Is Cryptocurrency an Investment or the Coming of New Currency?

May 25, 2021

By Maurice Stouse, Financial Advisor and Branch Manager

When an asset of any kind starts appreciating quickly, it gets a lot of people’s attention. Such has been the case with cryptocurrency. Many refer to it as Bitcoin. Bitcoin, of course, is just one of several crypto currencies available, but it has nonetheless become the vernacular when someone is referring to it. There are other crypto currencies such as Ethereum, dogecoin and they continue to grow. We think investors and savers alike should take caution with regards to crypto currency as a store of value (an asset class) or as a transaction medium.

The total market value of just Bitcoin in the world is believed to be at or close to $1 trillion dollars. As a basis of comparison, the market value of all the gold in the world is believed to be at or close to about $3 trillion dollars. What is it that is driving some investors to it? Is it demand, supply, the new currency, an inflation hedge? There is some validity to all of these.

First, let us look at Bitcoin as a (potential) addition to or replacement of the dollar. It is gaining more acceptance in trade and even Tesla has decided to accept Bitcoin as payment for a vehicle. One Bitcoin is worth about $56,000 and that could help someone purchase a new electric vehicle from the automaker. There are a few important details that we have learned.

Janet Yellen, the U.S. Treasury Secretary, as reported by CNBC in February sees it as “an extremely inefficient way to conduct monetary transactions.” (Her comments also to the “legitimacy and stability” of cryptocurrencies.)

Currently, several major U.S. investment firms are moving forward with programs making the investment in crypto currency available to clients who meet certain net worth minimums they set out.

How are cryptocurrency transactions taxed? Investors should consult with a tax advisor and they can also see the IRS guidance on Crypto taxation. Forbes also (in 2019) published information on how crypto currency is taxed. Forbes also, in its February/March issue has a feature on Crypto Currency.

Another consideration is the amount of power it consumes. Research from the International Energy Agency (IEA) among others is replete with data that point this out.

Digiconomist.net estimates on its website that one Bitcoin transaction leaves the carbon footprint of more than 1 million Visa transactions, or 78,000 hours of watching YouTube. It also estimates that the same transaction uses the equivalent of 34 days of electricity for the average U.S. household. Given this, it is hard to see that crypto currency is an efficient method of payment.

Some investors (more likely professional investors) see Bitcoin as a replacement of or in addition to precious metals (like gold) as a hedge against inflation. This past year central banks the world over released trillions of additional monies into the worldwide financial system. The more something is available as the saying goes, the less it is worth. In other words, that could mean price inflation (brought on by monetary policy).

What are other central banks in the world currently doing? CNBC reported recently that China is proceeding with a digital currency and with that, could that have implications for the strength of the U.S. dollar?

Inflation can erode purchasing power as well as eat into the return on an asset. While savings rates are near 0%, once inflation is factored in, is the saver or investor losing purchasing power?

Inflation fears continue to grow with so much stimulus having been released and with economic growth starting to emerge from the pandemic. If cryptocurrency is in limited supply, that in and of itself can also help drive the price. Cryptocurrency (wherever is comes from) must be mined online, with computing power. It is not easily created. That adds to the attraction and the speculation.

Reports are now emerging that many recipients of stimulus payments (as many as 40% as recently cited in a report from Mizuho Securities) intend to put at least a portion of their stimulus checks in to crypto or Bitcoin. Speculation is a driver of an asset’s appreciation, because it creates momentum. Does this suggest that the appreciated asset has risen in value? The price of any asset is always determined by what someone is willing to pay for it.
The world of cryptocurrency, like any investment is subject to regulation little of which currently exists. It is difficult to determine at this point what that regulation might be and just how much of it is coming.

Investors are encouraged to work with their financial services firms to get the research and the insight they need to make informed decisions if they are considering venturing in the world of cryptocurrency. Knowing what you own, why you own, how you own and where you on it are all critical elements of that discovery process.

Cryptocurrency issuers are not registered with the SEC, and the cryptocurrency marketplace is currently unregulated. Bitcoin and other cryptocurrencies are a very speculative investment and involves a high degree of risk. Securities that have been classified as Bitcoin-related cannot be purchased or deposited in Raymond James client accounts.

Maurice Stouse is a Financial Advisor and the branch manager of The First Wealth Management and Raymond James and he resides in Grayton Beach. He has been in financial services for over 33 years. His main office is located at First Florida Bank, a division of the First, A National Banking Association, 2000 98 Palms Blvd, Destin, FL 32541, with branch offices in Niceville, Mary Esther, Miramar Beach, Freeport and Panama City, Pensacola, Tallahassee and Moultrie, Ga.—Phone 850.654.8124. Raymond James advisors do not offer tax advice. Please see your tax professionals. Email: Maurice.stouse@raymondjames.com. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC, and are not insured by bank insurance, the FDIC or any other government agency, are not deposits or obligations of the bank, are not guaranteed by the bank, and are subject to risks, including the possible loss of principal. Investment Advisory Services are offered through Raymond James Financial Services Advisors, Inc. The First Wealth Management First Florida Bank, and The First, A National Banking Association are not registered broker/dealers and are independent of Raymond James Financial Services. Views expressed are the current opinion of the author, not necessarily those of RJFS or Raymond James, and are subject to change without notice. Information provided is general in nature and is not a complete statement of all information necessary for making an investment decision and is not a recommendation or a solicitation to buy or sell any security. Past performance is not indicative of future results.
Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Investors should consult their investment professional prior to making an investment decision.

FSU PC’s Dean Randy Hanna is Helping Make Higher Education Available to All

May 24, 2021

By Jamie Zimchek, Editor

Dean Randy Hanna of Florida State University Panama City (FSU PC) might not be a Panama City native, but his Florida roots run as deep as his love for higher education. Born and raised in a little town called Greensboro, Florida, a blink and you’ll miss it spot off Interstate 10 near Tallahassee, Hanna grew up in bona fide Florida country. His parents owned the last water-powered grist mill in Florida in those days, and ground dried corn into cornmeal for clients in the region. Some of it they’d package up to go out on trucks to destinations all across northern Florida. As a child, Hanna often rode along, even stopping in Panama City on occasion – but it would be several decades before events brought him back to this area more permanently.

When he turned 18, Hanna’s parents sold the mill, and he headed off to the University of Florida (UF) to study agriculture. There, he paid his way through school by working and living in the Swine Unit – he met his future wife at UF, and was relieved to find she wasn’t deterred in the slightest by his unconventional living quarters. With time, his degree shifted to journalism, and he finished with a Bachelor of Science in technical communications with a specialty in agriculture. When he graduated, he and his wife-to-be were married, moving in 1981 to Tallahassee so Hanna could pursue a law degree from Florida State University, “One of the best experiences of my life,” said Hanna. There, his wife found a job and they moved into a rental – for $135 a month. “She gave me a dollar a day for two drinks and a pack of crackers,” Hanna remembered with a chuckle. He often had 20 cents left a day, which he would save up to play two games of Pac-Man at the end of the week.

In 1984, post-graduation with a Juris Doctorate (and High Honors) in hand, Hanna joined a law firm where he would remain until 2011, practicing public finance and infrastructure law; his clients included local governments and universities, for whom he handled complex financial matters. In 1998, he became the managing partner of that law firm. “We were in growth mode and opening offices,” he explained. “I felt like if I was going to be the managing partner, CEO of the law firm, that a MBA would be beneficial.” This led to the next step on his educational journey: a MBA from Goizueta Business School at Emory University in 2004.

Throughout this time in law, he retained strong ties to higher education. In 1991, he was appointed by the governor to the Board of Trustees for Tallahassee Community College. Over the years, his appointments went on to include other roles with Florida A&M University, and the University of West Florida; in 2011, he stepped in as chancellor for the Florida College System (he worked there with Dr. Holdnak, who is now the president of for Gulf Coast State College, FSU PC’s geographic neighbor). At this point, he decided if he wanted a second career in higher education, a Doctorate of Education might be useful. With this in mind, he enrolled at the University of Pennsylvania in Philadelphia, commuting north at least once a month until completion.

Considering this diverse and dedicated educational background, it’s hardly surprising that Hanna was tapped by Florida State University’s President John Thrasher in 2016 to take over at FSU PC as interim dean, a position that soon became permanent. Since Hanna’s tenure started, there have been many positive changes here at Florida State University’s Panama City Campus. For one, they’ve added five new degree programs, including mechanical engineering, hospitality management, and commercial entrepreneurship; they’ve also created master’s degree programs for systems engineering and law enforcement intelligence. More are coming soon, like the campus’s first doctoral degree in nurse anesthesia, but also a degree in computer programming, and a master’s program for financial management and communication. How do they decide on a direction for expansion? “We look at job demands in the area and talk to employers,” explained Hanna. “We do an analysis of need and interest. We also try to build on what our strengths are.” He cites mechanical and systems engineering degrees, roles the local Navy base needs to fill, and law enforcement, as examples of thriving job markets here in our area.

What about those considering returning to school to finish a degree, or plotting a career change? “I can say to just about anybody, there’s a pathway to come to Florida State University,” said Hanna. Which is where another major development at FSU PC comes in: the FSU PC Promise Scholarship, which, with the help of generous donors, came into being just this spring. The Promise Scholarship provides a tuition-free education to students with an adjusted gross income of $50,000 or less (and who meet other requirements). It has also made possible a really fantastic feature, the FSU PC Promise hotline, which prospective students can access round the clock. “Anyone can call (850) 770-2411, 24 hours a day, 7 days a week,” explained Hanna. Callers can find more information on the Promise Scholarship through this hotline, but also, importantly, get help with finding the right degree for the right career.

Need a place to stay while you study? New residential housing is currently under construction, and will provide more affordable student accommodations in the near future. Hanna and his administration are also working hard to bring adults back into higher education, whether they’re adults who simply have a desire to keep learning or those hoping to finish a languishing degree. Programs such as Osher Lifelong Learning Institute at FSU (OLLI at FSU), offers an intriguing selection of non-credit classes for older adults, and has recently expanded to this area as OLLI at FSU PC30A.

If you are a prospective student, a returning student, a late-in-life student, or just a dedicated learner, Dean Hanna is here to make sure that your FSU PC experience helps you get the education and experience you need to get set up for success. For more information, contact the PC Promise hotline at (850) 770-2411.

Books Bring People Together and Inspire Big Things

May 25, 2021

By Laura Laspee, Branch Manager, Panama City Beach Public Library

Neil Gaiman writes, “Libraries are our friends.” This is where my story begins. I grew up spending every Saturday at the local public library solving mysteries with Nancy Drew, spinning delicate webs with Charlotte, and imagining winning a golden ticket with Charlie and the Chocolate Factory. These characters were my friends and I am happy to have these memories now that I am managing the Panama City Beach Public Library.

Getting here was a story in itself and one that has as many twists and turns as any great mystery. I am originally from Pennsylvania and after the 2007 recession found myself without a job. The local library was looking for a part time Library Clerk and I applied. I worked part time until a full time position became available. I climbed my way up the ladder to Assistant Director before becoming the Library Director. I worked full time and returned to school to obtain my MLIS degree.

Fast forward to 2017, when I decided to broaden my horizons and relocate to Florida to be closer to my family. I, like Charlie in Charlie and the Chocolate Factory, won the golden ticket when I was chosen to be the manager of the Panama City Beach Public Library, part of the Northwest Regional Library System. The library system services residents in Bay, Gulf, and Liberty counties and recently acquired a mobile library which brings library services to at risk and underserved communities.

The library’s vision is “to build a community where all residents reach their full potential” and I am so happy to be able to share my love of books with this community. My favorite part of being a librarian on Panama City Beach is that patrons and friends become more like family all within the walls of the library.

All you need to get your own library card is a photo ID and proof of residency. It is free to residents of Bay, Gulf, and Liberty counties and a card is valid at any library in the system. Non- resident cards can be purchased for $15.00 a year. Patrons can check out books, DVDs, and audiobooks. There are other cool things to check out too. How about ukuleles or cake pans? In the mood to build a puzzle? The library has those too.

During this time with Covid restrictions the library has temporarily suspended in-person classes, however, check out the online calendar for all of the virtual programming being offered at www.nwrls.com.

Stop by and say “hi” to the friendly staff here at the Panama City Beach Public Library. You’ll feel like family in no time!

New Water-Based Learning Experience

May 26, 2021

By Bill Husfelt, Superintendent, Bay District Schools

Hands-on learning is at the core of what we do at Bay District Schools and I am SO excited about a new partnership between BDS, the St. Joe Community Foundation and the Guy Harvey Ocean Foundation (GHOF).

The Gulf of Mexico is literally our backyard… our breathtakingly beautiful emerald green backyard and it’s an asset we must treasure and protect. That’s why we’re absolutely thrilled to be able to fund this new water-based learning experience with a $100,000 grant from our generous, and continuous, partners at the St. Joe Community Foundation. It’s also important to celebrate that the GHOF is MATCHING the funding we’ve received from the St. Joe Community Foundation which enables us to do even more with this grant.

Dr. Guy Harvey, the founder of the foundation that bears his name, is a strong believer in preservation, conservation and education. “It is our collective responsibility to preserve our marine environment and maintain the biodiversity of this planet,” he said in a statement on the foundation’s website.

We couldn’t agree more and that’s why this partnership is so exciting.

Thanks to the funding we’ve received, we will be able to implement all of the following activities beginning next school year:
• Introduce all BDS schools to the Guy Harvey Ocean Foundation STEAM education program and hands-on, marine-based learning.
• Provide students with engaging and exciting marine science curricula through teacher professional development.
• Ensure science teachers at local elementary, middle and high schools receive hands-on professional development maximizing our access to local marine resources. Each teacher will also receive a “dive bag” full of Guy Harvey resources and classroom materials.
• Empower students to learn more about their local community through field research to better protect their environment.

Erin Brack, an elementary staff training specialist with BDS who focuses entirely on science, is particularly excited. “There is such a great value in developing resources like this that connect our students authentically to their learning, local environment and community. I am beyond excited about having the opportunity to use the GHOF resources and professional development opportunities already in place, to create and personalize it for Bay District School teachers and programs,” she said recently.

Brack, who is also working on an extensive ocean-themed Environmental Interdependence (adaptations, life cycles, food chains etc.) unit with a team of teachers at Breakfast Point Academy knows that hands-on learning is key for our students.

“This definitely goes beyond teaching and memorizing facts,” she said. “We’re talking about touching the hearts of the kids and providing them with a personal connection to the lesson which they will take with them forever.” I couldn’t say it any better myself!

We are so grateful to our amazing community partners like the St. Joe Community Foundation who continually step up for our students and ensure we’re able to provide them with all of the “extras” that state funding doesn’t cover.

Learning is not just classroom based and ultimately we want to create graduates who are lifelong learners. This grant, and partnership with the Guy Harvey Ocean Foundation, ensures our students will have the opportunity to become astute stewards of the amazing community in which we live and that they will be able to do their part to ensure marine conservation and preservation.

Flooring Industry Supply-Problems Solved

May 26, 2021

Local Flooring Store’s Solutions Pan Out for Panhandle Communities!

Shannon Salisbury, Director of Marketing, Flooring Depot of Panama City

While 2020 was a historical year that many want to forget, lingering issues of the pandemic are felt daily and could impact us throughout 2021 and beyond. The flooring industries’ supply and demand problems are included in those lingering issues.

In 2020, we witnessed a solid “remodel, replace and repair” approach by homeowners. As quarantined communities decided to build additions, upgrade and renovate existing spaces to accommodate work-from-home and online school protocols, and tackle often neglected “honey-do” projects, the demand for lumber and building products skyrocketed.

As we entered 2021, the lumber and building material industries continued to explode. With housing, refinancing, and remodeling remaining priorities for customers, the demand for flooring also continues. Consumers are investing more money in their homes.
Homeowners are tackling home remodeling projects or choosing new home construction to take advantage of low interest rates.

Since flooring has immediate benefits to a home—visually and financially—it’s one of the first items homeowners increasingly want to update in their remodeling projects. The demand for flooring for remodel projects and new home construction has resulted in supply shortages of both the flooring and the raw materials procured to produce flooring products. Supply chains are experiencing extensive strains with inflation in raw materials, which is driving prices higher.

Companies are battling to get products to the US due to delays with imported products and shipping restrictions. Many of the delayed products required for US manufacturing lead to delays in production processes. With rising raw material costs and operating costs, increased transportation costs, etc., the flooring industry overall continues to see increased pricing in addition to the supply and demand obstacles.

But one local flooring store has solutions to combat the flooring industry supply & demand and pricing issues. In 2020, while witnessing the pandemic’s detrimental economic impact on local communities, contractors and builders, and the housing industry in the Panhandle, Flooring Depot of Panama City’s concerns prompted them to make a bold investment decision in an effort to alleviate the flooring industry issues at the local level. Flooring Depot expanded their local footprint with the addition of a new, spacious warehouse in Panama City.

The warehouse expansion empowers Flooring Depot to purchase and stock flooring products in volume, so they’re able to negotiate lower and exceptional pricing – great pricing they pass on to their customers. The impressive warehouse space and volume buying power allows Flooring Depot to expeditiously and efficiently respond to the local community’s flooring needs. In fact, Flooring Depot has the largest selection of in-stock flooring products available in Bay County, with over a million square feet in stock!

Driven by their commitment to provide customers with incomparable service, an extensive product selection, and solutions for customers’ flooring needs, Flooring Depot continuously strives to exceed customers’ expectations. Their vision and determination to solve flooring issues at the local and industry-wide levels, always focusing on customers’ needs first, guarantees a great experience and relationship when you choose Flooring Depot of Panama City.

Flooring Depot of Panama City invites you to visit their impressive showroom and experience the Flooring Depot difference.

Stay tuned for flooring tips-trends, fashions and favorites in future Flooring Depot articles! For learn more, visit Flooring Depot of Panama City’s website, flooringdepotofpanama.com.

New U.S. Coast Guard Law Requires Use of Engine Cut-Off Switches

May 26, 2021

May is a busy month for boating in Florida. As temperatures warm up and the long Memorial Day holiday weekend nears, more and more boaters will hit the bays, lakes, rivers and Gulf of Mexico. Bay County Tax Collector Chuck Perdue wants boaters to operate safely this year and wants to ensure all boaters are aware of a new law which went into effect on April 1st.

When Congress passed the National Defense Authorization Act of 2021 in January, it included Section 8316 which requires individuals operating recreational vessels less than 26 ft. in length and with an engine capable of 115 pounds of static thrust (3 hp) or more to use their engine cut-off switches (ECOS) much of the time they are at the helm. It means those operating the vessel must wear a lanyard (ECOS link) while at the wheel. The law applies when the primary helm is not in a cabin and when the boat is operating on a plane or above displacement speed. The ECOS link is not required when docking, launching and loading on a trailer, or trolling and operating in no-wake zones.

While this law will be enforced by the U.S. Coast Guard in federal navigable waterways, Sarasota Rep. Fiona McFarland has proposed similar state legislation with a bill called “Ethan’s Law.” The bill is named for ten-year-old Ethan Isaacs, who lost his life in a boating accident in Sarasota in November 2020. Ethan’s Law would require operators of boats less than 26 feet long to wear the ECOS link to ensure an engine automatically shuts off if the operator is thrown overboard. Companion legislation has also been introduced in the Senate.

If Ethan’s Law is passed, the bill could take effect as early as July 2021 and would make it a requirement to use an ECOS link in all public waterways and state waters.
For Perdue, this message of utilizing the safety equipment currently aboard most vessels hits very close to home.

“Last year, my dear friend and beloved community member, Christ Cordon, died in a boating accident. So many boating accidents are avoidable,” said Perdue. “I strongly urge fellow boaters to make use of their ECOS this year, while it may not yet be a law in state waters, let’s spare our families and friends another tragic event.”

For more information on Florida’s boating laws and regulations, please visit myfwc.com/boating/regulations.

Reminder: Renew your boat registration online, save time!

Don’t wait until the last minute to renew your boat registration. Visit BayTaxCollector.com to renew online. You can renew online before 3 p.m. and pick up the same day, no wait at the office you select.

Highland Group Expands Florida Operations

May 24, 2021

The Highland Group is expanding its presence in Florida and moving into a larger office space to meet the growing needs of its clients. The real estate development and commercial construction firm originally expanded to Florida in 2019.

“The operational growth we’ve experienced in just two years at our Florida Region location has been extremely humbling. We are very excited to continue providing high-quality real estate development and construction services to even more clients throughout the southeast,” said C. Scott Shamburger, President & CEO of The Highland Group.

Overseeing the Florida office is Paul Batt, a certified general contractor and Vice President at the Highland Group’s Florida Region location. In this capacity, Batt is responsible for overseeing internal operations, building strong customer relationships, maximizing the company’s operating performance, and helping to achieve the company’s financial goals.
“Paul brings with him a wealth of experience having designed, developed, and managed over $3 billion worth of projects that have involved more than 20 million sq. ft.,”
Shamburger said. “He is a tremendous asset, and we are glad to have him leading our operations in Florida.

They celebrated the grand opening of the Highland Group’s new Florida office with a ribbon cutting ceremony on May 4, 2021. The new Highland Group office is located at 130 Richard Jackson Blvd. Suite 104A, Panama City Beach, Florida, 32407.

Wilbur Smith: Outstanding International Writer

May 11, 2021

By Jack Smith

Wilbur Smith was born in Zambia in 1933. Educated at Michaelhouse, a private senior boys school in South Africa, and then Rhodes University, Smith became a full-time writer in 1964 after his first book, “When the Lion Feeds,” met with great success. Since then, he’s used his worldwide travels as a basis for thirty novels, a South African novelist specializing in historical fiction about the international involvement in Southern Africa across four centuries seen from the viewpoints of both black and white families. This varied perspective helps provide insights into both sides of simmering issues still relevant today. Smith’s series on ancient Egypt covers the history of Egypt from the eyes of a eunuch slave. Taita, as eunuch, is the advisor and confidant to several generations of the Egyptian royal families and if you thought Rome was decadent, you need to visit the Upper Nile circa 1800 B.C.

Smith introduces the white man to Africa through the perspective of two families, the Courtneys and the Ballantynes. From Cecil Rhodes and his quest for diamonds on, this is swashbuckling action that ranges from battles on the high seas to the trenches of World War One. So, if you want to experience adventure and history through the eyes of a pirate, pharaoh or the guardian of a colorful harem, Smith is your guy. When asked about his four children during a BBC interview Smith said “They have no real desire to see me and it’s best they go their own way. I’ve got so much going on in my life that I can’t afford to pick up fallen baggage.” In that same interview, asked if he was a good father Smith said, “No, I think I’m a good writer, that’s what I do well.” And indeed he does. Smith grew up during a time in Rhodesia where traditional gender roles were very much enforced, and this is evident in his writing. Love or hate him, Smith tells it like it really was. Enjoy.

Design and Culture: Beach Home Trends

May 26, 2021

We are so excited for spring and summer home trends! They are fresh, clean and airy. Get this look with light and subtle hues of whites, greys, and blues, together an alluring color palette and perfect for a beach home.

To get this look, let’s start with cabinetry. The color white seems like such a simple choice, but there are a wide range of whites available. For cabinetry, keep away from bright white and go with a soft white cabinet color to get this look. Eliminate some upper cabinets and add some open shelving. This will give your kitchen more dimension and create an airier space. Adding glass doors to some of the uppers adds to the airy feeling of this kitchen. Go with a painted hood for this look. We love this hood from Tru Cabinetry and it really makes this kitchen design by adding dimension and a strong focal point to the space. Select soft metals for plumbing fixtures and hardware such as satin nickel or satin bronze for this look. The simple satin bronze handles in this kitchen is a great choice. This is a Sutton pull from Hardware Resources available at Granite Plus.

Those countertops though! Always one of the most exciting things to choose when designing a new space! To get this look, Calacatta Ultra quartz or Calacatta Trevi quartz from MSI Surfaces are great choices. Both quartzes are white with soft grey veining. Natural stone options in this color palette that would work well with this look are White Macaubus quartzite, Mystery White marble, or Tesouro Bianco marble.

When selecting a backsplash for this look, find something solid with interest. Pictured here is a solid glass picket tile. Placement of this tile really adds to the look. Here the tile goes all the way to the ceiling eliminating any tile lines visually, really adding to the seamless look of the space.

When deciding on paint color, flooring, window coverings, lighting, furniture, and accessories, Kim Lyon and her team of interior designers offer free design services and will guide you through your entire project. When designing a new space, I know myself, there are always mixed emotions. It is very exciting and overwhelming at the same time.

Everything is an investment, so having an interior designer guide you through this process is very helpful. The Interior designers at 13 Hub Lane will work with your budget and come up with a game plan to create a space you will love whether it is new construction or a remodel.

Visit graniteplusfl.com or 13hublane.com for more information.

Misleading Over-The-Counter Hearing Aid Sales

May 11, 2021

By Thomas A. Powers, PhD

Over the last several months, the Attorneys General in Arizona, Louisiana, South Carolina, and Georgia issued warnings to be alert for scams or misleading sales tactics regarding Over-the-Counter (OTC) hearing aids. These warnings are an important reminder for consumers since the FDA (Food and Drug Administration) has not yet created the regulations governing the sale of OTC hearing aids.

In 2017, Congress passed legislation that required the FDA to create a new category of hearing aids that could be sold over the counter, or without the assistance of a hearing care professional, to those individuals with self-perceived mild to moderate hearing loss. The legislation set a date of August 2020 for the FDA to issue proposed regulations. The COVID pandemic taxed the resources at the FDA and the August deadline was not met. There are currently no OTC regulations from the FDA or FDA-approved OTC hearing aids that can be lawfully sold to consumers.

South Carolina Attorney General Alan Wilson stated, “Until the FDA finalizes their regulations on over-the-counter hearing aids, South Carolina consumers, especially seniors and military veterans, need to be mindful of unlawful and misleading products on the market. We are seeing more and more companies attempt to sell hearing aids over-the-counter that use the FDA logo or claim to be ‘FDA-registered,’ even though this new category of hearing aids has not been approved by the FDA.”

Consumers should also be aware that with the current lack of labeling requirements, sellers of OTC hearing devices are not obligated to inform consumers that their products are not intended for adults with severe hearing loss or for children and could potentially lead to serious and unnecessary health risks if used by these consumers.

In March 2021, FDA issued a bulletin warning firms that are misrepresenting their products as being “FDA approved” or “approved OTC devices”. The FDA does not issue registration certificates and has requested companies to stop showing certificates next to products that may imply FDA approval. The best way to ensure that a hearing aid is legitimate is to seek guidance from a medical professional.

The Hearing Industries Association strongly recommends that a consumer’s first step be to visit a hearing care professional to understand their unique hearing difficulties. The Attorneys General in the states that issued warnings have the following recommendations when seeking treatment for your hearing loss:

Have your hearing evaluated by a medical professional. These professionals can screen you for underlying conditions that may be contributing to hearing loss and which need to be addressed. They can inform you of proper hearing aid usage and any associated risks.

Have your hearing aid fitted by an audiologist, medical doctor, or hearing aid dispenser.

Check the Better Business Bureau’s website (bbb.org) to see if the hearing aid seller has a good rating and whether consumers have submitted complaints against the company.

Get all terms in writing, including what is covered in the price, extra charges, warranties, and refund policies.

Finally, if a deal seems too good to be true, it probably is!

To learn more about how to choose a device that will be most beneficial to your hearing, check out the https://betterhearing.org/hearing-aids/what-to-consider-when-looking-for-a-hearing-aid/ and find a hearing care professional near you at Betterhearing.org to discuss the safest treatment options.

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