House approves $9.7 billion in Sandy disaster aid









WASHINGTON — Responding to the political storm over delays in disaster aid to the Northeast, the House on Friday approved a $9.7-billion flood insurance bill, the first segment of a possible $60-billion Superstorm Sandy recovery package.


The measure’s approval comes after New Jersey Gov. Chris Christie and Rep. Pete King of New York, among others, publicly slammed House Speaker John Boehner, a fellow Republican, for putting off a vote on a relief measure in the closing days of the 112thCongress.


The 354-67 vote sent the bill to the Senate, where it could be approved by the end of the day. 








But Democrats were still fuming that it has taken 68 days for the House to act – and that a  broader relief bill still must be approved.


"Talk about fiddling while New York City burns,’’ said Rep. Nydia Velazquez (D-N.Y.), calling the delay an "embarrassment’’ to the House. 


"How dare you come to this floor and make people think everything is OK,’’ Rep. Bill Pascrell Jr. (D-N.J.) told Republicans.


Rep. Frank LoBiondo (R-N.J.), among the Northeast lawmakers who complained earlier this week about congressional inaction on a relief bill, called the vote a "key step in getting critical federal assistance to the residents, businesses and communities devastated by Hurricane Sandy.


“This week’s events make it clear that the need for help is real and that any additional delays in providing federal aid will be met with fierce resistance from myself, members of the delegation, and Gov. Christie,’’ he added.


The larger aid package, due to come before the House on Jan. 15, would fund such things as repairing roads, the electric grid, transportation system and Liberty Island, where the Statue of Liberty has been closed since the storm hit, and shoring up defenses against future storms.


That measure, expected to cost $51 billion, could still run into resistance from conservative lawmakers, some of whom have sought to offset the new spending with budget cuts elsewhere.


The conservative Club for Growth urged a no vote on the flood insurance measure, saying, "Congress should not allow the federal government to be involved in the flood insurance industry in the first place, let alone expand the national flood insurance program's authority."


The measure approved Friday  would increase the borrowing authority for the national flood insurance program to cover insurance claims for flood damage.


The Federal Emergency Management Agency has warned that without congressional action, funds available to pay claims would be exhausted next week.   


Sandy, which was a hurricane before the center of the storm made landfall  Oct. 29 in New Jersey, caused more than 125 deaths in the United States.


Richard.simon@latimes.com








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Why Some Facebook Users Constantly Update Status






Scientists have found what compels people to constantly update their Facebook status. College students who posted more status updates than they normally did felt less lonely over the course of a week, even if no one “Liked” or commented on their posts, researchers found.


“We got the idea to conduct this study during a coffee-break sharing random stories about what friends had posted on Facebook,” psychology researcher Fenne große Deters, of the Universitat Berlin, told LiveScience in an email. “Wondering why posting status updates is so popular, we thought that it would be thrilling to study this new form of communication empirically.”






Deters and her colleague recruited about 100 undergraduates (all Facebook users) at the University of Arizona. All participants filled out initial surveys to measure their levels of loneliness, happiness and depression, and they gave the researchers access to their Facebook profiles by friending a dummy user created for the experiment.


The students were sent an analysis of their average weekly status updates (online wall-memos) and some of the participants were then told to post more statuses than usual over the next seven days. During that week, all completed a short online questionnaire at the end of each day about their mood and level of social connection.


Compared with the group of students who didn’t adjust their social media habits, those who went on a status-writing blitz felt less lonely over the week, the team found. Their happiness and depression levels went unchanged, “suggesting that the effect is specific to experienced loneliness,” the researchers wrote. And a drop in loneliness was linked to an increase in feeling more socially connected, which the researchers believe is the cause behind the positive effects of status updating. [6 Personal Secrets Your Facebook Profile Isn't Keeping]


Interestingly, the team found that loneliness levels did not depend on whether the students’ status updates garnered any comments or “Likes” from Facebook friends. One might assume that a lack of response could be considered a form of rejection, but the act of writing a status update itself might help people feel more connected, the researchers said. When crafting a clever status, Facebook users have a target audience in mind. Simply thinking about their friends (or at least their Facebook friends) can have a “social snacking” effect.


“Similar to a snack temporarily reducing hunger until the next meal, social snacking may help tolerate the lack of ‘real’ social interaction for a certain amount of time,” the researchers wrote in a paper published last month in the journal Social Psychological and Personality Science.


Now with over a billion users, Facebook has become the focus of an increasing number of studies trying to uncover the real-life social side effects that can accompany using the social media site.


For example, research presented last year at the meeting of the Society for Personality and Social Psychology (SPSP) showed how the site offers a dangerous medium for social comparison. People in that study with lots of Facebook friends had lower self-esteem, feeling worse about their place in life and their achievements if they’d just viewed their friends’ status updates, compared with people who hadn’t recently surfed the site. But for people with just a few Facebook friends, viewing status updates wasn’t a problem.


Another study, detailed in the Sept. 13 issue of the journal Nature, found such Facebook friends can influence real-life actions of one another. In that study, one “get out the vote” message sent to 61 million Facebook users on Election Day 2010 led to 340,000 people casting ballots when they otherwise would not have.


Follow LiveScience on Twitter @livescience. We’re also on Facebook & Google+.


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Adele’s “21″ scores again, beating Swift for 2012′s top album






LOS ANGELES (Reuters) – British singer Adele‘s Grammy-winning “21″ scored a rare feat in 2012 as it topped U.S. album sales for a second straight year, beating out U.S. country-pop star Taylor Swift‘s “Red, Nielsen Soundscan said on Thursday.


It was the first time a single album had been a top-seller for two years in a row since Nielsen began tracking album sales in 1991, the organization said.






But U.S. album sales overall fell 4 percent in 2012 to 315.96 million albums, after 2011 saw a rare 3 percent bump in sales.


Adele’s “21″ sold 4.41 million units in the United States in 2012 to top Swift’s “Red,” which sold 3.11 million copies. In 2011, “21″ sold 5.82 million units.


“It’s a sort of a once-in-a-lifetime album,” Keith Caulfield, associate director of charts at Billboard, told Reuters of “21.” “Only a few of these albums come along in history.”


The heartbreak record, with hits like “Rolling in the Deep” and “Someone Like You,” earned Adele six Grammy Awards in early 2012, boosting the profile of the 24-year-old singer and songwriter, who records on indie label XL Recordings.


The album sold at a furious pace, reaching the 10 million albums-sold plateau in the span of two years, Caulfield noted. The last album to achieve that feat was boy band ‘N Sync’s “No Strings Attached,” which was released in 2000.


“It’s really the right combination of artistry and hit singles,” Caulfield said of “21′s” success.


“She really crossed over from pop to Latin to adult contemporary to dance,” he added. “Young and old consumers bought it, and because of its mixture of fans, she was able to sell it as well as she did.”


Adele’s success came despite the drop in 2012 U.S. album sales.


“Last year (2011) was a fluke,” Caulfield said. “A year gain in album sales is a mega achievement. … It’s the way the market works now, people buy songs and not albums.”


Indeed, digital song sales rose 5 percent in 2012 to a record high 1.336 billion downloads.


The year’s best-selling albums in the United States had a particularly British flavor as Swift was the lone American in the top five. Swift records for the independently owned Nashville-based Big Machine, distributed by Universal Music Group.


British boy band One Direction’s “Up All Night,” released in 2011 on Sony Music Entertainment’s SYCO/Columbia label, placed third with 1.62 million units sold, while their 2012 follow-up, “Take Me Home,” took the fifth spot with 1.34 million units sold.


Britain’s folk revivalists Mumford & Sons, on indie record label Glassnote, placed fourth with their album “Babel” selling 1.46 million units.


(Reporting by Eric Kelsey; Editing by Jill Serjeant and Peter Cooney)


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Scant Proof Is Found to Back Up Claims by Energy Drinks





Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.




Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.


The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.


“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.


Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.


Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.


As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.


Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.


“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”


A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.


In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.


Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.


Consider the case of taurine, an additive used in most energy products.


On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.


But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.


Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.


Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.



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DealBook: More European Bank Loan Sales Expected

11:45 a.m. | Updated

LONDON – At the start of 2013, European banks are cleaning out their closets.

The Continent’s largest financial institutions, including HSBC and Deutsche Bank, are expected to sell a combined 60 billion euros, or $78 billion, of so-called noncore loans this year, a 33 percent rise compared with 2012, according to estimates from the accounting firm PricewaterhouseCoopers released on Friday.

The renewed effort to offload unwanted assets comes as European banks are eager to reduce costs and shrink their balance sheets to comply with tougher capital requirements demanded by regulators. Europe’s persistent financial problems also have altered the industry’s economics, leaving many banks with bloated balance sheets and reduced profitability.

A string of recent scandals, including multibillion-dollar fines for the British bank Barclays and its Swiss counterpart UBS related to the manipulation of benchmark interest rates, have placed increased pressure of firms to pull back from underperforming and risky business units.

Many of Europe’s largest banks also have announced wholesale jobs cuts, particularly in their investment banking divisions, while the number of people working in financial services in London, Europe’s financial capital, has fallen to its lowest level since the mid-1990s, according to the British research organization Center for Economics and Business Research.

The fire sale has already included the Royal Bank of Scotland‘s sale of property loans to the private equity firm Blackstone Group and its aviation leasing business to the Sumitomo Mitsui Financial Group, the Japanese bank, for $7.3 billion. HSBC also is considering the sale of United States real estate and personal loans worth a combined $6 billion after it already offloaded a number of operations in emerging markets like Pakistan and Colombia to local competitors.

“Banks have been doing the right thing by selling off loan portfolios,” said Richard Thompson, a partner at PricewaterhouseCoopers in London. “Some of stronger firms also may now be looking to pick up assets on the cheap.”

PricewaterhouseCoopers said that it expected that European banks would focus on corporate and real estate loan disposals, particularly in countries like Spain where prices in the local housing market fell 15 percent annually in the third quarter of last year, according to the latest available government figures.

The creation in Spain of a so-called bad bank that will oversee the sale of up to 60 billion euros of unwanted assets like delinquent mortgages and unsold real estate on behalf of local banks is also expected to draw interest from potential buyers.

European banks are keen to sell, but bankers and lawyers say financial institutions continue to demand high prices for assets despite the glut of loan portfolios up for sale. So far, analysts add that differences over price have kept potential buyers, including private equity firms that specialize in distressed assets, from picking up more underperforming loan assets because the firms believe they remain overvalued.

Last year, the average discount on loans for a range of unwanted European bank assets was 20 percent to 50 percent, according to PricewaterhouseCoopers. That percentage is expected to rise this year, though analysts say the banks’ access to cheap short-term financing from the European Central Bank has given them some breathing room to demand higher prices for their unwanted assets.

“In 2012, we saw a large number of different banks bringing their portfolios to market,” Mr. Thompson said. “The issue of price will clearly remain a key challenge in future for sellers.”

European banks still have a lot of work to do.

PricewaterhouseCoopers estimates that firms still have more than 2.5 trillion euros of noncore loans that they are looking to sell. As the 60 billion euro estimate for loan portfolio sales in 2013 represents just 2.4 percent of that total, Europe’s banks are likely to remain eager sellers for many years to come.

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Bieber urges crackdown on paparazzi after photographer's death









Justin Bieber and his collection of exotic cars have been tantalizing targets for celebrity photographers ever since the young singer got his driver's license.


A video captured the paparazzi chasing Bieber through Westside traffic in November. When Bieber's white Ferrari stops at an intersection, the video shows the singer turning to one of the photographers and asking: "How do your parents feel about what you do?"


A few months earlier, he was at the wheel of his Fisker sports car when a California Highway Patrol officer pulled him over for driving at high speeds while trying to outrun a paparazzo.





This pursuit for the perfect shot took a fatal turn Tuesday when a photographer was hit by an SUV on Sepulveda Boulevard after taking photos of Bieber's Ferrari. And the singer now finds himself at the center of the familiar debate about free speech and the aggressive tactics of the paparazzi.


Since Princess Diana's fatal accident in Paris in 1997 while being pursued by photographers, California politicians have tried crafting laws that curb paparazzi behavior. But some of those laws are rarely used, and attorneys have challenged the constitutionality of others.


On Wednesday, Bieber went on the offensive, calling on lawmakers to crack down.


"Hopefully this tragedy will finally inspire meaningful legislation and whatever other necessary steps to protect the lives and safety of celebrities, police officers, innocent public bystanders and the photographers themselves," he said in a statement.


It remained unclear if any legislators would take up his call. But Bieber did get some support from another paparazzi target, singer Miley Cyrus.


She wrote on Twitter that she hoped the accident "brings on some changes in '13 Paparazzi are dangerous!"


Last year, a Los Angeles County Superior Court judge threw out charges related to a first-of-its-kind anti-paparazzi law in a case involving Bieber being chased on the 101 Freeway by photographer Paul Raef. Passed in 2010, the law created punishments for paparazzi who drove dangerously to obtain images.


But the judge said the law violated 1st Amendment protections by overreaching and potentially affecting such people as wedding photographers or photographers speeding to a location where a celebrity was present.


The L.A. city attorney's office is now appealing that decision.


Raef's attorney, Dmitry Gorin, said new anti-paparazzi laws are unnecessary.


"There are plenty of other laws on the books to deal with these issues. There is always a rush to create a new paparazzi law every time something happens," he said. "Any new law on the paparazzi is going to run smack into the 1st Amendment. Truth is, most conduct is covered by existing laws. A lot of this is done for publicity."


Coroner's officials have not identified the photographer because they have not reached the next of kin. However, his girlfriend, Frances Merto, and another photographer identified him as Chris Guerra.


The incident took place on Sepulveda Boulevard near Getty Center Drive shortly before 6 p.m. Tuesday. A friend of Bieber was driving the sports car when it was pulled over on the 405 Freeway by the California Highway Patrol. The photographer arrived near the scene on Sepulveda, left his car and crossed the street to take photos. Sources familiar with the investigation said the CHP told him to leave the area. As he was returning to his vehicle, he was hit by the SUV.


Law enforcement sources said Wednesday that it was unlikely charges would be filed against the driver of the SUV that hit the photographer.


Veteran paparazzo Frank Griffin took issue with the criticism being directed at the photographer as well as other paparazzi.


"What's the difference between our guy who got killed under those circumstances and the war photographer who steps on a land mine in Afghanistan and blows himself to pieces because he wanted the photograph on the other side of road?" said Griffin, who co-owns the photo agency Griffin-Bauer.


"The only difference is the subject matter. One is a celebrity and the other is a battle. Both young men have left behind mothers and fathers grieving and there's no greater sadness in this world than parents who have to bury their children."


Others, however, said the death focuses attention on the safety issues involving paparazzi


"The paparazzi are increasingly reckless and dangerous. The greater the demand, the greater the incentive to do whatever it takes to get the image," said Blair Berk, a Los Angeles attorney who has represented numerous celebrities. "The issue here isn't vanity and nuisance, it's safety."


richard.winton@latimes.com


andrew.blankstein@latimes.com





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The Most and Least Influential Social Media Celebs






While he isn’t currently available for promotional work, businesses would have the most success on social media with President Barack Obama endorsing their goods and services, new research shows.


A study by social marketing platform SocialToaster revealed that Obama is considered the most influential celebrity on social media. Justin Bieber, Lady Gaga, Ashton Kutcher and Anderson Cooper followed the president on the rankings of social influencers.






On the flip side, the research found that former Republican presidential nominee Mitt Romney was the least influential celebrity on social media, finishing just below Madonna, Kanye West and Sean Hannity.


While celebrities might be influential on social media in some aspects, it’s those closest to us who make the largest impact when it comes to the important issues. Nearly all of the social media users surveyed agreed that a social media post from a close friend or family member was most likely to influence them on important subjects, with politicians and athletes the least likely to influence them.


“While it was no surprise that in this election year Barack Obama would be ranked the most influential person in social media, it was surprising to us that Justin Bieber and Lady Gaga would beat Madonna and Kanye West,” said Brian Razzaque, CEO of SocialToaster. “We were also surprised to see that friends had more pull than family when it came to influencing the sharing of social media content.”


Regardless of whom it comes from, there are some posts that will quickly result in an unfollowing, the study discovered. Nearly three-quarters of those surveyed said a racist post would cause them to immediately unfollow someone on social media. Other types of posts that result in a loss of followers include sexism, pornography, repetitive, overly personal posts and those that use poor grammar.


The researcher was based on surveys of 3,000 SocialToaster Super Fans, which consist of social media experts and professionals, many of whom work with some of the nation’s leading brands. The experts range from those who work in the entertainment industry who represent numerous television shows and movies to those who work in professional sports, including the Baltimore Ravens and the Detroit Pistons.


This story was provided by BusinessNewsDaily, a sister site to LiveScience. Follow Chad Brooks on Twitter @cbrooks76 or BusinessNewsDaily @BNDarticles. We’re also on Facebook & Google+.


Copyright 2012 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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“Hunger Games” and “Hobbit” most-anticipated films of 2013: poll






LOS ANGELES (Reuters) – This year will look a lot like 2012 at the box office, with “The Hunger Games” and Hobbits at the top of cinemagoers must-see lists, according to a survey by ticket-seller Fandango released on Thursday.


The second installment in “The Hunger Games” trilogy, “The Hunger Games: Catching Fire,” which is set for a November release, topped the list as 2013′s most-anticipated blockbuster.






The first film in the life-or-death thriller series starring Jennifer Lawrence, raked in some $ 687 million at the worldwide box office in 2012.


The Hobbit: The Desolation of Smaug,” director Peter Jackson‘s second installment in the “The Hobbit” series of elves and dwarves, ranked second on the survey that polled more than 2,000 moviegoers during the final week of 2012. It is scheduled to hit the big screen in December.


“People love the mega-franchises and that is what gets them most excited,” Dave Karger, Fandango chief correspondent, told Reuters. “The first ‘Hunger Games‘ whetted peoples’ appetites for more. The same can be said for ‘The Hobbit‘ and ‘Iron Man.’”


The superhero thriller “Iron Man 3″ starring Robert Downey Jr. ranked third on the list and is set for a May 3 release.


“Star Trek into Darkness” – the follow-up to 2009′s “Star Trek” science-fiction adventure – and “The Great Gatsby” starring Leonardo DiCaprio rounded out the top five. Both films are set to open in May.


‘JAZZED’ ABOUT FRANCHISES


The heavy dose of franchise films on the list indicates how familiarity can build buzz among moviegoers, Karger said.


“In the case of ‘The Hunger Games,’ many people who loved the movie have read the other books so they’re excited to see it brought to life,” he said. “The same with ‘The Hobbit‘ too.


“Some people say, ‘Where is the originality?’ but the fact of the matter is that these franchises are what people get most jazzed about.”


The survey also asked film fans to vote on the sexiest man and woman on the big screen in 2013, as well as best villain, breakout stars and best apocalyptic films.


Mila Kunis, who stars in upcoming film “Oz: The Great and Powerful,” was voted sexiest actress, while Channing Tatum was voted sexiest man for Paramount’s “G.I. Joe: Retaliation.” Both films are set for March releases.


Ben Kingsley (“Iron Man 3″) was voted most-anticipated villain, and June’s zombie thriller “World War Z” starring Brad Pitt was voted most-anticipated apocalyptic film.


British actress Alice Eve was voted biggest breakout actress for “Star Trek” while fellow Brit Henry Cavill got the nod as biggest breakout actor for playing Superman opposite Russell Crowe and Amy Adams in “Man of Steel,” which will be released in June.


Full results can be viewed at Fandango.com.


(Reporting by Eric Kelsey, editing by Jill Serjeant and Sandra Maler)


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5-Hour Energy’s ‘No Crash Later’ Claim Is Disputed





The distributor of the top-selling energy “shot,” 5-Hour Energy, has long claimed on product labels, in promotions and in television advertisements that the concentrated caffeine drink produced “no crash later” — the type of letdown that consumers of energy drinks often feel when the beverages’ effects wear off.




But an advertising watchdog group said on Wednesday that it had told the company five years ago that the claim was unfounded and had urged it then to stop making it.


An executive of the group, the National Advertising Division, also said that 5-Hour Energy’s distributor, Living Essentials, had publicly misrepresented the organization’s position about the claim and that it planned to start a review that could lead to action against the company by the Federal Trade Commission.


“We recommended that the ‘no crash’ claim be discontinued because their own evidence showed there was a crash from the product,” said Andrea C. Levine, director the National Advertising Division. The organization, which is affiliated with the Council of Better Business Bureaus, reviews ad claims for accuracy.


The emerging dispute between Living Essentials and the National Advertising Division is unusual because the $10 billion energy drink industry is rife with questionable marketing. And Living Essentials, which recently cited the advertising group’s support in seeking to defend the “no crash” claim, may have opened the door to greater scrutiny.


Major producers like 5-Hour Energy, Red Bull, Monster Energy and Rockstar Energy all say their products contain proprietary blends of ingredients that provide a range of mental and physical benefits. But the companies have conducted few studies to show that the costly products provide anything more than a blast of caffeine, a stimulant found in beverages like coffee, tea or cola-flavored sodas.


The dispute over 5-Hour Energy’s claim also comes as regulatory review of the high-caffeine drinks is increasing. The Food and Drug Administration recently disclosed that it had received reports over the last four years citing the possible role of 5-Hour Energy in 13 deaths. The mention of a product in an F.D.A. report does not mean it caused a death or injury. Living Essentials says it knows of no problems related to its products.


The issue surrounding the company’s “no crash” claim dates to 2007, when National Advertising Division began reviewing all of 5-Hour Energy’s marketing claims. That same year, the company conducted a clinical trial of the energy shot that compared it to Red Bull and Monster Energy.


At the time, Living Essentials was already using the “No crash later” claim. An article on Wednesday in The New York Times reported that the study had shown that 24 percent of those who used 5-Hour Energy suffered a “moderately severe” crash hours after consuming it. The study reported higher crash rates for Red Bull and Monster Energy.


When asked how those findings squared with the company’s “no crash” claim, Elaine Lutz, a spokeswoman for Living Essentials, said the company had amended the claim after the 2007 review by the National Advertising Division. In doing so, it added an asterisklike mark after the claim on product labels and in promotions. The mark referred to additional labeling language stating that “no crash means no sugar crash.” Unlike Red Bull and Monster Energy, 5-Hour Energy does not contain sugar.


Ms. Lutz said that based on the modification, the advertising accuracy group “found all of our claims to be substantiated.”


However, Ms. Levine, the advertising group’s director, took sharp exception to that assertion, saying it mischaracterized the group’s decision. And a review of the reports suggested that Living Essentials had simply added language of its choosing to its label rather than doing what the group had recommended — drop the “no crash” claim altogether.


That review concluded that the company’s 2007 study had shown there was evidence to support a “qualified claim that 5-Hour Energy results in less of a crash than Red Bull and Monster” Energy. But it added the study, which showed that 5-Hour Energy users experienced caffeine-related crashes, was inadequate to support a “no crash” claim.


Ms. Levine said Living Essentials had apparently decided to use the parts of the group’s report that it liked and ignore others.


Companies “are not permitted to mischaracterize our decisions or misuse them for commercial purposes,” she said.


She said the group planned to notify Living Essentials that it was reopening its review of the “no crash later” claim. If the company fails to respond or provides an inadequate response, the National Advertising Division will probably refer the matter to the F.T.C., she said.


A Democratic lawmaker, Representative Edward Markey of Massachusetts, has asked that the agency review energy drink marketing claims.


Asked about the position of the National Advertising Division, Ms. Lutz, the 5-Hour Energy spokeswoman, stated in an e-mail that the “no sugar crash” language had been added to address the group’s concern.


This article has been revised to reflect the following correction:

Correction: January 2, 2013

An earlier version of this article misstated the number of deaths in which the Food and Drug Administration said 5-Hour Energy possibly played a role. The number was 13, not 15.



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U.S. Auto Sales End 2012 on Strong Note


DETROIT (AP) — Strong U.S. sales in December capped a remarkable year for the auto industry — especially Japanese brands — and 2013 should be even better.


Sales of new cars and trucks are expected to total around 14.5 million after all carmakers announce figures on Thursday. That is 13 percent better than 2011 and the best performance in five years.


In 2012, Americans had plenty of incentive to buy new cars and trucks. Unemployment eased. Home sales and prices rose. And the average age of a car topped 11 years in the United States, a record that spurred people to trade in. Banks made that easier by offering low interest rates and greater access to loans, even for those with poor credit.


“The U.S. light vehicle sales market continues to be a bright spot in the tremulous global environment,” said Jeff Schuster, senior vice president of forecasting for LMC Automotive, a Detroit-area industry forecasting firm.


Year-end deals on pickup trucks and the usual round of sparkling holiday ads helped December sales jump 10 percent to more than 1.3 million, auto pricing site TrueCar.com predicted. That would translate to an annual rate of more than 15.6 million, making December the strongest month of 2012.


Toyota, which has recovered from an earthquake and tsunami in Japan that crimped its factories two years ago, said Thursday that sales jumped 27 percent for 2012. Its December sales were up 9 percent. Unlike 2011, the company had plenty of new models stocked in showrooms for most of last year.


Chrysler, the smallest of the Detroit carmakers, had the best year among American companies. Its sales jumped 21 percent. December sales rose 10 percent. Demand was led by the Jeep Grand Cherokee S.U.V., Ram pickup and Chrysler 300 luxury car.


Among European carmakers, Volkswagen dominated, with annual sales up a staggering 35 percent.


But full-year sales at Ford and General Motors lagged. G.M.’s rose only 3.7 percent for the year, while Ford edged up 5 percent. For December, G.M. sales rose 5 percent, while Ford was up 2 percent.


December featured year-end deals on big pickup trucks; G.M. offered discounts of up to $9,000 to help clear growing inventory. The move worked. G.M. cut its full-size pickup supply from almost 246,000 at the end of November to just under 222,000 as the year came to a close.


Over all, though, analysts said the industry eased up on promotions such as rebates and low-interest financing. Car and truck buyers paid an average of $31,228 per vehicle last month, up 1.8 percent from December 2011.


The Polk auto research firm predicted even stronger American sales for 2013, forecasting 15.3 million as the economy continues to improve. Polk, based in Southfield, Mich., expected 43 new models to be introduced, up 50 percent from last year. New models usually help sales.


The firm also predicted a rebound in sales of large pickups and midsize cars. All eight of the top manufacturers are strong and introducing new vehicles, and that should bring competition and lower prices in those segments, according to Tom Libby, lead North American analyst for Polk.


But the firm’s optimistic forecasts hinge on Washington reaching an agreement on government debt limits and spending cuts.


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