Costco Connection - March 2009

CONSUMERconnection

An (Internet)

Also:

Car booster seat safety

Credit limits

Ask David
Horowitz
taxing question

MANY PEOPLE shop online to avoid crowds and sidestep state sales taxes. Under a 1992 U.S. Supreme Court ruling, only businesses with a “physical presence” in a state, such as an office or retail outlet, must collect sales tax on products sold within that state.

But those tax breaks are starting to slip away, as state governments are looking for ways to pad their budgets by collecting the money on Internet sales. Companies that do business online only, offering sales-tax-free shopping, are beginning to worry. New York, one of the most aggressive tax-collecting states, was recently sued by Seattle-based Amazon.com over a new requirement that Web retailers must collect taxes on shipments to New York residents, even if the seller is located elsewhere. The court found in favor of New York, leaving Amazon on the hook to charge sales tax.

Where does that leave you, the consumer? Although it could take years to achieve a consensus among the states to reach any kind of standardization process of taxing Internet sales, with those same states looking for anything to fill budget shortfalls, you could see more of them lining up to enforce a state-by-state New York–style model sooner rather than later.

that fits your child’s age and size, is correctly installed, fits well in your vehicle and can be used properly every time you drive. Parents buying a new booster seat should try it out in their car and see how the seat belt fits on their child.

WE PURCHASED an HDTV, [not at Costco] and paid for installation, which [we were told] would be $50. On delivery day they said it would cost $100! Once they arrived the TV didn’t fit our cabinet because of [a fea-ture] that wasn’t shown in the specs. They took it back for replacement with a different brand that should fit. But when they came back they didn’t install it properly, and it didn’t work. I also had to pay my cabinet-maker to dismantle the cabinet for installation each time. I want a proper installation and reimbursement for the additional costs!

Belle Dana Point, CA

Car booster seat safety

The law says you should buckle up children. For younger children up to 40 pounds, the government recommends car seats. With or without a seat, all children should ride in the back seat until age 13.

The government recommends booster seats for children over 40 pounds until they are 8 years old or 4 feet 9 inches tall. Booster seats are typically used by children between the ages of 4 and 8.

Booster seats are designed to raise the child so that the lap and shoulder seat belts fit properly. High-back and backless booster seats are available. They do not come with harness straps but are used with the lap and shoulder seat belts in your vehicle, the same way an adult rides. This design guides the belts across a child’s lower hips and mid-shoulders instead of the abdomen to protect the more vulnerable liver and spleen from injuries.

Not all booster seats are the same. No one seat is the best or safest. A higher price does not mean the seat is safer or easier to use. The best seat is the one

New credit limits

Experts at Market Watch.com, a financial and investment Web site, are predicting that credit-card issuers will scale back more than $2 trillion in available credit over the next 18 months, to protect against defaults. The action will certainly put more pressure on people already struggling to get by.

With job losses in most key states, cutting credit will put an unprecedented squeeze on many consumers. A credit reduction on those who may have a $2,000 credit line and are borrowing up to the limit on an ongoing basis could have a severe impact. Worse, some cuts are coming without warning, reducing the credit line below the current balance and forcing the cardholder into a penalty.

Be aware! Keep an eye on your disclosures and credit-card statements to see if your limit has been cut. Then, take whatever steps necessary to make sure you do not go over the limit. C

AMY CAN TRELL

David Horowitz is a leading consumer advocate. His “Fight Back!” commentaries are heard daily on the Jones Radio Network. For stations and times, check the radio page at www.fightback.com.

DOCUMENT ALL of the sale,
delivery and cabinet costs.
Outline them in writ-
ing, including the
problems you’ve had
with sales reps and
installers. Call the
manager of that
store and arrange to
talk in person.
If they don’t make
themselves avail-
able, send a letter,
with the outline, to
the company’s CEO at
national headquarters. Let
them know that if you do
not get a response you will
consider taking the store
manager to small claims
court.

Update: Belle informed me that, after she contacted the company’s national headquarters, everything was taken care of, including a personal apology from the store!—DH

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