Dillons to offer credit cards

Dillons grocery stores are getting into the credit business.

Hutchinson-based Dillon Stores on Wednesday announced the launch of its “1-2-3 Rewards MasterCard,” a consumer credit card that also doubles as a Dillons Plus card.

The credit cards are being issued by RBS National Bank, an affiliate of Royal Bank of Scotland Group, in partnership with Kroger Co., the Cincinnati-based parent company of Dillon Stores.

There are four Dillons in Lawrence, among the division’s 109 locations in Kansas, Missouri, Nebraska, Oklahoma and Arkansas.

Purchases with the credit cards will make customers eligible for coupons and gift certificates, company officials said.

Lawsuit

Health advocates attack dairy ads

A health advocacy group filed a lawsuit this week against the dairy industry, accusing it of false advertising in its $200 million campaign that ties dairy product consumption to weight loss.

Physicians Committee for Responsible Medicine, a Washington-based nonprofit closely aligned with animal rights groups, is demanding an end to the industry’s current weight-loss campaign. It wants a new campaign that admits the current one is misleading and false.

General Mills, Kraft and the dairy industry’s marketing arm have used product labels and ads that say three servings of dairy products a day, along with a decrease in calorie intake and additional exercise, can help people lose weight.

Economy

GDP growth beats quarterly estimates

The economy logged a solid 3.8 percent growth rate in the first quarter of 2005, a performance that was better than previously thought and a fresh sign the expansion is on firm footing.

The new reading on gross domestic product, released by the Commerce Department on Wednesday, marked an improvement from the 3.5 percent annual rate estimated for the quarter just a month ago and matched the showing registered in the final quarter of 2004.

GDP, the broadest gauge of the economy’s health, measures the value of all goods and services produced within the United States.

Dependability

GM, Ford, Toyota tops in survey

General Motors Corp., Ford Motor Co. and Toyota Motor Co., the world’s three largest automakers, were among top performers in a vehicle-dependability survey, J.D. Power and Associates said Wednesday.

The survey questions owners of three-year-old vehicles about problems they’re experiencing, such as wind noise or excessive brake wear.

GM had eight winners of out 19 vehicle segments; Ford had five winners and Toyota had four.

Lexus, Toyota’s luxury nameplate, was the top-performing brand with 139 problems per 100 vehicles; Kia was worst, with 397 problems. Hyundai Motor Co. showed the most improvement, with 260 problems per vehicle compared with 375 problems in the 2001 model year.