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Consumer Confidence Presents A November Surprise

By Maxine Shapiro, KERA 90.1 business commentator

Dallas, TX – Being a consumer isn't easy. We fuel two-thirds of the economy. We're watched like a hawk, yet we are rarely able to provoke any significant change. We remain in the dark on some items and others are just too big to tackle. I'm Maxine Shapiro with KERA Marketplace Midday.

The highly watched Consumer Confidence index for November showed a greater jump than anyone expected. The reputable Conference Board, an independent research firm, reported consumer confidence rose to 91.7. That's a 10-point leap from October.

So, if we're so "highly watched," why don't retailers, and services and manufacturers care more about us? Forty-three consumer-protection agencies were polled by the two large national consumer groups. The findings: consumer complaints soared 23 percent in 2002. If there's any good news in all of this, the Wall Street Journal reports, "70 percent of the complaints were resolved to the consumer's satisfaction." About $130 million was spent to make the customer happy, or at least resolve the dispute.

Topping the list of grievances was auto sales and much that relates to it, like misleading promotions and ads, car damage that isn't disclosed, and financing programs. Will it change? No. And who got the honors for the worst business tactics of '02? Car rental agencies, for charging outrageously high penalties for speeding; and get this, phone companies charging customer for non-existent taxes. You must be kidding?! I have a hard enough time calculating all the taxes I'm responsible for. Now I have figure out if my phone bills are actuate beyond what calls I made.

The problem here is, who's got the time, energy and knowledge to figure out what's wrong? 70 percent resolution on complaints I guess is good, but why do we have them in the first place? Why can't home contractors do what they say they're going to do and if they don't, why do I have to spend more time and money getting what I'm supposed to?

And forget about trying to stop higher TV cable bills. For KERA Marketplace Midday, I'm Maxine Shapiro.

 

Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m.

Email Maxine Shapiro about this story.