relatives and celebrating one of the holidays. before that, he is in the water and decides to climb up to the top of this ledge and jumps off with no signs of disability whatsoever. the key here is this guy has got a neck and back injury is preventing him from being able to go to work every day. to me that is quite contradictory to someone who can't sit in an office and work on a computer. >> john: insurance companies don't hire you to check out everybody but only if they are suspicious? >> right. we see folks answering their telephone. every time they answer the phone, you hear background noise. >> john: you find fraud how often? >> 81%. >> john: you find cheating smwh form of fraud. >> john: and this cost america hundred billion dollars, which is about $900 per family. this happens because people

accept this. it's a big company. they can afford it. neighbors don't report them? >> it's an entitlement issue. problem is all of this are footing the bill for it and ultimately it will be passed on you, goods and vtsz services everything will go up in price. so you will see an increase. >> john: some of your other cases. this woman said she can't even sit at desk because she has so much leg pain. the pain shoots up. company said we have stand-up work stations. she said she can't stand either. the video shows her walking around and getting into her argument with her boyfriend? >> you can see from the video she takes the leg brace off and attempts to utilize it as weapon. [ laughter ] >> these people are all still collecting money. these cases are pending. >> they are still open. >> john: another case.

a man said he was injured had a crushed finger, couldn't grip a pen positive to write or do sedentary work and you caught him working? >> he said he couldn't grip a pen to do his day to day work at the office. he is clinching and picking up broom handles and not showing any disability. >> john: did does junior investigator jump out of the bush, aha, we caught you? >> our job is to stay concealed. unfortunately these folks are banking on these claims. >> john: person said he felt a pop down to his neck travel down to his arm and shoulder. he is in a gym? >> investigator followed him and he showed up in jeans and begins to work out. the investigators you can see on the right-hand side of the screen there, he is

trying to attempt to work out and videotaping this guy in close quarters. >> john: one final example. a woman said after a car accident, she had vertigo. she was dizzy. she really was suffering. your guy followed to an amusement park where she got on the ride called the slingshot. [ laughter ] >> yes. this is chair where people will strap on a seatbelt and get launched 200 feet in the air. i don't know that i wouldn't be quite dizzy if i came off of that. >> john: catching them on video is not enough to win the case? >> no. attorneys have good day, bad day theory. when they are injured, johnny was injured absolutely but you caught him a day he felt great. the other two days after that he was laid up in a rocking chair and couldn't move. you have to shoot them several times. multiple times. typically we try to go a

week apart to show a span over a month where the person has been able perform their duties. >> john: i think the new technology, cameras are easier? >> technology is our best friend. we are able to literally put cameras in things that you couldn't possibly imagine. i brought one in honor of john. we've got mustache camera. there is a wireless transmitter. we also brought what appears to be a regular, key, inside there is a small camera. >> think about that. think about that next time when you wanted to cheat. up next, extension cord has a warning, wash hands after handling. you get to award a thousand bucks to this year's stupidest

warning label. that is next. [ applause ] hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush? be happy. be healthy.

♪ ♪ [ applause ] >> john: even fear of lawsuits make side effects. let's lighten things up with a contest. companies try to protect themselves from suits by smearing warning labels on their products. they better because lawyers often cite a lack of warning could have prevented this injury. the result the companies put many labels on. he warns the wacky warning label contest. the dumbest one wins thousand dollars and 2nd place gets $500.

he narrowed them down to his five favorites and he agreed to experience to pick the stupidest the winner. so bob, what are your five finalists. >> we have an anti-glass cleaner not for contact use or direct use in eye. this is rubber worms. it says warning, not for human consumption. >> john: people use them to fish with. not for -- it's plastic. you wouldn't consume it. >> no, but if it is not there they could be sued. next, we have a pedometer. they put this in boxes to encourage kids to exercise. but the warning label amongst many, not response for any injury incurred while using the step

counter. somebody is walking and step in a hole you can't sue them. >> john: this was made by kellog's. why did they do this and they didn't call this back. >> these common cords, white or brown. warning, washing hands after handling. well who washes their hands after plugging in an extension cord. >> john: we called the company and we couldn't find anybody that spoke english. so we don't know. [ laughter ] finally a box of matches, combustion resulting in carbon monoxide. >> john: the problem is you don't read the labels you ought to read. >> we have warning label overload. >> john: thank you, bob. when we return you get to vote and pick the thousand dollar winner.

[ applause ]

♪ [ applause ] >> john: now, your turn. in two ways to get to ask questions some of my guests. john and the others. but first, a thousand bucks for most stupidest. to pick the top five. we're with the studio audience pick the winner. which is the stupidest. raise your hand as we go through this. the glass cleaner that says not for contact lenses or direct in your eye. all right. a bunch of you voted for that. that surprises me actually. >> artificial worms for bait. warning not for human

consumption. >> john: fewer on that one. that is eliminated. how about the extension cord, wash hands after handling? all right. this is in the running for the thousand bucks. go ahead. >> and pedometer, company is not responsible for illness or injury incurred while using the step counter. >> john: okay, six. and lastly the matches combustion results carbon monoxide known to cause cancer, birth defects and reproductive harm. [ laughter ] >> john: six. we have some ties. so i think the winner clearly is the extension cord. [ applause ] >> he wins a thousand

dollars and five hundred dollar winner, my off screen, it's the glass cleaner and that came from melanie champagne in north carolina. third place, the pe dometer, that came from justin smith, albuquerque, new mexico. google bob's organization who can google wacky warning labels. your questions for my guests. bob or john or tee. why no penalties for filing ridiculous frivolous suits. daniel spencer says, the answer would be the penalty loser pays. why such opposition to loser pays. what is the downside? >> there are penalties for filing frivolous lawsuits. >> john: they are never imposed. >> yes, they are. >> they are almost never

imposed. >> every other country in the world have a loser pay system. so in europe and asia all of that. those countries have the ability to sue. >> but they look to us. >> and they. [ laughter ] laugh. >> john: yes, ma'am. >> you mentioned.... >> john: before you ask your question, you are a high school student. you shall here because you won the second prize in the essay contest for stossel in the classroom the high school contest where you write about freedom. [ applause ] go ahead and ask your question. >> you've mentioned your accomplishments. what are the laws most proud of? >> the ban of smoking and we reduced smoking half of

the united states. >> john: you did that? >> yep. [ applause ] >> john: you are next. you are first place winner. you won $1500 in the stos seles say contest. you are in high school where? >> st. petersburg, florida. my question is the trouble really with lawyers or is with the trouble with unnecessary law? >> it's the latter. >> john: what do you mean? >> take my word for it. too many damn laws that are being made mostly because somebody is dissatisfied with something. he thinks somehow government politicians are magicians who are going to fix things. >> john: i wrote a book about that called "no they can't." i highly recommend it. >> bottom line is you get screwed by a large corporation, you better have a lawyer because there is no way you can beat city

hall. you get screwed by the government. more need for lawyers. >> john: you get screwed by the government you do because we have one government. corporations that screw people. >> one john. >> earlier you were saying that banning smoking in homes -- how could you do that? >> are you going ban them in homes? >> three-fourths of states we have court orders prohibiting smoking at homes where child custody is an issue. 12 states they ban smoking in homes where there is a foster children. there is no right to smoke in the home. "new york times" has reported that every year, thousands of children are killed by their parents' smoking. we are succeeding. that is the ultimate test. >> john: you are succeeding in ban things. >> if they are good things

we encourage them zbloojt should we ban lawyers. >> how about talk show hosts? >> john: thank you. my take. i'll tell you what really protects consumers and something much better. [ laughter ] [ applause ] how mu protein

does your dog food have? 18 percent? 20? new purina one true instinct has 30. active dogs crave nutrient-dense food. so we made purina one true instinct. learmore at purinaone.com humans. even when we cross our "ts" and dot our "i's", we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human, and so are we.

we also offer new car replacement, so if you total your new car, we'll give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, the repairs are guaranteed for life. so call... to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy?

♪ >> john: the conceit of politicians and lawyers that they think they can manage life through rules. so, they keep adding to this pile. they don't see that these rules gradual wreck life, tie us in knots, they stop innovation.

critics of these focus on cost of litigation but the bigger harm is the fear of lawsuits by itself deprives us of good things, things that would save lives. they never get introduced. drug companies invented a vaccine against lyme disease but they won't sell it because they are scared of lawyers. fire for medical device makers stick to old technology because trying something new risks a suit. monsanto developed a substitute for asbestos that would save thousands of lives but they decided not to sell it. same reason, possible lawsuits. imagine the wonderful life saving products we might have today if innovators didn't live in a climate of fear. the trouble with lawyers may be unfair title for this show, lawyers are hired guns to help manage these rules, but the problem is mostly the rules

and the number of them. people challenge me, what is the alternative, let companies cheat people? no. when i started my career as a consumer reporter, i believed that only rules protect us, but it's not true. the rules give us a false sense of security. the free market does a better job protecting consumers. the marketed works through competition and reputation. you choose -- you check yelp, consumers reports where you have neighbors and colleagues for opinions. you ask because you know even with all these laws, they are still cheating. there is a wide range in quality. and companies know the best way to ensure they will make money tomorrow is keeping a good reputation so they work on that. competition and reputation protect us more than any

lawsuit. i'm glad that this young man in the audience is wearing one of those t-shirts that play off the coca-cola slogan, enjoy capitalism it says. that is right. we should because if we keep letting the lawyers make the calls they won't stop until they take all our time and money and all our freedom. let's repeal most of these laws. that is our show. thanks for watching. see you next week. [ applause ] weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive,

dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next. ♪ the middle of this special moment and i need to run off to the bathroom. ♪ i'm fed up with always having to put my bladder's needs ahead of my daughter. ♪ so today, i'm finally talking to my doctor about overactive bladder symptoms. [ female announcer ] know that gotta go feeling? ask your doctor about prescription toviaz. one toviaz pill a day significantly reduces sudden urges and accidents, for 24 hours. if you have certain stomach problems or glaoma, or can not empty your bladd, you should not take toviaz. get emergency medical help right away if your face, lips, throat or tongue swells. toviaz can cause blurred vision, dizziness, drowsiness and decreased sweating. do not drive,perate machinery or do unsafe tasks

until you ow how toviaz affects you. the most common side effects are dry mouth and constipation. talk to your doctor about toviaz. when he said "everyone gets health insurance"? but now congress says 7 million americans will lose their health insurance and your insurance rates could increase by 200%. some health plans even get hit with a 40% tax and over $700 billion in medicare cuts. so now we're really sad. but you can be happy again by getting the obamacare survival guide. it's already a #1 new york times bestseller and over 500,000 americans have gotten a copy. newsmax says it's "the best guide" to the new law. you can get your copy at obamacare911.com. it gives you the tips, strategies and loopholes you need to know. get your copy of the obamacare survival guide at stores everywhere

for $19.95. or get the internet only offer of just $4.95 and save $15. go to obamacare911.com to claim your copy now. has oats that can help lower cholesterol? and it tastes good? sure does! wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush? be happy. be healthy.

♪ fox news alert. new reaction from president obama in a case that is grimg the nation still after months of raw emotion disputed facts. george zimmerman is a free man. now, the president is issuing a statement describing the death of trayvon martin as a tragedy for the nation and calling for a calm reflection. meanwhile, there have been angry demonstrations playing out. here is the scene in oakland, california, burned american flags and fires. welcome to america's news headquarters, i'm harris faulkner in for heather childers. >> gregg: i'm gregg jarrett. a jury reaching a decision after