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UPS Apologizes for not Getting All; Negative Online Review Triggers Lawsuits; Highway Heroes Rescue Man from Flames; Cruise Ship Stuck off Antarctica; Dish, DirectTV Raise Rates in 2014; Top Ten Entertainment Stories of 2013
Aired December 26, 2013 - 10:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Well I will say that not all customers are upset at UPS. Many say procrastinating customers are also at fault. They're upset that people are maligning Santa's helpers in brown. Is that fair?
MARSHAL COHEN, CHIEF INDUSTRY ANALYST, NPD GROUP: I'm actually glad you brought that up because that is fair. You know when you think about it you know there are a couple of other different things at play. Today if you were to fly and you would have to check baggage -- let's say you wanted to bring your gifts to you know your family and you were traveling across the country, you would have to check your bags and pay additional fees for that. So consumers were also shipping more goods ahead of time, shipping the presents.
Another key factor here is to recognize that because the retailers have put so many discounts at the back end of holiday, closer to Christmas, it's caused lots of procrastination, even more so this year than years prior.
COSTELLO: So just on a last note, UPS and FedEx, you would think they would try to fix their brand because they've had a great reputation up until this year when many packages weren't delivered on time. We did get a statement from FedEx. And I'm going to read it to you, Marshal are you ready.
COHEN: I am.
COSTELLO: This is from FedEx, "Our 300,000 team members were focused on safely delivering our customers' packages this holiday season and we're proud of their efforts. The fact is FedEx was projected to handle 275 million shipments in this shortened holiday season between Thanksgiving and Christmas and we operated with very high service levels, over 99 percent at FedEx ground, for example, during our busiest time of the year."
Now I don't notice the words "I'm sorry" anywhere in that statement. FedEx, it seems, said we did the best job we could and it was a good job.
COHEN: Well, it is a very good job. However, you have to then explain it to that one child who didn't get that gift or that one mom who didn't get the gift or the one customer who sat there and said I relied on you to do that. Look what Target did when they had the issue with the security breach. They got out in front of it right away. They apologized, they offered different solutions. They found ways to resolve the problem.
This is not that. This is about saying, look, we did a great job. We delivered all these packages. That doesn't work. Look for, in the next day or two, for some PR to be done, and find out if you're going to get a better apology and even some game plans.
Right now it's left to the retailer to try to deal with the customer service issue of trying to find the package and locate it and get it to the customer on time. And reimburse the consumer for the ability to not get that package. But that's going to end up ultimately having to get put back on the delivery companies.
COSTELLO: All right Marshal Cohen thanks so much for your insight this morning. We appreciate it.
COHEN: Pleasure.
COSTELLO: It is a cautionary tale, another one, for online shoppers. A couple who was fined $3,500 for posting a negative review of KlearGear.com is fighting back. The company says the couple did not read the fine print. And now the couple says they're being extorted.
More now from CNN's Pamela Brown.
PAMELA BROWN, CNN CORRESPONDENT: Well Carol, this is a story we brought you about a month ago when it garnered a huge response from viewers who say it's just unfair and should be illegal to be fined for posting a negative review.
Well now the couple at the center of this story is fighting back.
(BEGIN VIDEO CLIP)
BROWN (voice over): A Utah couple fined $3,500 for writing a negative review of KlearGear.com is now suing the merchant for retaliating against them, according to a lawsuit filed Wednesday on the couple's behalf by Public Citizens. The battle began when John and Jen Palmer bought a few Christmas gifts from the Web site KlearGear.com in 2008. But they say the items never arrived and their calls went unanswered.
Finally, the transaction was canceled. Jen Palmer vented her frustrations online, posting a review of the company on RipoffReport.com saying, in part, "There is absolutely no way to get in touch with a physical human being, no extensions work."
Then three and a half years later, they received this e-mail, appearing to be from KlearGear, stating they would be fined $3,500 if the negative review wasn't taken down in 72 hours.
JEN PALMER, COUNTERSUING KLEARGEAR.COM: It's ridiculous that anybody would turn around and try to extort us like this especially for doing something as simple as just posting a review online.
BROWN: But KlearGear told the Palmers they signed away their freedom and an obscure terms and conditions no disparagement cost forbidding them from taking any action that negatively impacts KlearGear.com. The Palmers tried to take the review down, but couldn't. Klear Gear apparently then reported the $3,500 bill as unpaid to a collections company.
PALMER: It was bad enough that when we went to get our second car it took them a month to find a bank that was willing to finance us because of the huge ding this puts on our credit.
BROWN: The Palmers say they tried to reach out to settle this amicably, but never heard back from the company.
SCOTT MICHELMAN, PUBLIC CITIZEN ATTORNEY: As Jen Palmer's original review online noted, part of the problem with Klear Gear's customer service is that they're difficult to contact.
BROWN: Thus, according to the Palmers, leaving them no choice but to sue, they're asking the court to declare they never owed the $3,500 and are seeking compensation to be determined by a jury.
MICHELMAN: Contract law isn't a game of surprise where businesses get to extort money based on terms that the customers didn't read in the fine print.
(END VIDEO CLIP)
BROWN: CNN did try reaching out the Klear Gear several times but did hear back. Klear Gear did respond via e-mail back in November to our affiliate KUTV saying its request for the Palmers to take down their comment was not blackmail but, quote, "a diligent effort to help them avoid the fine" -- Carol.
COSTELLO: Pamela Brown reporting this morning.
Still to come in the NEWSROOM, a lump of coal from your cable company. Listen up, Dish and DirecTV customers, you're going to be paying more in 2014. Ouch.
(COMMERCIAL BREAK)
COSTELLO: In Los Angeles, flames shot from a crashed luxury car and black smoke covered the highway. And most horrific of all, the elderly driver was trapped inside that car and helpless. But in a twist, not even Hollywood would try to sell, heroes in uniform just happened to be passing by.
CNN's Miguel Marquez has this remarkable story.
(BEGIN VIDEO CLIP)
MIGUEL MARQUEZ, CNN CORRESPONDENT: Hard to tell, but that is a black Mercedes, it lost control on a major freeway in Los Angeles. Harder to believe, the man who was driving survived.
DON THOMPSON, LOS ANGELES POLICE DEPARTMENT: It was just a matter of seconds. Another ten, 15 seconds, there just would have been too much fire.
MARQUEZ: Seconds to rescue the 72-year-old man whose car burst into flames after smashing into the center divider.
THOMPSON: I reached in there, and I fumbled a bit more and thank goodness I found that button, and popped the belt and grabbed him and pulled him out.
MARQUEZ: Adding to the miracle? Don Thompson, a 26-year veteran of the LAPD bomb squad happened to be on his way to work. His shift started early. Diving into the flames, pulling the driver to safety.
THOMPSON: Singed hair here, first degree on the side.
MARQUEZ: Thompson did have help. Miracles sometimes need company. A Los Angeles firefighter happened to be driving by, making the rescue seamless.
ERIK SCOTT, LOS ANGELES FIRE DEPARTMENT SPOKESMAN: And to be able to help, do immediate patient assessment and get other resources on scene a lot quicker, because he happened to be the commander of the dispatch center and called them directly to do so.
MARQUEZ: A horrible accident and an impromptu act of heroism.
THOMPSON: It makes me feel good to know that I saved a life.
MARQUEZ: Under statement from a veteran cop all in a day's work.
(END VIDEO CLIP)
COSTELLO: Awesome. The 72-year-old driver complained of neck and back pain but somehow he escaped any serious injury. I'll be right back.
(COMMERCIAL BREAK)
COSTELLO: Checking our "Top Stories" at 43 minutes past the hour.
The State Department says it's working hard to authenticate this videotape plea from American Warren Weinstein, he was abducted in Pakistan more than two years ago and in the tape calls on the President to negotiate his release. Al Qaeda released Warren Weinstein's plea yesterday on Christmas Day.
Dozens of people spent their Christmas trapped in waters off Antarctica; their cruse ship got stuck in some heavy sea ice yesterday. CNN's Diane Mann says help may be at least a day away.
DIANE MAGNAY, CNN INTERNATIONAL CORRESPONDENT: Three vessels, Carol, on their way to rescue a ship, stranded in ice in the Antarctic. The Russian flag vessel is carrying 74 people on board. We're hearing they're safe. We know also this is a ship designed for polar exploration.
The Australian Coast Guard, who is coordinating this mission, says that the ship is 100 nautical miles east of the French Base of Dumont D'Urville in the Antarctic. They said on Wednesday that it could take some two days to reach the vessel.
COSTELLO: Luckily, the passengers on board that ship have plenty of food as they wait to be rescued.
North Korean leader Kim Jung-Un telling his soldiers to prepare for a war that could start without notice. That information is coming from North Korea state news agency says Kim visited a military command center Christmas Eve and told soldiers to be ready for combat at any time.
Also a Japanese paper claims Kim was very drunk when he ordered his uncle's execution. "The New York Times" reported the two had a heated disagreement over exports.
Some satellite TV subscribers are getting a lump of coal this Christmas, big jump in their cable bills. Oh, yes, Alison Kosik.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It's funny though. It is always around Christmas, it's like this trend that's been happening in recent years. Almost every available package from the two satellite TV providers will increase in price anywhere from $2 to $5.
You look at DirecTV is going up 4.4 percent average price hike. That's what's happening for DirecTV. It's higher than last year's 3.2 percent hike. That's according to one analyst.
Dish TV on the other hand, for its part, once again raised prices by more than its rival. The number two satellite provider said it would hike fees by 5.5 percent next year. But that follows a steep 16 percent hike at the beginning of this year.
But there is one thing that dish TV is doing differently. It's not hiking fees in 2014 on its bare bones $20 welcome plan and its $60 America's choice plan. Those will cost the same as this year's -- Carol.
COSTELLO: Do you know what people should do? They should just watch everything online. You can watch CNN online. You can watch -- you could get Netflix and watch great shows online.
KOSIK: That's what's happening.
COSTELLO: Why do they keep raising these rates so much? Because people aren't watching as much.
KOSIK: You know -- well, also, the cost of the content are actually going up. So those costs are being passed down to members. And the price hikes also come at a time when DirecTV, as you intimated here, DirecTV is exploring ideas for making an online TV service to compete with the likes of Hulu and Netflix.
This network -- it's been busy trying to build out a national broadband network, so yes the online eyeballs are certainly the trend that these companies are going after -- Carol. COSTELLO: Yes. Because all you need to do is you need to buy what -- the NFL football package? That's what I would get. And, you know, all those channels that are offered on satellite TV or cable TV -- like History Channel doesn't do history anymore. It does like "Pawn Shop Stars" or something.
KOSIK: Like the "Pawn Shop Stars"?
COSTELLO: No, I don't. I want history. I'm a nerd. All right I vented. Thank you, Alison, for listening. I appreciate it.
KOSIK: No problem. Any time. Any time.
COSTELLO: I know. Thank you.
Several years after the American auto industry was on the skids, the next several days could help set a record for new car sales. According to a new forecast by JD Power and Ellensby Automotive, American consumers will likely shell out a record amount of money this month for new wheels. Some $34 billion in December at a 4 percent increase over a year ago.
Still to come in the NEWSROOM. From Beyonce to the Biebs and the dark, dark heart of Walter White, we'll take a look back at the top entertainment stories of the year.
(COMMERCIAL BREAK)
COSTELLO: Best part of the NBA is the highlight jams and Lebron James had a couple of monster punch-through jams against the Kobe-less Lakers. Oh my God, Joe Carter, it was amazing.
JOE CARTER, CNN SPORTS: It was -- it was pretty good. I mean it's the one day to do it too I mean obviously the NBA is just front and center to the nation on Christmas Day. You had all those games. You had the best teams and you got some of the best match-ups.
Obviously this year, a lot of the stars were missing because a lot of those guys are injured, including Kobe Bryant. You know we didn't see him yesterday with the Lakers because obviously he is out with a fractured knee but LeBron -- LeBron delivered in such a good way. You see there was Kobe and LeBron embracing a little bit you know giving them well wishes. He will be back maybe in February.
But watch this first dunk it's so pretty. Nice alley hoop pass from Dwayne Wade and he finishes real nice, the reaction is great, just beast mode. This is the best one I've seen yet this year. Dwyane Wade passes it off the glass. Look at that.
Magic Johnson -- obviously Lakers Legend Magic Johnson said it was one of the greatest plays that he's ever seen. The Miami Heat is going to win that game 101-95.
Miami likes to play on Christmas day because they've now won five years in a row on Christmas day. Not the match-up we were expecting but hey, it was still a good game. Let's now go to college football. This is the last year of the BCS -- the last time that we will see a computer pick which two teams play for the national championship. Obviously, next year we'll move to a committee and they will select a four-team playoff. The committee is made up of a lot of people.
So we did have a poll that just came in -- a new CNN/ORC poll and it said that 61 percent of people said the BCS got it right this year, that the computer was correct picking Florida State and Auburn playing for the national championship. Do you agree?
COSTELLO: You know, the whole thing is so confusing, I don't know what to believe. But I guess I agree.
CARTER: I think they had it right this year.
(CROSSTALK)
CARTER: You know, 16 years it's been around, I think most of the time they've gotten it right. Maybe one year is debatable they didn't.
Speaking of the national championship game it's coming up in January, this little fan's reaction is priceless when he opens his Christmas present and finds out that mom and dad got him tickets to the big game. Check it out.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: oh, my God. Oh, my God. Yes --
UNIDENTIFIED MALE: What is it?
UNIDENTIFIED MALE: Tickets.
UNIDENTIFIED MALE: Tickets to what?
UNIDENTIFIED MALE: Tickets --
(END VIDEO CLIP)
CARTER: So that's 11-year-old RJ Meyers. Mom and dad got him a great gift, obviously, getting tickets to go see his favorite team, Auburn, play Florida State in the national championship game in Pasadena coming up in a couple of weeks. But R.J. wrote a Christmas list out to Santa. He said he wanted things like Nikes, X-Box, that he wanted tickets to the national championship game. He said if he couldn't get any of that stuff, he still wanted Auburn to win the national championship game. That's how big of a fan he is -- that little guy.
COSTELLO: Well good for him. I don't think I've ever reacted in that way to a gift.
CARTER: It's the one gift -- yes.
COSTELLO: I know. Good for him.
CARTER: Don't you wish you got excited like that for Christmas?
COSTELLO: I know. I do. Well, I would over some stuff. Unfortunately I'm not getting that stuff. Thanks, Joe Carter.
CARTER: You bet.
COSTELLO: Checking our top stories and 53 minutes past -- the U.S. is quietly sending surveillance drones and hell fire missiles into Iraq. (inaudible) that government fight al Qaeda's rising -- that's according to our report of the New York times. Al Qaeda backed violence to see the big surge in deadly attacks against civilians and security forces.
The venerable New England Journal of Medicine is raising questions about the value of a common knee surgery. According to the "New York Times", the study found that repairs to a torn meniscus in older people may not have very much benefit. By the way, that arthroscopic surgery is the most common orthopedic procedure in the United States.
Pop star Miley Cyrus throws another shovelful of dirt on her wholesome alter ego, Hannah Montana. Take a look at her video, well, just the parts we can actually show you on morning television. Just hours after leaking online, the video has the cyberverse all a twitter, because Miley is lying on bed, touching various parts of her body.
Miley was not alone in making headlines this past year -- oh, no. CNN's Nischelle Turner counts down the top 10 entertainment stories of 2013.
(BEGIN VIDEO CLIP)
NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT: Bieber's bad boy behavior -- Justin Bieber hasn't left he spotlight since hitting the scene in 2009 but 2013 found the teen heartthrob making news for the wrong reasons. In fact, "The Daily Beast" declares it's Bieber's year of affluenza.
JUSTIN BIEBER, SINGER: What did you say?
TURNER: From paparazzi brawls to pet monkey drama to neighborhood disturbances, Bieber struggled to stay out of trouble this year.
Kimye is born. Kanye West and Kim Kardashian continue their reign as the royal tabloid couple in 2013. Sure, West had a number one album and hit tour but nothing made as much news as his love life. The pair welcomed the birth of their daughter, North West in June.
In the year of the selfie and in typical Kardashian fashion, Kim took to social media to unveil her post baby body. West then rented out AT&T Park in San Francisco to surprise Kardashian with a marriage proposal.
GEORGE HOWELL, CNN HOST: We have been following this breaking news. Actor Paul Walker has died.
TURNER: A fast and furious death. Fans' hearts broke after Paul Walker's unexpected passing over Thanksgiving weekend. The 40-year- old actor was killed in a car crash outside Los Angeles. Fans and famous friends came out to show their support for the box office powerhouse who also found success in films such as "Eight Below" and "Flags of Our Fathers".
Beyonce's return to the stage -- the singer caused waves lip syncing the National Anthem at the Presidential inauguration in January only to prove her star power in a show stopping Super Bowl half time show. Beyonce spent most of the year trying the world with her "Mrs. Carter Show" before surprising everyone with the release of her fifth studio album. It quickly became not only the fastest selling album of her career but also in iTunes history. Queen B is ending the year at the top of her game.
Basic cable ruled TV, "The Walking Dead" rose to record ratings, proving we're still inflicted with zombie fever. Critically acclaimed "Breaking Bad" concluded its five season run and nearly blew up social media in the process.
And "Duck Dynasty" revealed reality TV is still guiding the conversation. Star, Phil Robertson's recent anti-gay comments stirred controversy. But basic cable shows still kept people buzzing.
From Oscar gold to box office magic, Jennifer Lawrence received the Best Actress Oscar for her performance in Silver Lining's Playbook and won us over while falling on the stage to collect the award. It wasn't long before Lawrence found herself at the top of the box office with the release of the "Hunger Games" sequel "Catching Fire". Hollywood's latest "It" girl ranked only Angelina Jolie on Forbes list of Hollywood's highest paid actress. Now Lawrence is already receiving award buzz for her scene-stealing performance in "American hustle."
Angelina's brave choice. Angelina Jolie shocked everyone with her "New York Times" op-ed, revealing she underwent a double mastectomy. The Oscar winner and mother of six underwent the preventative procedure after learning she carries a gene mutation that increases her risk of developing cancer. The announcement inspired other women to consider the procedure as an option.
Paula Deen's downfall. A year ago, the celebrity chef was on top of the word. That all came crashing down after the release of a deposition in a lawsuit by a former employee. In the deposition, Deen admitted using the n word in the past. Fans turned their backs on the southern star, as did many of her endorsement deals. Deen went on to apologize, but it's yet to be seen if she can reclaim her throne.
UNIDENTIFIED FEMALE: HBO is confirming that actor James Gandolfini has died.
TURNER: James Gandolfini's unexpected passing sent shockwaves through Hollywood. The "Sopranos" actor died of a heart attack at the age of 51 while on vacation in Italy. The Emmy Winner's final film, the romantic comedy "Enough Said" opened after his death to critical acclaim and earned Gandolfini his final SAG award nomination. Miley Cyrus got everybody talking with her onstage antiques. Cyrus made news with her controversial performance at the MTV VMAs, the former Hannah Montana star proved her teen persona was nothing but a distant memory.
Cyrus followed the performance with news of her break-up with long- time fiance, Liam Hemsworth. Her first number one hit was "Wrecking Ball" hit album bangers and the celebration of her 21st birthday. It's Miley's world and we're just living in it.
COSTELLO: But we have clothes on. Thank you so much for joining me today. I hope you had a great holiday, great Christmas and great new year. I'm Carol Costello.
"LEGAL VIEW" is coming your way, next.
PAMELA BROWN, CNN HOST: Totally abandoned and forgotten, an American held hostage since 2011 pleads to President Obama to gain his freedom. Warren Weinstein appears in a video released by al Qaeda.
And if you didn't get your Christmas presents, don't blame Santa -- Santa's helpers, UPS and FedEx say the onus is on them, and they're rushing to get packages delivered today.
Also a bit mystery deep below the streets of Seattle and it stopped the world's largest tunneling machine in its tracks.
Hello, everyone. I'm Pamela Brown in today for Ashleigh Banfield. It is Thursday, December 26th. Welcome to "LEGAL VIEW".
Up first today, an American held hostage by al Qaeda for more than two years says he feels abandoned and forgotten. Warren Weinstein was kidnapped in Pakistan in August of 2011. In this new video you see here out today Weinstein says his health is failing. And he's pleading to President Obama for help. The statement appears to have been made under duress.
CNN cannot independently confirm the authenticity of the city. Elise Labott is following the story for us this morning in Washington.
