Credit card companies' evil tricks

Some of the worst offenses: Huge fees exceed card issuers' costs and risks. Interest rates aren't disclosed to card applicants. Rates get jacked up even if you pay just hours late.

By Liz Pulliam Weston

Parents spend the first several years of children's lives teaching them how to play fair. By the time we hit elementary school, most of us are pretty good at knowing what's just and what's not.

That sense of fair versus foul, though, tends to get tangled up in the world of credit cards. Some practices that seem egregious at first glance actually make sense when you understand their rationale. Other policies don't hold up so well to scrutiny, even though they're widely accepted in the industry.

What makes matters more complicated is that a few credit card issuers are bad to the bone. Some of the companies that have the most consumer-friendly practices in one area turn around and punish their customers unfairly in another.

After many years of covering this industry, fielding reader complaints, talking to the issuers and listening to consumer advocates, I've drawn up the following list of what I consider fair and foul play, plus what you can do about it.

Mystery interest rates

Fair play: charging different customers different interest rates or offering different terms, based on their credit histories.

Foul play: not telling folks upfront what interest rates or terms they'll get.

If you have a good credit history, you should get a good rate, not one that's been inflated to cover the risks of others who haven't been as responsible.

But no one should have to play Russian roulette when applying for a card. Though some issuers, including Citibank and Capital One, usually tell you in advance what rate you'll get if approved, others -- including Chase, Discover, American Express, HSBC and Bank of America -- typically only offer a range of possible rates. You might get a rate that's in the single digits or one that's over 20%.

"In the best of all worlds, you would fill out an application, be told what interest rate you are approved for, then be given the chance to OK that rate or decline the offer. It rarely works that way," said Justin McHenry, the research director for IndexCreditCards.com. "Oftentimes you won't even know what rate you've been approved for until the card shows up in the mail."

Many times the terms are variable as well. A card may offer 0% for "up to" a year, for example, but once you've applied, you may get the touted rate for as little as three months, said Jeffrey Weber of SmartCreditChoices.com.

Credit limits are almost never disclosed in advance, either. This can be a serious issue for people transferring balances because shifting debt from a high-limit card to a lower-limit card can damage their credit scores.

• Video on MSN Money: How's your credit?

Your best move: Don't hang on to a card you don't want. Though closing cards can never help your FICO credit scores and may hurt them, the damage isn't likely to be as serious with a newly issued card as it might be with one you've held for many years.

But you shouldn't apply willy-nilly for cards, either, because each application can potentially ding your scores. Also, some lenders may look askance at a borrower who rapidly opens and closes accounts, McHenry said, thinking such customers will be unprofitable.

If you're looking for a lower rate, first contact your existing issuer and negotiate for one. Read "Get a better deal . . . with a threat" for tips. If you plan to apply for a new card, know your FICO scores so you have an idea of what interest rates you're likely to get. You can get a ballpark idea of your scores from MSN Money's credit score estimator; generally, folks with FICOs above 720 get the best credit card rates and terms.

Slanted reports

Fair play: reporting your missteps to credit bureaus.

Foul play: reporting half-truths.

The credit reporting system in the United States has some serious flaws. Creditors wield too much power, and it's too hard for consumers to fix mistakes.

But overall, the system has succeeded in making credit more widely available, which is a boon to savvy consumers. If you get credit and use it responsibly, you can build a credit history that allows you to get the loans you need to buy a home, build a business or accomplish other goals.

What irks me, though, are lenders that deliberately make their customers look like worse credit risks than they are. Some of the worst offenders are issuers that don't report their customers' on-time payment records at all. Next on the list are those that don't report their customers' credit limits, like Capital One.

When a lender doesn't report a customer's credit limit, the bureaus typically use the "highest balance charged" as a proxy for the limit. The problem comes when borrowers charge about the same amount each month.

Here's how it works: If you use $300 of a $1,000 limit that's properly reported, the all-important credit-scoring formulas figure your "credit utilization" at 30%, and that's good. If your limit isn't reported and the highest balance you ever had was $300, it looks like you're using 100% of your available credit -- and that's bad.

It makes sense not to report a credit limit when a card has no preset spending limit, as is the case with many American Express cards. But folks that have those types of cards tend to have pretty good credit to begin with, so the lack of an accurate credit limit on one account isn't likely to hurt much. The people who really get crunched are the people with short or troubled credit histories who are trying to do things right but are unknowingly being penalized by their credit issuers' practices.

Your best moves: If your issuer isn't properly listing your credit limits, you can request that they do so. If your issuer is Capital One, though, you're out of luck. You can either charge up a big balance to reset your "highest balance charged" or switch to another card issuer.

Soaring rates

Fair play: raising your interest rate if you miss a payment.

Foul play: jacking up your rate if you're a few days late.

Late payments can happen to virtually anyone. Payments get delayed in the mail; online bill-payment systems experience glitches; issuers change addresses and payments go awry. Or people just goof.

Goofing to the point of forgetting a payment altogether, though, is rarer. A skipped payment is thus a better indication that someone is having money trouble.

The credit card companies know there's a big difference between late and skipped payments. That's among the reasons payments that are less than 30 days overdue typically aren't reported to the credit bureaus. But many issuers will still take advantage of your mistake by sending your rate skyward, even if your payment arrived only hours (not even days) late.

Your best moves: Don't carry credit card balances. Card issuers have far fewer ways to mess with you when you pay your balance in full every month.

Otherwise, reduce the likelihood of late payments by setting up recurring payments in your online bill-payment system or by agreeing to an automatic debit so at least the minimum payment is withdrawn from your checking account each month. If you use any method other than automatic debit, you'll need to check the credit card issuer's mailing address each month to make sure it hasn't changed.

If you do get dinged with a late fee, or a fee plus a higher rate, talk to your credit card company. Many issuers will waive late fees for good customers. Fewer will rescind the interest rate hike, but you can always try. Some will restore your original rate after 6 months of on-time payments.

Big fees

Fair play: charging late, over-limit and balance transfer fees.

Foul play: charging outrageous late, over-limit and balance transfer fees.

Until the mid-1990s, the typical penalty fee was about $10. Last year, the average late fee was $35, according to IndexCreditCards.com, and many companies charged $39. The average over-limit fee was a hair more than $32.

Some issuers also removed limits on the balance transfer fees they charge. In the past, the typical balance-transfer fee was 3% with a cap of around $75. Today some cards issued by Chase, Bank of America and others have no cap, which means a $5,000 transfer could cost you $150.

It makes sense to charge borrowers something for handling a balance transfer, just as it's justifiable to subject them to some kind of penalty for paying late or going over the limit. It's the amount that's being charged that makes no sense. These fees bear little relation to the costs or risks involved.

Your best moves: Clearly, you want to avoid late and over-limit fees whenever possible. Set up automatic payments so at least your minimum balance gets paid every month. Track your balances -- which you can do online, via phone, by using personal-finance software like Microsoft Money or Quicken, or simply by writing down your purchases and keeping a running tally. (Microsoft is the publisher of MSN Money.) You'll do your credit scores a favor by keeping balances to no more than 30% of your limits.

If you do get dinged, ask your issuer to waive the fee.

Before you transfer a balance, read the fine print and calculate all of the fees you're likely to face. Compare offers using sites such as CardRatings.com, Bankrate.com or IndexCards.com. With a little research, you can often get a better deal. Then use your low rate to help you pay off your balance; don't keep shifting it around.

A whole deck of cards

Fair play: issuing cards with low credit limits to riskier borrowers.

Foul play: issuing multiple cards with low limits to risky borrowers.

Credit card companies wisely limit their risks with certain customers by issuing cards with low limits, say $200 to $500. You're most likely to get one of these cards if your credit history is short or troubled.

As you show you can responsibly use the credit -- by paying your bills on time and not maxing out your card -- a typical issuer will reward you by raising your limit. If you miss payments or go over your limit, though, you don't typically get more credit.

An exception is Capital One. BusinessWeek recently revealed the card company's practice of simply issuing additional low-limit cards to the same customers. The big downside for borrowers is that they have more due dates and limits to track. The practice increases the chances a cardholder will mess up and incur late or over-limit fees.

Capital One has helped a lot of folks rebuild their credit after bankruptcy and other financial missteps. But it needs to drop the practice of issuing multiple low-limit cards.

Your best move: Don't max out your credit cards or charge more than you can pay off in full every month. Instead of accepting a new card, ask for a higher credit limit on the one you have.

Paying twice

Fair play: charging interest on balance transfers.

Foul play: charging interest before the check clears.

This one may be a little tricky to understand, so bear with me.

When you're approved to transfer a credit card balance, the company that's receiving your balance sends a payment to the company that currently has your debt. This payment may be electronic or may be a check.

The issue revolves around when your new credit card company begins charging interest on the balance transfer. Some start doing so long before the balance is actually switched, which means you could wind up paying interest to two companies on the same debt for a week or even longer.

Curtis Arnold of CardRatings.com polled six major issuers -- American Express, Bank of America, Capital One, Chase, Citibank and Wells Fargo -- and found that all begin charging interest as soon as they initiate an electronic transfer to the card issuer holding your balance. That's OK in my book because electronic transfers tend to happen quickly, and the overlap period where you're paying interest twice is usually a day or two, at most.

If the issuer sends a check, though, policies vary. Bank of America, Citibank and Wells Fargo wait for the check to clear before starting to charge interest, Arnold said. American Express, Capital One and Chase begin to levy finance charges as soon as they cut the check. If it takes a while for the receiving bank to get and deposit the payment, you're the one who pays.

Your best moves: Is this a huge deal for a consumer? Probably not. Even with big transfers -- say, $10,000 or more -- we're still talking about only a few bucks a day and a total cost that's less than most late fees. But it's annoying nonetheless. Clearly, you want to try to press for an electronic transfer whenever possible.

Japanese toy firms look to adults

By David Dolan

Faced with a declining birth rate and a rapidly aging population, Japan's toy makers have had to learn life's most sobering lesson: everyone must grow up.

The industry that put "Transformer" robots into toy chests around the world and made "Tamagotchi" virtual pets the scourge of teachers is now hoping for growing demand from adults.

"The declining birth rate is a serious problem for us," said Keita Sato, executive vice-president and chief marketing officer of toy maker Tomy Co. Ltd. (7867.T) at an industry forum in Tokyo on Tuesday.

While there were plenty of traditional toys on display at the event, much of the emphasis was on products aimed at older consumers.

Tomy is hoping that gadget-loving young men -- known here as "otaku," or "nerds" -- will embrace its new robot, the i-SOBOT.

Small enough to fit in a lunchbox, the 165-mm (6.5 inch) tall robot weighs in just 350 grams (12.3 ounce) and is, according to Tomy, the world's smallest two-legged walking robot.

An updated version of the bulky "Omnibot" robots the company sold in the 1980s, the 2007 version can play drums, dance along with music, do press-ups and pick itself up when it falls.

With a price tag of about $260 here, Tomy is hoping to sell 50,000 i-SOBOTs in Japan and 250,000 more overseas.

DEFINING TOY

The robots are the flagship product among a line of goods the company is marketing toward adults.

"We plan to strengthen our line-up of both basic toys for children and hobby items for adults," said Tomy's Sato.

Others include tiny radio-controlled airplanes that can land in small spaces, and a gadget that uses a laser to project a moving space landscape on a ceiling.

"In terms of pure toys, I think the outlook is pretty grim. But the definition of a toy is likely to gradually change. So the market will not necessarily shrink," said Yuta Sakurai, a research analyst who covers several gaming companies for Nomura Securities in Toyko.

Still, data from the Japan Toy Association shows that for now, the market here is slowly shrinking.

The market for toys, which does not include wildly popular video-game systems and software, was estimated at $5.7 billion in the year to March 2006, down nearly 5 percent from four years earlier.

Konami Corp. (9766.T) is hoping to avert the trend by focusing on lifestyle products for single women in their 20s and 30s.

"In that sense, we are building a new market beyond toys," said Yoshiaki Komatsu, a director at Konami's toy and hobby division.

The company is using a line of colorful characters to sell everything from slippers and toothbrushes to CD holders and toilet-lid covers.

Konami hopes young Japanese women will continue to use the goods even after getting married, eventually introducing their children to the characters.

It is also pushing a line of decidedly odd party goods. One is a fuzzy hat that sports a roll of toilet paper at the crown. The wearer can offer friends toilet paper by simply bowing, Konami's Komatsu said.

"From here on, people in their 30s and 40s will be looking for goods to help them communicate."

Gates Continues push for Wired Homes

By MAY WONG, AP Technology Writer

For more than a decade, Microsoft Corp. chairman Bill Gates and others in the tech industry have touted a vision of a connected lifestyle, in which digital content can move across devices throughout the home and be taken on the go. It's been a slow march. But as Gates kicked off the International Consumer Electronics Show late Sunday, the industry has come further than ever in delivering on that concept.

"Every year represents a lot of progress," he said in an interview Sunday with The Associated Press.

The improvements have taken many forms.

Building the underlying networks. Developing the technologies to get devices to communicate. Creating the hardware that can handle the digital data. Returning to the drawing board when there were flops. And finally, getting the backing of entertainment sources to embrace this new era of media consumption.

But more work remains, Gates said.

"There's still a lot to be done there, especially when you get into rights-oriented content and how simple that can be made so the creative people are happy with it and yet the flexibility (for consumers) is there," he said.

In his 11th annual speech headlining the world's largest tech convention, Gates highlighted how Microsoft's latest creations and partnerships aim to make it easier for people to navigate, consume, share and manage different kinds of content, whether they are games, movies, family photos, sports or work.

The keynote came as the software titan heads into one of its most significant periods of attracting consumers to its widening portfolio of computing, gaming and entertainment products. Its software has pervaded not only computers, but also cell phones, portable media players, home media centers and even cars.

The consumer launch of Windows Vista later this month is the company's first major overhaul of its operating system since Windows XP was launched in 2001.

Gates discussed some additional features not yet disclosed. Among them is a new "sports lounge" area so users tapped into Microsoft's MSN Soapbox online site can simultaneously view additional sports information, up-to-date fantasy sports data and the latest sports videos.

Microsoft has also teamed with the Nickelodeon and Showtime television networks and Starz Entertainment's Vongo subscription movie service so their Web-based content will be directly available through Vista. Movies downloaded from Vongo can also be played on the TV using Microsoft's Xbox 360 game console.

Sharing the stage with Gates was Robbie Bach, head of the company's entertainment and Xbox division, to highlight how the machine is becoming a home entertainment hub that does more than just play games.

More than 10.4 million Xbox 360 consoles have been sold since the system launched in November 2005. The Xbox Live online marketplace now sells downloadable movies and features more than 1,000 hours of TV and movie content.

During the keynote, Gates also unveiled how Microsoft's computer-making partners have designed new PCs to take advantage of Vista's software advances.

Hewlett-Packard Co. is set to have a new all-in-one computer and touch-screen display designed to fit into a kitchen nook or a family room, letting users scribble messages on the screen or watch a movie. Toshiba Corp. is debuting a high-end tablet notebook that has a secondary display on the front edge so users can read incoming e-mail or calendar alerts even while the laptop lid is closed.

Sony Corp (NYSE:SNE - news). is planning a new Windows Vista media center that is white and round, meant to look more like an entertainment electronics device than a computer.

Gates also announced Windows Home Server, a software platform that can serve as a beefy repository for a household's mushrooming collection of digital photos, videos, music and documents. The server also provides automatic data backups and allows family and friends to access some files remotely over the Internet.

To some, however, the most interesting announcement by Gates might be the addition of Texas Hold 'Em in its preloaded selection of games in Vista.

How appropriate in Vegas.

Apple renames itself, unveils iPhone

By RACHEL KONRAD, AP Technology Writer

Apple Computer CEO Steve Jobs on Tuesday made the company's long-awaited jump into the mobile phone business and renamed the company to just "Apple Inc.," reflecting its increasing focus on consumer electronics.

The iPhone, which starts at $499, is controlled by touch, plays music, surfs the Internet and runs the Macintosh computer operating system. Jobs said it will "reinvent" the telecommunications sector and "leapfrog" past the current generation of hard-to-use smart phones.

"Every once in a while a revolutionary product comes along that changes everything," he said during his keynote address at the annual Macworld Conference and Expo. "It's very fortunate if you can work on just one of these in your career. ... Apple's been very fortunate in that it's introduced a few of these."

He said the name change is meant to reflect the fact that Apple has matured from a computer manufacturer to a full-fledged consumer electronics company.

"I didn't sleep a wink last night," he said. "I was so excited."

During his speech, Jobs also unveiled a TV set-top box that allows people to send video from their computers and announced the number of songs sold on its iTunes Music Store has topped 2 billion.

Apple shares jumped more than 6 percent on the announcements, while the stock of rival smart-phone makers plunged.

Jobs demonstrated the iPhone's music capabilities by playing "Lovely Rita, Meter Maid," from the Beatles' "Sergeant Peppers Lonely Hearts Club Band," as the album's psychedelic album art graced a wide-screen monitor.

IPhone uses a patented touch-screen technology Apple is calling "multi-touch."

"We're going to use a pointing device that we're all born with," Jobs said. "It works like magic. ... It's far more accurate than any touch display ever shipped. It ignores unintended touches. It's super smart."

The phone automatically synchs your media — movies, music, photos — through Apple's iTunes Music Store. The device also synchs e-mail content, Web bookmarks and nearly any type of digital content stored on your computer.

"It's just like an iPod," Jobs said, "charge and synch."

The phones, which will operate exclusively on AT&T Inc.'s Cingular wireless network, will start shipping in June. A 4-gigabyte model will cost $499, while an 8-gigabyte iPhone will be $599, Jobs said.

IPhone is less than a half-inch thin — less than almost any phone on the market today. It comes with a 2-megapixel digital camera built into the back, as well as a slot for headphones and a SIM card.

In a demonstration Tuesday, Jobs slid his finger across the display to reveal a home screen and then scrolled through a list of songs.

To make a call, users can tap out the number on an onscreen keypad or scroll through their contacts and dial with a single touch.

Apple is also introducing what it calls "visual voicemail," so users can jump to the most important messages rather than have to listen to all of them in order.

The phone supports Wi-Fi and Bluetooth wireless technology and can detect location from Global Positioning System satellites. It also can send and display e-mail and text messages. Apple is partnering with Yahoo Inc. (Nasdaq:YHOO - news) on Web-based e-mail and Google Inc. on maps.

With a few finger taps, Jobs demonstrated how to pull up a Google Maps site and find the closest Starbucks to the Moscone Center. He then prank-called the cafe and ordered 4,000 lattes to go before quickly hanging up.

"My initial reaction is that this product actually lives up to the extensive hype, and I'm not easily impressed," said Avi Greengart, mobile device analyst for the research firm Current Analysis.

Also Tuesday, Jobs said Apple will begin taking orders immediately for the $299 video box called Apple TV. It will ship next month.

The gadget is designed to bridge computers and television sets so users can more easily watch their downloaded movies on a big screen. A prototype of the gadget was displayed by Jobs in September when Apple announced it would sell TV shows and movies through its iTunes online store.

The product could be as revolutionary to digital movies as Apple's iPod music player was to digital music. Both devices liberate media from the computer, allowing people to enjoy digital files without being chained to a desktop or laptop.

"It's really, really easy to use," Jobs told the crowd at San Francisco's Moscone Center before demonstrating the system with a video clip of "The Good Shepherd." "It's got the processing horsepower to do the kinds of things we like to do."

Apple TV will come with a 40-gigabyte hard drive that stores up to 50 hours of video. It features an Intel Corp. microprocessor and can handle videos, photos and music streamed from up to five computers within the wireless range.

Jobs also said Apple has sold more than 2 billion songs on its popular iTunes music download service, catapulting the company into the top ranks of music sellers worldwide. Apple, which sells 58 songs per second, or 5 million songs a day, sells more songs than Amazon.com and ranks behind only Wal-Mart, Best Buy and Target as a music retailer.

"We couldn't be happier with the growth rate of iTunes," Jobs said.

He said Apple will sell digital movies from Paramount. Apple has partnered with Disney for several months, offering about 100 movies on iTunes. With Paramount's selection, it will have 250 movies available for downloading on the site.

With Tuesday's launches, it remains to be seen whether the leading seller of digital music players can take will find it as easy to jump into the phone business. Apple could use a megahit along the lines of its iconic iPod to divert investors' attention from the stock options-backdating scandal that has tainted its reputation.

The backdating of stock options, which has been widespread among Silicon Valley companies, involves pegging stock options to favorable grant dates in the past to boost the recipients' award. It isn't necessarily illegal, but securities laws require companies to properly disclose the practice in their accounting and settle any charges that may result.

In a December filing with the Securities and Exchange Commission, Apple said Jobs was aware of, or recommended the selection of, some favorable grant dates but he neither benefited financially from them nor "appreciated the accounting implications."

Apple shares were up $5.71 to $91.18 in afternoon trading on the Nasdaq Stock Market. The stock has traded in a 52-week range of $50.16 to $93.16. Meanwhile, shares of other smart-phone makers slid: Treo-maker Palm Inc. dropped 4.7 percent, BlackBerry's Research In Motion Ltd. lost 6.4 percent and Motorola Inc. shed 1 percent.

U.S. submarine, Japanese ship collide

By JIM KRANE, Associated Press Writer

A U.S. nuclear-powered submarine and Japanese merchant ship collided near the busy shipping lanes of the Straits of Hormuz, the U.S. Navy and Japanese government said Tuesday. No one was seriously injured.

Damage to the fast-attack USS Newport News submarine and the tanker was light and there was no resulting spill of oil or leakage of nuclear fuel, officials from U.S. Navy, Japanese and Emirates government said.

Both ships remained able to navigate, said a Navy official in Japan who requested anonymity because the details of the incident had not yet been released. Japan's Kyodo News agency first reported the collision.

The bow of the nuclear-powered Newport News hit the stern of the oil tanker Mogamigawa as the vessels were passing just outside the Straits Monday night, causing minor damage to the Japanese vessel, Japan's Foreign Ministry said. The Japanese government said it was informed of the crash by the Navy and the U.S. Embassy in Tokyo.

The tanker, operated by Japanese shipping company Kawasaki Kisen Ltd., was able to continue to a nearby port in the United Arab Emirates, the statement said. Russia's ITAR-Tass news agency described the ship as a supertanker.

Commander Kevin Aandahl of the U.S. Navy's Fifth Fleet in Bahrain confirmed there had been a crash and that there were no injuries. Aandahl said the sub had surfaced and its crew was evaluating damage.

There was no leakage of radioactive material in the collision, Kyodo reported, citing Japan's Foreign Ministry.

The Newport News is based in Norfolk, Va., and was launched in 1986. It has a crew of 127.

The Mogamigawa was traveling from the Persian Gulf to Singapore and was carrying a crew of eight Japanese and 16 Filipinos, Kyodo said. Officials from the shipping company were not immediately available for comment.

The Japanese government has asked the U.S. side to investigate. Aandahl said a Navy investigation would begin shortly.

In February 2001, a U.S. Navy submarine rammed into a Japanese fishing vessel in waters off Hawaii, killing nine people. The American captain's delay in apologizing for the crash triggered protests by the victims' families.

The 34-mile wide Straits of Hormuz forms the entrance to the Gulf, through which about two-fifths of the world's oil supplies pass. Cargo vessels headed for Dubai, the world's largest manmade port, also pass through the straits, bordered by Iran and Oman.

U.S. naval vessels have been involved in previous collisions with commercial ships in the busy shipping lanes around the Persian Gulf. In September 2005, the U.S. nuclear submarine Philadelphia collided with a Turkish cargo ship in the Gulf, causing no injuries.

In July 2004, the aircraft carrier USS John F. Kennedy collided with a dhow in the Gulf, leaving no survivors on the traditional Arab sailing boat. The Navy relieved the Kennedy's commander, Capt. Stephen B. Squires, after the incident.

Fleets of U.S. and allied navy vessels conduct "maritime security operations" in the Persian Gulf, Arabian Sea and western Indian Ocean, attempting to block smuggling of weapons to Iraq and Somalia, nuclear components to Iran, as well as the movement of drug shipments and terrorists.

Big LCD TVs take center stage at Electronics Show

By Franklin Paul and Philipp Gollner

Televisions grabbed the spotlight at the Consumer Electronics Show on Sunday with companies showcasing everything from super-sized models for the red-hot LCD market to technology enabling TVs to play video straight from the Internet.

A slew of consumer electronics makers introduced bigger flat-screen TVs, while others highlighted products to enhance viewing, such as a DVD player that could be a bridge between rival formats for next-generation video discs.

Sharp Corp. (6753.T) showed off a 108-inch high-definition LCD television to rival a 100-inch model introduced only hours earlier by LG Electronics Inc. (066570.KS). Sharp said its was the biggest yet among liquid crystal display (LCD) TVs.

In an effort to counter steep price erosion in the flat TV market, manufacturers are increasingly offering larger TVs with higher resolution, which generally carry fatter profit margins than smaller models with conventional resolution.

Other companies looked for ways to make television more engaging and easier to view from anywhere. Philips Electronics NV (PHG.AS) unveiled a one-speaker surround-system and a wireless high-definition video hub.

Europe's largest electronics maker also showed off bigger models of televisions that light up the wall behind them and introduced amBX, a video game system with a fan to simulate wind, for the North American market.

Japan's Sony Corp (NYSE:SNE - news). (6758.T) took aim at growing consumer appetite for Web-delivered programming with its announcement that the company would equip its TVs with an attachable module that can stream broadband high-definition and other video content with the push of a remote control button.

"One of the key challenges to widespread adoption of video downloads is bridging the gap between the PC and -- the most important element in the home entertainment experience -- the TV," Yankee Group analyst Michael Goodman said.

The four-day CES event, which starts formally on Monday, is the biggest annual U.S. gathering for the $145 billion industry and will draw some 140,000 enthusiasts and retailers to a sprawling exhibition of gadgets to feed consumers' ever-growing arsenal for personal entertainment.

LG introduced a DVD player to support both next-generation, high-definition DVD technologies, offering a solution in an escalating war between Blu-ray and HD DVD. LG said its Super Multi Blu Player would be available in early February in the United States for about $1,200.

Despite the flurry of TV-related announcements, many analysts say mobility will be the key theme at this CES as more people watch TV on laptops and carry entire music catalogs in their pockets.

Samsung Electronics Co. Ltd. (005930.KS) said it plans to make available to U.S. broadcasters a new technology that lets people watch digital TV in cars, trains and on mobile computers.

BIGGER AND BETTER

Japan's Sharp said its new 108-inch LCD TV would be available in mid-2007, but it did not give details on price.

The Consumer Electronics Association says wholesale LCD unit sales are expected to jump 50 percent to $12 billion in 2007 from about $8 billion in 2006. By contrast, plasma unit sales are seen rising to $6 billion in 2007 from $5.7 billion.

LCD TVs have been popular recently, but they typically cost more than plasma TVs and have sold in smaller screen sizes.

Pioneer Corp. (6773.T) said it expects to introduce an advanced plasma high-definition TV this summer with richer colors, deeper shades of black and better contrast than predecessors.

The Tokyo-based company aims to compete better with rivals including Samsung and LG of South Korea and Japan's Hitachi Ltd. (6501.T), which offer both plasma and LCD TVs.

Toshiba Corp. (6502.T) said on Sunday it would launch 52-inch and 57-inch LCD TVs this year, playing catch-up with rivals such as Sharp in its foray into the 50-inch class.

Cars to detect Drunk Driving

Culled From Fort Frances Times Online (AP)


TOKYO —Toyota Motor Corp. is developing a fail-safe system for cars that detects drunk drivers and automatically shuts the vehicle down if sensors pick up signs of excessive alcohol consumption, a news report said Wednesday.

Cars fitted with the detection system will not start if sweat sensors in the driving wheel detect high levels of alcohol in the driver’s bloodstream, according to a report carried by the mass-circulation daily, Asahi Shimbun.

The system also could kick in if the sensors detect abnormal steering, or if a special camera shows the driver’s pupils are not in focus.

The car then is slowed to a halt, the report said.

The world’s No. 2 automaker hopes to fit cars with the system by the end of 2009, according to the report.

Nissan Motor Co., another Japanese car manufacturer, already has been experimenting with breathalyzer-like devices that could detect if a driver was drunk.

Similar technologies, such as alcohol ignition interlocks, are in use in the U.S. and elsewhere.

Concerns over drunk driving have surged in Japan following a series of alcohol-related accidents last year. In August, a drunk driver collided with another vehicle carrying a family of five—plunging them off a bridge and killing three children.

The incident prompted stepped-up roadside spot checks by police, who also plan to stiffen penalties for drunken driving.