Consumer News: 'Click to cancel' may be revived

The 2025 inflation rate was 2.7%

By Mark Huffman of ConsumerAffairs

• Inflation picked up modestly in December, with the overall Consumer Price Index rising 0.3% for the month and 2.7% over the past year.

• The sharpest price increases were seen in recreation, airline fares, shelter, and food-related categories.

• Several key prices fell or barely moved, including gasoline, eggs, used vehicles, communication services, and new cars.

Prices paid by U.S. consumers rose at a steady pace in December, but the details show a widening gap between the items rising fastest and those offering some relief.

The Bureau of Labor Statistics reported that shelter costs were the single biggest contributor to Decembers increase in the Consumer Price Index, climbing 0.4% for the month and 3.2% over the past year. Rent and owners equivalent rent both rose 0.3%, while lodging away from home jumped a notable 2.9% in just one month.

The CPI rose 0.3% in December. For 2025, the inflation rate was 2.7%.

Among the fastest-rising categories, recreation prices surged 1.2% in December, the largest one-month increase ever recorded for that index. Airline fares jumped 5.2%, marking one of the steepest increases consumers faced during the month. Medical care services also continued to climb, with hospital services rising 1.0% and overall medical care up 0.4%.

Food prices still rising

Food prices were another major pressure point. Grocery store prices rose 0.7% in December, matching the increase for dining out. Within grocery stores, other food at home climbed 1.6%, dairy products rose 0.9%, and cereals and bakery items increased 0.6%. Over the past year, food away from home rose 4.1%, led by a 4.9% increase in full-service restaurant meals.

Energy costs were mixed but still higher overall. Natural gas prices spiked 4.4% in December and are up 10.8% over the past year, making them one of the fastest-rising household expenses. Electricity prices, though down slightly for the month, are still up 6.7% year over year.

What prices are going down

At the other end of the spectrum, several prices moved lower or barely changed, easing pressure in specific areas. Gasoline prices fell 0.5% in December and are down 3.4% from a year earlier. Egg prices plunged 8.2% in a single month, helping pull down the broader meats, poultry, fish, and eggs category.

Big-ticket items also showed weakness. Used cars and trucks dropped 1.1% in December, while new vehicle prices were unchanged. Communication services fell sharply, down 1.9% for the month, and household furnishings and operations declined 0.5%.

Taken together, the data show inflation that remains contained overall but unevenly distributed. Essentials such as housing, food, and utilities continue to rise faster than average, while discretionary and goods-related categories from vehicles to electronics and communication services are providing the most relief for consumers.

The companies say the deal will expand service to smaller markets

By Mark Huffman of ConsumerAffairs

• Allegiant will acquire Sun Country in a cash-and-stock deal valued at about $1.5 billion, creating one of the largest leisure-focused airlines in the U.S.

• The combined airline promises more routes, more nonstop vacation flights, and expanded international service, particularly from smaller and mid-sized cities.

• Consumers could see more choices and potentially lower fares, though the merger will face regulatory scrutiny before closing in late 2026.

Allegiant Air and Sun Country Airlines have agreed to merge in a deal designed to reshape the low-cost leisure travel market and expand affordable flight options for millions of travelers.

Under the definitive agreement, Allegiant will acquire Sun Country Airlines in a transaction that values Sun Country at approximately $18.89 per share. Once the deal closes, Allegiant shareholders will own about 67% of the combined company, with Sun Country shareholders holding the remaining 33%.

Allegiant will remain the publicly traded parent, and the merged airline will continue operating under the Allegiant name.

What the merger means for travelers

For consumers, the airlines say the biggest change will be more destinations and better connectivityespecially for leisure travelers flying from smaller or underserved cities.

Together, the two carriers will operate more than 650 routes, combining Allegiants focus on small and mid-sized markets with Sun Countrys strength in larger metro areas such as MinneapolisSt. Paul. The merger is expected to expand nonstop service to popular vacation destinations and open up more international options, including flights to Mexico, Central America, Canada, and the Caribbean.

Allegiant customers, in particular, stand to gain access to 18 international destinations that are currently part of Sun Countrys network. The airlines say the combined route map will make it easier for travelers to reach vacation spots without connecting through major hubs.

Reliability, scheduling, and loyalty perks

The companies also emphasize operational improvements. By integrating scheduling and fleet management, the combined airline says it will be better able to match flight capacity to peak travel seasons, potentially improving on-time performance and reducing disruptions.

Another consumer-facing change will be loyalty programs. The merged airline plans to combine Allegiants programcurrently with about 21 million memberswith Sun Countrys more than 2 million members. Executives say this could lead to expanded rewards, broader benefits, and more ways for frequent flyers to earn and redeem points.

Will fares go up or down?

Both airlines position themselves as low-cost carriers focused on value, and executives stress that the mergers goal is to make leisure travel more affordable and accessible, not more expensive. The companies expect to generate $140 million in annual synergies within three years, largely by offering more routes and improving efficiency.

Still, as with most airline mergers, consumer advocates and regulators are likely to scrutinize whether reduced competition on certain routes could eventually lead to higher prices. Federal antitrust regulators will review the deal before it can close.

For the near future, passengers should not expect immediate changes. Allegiant and Sun Country will continue to operate separately until they receive a single operating certificate from the Federal Aviation Administration. Ticketing, schedules, and the Sun Country brand will remain unchanged during the integration period.

It calls for more scientific review

By Mark Huffman of ConsumerAffairs

• The American Society for Nutrition (ASN) supports the overall eating pattern in the newly released 20252030 Dietary Guidelines for Americans (DGAs), which emphasize minimally processed, nutrient-dense foods and limits on added sugar, sodium, and saturated fat.

• ASN warns that changes to the long-standing scientific review process behind the guidelines risk undermining public trust in nutrition science and creating confusion about dietary advice.

• The organization is calling for greater transparency, clearer messaging, and increased federal investment in nutrition research to strengthen future dietary guidance.

The U.S. Department of Health and Human Services is shaking up the food industry most recently reshuffling the food pyramid, putting meat and saturated fat at the top.

The American Society for Nutrition is offering qualified support for the newly released 20252030 Dietary Guidelines for Americans, applauding their focus on whole, minimally processed foods. But the organization is raising serious concerns about how the guidelines were developed.

In a statement responding to the new guidelines, ASN said it agrees with the broad dietary pattern promoted by federal health officialsone that prioritizes nutrient-dense foods and limits added sugars, sodium, and saturated fats. Such approaches, the organization noted, are strongly linked to improved long-term health outcomes, particularly when they reduce reliance on highly processed foods and sugar-sweetened beverages.

A change in process

At the same time, ASN expressed alarm over what it described as a major departure from the established, science-based process traditionally used to develop the Dietary Guidelines. Instead of relying primarily on the Scientific Report of the 2025 Dietary Guidelines Advisory Committee (DGAC), the federal government introduced a separate document, the Scientific Foundation for the Dietary Guidelines for Americans.

According to ASN, this shift raises questions about transparency and rigor. The organization said there is little clarity about the methods, objectives, or timelines used to produce the new scientific foundation report, and warned that the approach diverges from the National Academies of Sciencesrecommended standards designed to build public trust.

For decades, the DGACs scientific report has served as the backbone of the Dietary Guidelines, ASN said.

That report is produced by an independent panel of experts who conduct a systematic and transparent review of the evidence. ASN strongly endorsed the work of the 2025 DGAC, which included many of its members and other nutrition scientists who volunteered significant time to evaluate research and develop evidence-based recommendations.

Possible confusion

While ASN also acknowledged and respected the contributions of ASN members who served as authors of the new scientific foundation report, it cautioned that introducing parallel reviews risks confusing both policymakers and the public.

That confusion, ASN said, is already evident in some of the final guidance. The DGACs scientific review found strong evidence that reducing saturated fat intake lowers cardiovascular disease risk.

Although the 20252030 DGAs retain the long-standing recommendation to limit saturated fat to no more than 10% of daily calories, ASN noted that the guidelines also appear to encourage greater consumption of foods such as butter and beef tallow, which are high in saturated fat.

Such mixed messaging, ASN warned, could make it harder for consumers to interpret and follow the guidelines in ways that support long-term health.

Beyond scientific process issues, ASN emphasized that dietary guidance must be practical and equitable to improve public health. Clear recommendations, the group said, must be paired with policies and food environments that make healthy choices accessible and affordable for all Americans.

Customers nationwide will get hundreds of millions of dollars

• Capital One will pay $425 million in restitution and raise interest rates for affected savings customers

• The money willl go to consumers who held 360 Savings accounts

• The deal follows objections by New York Attorney General Letitia James to an earlier, smaller settlement

New York Attorney General Letitia James on Monday praised a revised settlement with Capital One that will return hundreds of millions of dollars to customers who were allegedly shortchanged on interest payments for years.

Under the agreement, Capital One will provide $425 million in restitution to customers nationwide, including an estimated $34 million to New Yorkers who held 360 Savings accounts. The settlement also requires the bank to raise interest rates for those accounts, ending what state officials described as a misleading two-tier savings system.

The deal more than doubles the value of an earlier proposed class action settlement that James and a bipartisan coalition of attorneys general successfully challenged in court.

Allegations of misleading savings customers

James sued Capital One in May, accusing the bank of misleading customers by marketing its 360 Savings accounts as high interest products that would outperform average savings accounts.

According to the lawsuit, Capital One kept interest rates on 360 Savings accounts artificially low even as national interest rates began climbing in 2022. At the same time, the bank introduced a nearly identical product 360 Performance Savings that offered significantly higher rates, at one point more than 14 times higher than those paid to existing 360 Savings customers.

State officials said the practice allowed Capital One to avoid paying higher interest to long-time customers while steering new deposits into the higher-yield account.

Capital One customers were counting on growing their savings accounts, but their bank misled them and cheated them out of valuable interest payments for years, James said in a statement. Today we are delivering justice for those customers nationwide.

Court rejects earlier deal

In September, James led a bipartisan coalition of attorneys general in filing an amicus brief opposing an earlier proposed settlement in the class action case.

That deal would have provided less than $300 million in restitution and would have allowed Capital One to continue paying lower interest rates on 360 Savings accounts. After the objections were filed, the court rejected the proposed settlement.

The newly negotiated agreement, which received preliminary court approval on Monday, significantly expands consumer relief.

Interest rates must now match

In addition to the $425 million restitution fund, the settlement requires Capital One to match interest rates between its 360 Savings and 360 Performance Savings accounts going forward.

State officials estimate that the change will provide an additional $530 million in future interest payments to consumers nationwide, effectively dismantling the two-tier system at the center of the lawsuit.

The Office of the Attorney General said it will voluntarily dismiss its case against Capital One if the revised settlement receives final court approval and takes effect.

Final approval of the settlement is still pending, but if approved, payments to affected consumers would follow under the terms set by the court.