue.

The study of 720 patients was meant to show how well Vytorin reduced plaque buildup in neck arteries in people whose genes gave them stratospheric cholesterol.

Instead, it showed $100-a-month Vytorin was no more effective and perhaps a bit worse than Zocor alone, which is sold as a generic for a third as much. Merck and Schering-Plough took the unusual step of releasing partial results in a press release rather than issuing full data in a scientific journal or medical conference. The press statement was released after a congressional committee began probing the delay and what it termed "the use of misleading statements in direct-to-consumer advertisements."

The American College of Cardiology quickly put out a statement saying patients should not panic and that further research is needed to determine the best cholesterol-cutting strategy.

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Tuesday, January 08, 2008

CPSC To Add Staff And Boost Inspections

After an unprecedented year of toy recalls, the Consumer Product Safety Commission is adding staff at the nation's busiest ports and pledging to work more closely with U.S. Customs to stop suspect imports and identify potential hazards before toys hit the market.

Addressing the National Press Club on Monday, acting CPSC chief Nancy Nord vigorously defended her safety record but said she stood ready to embrace major reform at the embattled agency. Congress provided the CPSC with an additional $20 million for the current fiscal year, but has stalled on legislation that would significantly strengthen its regulatory powers.

Under the new initiatives, CPSC will begin to place full-time staff at some of the nation's busiest ports. CPSC is being given access to real-time information and data from Customs officials about shipments bound for the U.S. so that CPSC staff can help pinpoint high-risk products.

CPSC also plans to boost port inspection of toys, fireworks, electrical products and other goods considered potentially high-risk, and will conduct a study of specific imports to help determine safety compliance.

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