Monthly Archives: February 2012

Target Knows You Are Pregnant

February 29th, 2012

If you are a Target shopper and you become pregnant, chances are you will receive pregnancy related coupons in the mail. According to the New York Times, the company has discovered a way to predict if a woman is pregnant through the items she purchases, with a surprising amount of accuracy.

Analysts working for the retail company discovered about 25 products that, when purchased, allow for a “pregnancy prediction score.” The score allows Target to predict if a shopper is pregnant, and it allows it to predict her due date. Knowing the due date is important, because it allows delivery of coupons at very specific times.

Researchers have discovered that the shopping patterns of customers are relatively stable. Because these patterns are so ingrained, they are difficult to change. There are certain events, though, that open individuals up to changes in behavior. Life events, such as marriage or the birth of baby, are important to businesses. During the time surrounding such events, retailers can shift your shopping patterns and make you a lifelong customer.

Target’s new strategies are not surprising. The company’s main goal is to generate profits, and it will use whatever legal means at its disposal to do so. The job of consumer protection advocates, legislators and the public is to decide what will and will not be allowed in the pursuit of such profits.

Sarelson Law Firm – Miami liability attorneys

 

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Will the STOCK Act Address Insider Trading in Congress?

February 27th, 2012

When news stories began coming out about insider trading in Congress, many people were infuriated. Normal business people found to be guilty of insider trading face harsh penalties, so why should members of Congress not face the same? In response to public outrage, Congress passed the Stop Trading on Congressional Knowledge Act (STOCK).

The STOCK Act, in various versions, has been proposed multiple times over the years. Until now, though, members of Congress have managed to avoid applying securities laws to their own trading.

Though the STOCK Act was intended to ban congressional trading, two of the key measures that would have accomplished this were stripped away by House Majority Leader Eric Cantor. One measure would have required “political intelligence professionals” to register as lobbyists, and the other would have broadened anti-corruption law.

Political intelligence professionals are typically former members of Congress or staffers who now work for trading firms. They attempt to gain financial information from Congress to do better in the markets.

The new legislation now bars members of Congress from trading on material, non-public information learned in their official capacity, but they are still allowed to trade in areas they influence. Senate Banking Committee members, for instance, can still trade in banking.

According to CNBC, portfolios of lawmakers consistently outperform the market. It will be interesting to see if the STOCK Act affects such performance.

Sarelson Law Firm – Miami litigation attorneys

 

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Scam Artists Likely to Pounce on Foreclosure Settlement

February 24th, 2012

The verdict is still out on how the $25 billion foreclosure settlement, the largest consumer protection settlement in U.S. history, will affect the market. One result of the settlement that many consumers may not consider is the risk of consumer fraud.

Scam artists are always eager to pounce on any opportunity that allows them to make an easy buck. Senior Assistant Attorney General Doug Walsh, head of the Washington state Attorney General’s Consumer Protection Division, released a statement warning consumers to stay alert.

“Whenever there is a large settlement or federal claims program, scam artists come out of the woodwork,” he said. “They offer to assist victims for a fee, when the services are actually available free. Don’t take the bait. Distressed homeowners can get counseling and, where appropriate, legal assistance for no cost.”

Scammers are likely, he said, to imply that they could speed up loan modifications or principal reductions. Aside from being untrue, the help of such individuals is unnecessary, as the banks involved will be contacting eligible borrowers over the next few months.

If you know anyone who suspects he or she is eligible under the settlement, advise that person to avoid paying for assistance.

Sarelson Law Firm – Miami litigation attorneys

 

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