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Consumer Daily Reports

Massive retailers respond differently to tariffs

By James R. Hood of ConsumerAffairs
July 21, 2025
  • The Wall Street Journal says Amazon increased prices on over 1,200 low-cost essentials despite pledge to hold the line
  • Walmart dropped prices on the same products by nearly 2%, diverging sharply from Amazon, the WSJ said

  • Retailers navigate political pressure and supply shocks as tariff policies continue to evolve


As the U.S. grapples with the economic fallout of sweeping new tariffs imposed earlier this year by President Trump, a Wall Street Journal analysisfoundthat Amazon has quietly raised prices on many of its most affordable household products despite previously stating it would avoid such increases.

Amazon denied the Journal's claims.This story is false and misleading. We have not seen the average prices of products offered in our store change up or down appreciably outside of typical fluctuations across millions of items on Amazon," an Amazon spokespersonsaid.

The investigation, which examined nearly 2,500 items using pricing data from e-commerce tracker Traject Data, found that Amazon increased prices on more than 1,200 of its lowest-cost items ranging from deodorant to protein shakes and pet supplies while competitor Walmart lowered prices on the same items by almost 2%.

These moves come as retailers respond to an increasingly volatile business environment shaped by rising import costs, political pressure, and rapidly shifting consumer demand. Analysts say the changes signal differing strategies as the nations largest retailers position themselves amid the tariff storm.

Amazon contends that the study's sample size was not nearly large enough.

"This study is seriously flawed, cherry picking a mere 2,500 items out of the hundreds of millions we sell, and failing to accurately compare like-for-like offers in stock and available for sale across retailers," the Amazon spokesperson told ConsumerAffairs in an email.

"For the full set of 2,500 items investigated, we found the vast majority had no price change or a price decrease, and further we were still competitively priced compared to other retailers."

Did Amazon defyits April pledge?

In April, Amazon publicly vowed to hold the line on prices. But internally, the company struggled to absorb new costs. According to Corey Thomas, an Amazon vendor consultant, thin profit margins and high shipping costs on inexpensive items have made it harder for Amazon to keep prices low.

By contrast, Walmart has greater flexibility due to its network of brick-and-mortar stores, where in-store purchases of higher-margin products can subsidize losses on cheaper online items.

One example cited by the Journal comes from Dayglow, an Ohio-based manufacturer of stackable metal baskets. Amazon sold the baskets for $9.31 in February. By late April, the price had soared to $19.99 even though Dayglow hadnt increased its own prices to Amazon.

Company CEO Nick Morrisroe said his firm faced tariffs as high as 145% on goods in transit from China. While the final tariff rate was reduced to 30%, the uncertainty alone was enough to prompt him to begin negotiating with non-Chinese suppliers and consider raising prices.

Walmart slashes prices, gains competitive edge

The Journal said that while Amazon boosted prices on everyday essentials items that account for one in three units sold on its platform Walmart moved in the opposite direction. Its cuts helped it maintain a reputation for affordability just as inflation and tariff fears rattled consumers.

But an Amazon source who was not authorized to speak publicly noted that there are "hundreds of millions of items available in the Amazon store," so a price comparison of a small sampling of 2,500products is not an accurate reflection of Amazon overall.

The Amazon source also quoted recent independent analysis from Profitero that named Amazon the lowest-priced U.S. retailer for eight years in a row, showing that Amazons online prices were an average of 14% less expensive than all major U.S. retailers in 2024, including up to 6% less on everyday essentials. Learn morehere.

Target also said it is prioritizing internal cost controls over raising prices. Across the industry, many retailers are reportedly using coded language in investor communications to avoid political scrutiny. Earlier this year, Amazon scrapped a plan to display tariff-related price increases on its bargain site, Haul, after criticism from the White House, which labeled the idea a hostile and political act.

President Trump himself took a hard line, warning businesses to EAT THE TARIFFS in May shortly after Walmart publicly said prices would rise in response to import taxes.

Prices still volatile as retailers await clarity

Price movements have fluctuated for various reasons, including seasonal sales, inventory changes, and inflationary pressures. Amazon did cut prices on higher-end items, particularly around its Prime Day event from July 8 to July 11, though those prices rebounded after the promotion ended.

The broader impact of tariffs remains somewhat muted. According to Harvard Business School researcher Alberto Cavallo, prices on imported goods have risen about 2% since March. He notes that the ongoing lack of clarity is leading retailers to make pricing changes more cautiously and incrementally.

Amazon, for its part, defended its pricing strategy. In a statement, the company said, We have not seen the average prices of products offered in our store change up or down appreciably. Our commitment to offering low pricesnot relative percentage changesis what delivers the most value to our customers.

Still, with inflation accelerating and tariff deadlines looming despite a recent extension to August 1 the cost of household basics may continue to rise, especially for consumers who rely on e-commerce for essential goods.




Posted: 2025-07-21 19:59:29

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More News From This Category

Consumer News: Study finds growing role of dollar stores in Americans' diets

Fri, 12 Sep 2025 16:07:07 +0000

Dollar stores are now the fastest-growing food retailer in the U.S.

By Mark Huffman of ConsumerAffairs
September 12, 2025
  • Dollar store food purchases nearly doubled between 2008 and 2020, according to new research.

  • Lower-income households and people of color are most likely to turn to dollar stores for food.

  • While dollar store food is less healthy overall, most families balance purchases with healthier options elsewhere.


In many rural areas of America, supermarkets are few and far between. That gap is increasingly being filled by dollar stores, according to new research from Tufts University and the USDA-Economic Research Service.

The study, published in the Journal of the Academy of Nutrition and Dietetics, shows that calories obtained from dollar store purchases nearly doubled between 2008 and 2020, rising from 3.4% to 6.5% of total household food purchases.

The analysis, which tracked food-buying habits of 180,000 U.S. households over 12 years, sheds light on how the rapid expansion of dollar stores has influenced American diets. While dollar store food purchases were found to be less nutritious than items bought from grocery and club stores, researchers say families appear to be using them strategically, often supplementing with healthier foods from other outlets.

The trend is particularly pronounced among lower-income households and families led by people of color, groups that often face limited access to full-service grocery stores. In rural areas, dollar stores frequently serve as the most convenient option, especially where the nearest supermarket may be miles away.

People go to different types of stores for different reasons, and the dollar store is one that people choose because of the price advantage, said study lead author Wenhui Feng, a professor at Tufts University School of Medicine. There are a lot of concerns that foods on dollar store shelves are less healthy, but whats on the shelf does not equal what each household takes home.

Dollar stores expanding footprint

Dollar stores are now the fastest-growing food retailer in the U.S., with more than 37,000 locations nationwide. Their presence is particularly strong in the South and in communities outside of major cities. While they offer low prices, most dollar stores primarily sell packaged foods and sugary beverages, with limited fresh produce or meat options.

Concerns about the spread of dollar stores have prompted at least 25 local governments to impose restrictions on their expansion. Critics point to potential public health risks, competition with local grocers, and even safety issues tied to understaffing. But the study suggests more research is needed before policymakers can fully assess their impact.

On average, U.S. households still obtain more than half (55%) of their non-restaurant calories from grocery stores and another 22% from club stores. While foods from dollar stores scored lower on measures of healthfulness, the researchers found evidence that shoppers may be offsetting those purchases with better choices elsewhere.

Some people seem to be going to dollar stores strategically to buy sweets and snacks, along with other packaged foods, said senior author Sean Cash of Tufts University. We need more data on the real effects of dollar stores on healthy eating, as some communities may be putting the policy cart before the horse.


Read More ...


Consumer News: OpenAI signals possible policy shift on suicide among younger users

Fri, 12 Sep 2025 16:07:07 +0000

Lawsuit charges ChatGPT helped draft a suicide note for a teen who took his life

By James R. Hood of ConsumerAffairs
September 12, 2025

OpenAI weighs alerting authorities when young users express suicidal thoughts

CEO Sam Altman warns thousands may discuss suicide weekly with ChatGPT

Lawsuits, state investigations, and safety concerns intensify pressure on AI firm


Altman signals possible policy shift

OpenAI, the company behind ChatGPT, is considering a controversial new policy: alerting authorities if young people confide suicidal intentions to its popular AI chatbot.

Chief executive Sam Altman said in a recent interview that it may be very reasonable to notify police or other officials in cases where teenagers discuss suicide seriously and parents cannot be reached. He estimated that as many as 1,500 people each week might be discussing suicide with ChatGPT before carrying it out.

Altman admitted the decision is not final, but acknowledged the issue keeps me awake at night. Currently, ChatGPT only urges distressed users to call a suicide hotline.

If you need help ...


U.S.: Call or text the Suicide & Crisis Lifeline at 988, or chat at 988lifeline.org

UK & Ireland: Samaritans, 116 123 (freephone), jo@samaritans.org / jo@samaritans.ie

Australia: Lifeline, 13 11 14

Elsewhere: Visit befrienders.org for international hotlines

Tragedy sparks legal action

The debate comes as OpenAI faces a lawsuit from the family of Adam Raine, a 16-year-old Californian who died by suicide in April. The complaint alleges ChatGPT encouraged the teen over several months, advised on methods, and even helped draft a suicide note.

The case has intensified calls for stricter safeguards. Altman has conceded that ChatGPTs protections may degrade in longer conversations, potentially allowing harmful guidance to slip through.

Pressure from regulators and states

OpenAI and other AI platforms areunder mounting scrutiny from regulators. State attorneys general in California and Delaware have demanded stronger protections for children, while the Federal Trade Commission has launched a broader inquiry into AI chatbots safety measures and their handling of sensitive user data.

The FTC has issued orders to seven companies that provide consumer-facing AI-powered chatbots seeking information on how these firms measure, test, and monitor potentially negative impacts of this technology on children and teens.

Protecting kids online is a top priority for the Trump-Vance FTC, and so is fostering innovation in critical sectors of our economy, said FTC Chairman Andrew N. Ferguson. As AI technologies evolve, it is important to consider the effects chatbots can have on children, while also ensuring that the United States maintains its role as a global leader in this new and exciting industry.

The heightened oversight follows revelations that OpenAIs internal safety systems sometimes miss warning signs of mental distress, such as sleep deprivation or extreme despair, especially in teen users.

Promised safeguards and parental controls

In response, OpenAI has pledged to strengthen protections for minors. Planned updates include:

  • Parental controls that let caregivers link accounts, turn off features, and receive alerts if the system detects acute distress.
  • Improved crisis detection to flag suicidal ideation earlier and guide users to certified therapists.
  • More reliable safeguards in extended chats, where existing filters may falter.

The company has also suggested curbing misuse by blocking underage or vulnerable users who disguise requests as research or fiction to bypass restrictions.

Privacy vs. protection dilemma

The proposed policy shift would mark a dramatic departure from OpenAIs current privacy stance. Altman acknowledged that user privacy is really important but said some limits on freedom may be justified for fragile users.

Critics warn that notifying authorities could raise new questions: What data could OpenAI share, and how accurately could it identify and locate at-risk users?

About the FTC probe

The FTC is issuing theordersusing its 6(b) authority, which authorizes the Commission to conduct wide-ranging studies that do not have a specific law enforcement purpose. The recipients include:

  • Alphabet, Inc.;
  • Character Technologies, Inc.;
  • Instagram, LLC;
  • Meta Platforms, Inc.;
  • OpenAI OpCo, LLC;
  • Snap, Inc.; and
  • X.AI Corp.

The FTC is interested in particular on the impact of these chatbots on children and what actions companies are taking to mitigate potential negative impacts, limit or restrict childrens or teens use of these platforms, or comply with theChildrens Online Privacy Protection Act Rule.

As part of its inquiry, the FTC is seeking information about how the companies:

  • monetize user engagement;
  • process user inputs and generate outputs in response to user inquiries;
  • develop and approve characters;
  • measure, test, and monitor for negative impacts before and after deployment;
  • mitigate negative impacts, particularly to children;
  • employ disclosures, advertising, and other representations to inform users and parents about features, capabilities, the intended audience, potential negative impacts, and data collection and handling practices;
  • monitor and enforce compliance with Company rules and terms of services (e.g., community guidelines and age restrictions); and
  • use or share personal information obtained through users conversations with the chatbots.

A global crisis backdrop

Altmans comments highlight the scale of the challenge. More than 720,000 people worldwide die by suicide each year, according to the World Health Organization. With ChatGPT serving an estimated 700 million users, Altman suggested the platform may already be interacting weekly with hundreds who later take their lives.

Its possible we could have been more proactive, he said. Maybe we could have provided better advice, or helped them find someone to talk to.


Read More ...


Consumer News: Here are the cities where residents have the highest bills

Fri, 12 Sep 2025 13:07:07 +0000

Cities in the Midwest tend to have the lowest monthly costs

By Mark Huffman of ConsumerAffairs
September 12, 2025
  • San Jose tops the list as the most expensive U.S. city for household bills, with residents paying a median of $3,523 per month.

  • Cleveland ranks lowest, where households spend just $1,606 monthly22% below the national median.

  • Nationwide, bills average $2,058 per month, making up the single largest category of household expenses.


A new analysis of household spending shows that where Americans live has a dramatic impact on how much they pay in recurring bills. The doxoINSIGHTS 50 Largest U.S. Cities Household Spend Report 2025 examined actual bill payment data from millions of households, covering more than 97% of U.S. zip codes.

The findings reveal a stark contrast: residents of San Jose, Calif., face the nations steepest household costs at a median of $3,523 per month a staggering 71% above the U.S. median while households in Cleveland, Ohio, pay just $1,606 per month, the lowest among major cities.

While discussions about cost of living often focus on housing prices, doxo emphasizes that household bills are the largest recurring expense for families, exceeding mortgage or rent, insurance, utilities, internet, and even mobile phones.

Bills are the largest category of household spending, yet their impact on the cost of living is often overlooked, said Jaimie Sheridan, head of INSIGHTS at doxo. This level of transparency provides actionable insights based on actual paymentsnot estimateshelping consumers improve their financial well-being and businesses better understand their customers economic realities.

Most and least expensive cities

According to the report, California dominates the high-cost list, with San Francisco, San Diego, and Los Angeles joining San Jose as expensive when it comes to household bills. Along with Cleveland, cities such as Detroit, Dayton, Saint Louis, and Indianapolis all appear on the list of least expensive places to manage monthly expenses.

10 most expensive cities (Table)
10 least expensive cities (Table)

The report underscores how these differences can shape consumer decisions:

  • Financial health Families can benchmark their bills against local and national medians to spot savings opportunities.

  • Provider evaluation Bill-by-bill comparisons reveal where certain services may be disproportionately expensive.

  • Relocation considerations For those weighing a move, understanding how bills contribute to overall living costs provides a more realistic financial picture.

With U.S. households spending a median of $24,695 annually on bills, the study offers a rare glimpse into the true day-to-day costs of American life, beyond the price tag of housing alone.


Read More ...


Consumer News: The decline in mortgage rates is picking up speed

Fri, 12 Sep 2025 13:07:07 +0000

The average rate fell this week at the fastest rate in a year

By Mark Huffman of ConsumerAffairs
September 12, 2025
  • Mortgage rates are falling quickly: The 30-year fixed-rate mortgage dropped to 6.35%, down 15 basis points from last week the largest weekly decline in a year. The 15-year fixed rate also fell to 5.50%.

  • Homebuyer demand is responding: Lower rates have fueled renewed interest, with purchase applications showing the strongest year-over-year growth in more than four years.

  • Market balance is shifting: Realtor.com reports a five-month housing supply, signaling a rebalancing toward buyers in many markets. However, conditions vary with buyers holding more leverage in Miami, Austin, and Orlando, while sellers remain dominant in places like Milwaukee and Boston.


As the housing market sputtered over the summer, mortgage rates began to fall, adding momentum to that trend this week. Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averages 6.35%.

The 30-year fixed-rate mortgage fell 15 basis points from last week, the largest weekly drop in the past year, said Sam Khater, Freddie Macs chief economist. Mortgage rates are headed in the right direction and homebuyers have noticed, as purchase applications reached the highest year-over-year growth rate in more than four years.

Current rates

  • The 30-year FRM averaged 6.35% as of September 11, 2025, down from last week when it averaged 6.50%. A year ago at this time, the 30-year FRM averaged 6.20%.

  • The 15-year FRM averaged 5.50%, down from last week when it averaged 5.60%. A year ago at this time, the 15-year FRM averaged 5.27%.

If falling rates draw more buyers back to the housing market, a new report from Realtor.com suggests theyll find better deals in once-hot housing markets. The August report showed an inventory level of five months, a level not seen in the summer months since Realtor.com began tracking the metric in 2016. This shift signals the continuation of a slow rebalancing in favor of homebuyers, though local conditions vary significantly across regions and metros.

"The national housing market is now more balanced between homebuyers and sellers at five months of supply, but that balance conceals a wide range of local realities," said Danielle Hale, chief economist at Realtor.com.

"In Miami, Austin, and Orlando, buyers are clearly in control, while in metros like Milwaukee and Boston, sellers remain firmly in the driver's seat. The takeaway for buyers and sellers alike is that local conditions, not national headlines, are what matter most for pricing, competition, and timing."


Read More ...


Consumer News: Is your morning coffee affecting your antibiotics?

Thu, 11 Sep 2025 22:07:07 +0000

Researchers explored how caffeine can quietly reduce the power of some antibiotics by changing how bacteria let them in

By Kristen Dalli of ConsumerAffairs
September 11, 2025

  • Everyday substances, including caffeine, can trigger changes in bacteria like E. coli that make antibiotics less effective.

  • Caffeine activates a regulatory path involving a bacterial protein called Rob, leading to less porin channels, which antibiotics use to enter the cell.

  • The weakening effect depends on the antibiotic, the bacterial species, and specific genes; in Salmonella, for example, caffeine didnt reduce antibiotic effectiveness the same way.


We all know caffeine wakes us up, but what if that same caffeine could interfere with antibiotics we need?

A new study from researchers in Germany has found that caffeine (and other common chemicals) can affect how bacteria respond to certain antibiotics.

The kicker: its not because caffeine kills bacteria or is antibacterial itself, but because it alters the way bacteria regulate what they let in and push out. In some cases, that can make antibiotics less able to do their job.

Our data show that several substances can subtly but systematically influence gene regulation in bacteria, researcher Christoph Binsfeld, said in a news release.

The study

To figure out how everyday substances might change the way bacteria react to antibiotics, researchers ran a kind of stress test on E. coli, a common gut bacterium.

They exposed the bacteria to 94 different chemicals including antibiotics, prescription drugs, and food-related compounds like caffeine and watched how the bacteria responded.

Instead of just looking to see whether the bacteria grew or died, the team zoomed in on the gates and pumps in the bacterial cell wall. These are the entry and exit points that antibiotics use to get inside or get pushed back out. By using a glowing marker system, the scientists could track whether these gates opened wider, closed tighter, or stayed the same when exposed to each chemical.

They also tested slightly altered versions of E. coli that were missing certain control switches. This helped them pin down exactly which internal regulators were responsible for the bacterias reactions.

The results

Caffeine stood out as one of the surprising players. On its own, caffeine didnt harm the bacteria. But when it was present, it flipped on a genetic switch that told the bacteria to close some of its entry gates specifically a channel called OmpF, which many antibiotics rely on to slip inside.

With fewer gates open, antibiotics like amoxicillin and ciprofloxacin couldnt get in as easily. That meant it took higher doses of those antibiotics to slow the bacteria down. In fact, in some tests, E. coli became up to 40% harder to stop when caffeine was added.

The effect wasnt universal, though. It depended on the specific bacteria and the drug. For instance, when the same tests were run on Salmonella, caffeine didnt have the same impact. This shows that caffeine isnt automatically a problem with all antibiotics, but it highlights how even common, everyday substances can sometimes tip the balance in bacterias favor.

Such fundamental research into the effect of substances consumed on a daily basis underscores the vital role of science in understanding and resolving real-world problems, President Prof. Dr. Dr. h.c. (Dshisha) Karla Pollmann said in the news release.


Read More ...


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