Consumer News: The Starbucks “Bearista” craze has gone full dupe mode

The Colorado law is aimed at state-chartered banks and fintech firms that charge predatory interest rates

• Federal appeals court upholds Colorados right to apply its interest rate limits to loans made by out-of-state banks to state residents
• Decision could reshape bank-fintech partnerships that rely on state-chartered banks to bypass local lending caps
• National banks, which arent subject to state rate limits, may become preferred partners for fintech lenders

A federal appeals court has ruled that Colorado can enforce its own interest rate caps on loans made by state-chartered banks from other states to Colorado residents, a landmark decision that could ripple through the consumer lending and fintech industries, making it harder for predatory lenders to operate across state lines.

In a 21 ruling on Nov. 10, the U.S. Court of Appeals for the 10th Circuit overturned a lower court injunction that had blocked Colorado from applying its 2023 lending law to out-of-state banks. The decision means that banks based elsewhere must now comply with Colorados lower rate limits when lending to people who live in the state.

Judge Gregory A. Phillips, writing for the majority, said Congress gave states the power to opt out of federal rate allowances under a 1980 law, allowing them to ensure that loans made in the state meet local standards. We acknowledge that this decision may cause some immediate uncertainty, Phillips wrote, but concluded that Colorado acted within its rights under federal law.

Fintech partnerships face new scrutiny

The ruling could have major implications for bank-fintech partnerships arrangements in which technology firms team up with state-chartered banks to issue loans nationwide. Many of those loans carry interest rates that would be illegal under the borrowers home-state laws but are allowed under the banks charter state.

By upholding Colorados authority, the court opened the door for other states to assert similar powers, potentially upending how fintech lenders price and issue credit.

The banks interpretation robs the state of one of its oldest police powers, creating a race to the bottom, Colorado Senior Assistant Attorney General Brian Urankar argued before the court earlier this year.

Industry groups, including the National Association of Industrial Bankers, warned the decision could push banks to seek national charters, which are exempt from state interest rate limits. That shift could concentrate more lending power in federally chartered institutions and reduce flexibility for smaller state-chartered banks. "Industrial" banks are generally chartered in states without strict interest rate caps.

Dissent warns of patchwork lending rules

Judge Veronica S. Rossman dissented, saying the majoritys interpretation created a practical problem by making loan regulation inconsistent across states. I struggle to see how this patchwork approach which abides a level of disuniformity Congress never intended will be administrable in our world of interstate, online banking, she wrote.

Rossman argued that the law was originally meant to regulate banks, not protect borrowers, and that loans made in a state should refer to the lenders location, not the borrowers.

What happens next

Colorados law, known as House Bill 1229, was enacted in 2023 to stop out-of-state banks from bypassing local lending caps. The state joined Iowa and Puerto Rico as the only jurisdictions to use the federal opt-out provision.

For now, the decision applies only to loans made to Coloradans, but observers say other states could soon follow Colorados lead. The caseNational Association of Industrial Bankers et al. v. Weiser et al.marks the first time a federal appellate court has sided with a state on this issue, setting the stage for potential challenges in other circuits or even the U.S. Supreme Court.

As Judge Phillips noted, Congress could have focused on the lender but chose instead to allow states to decide whether loans made to their residents should reflect their own interest rate standards.

AI toys introduce new dangers, Trouble in Toyland report finds

U.S. PIRGs 40th Trouble in Toyland report flags AI-powered toys that engage in inappropriate conversations with children
Investigators also found toxic and counterfeit toys still widely available online
Safety advocates urge families to be alert for hidden risks, from data collection to choking hazards

The latest Trouble in Toyland report from the U.S. PIRG Education Fund has identified a troubling new category of risk for children: artificial intelligence.

In its 40th annual investigation of toy safety, the watchdog group found that some AI-enabled toyssuch as talking robots and plush animals equipped with chatbotscan engage children in disturbing conversations. Tests showed toys discussing sexually explicit topics, expressing emotional reactions such as sadness when a child tries to stop playing, and offering little or no parental control.

If a toy breaks, we know it right away, said Teresa Murray, consumer watchdog director for U.S. PIRG Education Fund and co-author of the report. But if a toy contains toxic chemicals or a chatbot interacts with our child in a way we dont approve of, we dont necessarily know. The scariest part is that we cant actually see all the dangers a toy might pose.

Old risks persist alongside new ones

Beyond AI concerns, this years report found that many familiar hazards still threaten childrens safety. Toys containing toxic substancessuch as lead and phthalatescontinue to appear on online marketplaces, particularly those shipped from overseas.

Researchers also found counterfeit toys, including thousands of fake Labubu dolls, that likely bypassed safety testing altogether. Meanwhile, recalled toys remain available for purchase despite being illegal to sell.

Toys shouldnt harm our children, said U.S. PIRG Education Fund President Faye Park. Yet too often, toys that threaten kids mental or physical safety can still be found on store shelves.

Data privacy and hidden hazards

Investigators warn that AI toys not only pose behavioral risks but also threaten privacy. Many can record a childs voice, capture facial images, or collect other personal dataoften without meaningful disclosure.

Its one thing to rush AI products to market to find cures for pediatric cancer, said R.J. Cross, director of U.S. PIRGs Our Online Life campaign. Its another thing to rush to sell toy robots and teddy bears with chatbots in them. The companies making them havent even gotten the basics right.

The report also highlights ongoing hazards from water beads, button cell batteries, and high-powered magnetssmall items that can be deadly if swallowed.

Safety tips for families

The U.S. PIRG Education Fund advises parents and gift-givers to:

• Research products before purchase and avoid unfamiliar brands or third-party sellers.

• Check for recent recalls at SaferProducts.gov.

• Be cautious with toys containing small parts, batteries, magnets, or data collection features.

• Supervise childrens interactions with AI- or internet-connected toys.

As Murray put it, In todays digital toyland, the biggest dangers arent always visible.

Survey shows 71% of families plan to drive to their destination

By Mark Huffman of ConsumerAffairs

• Nearly three in four American families plan to hit the road this holiday season instead of the skies.

• Cost, flexibility, and convenience are driving the trend toward car travel including a growing interest in hybrids and EVs.

• The least crowded travel days are Nov. 22 for Thanksgiving, Dec. 18 for Christmas, and Dec. 28 for New Years.

With airfare soaring and airport delays a likely hangover from the government shutdown, more Americans are opting for road trips over flights this holiday season.

A new survey by Extreme Terrain found that 71% of families plan to drive to their holiday destinations this year, revealing a major shift toward the open road as travelers seek flexibility and control over their schedules.

More than half of families (52%) will drive for Christmas, followed by 44% for Thanksgiving and 16% for New Years. For many, the appeal is simple: driving offers affordability, comfort, and fewer logistical headaches than flying. Families are looking to save money and skip the chaos, the study noted.

Minimizing stress

Holiday travel remains stressful no matter the mode nearly three in four Americans (72%) say traveling for the holidays causes them stress. New Years tops the list as the most stressful time to hit the road, followed closely by Thanksgiving (71%) and Christmas (69%).

To minimize headaches, the survey identified the least popular travel days when roads are likely to be quieter. The best days to start a trip are Saturday, Nov. 22 (Thanksgiving), Thursday, Dec. 18 (Christmas), and Sunday, Dec. 28 (New Years).

Many families plan to put in serious mileage. For Christmas, 28% expect to drive between two and four hours one way, while 15% will go more than eight hours. Similar patterns hold for Thanksgiving and New Years, showing Americans willingness to log long distances to celebrate with loved ones.

Theres also a growing green streak on the road. Over one in five families plan to drive a hybrid, while 6% plan to travel in an electric vehicle (EV). As EV infrastructure improves, experts expect this number to rise in the coming years.

Departures and destinations

Major metro areas are fueling the surge in car travel. Families will be leaving in large numbers from Los Angeles, New York, Atlanta, Philadelphia, and Dallas, while the top destinations include Atlanta, New York, Charlotte, Dallas, and Philadelphia.

The data suggest regional travel patterns, with many drivers sticking to routes within a few states of home a trend that reduces both costs and carbon footprints.

Cost is the leading factor influencing family travel decisions (65%), followed by time off work (47%), family traditions (37%), and comfort or convenience (35%). Kids schedules, weather, and even pet accommodations (13%) also play roles in deciding how and when families travel.

For many, the car represents freedom the ability to stop when needed, avoid long security lines, and travel on their own terms. And as the survey shows, more Americans are ready to make the road trip itself part of the holiday experience.

With more than 130 billion coins in circulation, there shouldnt be a shortage right away

By Mark Huffman of ConsumerAffairs

• The U.S. Mint has officially ceased production of the one-cent coin, ending more than 160 years of penny manufacturing.

• Rising costs and declining consumer use drove the historic decision, marking the most significant change to U.S. coinage in decades.

• Americans are now encouraged to redeem, donate, or recycle their pennies, as the coins will remain legal tender indefinitely.

The last penny, bearing the profile of the 16th U.S. president, was struck this week at the U.S. Mint in Philadelphia. No more pennies will be produced, posing a quandary for both consumers and businesses.

Earlier this year, President Trump ordered an end to penny production, noting that it cost more than a penny to produce one. Thats been the case for several years.

With each coin costing more than two cents to mint and distribute, lawmakers and Treasury analysts argued that the copper-plated coin no longer made economic sense.

Meanwhile, digital payments, tap-to-pay systems, and point-of-sale rounding practices in other countries demonstrated that daily commerce could function smoothly without the smallest denomination coin. Canada, Australia, and New Zealand eliminated their own pennies long ago with minimal friction, examples cited heavily in recent congressional hearings.

The U.S. Mint will continue to distribute existing penny inventory until supplies naturally diminish, but no new coins will enter circulation.

Will prices go up?

Economists say consumers shouldnt expect noticeable price increases. Retailers may choose to:

• Adopt cash roundingrounding totals to the nearest nickel when paying with cash only

• Keep exact prices for electronic payments, which already allow precise transactions.

Studies from other nations show that rounding has little to no inflationary effect.

Different businesses may have different policies. McDonalds told CBS News that in some locations where pennies are unavailable, when a customer pays cash, the total will be rounded up or down to the nearest nickel.

For example, if the total comes to $10.22, the customer will be charged $10.20. However, if the total is $10.23, the customer will be charged $10.25.

So, what do you do with the pennies in a jar on a shelf in the closet? Its estimated that there are more than 130 billion pennies currently in circulation. If some of them are yours, here are some options:

1. Spend them

Pennies will remain legal for all purchases. While some businesses may choose not to accept large quantities, most will still honor them.

2. Redeem them at banks

Banks will continue to accept rolled pennies indefinitely. Many financial institutions already allow customers to deposit unrolled coins through lobby coin machines.

3. Donate pennies to charity

Nonprofits often welcome coin donations, and some have already launched Last Penny campaigns to capitalize on the moment. Schools and youth groups may do the same.

4. Trade them in at coin kiosks

Coin-sorting machines in supermarkets typically accept pennies, though a small processing fee may apply unless you redeem for store credit.

5. Keep a few

While modern pennies wont yield retirement money, early copper issues or uncirculated rolls could see increased collector attention over time.

A symbolic farewell

The end of penny production is both economic and emotional. For generations, the small coin has carried sentimental value, from childhood piggy banks to the tradition of pennies for luck.

But as the countrys payment habits evolve, the beloved one-cent coin is moving closer to history

Consumers now have ample time to clear out their change jars, support charities, and perhaps preserve a penny or two as a keepsake of an era thats finally come to a close.