Starting next week, consumers who buy one of the GPS-implanted detergent boxes will be surprised at home, given a pocket video camera as a prize and invited to bring their families to enjoy a day of Unilever-sponsored outdoor fun. The promotion, called Try Something New With Omo, is in keeping with the brand’s international “Dirt is Good” positioning that encourages parents to let their kids have a good time even if they get dirty.

Omo accounts for half of Brazil’s detergent sales and is already found in 80% of homes there, so Unilever’s goal is more to draw attention to a new stain-fighting version of Omo and get it talked about rather than looking for a big increase in sales.

That made the idea of doing a promotion where the prize finds the consumer, rather than the consumer having to look for the prize — and maybe not bothering — appealing.

Fernando Figueiredo, Bullet’s president, said the GPS device is activated when a shopper removes the detergent carton from the supermarket shelf. Fifty Omo boxes implanted with GPS devices have been scattered around Brazil, and Mr. Figueiredo has teams in 35 Brazilian cities ready to leap into action when a box is activated. The nearest team can reach the shopper’s home “within hours or days,” and if they’re really close by, “they may get to your house as soon as you do,” he said.

Once there, the teams have portable equipment that lets them go floor by floor in apartment buildings until they find the correct unit, he said.

Of course, Brazil has a high crime rate, and not everyone is going to open the door to strangers who claim to have been sent by her detergent brand to offer a free video camera. Bullet has thought of that. If the team tracks a consumer to her home but she won’t let them in, they can remotely activate a buzzer in the detergent box so that it starts beeping. And if the team takes too long to arrive, and the consumer has already opened the box to see if she’s a winner or just do laundry, she’ll find, along with the GPS device and less detergent than expected, a note explaining the promotion and a phone number to call.

“Anything can happen,” Mr. Figueiredo said. “We have to be innovative, but we don’t know what reaction to expect from consumers.”

In a big web component, the site experimentealgonovo.com.br (Portuguese for “try something new”) goes live in August, and will include a map showing roughly where the winners live, pictures of each winner and footage of the Bullet-Omo teams hunting down the GPS-enabled detergent boxes, knocking on doors and surprising consumers.

“It costs more than a traditional promotion and is riskier because it’s never been done before, but it’s worth it,” Mr. Figueiredo said. The technology aspect of the promotion costs less than $1 million, out of Omo’s overall marketing budget of about $23 million.

“We believe in using new technology for promotional marketing,” Mr. Figueiredo said.

Plus Bullet just likes figuring out how to ingeniously embed stuff in products. Two summers ago, sales of Unilever’s Fruttare Popsicles soared when Bullet disguised 10,000 iPod Shuffles as popsicles and popped them in freezer cases. The agency’s creatives had noticed while reading their iPod instruction manuals that an iPod can operate at temperatures below freezing. They immediately began freezing their own devices as a test, then constructed a fake ice-cream bar case that mimicked the popsicle but fit an iPod, and a wildly successful summer ice cream promotion was born.

July 29 (Bloomberg) — Oracle Corp., the world’s second- biggest software maker, was sued today by the U.S. Justice Department, which claimed the company overcharged the government on a contract worth hundreds of millions of dollars.

Oracle defrauded the government on a software contract with the General Services Administration between 1998 and 2006, according to the complaint. The company failed to give the government the same discounts it offered its most favored commercial customers, the Justice Department claims.

“Oracle’s false statements and fraudulent conduct in the negotiation and performance of the contract led to the submission of false claims for payment to the United States,” according to the complaint, filed in federal court in Alexandria, Virginia.

The U.S. lawsuit follows its intervention in a case filed in 2007 by Paul Frascella, a former Oracle employee who made similar claims. The False Claims Act lets private citizens sue on behalf of the government and share in any recovery. The Justice Department says it is cracking down on procurement fraud.

‘Taxpayers Suffer’

“We take seriously allegations that a government contractor has dealt dishonestly with the United States,” Tony West, assistant attorney general for the Justice Department’s civil division, said in a statement. “When contractors misrepresent their business practices to the government, taxpayers suffer.”

Deborah Hellinger, a spokeswoman for Redwood City, California-based Oracle, didn’t return a phone call and e-mail seeking comment.

A Justice Department statement said the contract was worth hundreds of millions of dollars, while the complaint said Oracle reported $1.08 billion in sales for software licenses and maintenance under the contract.

The complaint doesn’t specify an amount of damages, saying it would be determined at trial. Frascella’s complaint, which was unsealed April 2 when the government joined his case, said Oracle overcharged the government by tens of millions of dollars. The government’s complaint offers more detail on the contract.

21 Agencies

It claims that 21 different executive agencies made purchases, including the Treasury, Defense and State departments.

The GSA negotiated so-called Multiple Award Schedule pacts with Oracle, according to the complaint. Once companies secure such contracts, government agencies may order products on GSA schedules without going through elaborate procurement programs.

In return, the government is supposed to get discounts equal to or greater than the discount given to that firm’s most favored customer, and contractors are supposed to report such discounts, according to the complaint.

The complaint claims that starting in 1997, Oracle falsely told the GSA that it was getting the best prices when it was not.

In October 2006, Oracle paid $98.5 million to settle a False Claims Act lawsuit over GSA Multiple Award Schedule pricing disclosures at PeopleSoft Inc., a software maker. Oracle bought PeopleSoft in January 2005 for $10.3 billion.

The complaint, filed in 2003 by whistleblower James Hicks, was joined in 2006 by the Justice Department.

Oracle fell 58 cents to $23.70 today in Nasdaq stock market trading.

The case is U.S. v. Oracle Corp., 1:07-cv-00529, U.S. District Court, Eastern District of Virginia (Alexandria).

To contact the reporters on this story: Justin Blum in Washington at jblum4@bloomberg.netDavid Voreacos in Newark, New Jersey, at dvoreacos@bloomberg.net.

July 30 (Bloomberg) — Research In Motion Ltd., maker of the BlackBerry smartphone, plans to introduce a tablet computer in November to compete with Apple Inc’s iPad, according to two people familiar with the company’s plans.

The device will have roughly the same dimensions as the iPad, which has a 9.7-inch diagonal screen, said the two people who wouldn’t be identified because the plans haven’t been made public. The device will include Wi-Fi and Bluetooth wireless technology that will allow people to use their BlackBerry smartphones to connect to the Internet, the two people said.

RIM is racing to come out with a product to rival the iPad in the fast-growing market for devices that bridge the gap between smartphones and notebook computers. Apple, based in Cupertino, California, last month said it sold 3 million iPad tablet computers in 80 days after they debuted in the U.S.

“They can’t wait for a second generation of devices from Apple or they’ll fall too far behind,” said Ashok Kumar, an analyst with Rodman & Renshaw Inc. in New York.

RIM plans to call the tablet Blackpad, according to one of the people familiar with the company’s plans. RIM, based in Waterloo, Ontario, acquired the Internet rights to blackpad.com this month, according to the Whois database of domain names.

RIM is stepping up its competition with Apple on multiple fronts. The company is hosting an event in New York Aug. 3 at which it will debut its BlackBerry 9800 slider phone, according to one person familiar with its plans. The device will feature a full touchscreen like Apple’s iPhone and a slideout Qwerty keyboard to allow for easy e-mail typing, the person said.

Broader Battle

The company plans to use the phone to regain the market share it has lost recently to its U.S. rival. RIM’s share of the smartphone market fell to 19.4 percent of global shipments in the first quarter from 20.9 percent a year earlier, according to researcher IDC, based in Framingham, Massachusetts. Apple claimed 16.1 percent of the smartphone market, up from 10.9 percent a year earlier.

In the tablet market, RIM will have to demonstrate how its device can stand out against products including the iPad, which has attracted buyers because of its close integration with Apple’s iTunes service and the many software applications created by independent developers. RIM’s tablet will be closely integrated with the BlackBerry smartphone to allow people to use RIM’s e-mail system and other features, the person said.

“I don’t think it’s a zero-sum game,” said Kumar, saying that innovation by Apple, RIM and other competitors will increase the size of the tablet market.

More Tablets

Korea’s LG Electronics Inc. said this month it plans to introduce a tablet computer in the fourth quarter that runs on Google Inc.’s Android software. Microsoft Corp. Chief Executive Officer Steve Ballmer said yesterday the software company plans to increase its focus on tablets. Hewlett-Packard Co., the world’s biggest personal-computer maker, said it plans to produce a tablet device that runs on Microsoft’s Windows operating system.

RIM rose 21 cents to $55.92 at 10:37 a.m. in Nasdaq Stock Market trading. The stock had dropped 18 percent this year before today as Apple had climbed 22 percent.

Marisa Conway, a spokeswoman for RIM, declined to comment, citing company policy not to comment on rumor or speculation.

– Editors: Peter Elstrom, Ville Heiskanen

To contact the reporter on this story: Hugo Miller in Toronto at hugomiller@bloomberg.net

Last Updated: July 30, 2010 10:45 EDT

Insured Americans are using fewer medical services, raising questions about whether patients are consuming less health care as they pick up a greater share of the costs. 

The drop in usage is showing up as health-care companies report financial results. Insurers, lab-testing companies, hospitals and doctor-billing concerns say that patient visits, drug prescriptions and procedures were down in the second quarter from year-ago levels.

“People just aren’t using health-care like they have,” said Wayne DeVeydt, WellPoint Inc.’s chief financial officer, in an interview Wednesday. “Utilization is lower than we expected, and it’s unusual.”

Others say that consumers are beginning to forgo elective procedures like knee replacements. “We have a very weak economy and it’s just a different environment for the elective parts of health care,” said Paul Ginsburg, a health economist who runs the Center for Studying Health System Change and has been analyzing health-company earnings. But “this could go beyond the recession. Being a less aggressive consumer of health care is here to stay.”

Continued weak demand could eventually put downward pressure on spiralling health-care costs, a long-sought goal of policy makers. It could also force insurers to lower premiums.

The new trend comes amid a broader drop in health-care use as more Americans lose their jobs and their health insurance. Such cutbacks have happened before in recessions, but the drop seems to be more pronounced this time, industry analysts say.

More Americans also are buying high-deductible health plans that force them to bear more of the upfront costs for health services. Some 18 million Americans bought high-deductible plans this year, compared with 13 million last year, according to Paul Mango, a director at consulting firm McKinsey & Co.

At the beginning of the year, Dan and Natalie Johnson, of Gig Harbor, Wash., used the website eHealthInsurance.com to buy a new plan with a high deductible, now set at $5,500 for their family. Their previous coverage had no deductible.

Now, the couple says they are thinking twice before scheduling doctor visits. Recently, when their 16-year-old daughter’s allergy prescription ran out, Ms. Johnson called the allergist’s office to ask for a renewal, without coming in for an appointment, as she would have done under their previous insurance.

And this spring, their son, 14, got his athletic physical at a local urgent-care clinic that charged just $40, instead of a doctor’s office, which would have cost about $90. “We don’t want to go through our savings going to the doctor,” says Ms. Johnson, a photographer.

All this raises the question of whether, after a year of national attention on out-of-control health costs before the federal health overhaul passed in March, the trend portends a lasting change in the way Americans use the medical system.

Just a year ago, insurers reported surging health-care usage. Back then, more consumers were signing up for Cobra, the federal program that allows people who have lost their jobs to keep their insurance. The government had extended a subsidy to cover 65% of the cost of the coverage, which can be prohibitively expensive.

However, the Cobra subsidies only covered the unemployed for 15 months, and many people have hit the limit and dropped coverage. What’s more, people who have lost their jobs since the end of May don’t qualify for the Cobra subsidies.

To be sure, the change in behavior could be short-lived. On an earnings call last week in which it reported a decline in hospital usage, UnitedHealth Group Inc. said it thought utilization would rise again in the second part of the year, as Americans exhaust their deductibles and insurers start paying for services. Both Aetna Inc. and WellPoint said the utilization fall-off was new as of this year, and they had not seen the trend previously even as the economy has deteriorated. Some insurers also cited an unusually mild flu season this year as a temporary factor.

What’s more, the federal health overhaul could cause usage to surge again. The new law will hand insurance cards to many Americans in 2014, which could unleash pent-up demand.

Utilization has ticked down in previous recessions, and tends to take a year or two to change because of how far in advance employers and insurers design their health plans, said Carl McDonald, an analyst at Citigroup Investment Research. He said the last time he saw utilization fall off was in 2003, adding that usage also dipped in the early 1990s. But he added the drop is bigger this time than in previous recessions.

The declines in utilization has boosted profits for insurers, who set their prices to cover anticipated medical costs. Insurance industry prices and profits have been under fire by Democrats and regulators this year. Insurers have justified high premiums by pointing to out-of-control medical costs. But the recent drop in usage could make it difficult for insurers to argue that continued price increases are necessary.

On Wednesday, Aetna said usage of health-care fell in the second quarter, feeding a 42% increase in profits. WellPoint reported a 4% earnings bump, saying that hospital admissions and usage of prescription drugs had dropped compared with a year earlier.

After the earnings releases, Rep. Pete Stark (D., Calif.) called on the companies to reduce their premiums since they are paying out less in medical care. In an interview, Aetna’s chief financial officer Joseph Zubretsky said companies might eventually have to do just that. “If utilization stays down, it will have a favorable impact on rates,” he said.

One company reporting evidence of lower utilization is CVS Caremark Corp., the drugstore giant. In its earnings announcement Wednesday it said it is seeing a drop-off in new prescriptions for maintenance drugs tied to a decline in physician visits.

People are “visiting fewer primary care doctors and specialists,” said Chief Executive Tom Ryan, in a conference call with analysts.

Last week, Quest Diagnostics Inc., a laboratory-testing company, told investors that its volume fell 2.6% in the first quarter and 1.3% in the second partly because of decreasing physician visits. In addition, AmSurg Corp., an outpatient-surgery company, reported that same-store procedures declined by 2.6% compared to a year earlier.

Another sign that people are forgoing doctor visits or getting less care came from athenahealth Inc., which provides billing services and electronic health records for more than 1,700 medical groups. It said last week that the number of claims filed per physician, as well as the average value of the billing for each visit, had dropped from a year earlier.

Physician visits and hospital admissions are dropping this year, according to Thomson Reuters’ healthcare business, which surveys doctors and hospitals. Doctor visits have declined each month this year, including a 7.6% drop in May 2010 from May 2009. Likewise, hospital admissions dropped in three of the first four months of this year compared to those months last year, including being down 2.3% in April 2010 from April 2009.

[article originally appears at wsj.com]

So much for transparency.

Under a little-noticed provision of the recently passed financial-reform legislation, the Securities and Exchange Commission no longer has to comply with virtually all requests for information releases from the public, including those filed under the Freedom of Information Act.

The law, signed last week by President Obama, exempts the SEC from disclosing records or information derived from “surveillance, risk assessments, or other regulatory and oversight activities.” Given that the SEC is a regulatory body, the provision covers almost every action by the agency, lawyers say. Congress and federal agencies can request information, but the public cannot.

That argument comes despite the President saying that one of the cornerstones of the sweeping new legislation was more transparent financial markets. Indeed, in touting the new law, Obama specifically said it would “increase transparency in financial dealings.”

The SEC cited the new law Tuesday in a FOIA action brought by FOX Business Network. Steven Mintz, founding partner of law firm Mintz & Gold LLC in New York, lamented what he described as “the backroom deal that was cut between Congress and the SEC to keep the  SEC’s failures secret. The only losers here are the American public.”