Menu

Friday, December 4, 2015

Chipotle E. Coli Outbreak Expands To Three More States

http://ift.tt/1NSzX5g
(Adam Fagen)

Hours after Chipotle said it was bracing for additional illnesses to be linked to an ongoing E. coli outbreak, health officials confirmed that the contamination now spans nine states — three more than previously reported. 

The Centers for Disease Control and Prevention announced Friday that one illness in each Pennsylvania, Maryland and Illinois have been added to the ongoing investigation.

In addition to the new illnesses in these states, investigators say four people have reported becoming sick. Those consumers are located in Ohio (2), Washington (1), and California (1).

“Among people for whom information is available, illnesses started on dates ranging from Oct. 19, 2015 to Nov.13, 2015,” the CDC says. “Of the three most recent illnesses reported.. only one ill person reported eating at Chipotle Mexican Grill in the week before their illness began.”

To date, 47 of 52 people interviewed about their illness reported eating at a Chipotle restaurant in the week before they got sick.

The CDC warns that even more illnesses could be added to the outbreak list, as those that occurred after Nov. 11 might not be reported yet due to the time it takes between when person becomes ill and when the illness is reported — which can take an average of two to three weeks.

“CDC and state and local public health partners are continuing laboratory surveillance through PulseNet to identify additional ill people and to interview them,” the agency says.


by Ashlee Kieler via Consumerist

Amazon Buys Its Own Fleet Of Branded Semi-Trucks (But Don’t Expect Them At Your Door)

http://ift.tt/1YOu136
(Amazon)
You may soon see semi-trucks cruising around the highways and byways of America branded with the Amazon logo, not because the company is going to start delivering its own stuff, but because it wants to become more efficient at how its inventory gets from one company facility to another.

Amazon is planning to unleash thousands of the branded tractor trailers onto roads to help it shuttle products around, in an effort to be more involved in its shipping processes, reports the Wall Street Journal‘s Digits blog.

Of course, from a marketing perspective, it won’t hurt for customers to see the trucks roaming about, even if one isn’t going to roll up to your door with your order.

In the future, we may see Amazon trucks making everyday package deliveries, as well as dropping off food or ferrying flowers, as the company works on new ways to take more control over the “last mile” step in a package’s journey from its warehouses to customers’ doorsteps.

To that end, back in April 2014, Amazon tested using its own delivery trucks in San Francisco. And more recently, it tried out using Chicago Tribune newspaper delivery trucks with extra space to ferry goods to customers.

The new trucks emblazoned with the Amazon smile logo will be deployed around the country, Amazon says.
The new truck trailers will bear the familiar Amazon logo with a smile on the side and be deployed around the U.S., the company said.


by Mary Beth Quirk via Consumerist

Net Neutrality Opponents, FCC Get Their Long-Awaited Day To Argue In Court

http://ift.tt/1DiJldG
(Mike Cook Foto)
We all knew from the moment that the FCC voted to reclassify broadband and protect the open internet back in February that ISPs would file every suit they could think of to kill the rule off again, as thoroughly as could be. The suits were formally filed back in April, but the wheels of justice and government roll at something of a slow grind and so the oral arguments in the case were finally heard today.

This morning, a trio of judges — Circuit Judges Sri Srinivasan and David Tatel and Senior Circuit Judge Stephen F. Williams — at the U.S. Court of Appeals for the D.C. Circuit spent three hours listening to, questioning, and challenging the best arguments that net neutrality’s opponents could make for reversing the rule, and that the FCC could make for keeping it.

As compared to the millions of pages of comments, opinions, and facts that went into the forming of the open internet rule, today’s oral arguments had a narrow focus. That’s because when it comes to filing an actual appeal, you can’t just say, “this rule sucks and I hate it” the way you might on Twitter. Instead, you have to provide and argue for a specific set of reasons why the rule or law you’re appealing is unlawful, unjust, or harmful.

Even if you’re taking the spaghetti approach — as in, throwing all of your possible arguments at the wall and seeing what sticks — you still have to make a specific, narrow, targeted case demonstrating not only that you are right, but also, very specifically, why. What legal justification bolsters your side? What set of statutes or pre-existing case law are you drawing your conclusions from? The legal arguments are not just about winning, but about how you can win.

And so arguments stack up one upon the next, like a big Jenga tower of logic, some able to stand even if pieces are missing from the levels below it… and others, not so much.

Issue 1: Reclassification, Common Carriers, and Peering
To create its net neutrality rule, the FCC reclassified broadband internet service, both fixed and mobile, as Title II telecommunications services under the law. That classification obliges them to behave as common carriers, meaning they are conduits that have to move traffic around, and that the FCC has authority to prevent them from blocking or prioritizing certain traffic.

Petitioners, including most of the big wired and wireless broadband providers as well as the trade groups representing them, argued that the services they provide are not telecommunications services, and therefore the FCC can’t just reclassify them. The FCC, obviously, feels otherwise.

For the petitioners, the logic tree needed to prove that (1) what they do doesn’t qualify as a telecommunications service, (2) what they do does qualify as an information service, (3) the FCC was wrong to make the distinction they did.

For the FCC, the logic needed to argue that (1) yes it does, (2) no it doesn’t, and (3) no we weren’t.

The argument went into the weeds what is or isn’t required for something to qualify as an information service, as well as what goes into interconnection (peering).

“[ISPs] don’t engage in common carriage agreements,” attorney Peter Keisler argued for the petitioners, nor have they ever made any such promise to do so. Instead, every interconnection agreement is an individually, separately negotiated contract, and neither businesses nor consumers should expect otherwise. Keisler also spoke to the ways in which ISPs have to use computing functions to route and manage traffic as proof for their status as information services.

FCC general counsel Jonathan Sallet countered that there is no such thing as a last mile that is “only” made of wire, and argued that the way in which tools are used does not necessarily change what those tools are.

Sallet drew an analogy to hardware. “A screw is always regulated the same way,” he said, whether it becomes part of a chair or part of an ambulance. Furniture and medical services are regulated entirely differently but the screw that will hold either one together has to meet the same standards.

Issues 2 and 3: The Process, and What Is a Cell Phone?
The petitioners’ next set of arguments was procedural: even if the FCC has the authority to make this decision and didn’t make the wrong one, they argued, the commission did it wrong and unfairly and so the rule is invalid.

Judges questioned the FCC many times about what had changed in the agency’s thinking during the rulemaking process and also during the decade before it, and why the FCC had gone for a Title II approach in the end instead of several other legally permissible options they could have considered (and for a while, did).

Sallet replied that during the rulemaking process, the FCC simply changed its strategy because it learned more. “We looked at circumstances and determined that a case-by-case approach would lead to an undue burden on small edge providers,” he explained, who would be significantly disadvantaged by the time and resources they would have to allocate to making their case before the FCC.

Combined with the procedural argument was a case against including mobile broadband in the net neutrality rule. US Telecom et al argued the various technological and hair-splitting reasons that they believed mobile broadband should not be subject to the rule, but one of their arguments against including mobile broadband was also procedural. In short, the petitioners argued notice violation: The FCC made the change without sufficient warning, and so therefore should not be allowed to make the change without starting all over again, with a new process, with sufficient warning.

Specifically, the petitioners claimed that only one line of the original NPRM mentioned mobile data at all, and so they had no idea they would be called upon specifically to defend the existing law. And so they didn’t, to their detriment.

FCC associate general counsel Jacob Lewis, however, contested that point of view. “In their voluminous comments,” he said, the CTIA made exactly these arguments and references “time and time again” about exactly the issues they were raising in the court. “The notice was brief but it was complete,” argued Lewis, and saying that they were blindsided is “inconsistent with any reading” of the actual items.

Issue 4: The First Amendment
Two petitioners apart from the rest of the pack lodged one very specific argument about the constitutionality of the open internet rule. Specifically, they argued that requiring all ISPs to adhere to common carrier regulations is a violation of the ISPs first amendment rights.

Attorney Brett Shumate, speaking on behalf of Alamo Broadband and Daniel Berninger, argued that ISPs are protected both as speech and as media. The evidence that ISPs have a right to express themselves through their network management comes from the FCC’s own rulemaking, Shumate argued: the rule against prioritization presumes that ISPs will prioritize some content over other content, and that itself is expression.

Judge Williams drew Shumate’s attention to the liability protections that ISPs get for transmitting potentially unlawful information and asked if considering ISPs to be speakers and editors wouldn’t have a side effect of costing ISPs those protections.

During his turn to argue for the FCC, Lewis pointed out that any carrier that explicitly exists on the basis of filtering the internet before bringing it to consumers is already exempt from the common carrier regulation. A company explicitly and intentionally providing a selected, curated, filtered service — like one that only accessed a handful of family-friendly or religiously-affiliated sites, say — would not qualify as a mass communications broadband ISP… because it would be selling a different service entirely, and its consumers would know that.

But in general, Lewis said, “Broadband internet providers are engaged in transportation, not expression.”

…So Now What?
Now we all wait. The judges won’t render an opinion until sometime in the new year, probably in the spring.

As for how it will go, that seems like anyone’s guess. Judges were equally interested in pressing both sides for seeming inconsistencies, illogical connections, or selective definitions. Each of the three judges seemed to have his heaviest focus on a different aspect of the proceeding. Judge Williams, for example, seemed most concerned about the FCC’s potential notice violations, where Tatel was more focused on why the FCC’s thinking changed over time, and Srinivasan most interested in the meanings of network definitions. None seemed hugely convinced by the first amendment arguments.

But although the outcome is up in the air, the case remains important.

“This is a critical case that may decide the fate of the Internet as we know it,” said Delara Derakhshani, policy counsel for our colleagues down the hall at Consumers Union (the advocacy arm of our parent company, Consumer Reports).

“The FCC passed these Open Internet rules, with proper authority, to keep the Internet open for all, rather than allowing a select few companies to choose winners and losers. These rules are essential to ensuring consumers can access the websites and apps they – not their Internet service provider – choose. As oral arguments begin today, we hope that the Court keeps a focus on the consumer need, and overwhelming desire, for an open, innovative Internet.”


by Kate Cox via Consumerist

People Holding Onto RadioShack Gift Cards Can Now File Refund Claims

http://ift.tt/1PFPKJc
(Mike Mozart)

If you’re one of millions of consumers holding on to an older RadioShack gift card, listen up: the retailer has begun the process of issuing refunds for the balance of those cards — totaling $46 million. 

The Texas Attorney General’s Office announced this week that consumers with cards have until Dec. 2, 2016 to file claims against the retailer to recoup their money.

To get the claims process rolling, customers fill out a form on a dedicated website — http://ift.tt/1Tqe7Z9 — and submit it electronically or by mail to get the unused balance refunded.

Valid gift cards were purchased from RadioShack, the retailer’s website or from other authorized sellers including Safeway, Incomm and PointMobl.

The claims process is part of a $46 million settlement with 24 states previously approved during RadioShack’s bankruptcy process. The Attorneys General for those states raised concerns over the gift cards after the retail filed for bankruptcy and said the cards would expire on March 31.

The states — spearheaded by Texas — claimed that RadioShack knew after the 2014 holiday season ended that it would be declaring bankruptcy soon, and that gift cards they had issued would lose their value at the time of the bankruptcy or shortly afterward, yet sold the cards anyway.

In August, RadioShack reached the agreement that ensured gift card holders would receive their refunds ahead of the company’s secured creditors – the normal bankruptcy process.

However, consumers who hold cards acquired through merchandise returns and certain promotional gift cards that do not qualify as “priority” claims under applicable bankruptcy law will be paid as general unsecured claims. That means they will at most receive a small percentage of the balance on the card and may not receive any payment, the TX AG’s Office says.

“This implementation confirms that the voice of the consumer is being heard, and we are pleased RadioShack is honoring its commitment to customers holding millions in unredeemed gift cards,” Texas Attorney General Paxton, said in a statement. “In any bankruptcy proceeding, it’s vital that the interests of consumers are represented and considered, and it’s appropriate that former RadioShack customers have this opportunity to file and eventually redeem their claims.”


by Ashlee Kieler via Consumerist

Pepperidge Farm Accusing Trader Joe’s Of Ripping Off Its Milano Cookie

http://ift.tt/21CRnvd

crispycookiePepperidge Farm is calling out Trader Joe’s for allegedly being some kind of cookie monster, claiming in a new lawsuit that the grocery company is infringing on its trademark for selling a cookie that it says is a ripoff of its Milano cookie.

For those who aren’t familiar, Milano cookies feature two cookies with chocolate filling (or sometimes other flavors) sandwiched in between. The company registered a trademark for the cookie — which first appeared on tables in 1956 — in 2010.

By selling a product called Crispy Cookies, Trader Joe’s is damaging Pepperidge Farm’s goodwill and confusing shoppers, according to the lawsuit reported by Reuters.

Though Trader Joe’s cookie is more rectangular, it has rounded edges, “mimicking an overall oval shape,” the lawsuit says. The grocery chain also uses similar packaging, the complaint claims.

“The acts of Trader Joe’s have been malicious and calculated to injure Pepperidge Farm,” citing the hundreds of millions of dollars in revenue the company has earned with the cookie in the last decade.

A Trader Joe’s spokeswoman told Reuters the company does not discuss pending litigation.

Pepperidge Farm is seeking to stop sales of the rival cookie, as well as compensatory and punitive damages.

“The trust Pepperidge Farm has built with consumers is of utmost importance to us,” a spokeswoman told Reuters.

Pepperidge Farm sues Trader Joe’s over Milano cookie [Reuters]


by Mary Beth Quirk via Consumerist

Dodge Recalls More Than 121,000 Darts Over Brake System Issue

http://ift.tt/1HLCgsP
(stellarviewer)

Brakes are meant to slow, stop or keep a vehicle from moving when the driver doesn’t want it to, making them an integral part of the automobile. So when there’s a problem with the system, that’s a pretty big deal. And for that reason, Fiat Chrysler issued a recall for more than 121,000 vehicles. 

The Associated Press reports that the carmaker plans to recall 121,600 model year 2013 and 2014 Dodge Darts with 2-liter and 2.4-liter engines.

The recall was initiated because oil can get on parts of the vehicles’ braking systems, degrading parts and making it more difficult to brake.

So far, the company says it’s aware of two minor injuries and seven accidents related to the issue.

Owners of affected vehicles will be contacted and dealers will provide a fix.

Fiat Chrysler recalls 121,603 Dodge Darts for brake issue [Associated Press]


by Ashlee Kieler via Consumerist

Vessyl Backers Still Waiting For Smart Cups Slated For Early 2015 Debut — So What’s The Holdup?

http://ift.tt/eA8V8J

Back in June 2014, we caught wind of a new product called the Vessyl, a smart cup that was designed to identify what kind of liquid the user is drinking and display nutritional information about that beverage, as a sort of health tool. At that time, it was slated to ship in early 2015, with backers paying $99 for the privilege of preordering one. But as 2015 closes out, some Consumerist readers have wondered — where are all those promised Vessyls?

The short story: they aren’t ready to ship yet. The longer story is, well, longer.

By the end of 2014, the company behind the Vessyl, Mark One had issued a few updates for backers on its blog, promising more information on when the preorders would ship.

Co-founder Justin Lee wrote on Dec. 30, 2014 that the company was still working out what material to use for the inside of the cup, and would need to engage in “substantial testing” before the Vessyl would be ready for its big debut, but that there would be more information on expected shipping dates to come “soon.”

More updates followed as the months ticked by, citing various production obstacles and charting the Vessyl’s progress from prototype to a fully realized product:

Feb. 3, 2015: “We plan to share a more specific ship date in a few weeks, so stay tuned for that.”

March 13, 2015: “Originally, we intended to ship Vessyl to you in Q2 of 2015. This is feasible, and though your Vessyls would meet the minimum threshold of quality, it would not meet our standards at Mark One. To ensure we are shipping a product that meets our and your expectations, we have decided to take a few extra months to optimize the interior materials and do extensive drop, reliability, and durability testing.”

June 29, 2015: Sensor improvements further delayed the Vessyl, Lee wrote, “as progress continues, we will report on any changes to the schedule and further refine our expected shipping date.” Though preorders were shut down by this point, Lee announces that it will accept advance reservations, with no money changing hands until the Vessyl ships.

Oct. 24, 2015: By the time fall had rolled around, the backers were restless, and Mark One acknowledged that in another update, simultaneously announcing a new toy, Pryme, a smart cup meant to monitor the user’s “daily hydration needs.” Backers still waiting on their preorders could sign up to receive a free Pryme, but by doing so, would have to forfeit their right to a refund for the original Vessyl.

That stuck in the craw of Consumerist reader Dan, who wrote in mid-November saying that he was critical of the continued pushbacks, calling the whole thing “fishy.”

“I have not yet asked for a refund, but I will not opt-in for Pryme,” he wrote, adding that others who had opted in for Pryme hadn’t received their units yet, despite Mark One’s pledge to begin shipping the cups in on Nov. 12.

This, despite the fact that Mark One was selling the Pryme in Apple stores online and at retail locations to the general public for $99. On Nov. 18, Mark One acknowledged that due to retail demand being higher than anticipated, backers who’d opted in for a Pryme wouldn’t be getting their units yet. This time, Mark One didn’t put an exact date on when it expected to ship those products, saying only that “the goal is to start shipping out your Pryme Vessyls when we replenish the stock.”

So when can I expect my stuff?

Image courtesy of frankieleon

We got in touch with Mark One to see what the holdup was, and if there were any firm dates set for Vessyl backers to get their pre-ordered smart cups, as well as the Pryme units many who’d opted in to receive on were also still waiting for.

Nic Barnes, vice president of brand and marketing for Mark One, echoed co-founder Lee’s position throughout the string of update blogs for backers: the company has learned its lesson and isn’t going to put a shipping date out there for the original Vessyl.

“The challenge for us to make sure that the 100,000th unit has the same level of accuracy and reliability as the first, Barnes told Consumerist via email. “This is a critical threshold in order for us to achieve our mission. We are focused on doing the due diligence to fully understand what it will take to achieve this, which is why we haven’t released a new delivery date.”

Barnes acknowledges that people are pretty ticked off, but says it’s all part of the process.

“I think we’re willing to deal with that frustration, whether it be through press or through consumers venting and letting us know their feelings, because at the end of the day, we refuse to put out a product that is not going to be effective,” Barnes later told Consumerist by phone.

To that end, the company has brought in Hamid Mohammadinia, formerly of Apple, as the new VP of engineering. His job is to figure out how the company can take the product from one thing to a million things.

“That’s a struggle we’re dealing with now: how do we scale out the product to have the same level of effectiveness to help folks get healthier?” Barnes said. “That’s a challenge and that’s what we’re working through right now to analyze what it’s going to take, and then at that point, we will send out a date, but until then… we’ve learned our lessons, and we’re definitely not going to put out a date until we have that kind of confidence that we know when it’s going to happen.”

What about Pryme?


As for backers who opted in for a free Pryme, relief is in sight, Barnes promises, though again, the company can’t promise a specific shipping date.

“I’ll say that we are very close to kicking off the backer Pryme shipments,” Barnes told Consumerist, calling it a “top priority as a company.”

If you opted in for a Pryme but want to wash your hands of the whole thing, you can still get a refund for the original Vessyl up until the Pryme units ship. And if for some reason Mark One goes bye-bye, or the Vessyl never ships? Backers won’t be out $99, Barnes promises.

“Could we have done things differently? I think we could’ve,” Barnes admits, in regards to Pryme units going to retail while Vessyl backers were left behind. “But given the current constraints, it was a tough decision that we had to make. We’re looking forward to getting some extra units out so we can get them the product we promised them.”


by Mary Beth Quirk via Consumerist

Consumers Sue To Stop $107B Mega-Beer Merger

http://ift.tt/1jaWVeQ
(Scott Lynch)

Anheuser-Busch InBev’s formal $107 billion bid to acquire SABMiller is far from a done deal: federal regulators will likely be combing through the details of the proposal for quite some time to determine how it will affect the global beer markets, and consumers’ wallets. But it looks as if lovers of the sudsy drinks are a bit ahead of the game, filing a lawsuit to stop the mega-merger.

Bloomberg reports that nearly two dozen consumers filed a joint lawsuit against AB InBev in an attempt to stop the deal, claiming it would force them to pay more for a lower quality product.

Among other things, the suit claims the merger between the world’s largest and second largest brewer would create an illegal monopoly.

The 23 consumers who filed the complaint in Oregon say they have purchased products from both SABMiller and InBev in the past.

For its part, AB InBev maintains that the lawsuit’s claims are without merit and intends to vigorously defend itself and the billion-dollar deal, Bloomberg reports.

“The U.S. beer market has never been more competitive, with strong growth from craft brewers, and nothing in this transaction will change that fact,” the company said in a statement to Bloomberg on Thursday.

SABMiller declined to comment on the suit.

Antitrust experts have expressed concerns over the merger ever since the rumblings of the deal first made waves in the fall, noting that most plausible scenarios would spell higher prices, fewer choices, and a harder life for smaller craft brewers.

Last month InBev attempted to squash those concerns when it announced a finalized deal outlining plans for SABMiller to sell its 58% stake in MillerCoors to its joint-venture partner Molson Coors Brewing, which already owns 42% of the brand, for $12 million.

The companies say the massive sell-off plan [PDF] is meant to “promptly and proactively address regulatory considerations.”

The fate of the MillerCoors brand was one of the largest concerns for antitrust experts who widely agreed that regulators would not approve the deal without the divestiture. If AB InBev and SABMiller were to merge without selling off that stake in MillerCoors, the combined company would control an astounding 70% of the U.S. beer market.

The deal to sell MillerCoors to Molson is contingent on the completion of the SABMiller/AB InBev deal and is expected to close in mid-2016.

Beer Drinkers Sue to Stop AB InBev’s $110 Billion SABMiller Deal [Bloomberg]


by Ashlee Kieler via Consumerist

Chicken Of The Sea, Bumble Bee Abandon Plan To Unite As One Giant Can Of Tuna After DOJ Objects

http://ift.tt/13CaWK5
(TheGiantVermin)
Chicken of the Sea and Bumble Bee will be leaving their underwater wedding separately despite going steady since 2014: the two tuna companies won’t be merging into one giant can of fish after the U.S. Justice Department put the kibosh on their planned union.

The DOJ announced on Friday that the merger — proposed a year ago between Thai Union Group, owner of Chicken of the Sea and Bumble Bee — is kaput, saying it would’ve hurt competition in the U.S. canned tuna market.

If the two tuna companies had united forces, it would have combined the second- and third-largest sellers of tinned tuna in the U.S. That’s a big deal when you consider that there are really only three major players in the canned fish business in the country, with the first-largest seller being Starkist.

“Consumers are better off without this deal,” Assistant Attorney General Bill Baer said in a statement, adding that the two companies shouldn’t be surprised. “Our investigation convinced us – and the parties knew or should have known from the get go – that the market is not functioning competitively today, and further consolidation would only make things worse.”


by Mary Beth Quirk via Consumerist

Razor Accuses “Hoverboard” Distributor Swagway Of Infringing On Patent

http://ift.tt/1OLbzDX

2581960=11003-Razor_Logo_WhiteAlthough “Hoverboard” scooters – you know, those boards that don’t actually hover at all, in spite of the nickname – have taken over the Internet and the holiday wish lists in recent months, they’ve also made headlines for all the wrong reasons, such as allegedly exploding while charging and being under investigation by federal safety officials. And now the devices are the center of a lawsuit between big-time scooter manufacture Razor and Swagway -a leading hoverboard distributor. 

BuzzFeed News reports that Razor, which recently purchased a patent for a “two-wheel, self-balancing vehicle with independently moveable foot placement sections,” filed a complaint against Swagway accusing the company of patent infringement.

The lawsuit, filed in U.S. District Court in California on Nov. 27, alleges that Swagway infringes on Razor’s patent by “making, using, offering for sale, selling, and/or importing… without license or authority, Swagway, Swagway X1, Swagway smart balancing electric skateboard, and related and similar products.”

The complaint focuses on Razor’s recent exclusive licensing agreement with Shane Chen, the holder of a patent for the personal vehicles. Razor currently sells its own device called the Hovertrax for $599.99.

Razor seeks supplemental and compensatory damages from Swagway, as well as an order directing the company to turn over all products that infringe on the patent.

Razor USA Sues Swagway Over Hoverboards [BuzzFeed News]


by Ashlee Kieler via Consumerist

American Apparel Founder Not Ready To Give Up Yet, Hires Investment Bank To Work On Bid For The Company

http://ift.tt/1zc2Ro0
(Michael Kalus)
Now that American Apparel has filed for bankruptcy after losing money for years, there’s at least one very interested party possibly looking to swoop in and snap it up: the company’s founder and former CEO Dov Charney isn’t going to let the small matter of his termination from the company get in his way, and has hired an investment bank to help him put together a potential bid.

If at first you don’t succeed, try, try again, right? That seems to be Charney’s plan, after his failed takeover bid in 2014. He’s brought in a small investment bank called Cardinal Advisors LLC to evaluate options, reports Bloomberg.

“Charney is confident that new and existing investors, working with him and his team of industry leaders, would be able to realize significant long-term value for American Apparel’s stakeholders,” according to a statement from his camp sent to Bloomberg.

Charney, the former chairman and CEO, was kicked out of the company in December 2014 following allegations of misconduct. American Apparel has seen worsening sales since at least 2010, and things didn’t get much better after Charney’s departure. The retailer filed for bankruptcy protection in October of this year, after earlier admitting it’d run out of financing to keep things going.

The final approval for American Apparel’s reorganization plan is expected on Jan. 20, after it evaluates bids it may receive.

American Apparel Founder Hires Investment Bank to Pursue Bid [Bloomberg]


by Mary Beth Quirk via Consumerist

Alaska Airlines Joining Premium Ticketing Bandwagon In 2016

http://ift.tt/1Lu5BYP
(David Transier)

Following the lead of other domestic carriers, Alaska Airlines will soon offer passengers a premium economy ticket option. The Premium Class section will debut in late 2016 and provide customers three to four inches of extra legroom, priority boarding and as yet unspecified “additional amenities.” The upgrade will be available to Alaska Airlines elite Mileage Plan members on a complimentary basis at booking or on the day of travel, but it was unclear how much the option will cost for other passengers. [Alaska Airlines]


by Ashlee Kieler via Consumerist

Lawsuit Claims Macy’s Detains Minorities In Shoplifting Cells, Makes Them Pay Bogus Fines

http://ift.tt/1wlfGf3
(The Caldor Rainbow)
More than a year after Macy’s agreed to pay $650K to settle allegations of racial profiling in its stores and promised it would incorporate more staff training to combat such behavior, a woman has filed a class-action lawsuit against the department store, claiming it unfairly detains minority shoppers and puts them in holding cells, whether they’ve done anything wrong or not. On top of that, the complaint claims, Macy’s then extorts those people for bogus fines.

In the complaint [PDF] the woman says the retailer imprisons minority shoplifters in special holding cells.

“This coercive collection practice or scheme has become so profitable that Macy’s…has dedicated an entire unit within its existing store, which operates like a typical jail, equipped with holding cells, where alleged shoplifters are held for hours on end, and are pressured, threatened, and often harassed until they find no reprieve but to make civil penalty payments to [Macy’s],” the suit states.

The plaintiff says that she was detained at Macy’s flagship Herald Square location in New York City back in July 2014. She claims that a guard took her to the cell under suspicion that she was planning to steal a set of shirts. According to the complaint, she was kept in that cell and questioned for three hours, without being given the chance to call a lawyer or her family, and forced to sign papers admitting her guilt. She accuses the retailer of making her pay $100 fine in cash before she was turned over to police.

If this sounds familiar, it’s because Macy’s has been here before: an investigation into the retailer by New York Attorney General Eric Schneiderman’s office concluded back in 2014 that the retailer’s “loss prevention employees at the store tracked and followed African-American, Latino, and other minority customers much more frequently than white customers.”

Schneiderman’s office reviewed 18 complaints from 2007 to 2014 involving minority customers who claimed to have been held wrongly for shoplifting at the Herald Square store. Investigators found that Macy’s detained 1,947 people in a one-year period at the store, compared to about 6,000 total at Macy’s other 42 stores in New York state.

A Macy’s spokesperson told TIME it rejects the lawsuit’s claims and that the company is in full compliance with the law.

“Our company takes great pride on the proactive steps we have taken in recent years as an industry leader in shopping equality,” the spokesperson said. “In fact, we sponsored a first-ever symposium hosted last fall at John Jay College by the Retail Council of New York State to discuss how all retailers can improve the shopping experience across all segments of the population.”


by Mary Beth Quirk via Consumerist

Feds Forgive $103M In Debt For Nearly 7,000 Former Corinthian College Students

http://ift.tt/1H7old0

healdheaderNearly 7,000 additional former students of defunct for-profit chain Corinthian College will have their loan debt erased by the federal government. While the $103 million tab sounds like a lot, it’s only a fraction of the billions of dollars that Wyotech, Heald College and Everest University charged in tuition. 

The Department of Education announced Thursday that it had approved a second wave of loan forgiveness for former Corinthian students, this time focused on “borrower’s defense” claims made against the company, the Associated Press reports.

The relief covers 1,300 former students from Heald College, totaling about $28 million and 5,800 former Corinthian students who filed “closed school” claims, totaling $75 million.

Lawmakers were quick to applaud the additional relief on Thursday. Senators Dick Durbin of Illinois and Richard Blumenthal of Connecticut called the Department’s decision to erase the debt “progress for students.”

“The Department of Education’s approval of relief today is welcome news for some 1,300 former Heald students, but there are thousands more across the country who deserve the same relief,” the senators wrote in a letter. “We encourage the Department to step up the pace and scope of its Corinthian debt relief efforts to give those students the relief they deserve under the law now.”

Relief for former Corinthian students has been trickling in since the college chain collapsed – and filed for bankruptcy – in this spring.

In September, the Department said it had received 4,140 claims for borrower defense discharge since it announced in June that it would provide relief for students who attended (after June 20, 2014) the 30 CCI campuses that closed in April.

Those reviews are taking longer than one might expect as the team has to analyze state laws for each claim.

Under the law, a borrower defense to repayment provides loan forgiveness to students if their school committed fraud or broke laws.

Independent monitor for the relief process, Joseph Smith, said at the time that his team of four attorneys is reviewing claims where the “facts and law are clear,” such as those who attended Heald Colleges in California, Hawaii and Oregon.

Additionally, in February the CFPB and Dept. of Education secured $480 million in debt relief for former students.

More federal loan debt forgiven for Corinthian students [The Associated Press]


by Ashlee Kieler via Consumerist

Samsung Agrees To Pay Apple $548M To Settle 5-Year Patent Battle

http://ift.tt/1PECK6z
(A photo Geek)
It’s been a long time coming, but Samsung and Apple’s ongoing patent battle has finally come to an end: a little under five years since the two technology giants first clashed in court over patents, Samsung has agreed to pay $548 million to settle the long-running dispute with Apple.

The two sides filed a joint court statement [PDF] confirming that Samsung would fork over the $548 million the court awarded Apple in September by Dec. 14 (h/t ZDNet).

While it’s a lot less than the $1 billion in damages Apple was first awarded, after multiple appeals brought down the amount to this new total, but that doesn’t mean it wants Apple to keep the money forever: Samsung might appeal the decision with the U.S. Supreme Court after trying — and failing — to contest the damages in the U.S. Federal Circuit Court of Appeals. Samsung wants to lop off nearly $400 million of the damages awarded.

Thus, Samsung is claiming “all rights to obtain reimbursement from Apple,” pending the results of any further appeals.

“Samsung further reserves all rights to reclaim or obtain reimbursement of any judgment amounts paid by Samsung to any entity in the event the partial judgment is reversed, modified, vacated or set aside on appeal or otherwise, including as a result of any proceedings before the USPTO addressing the patents at issue or as a result of any petition for writ of certiorari filed with the Supreme Court,” said Samsung.

At the center of this potential appeals bid is Apple’s pinch-to-zoom ‘915 patent, which the U.S. Patent and Trademark Office ruled invalid in December last year. Apple is seeking an appeal over that decision, as well, and disputes Samsung’s claimed right to reimbursement.

“Apple notes that Samsung purports to reserve rights to obtain partial reimbursement in the future of judgment amounts it has paid. Apple disputes Samsung’s asserted rights to reimbursement,” said Apple.


by Mary Beth Quirk via Consumerist

Chipotle Bracing For More E. Coli Cases, Revamps Food-Supply Standards

http://ift.tt/1IW4QWH
(Kerry Lannert)

Chipotle is preparing for the worst when it comes to a six-state E. coli outbreak: anticipating that additional cases and more states may enter the contamination fray. 

The company said on Friday that additional reports of illnesses may soon come to light as states continue reporting data to federal agencies, Bloomberg reports.

The outbreak, which the Centers for Disease Control and Prevention previously linked to Chipotle restaurants, occurred from Oct. 13 to Nov. 7. So far, there has been no additional evidence of people getting sick since that November date, however the CDC indicated it’s still possible more cases will be found.

Issues for the fast Mexican restaurant began over Halloween when the company temporarily closed their restaurants in the Seattle and Portland, Oregon metropolitan areas, saying that they were protecting the public from an E. coli outbreak that had been linked to eating at Chipotle, but not to any particular food.

The CDC put the total at 36 cases in Washington, and 13 in Oregon. Sixteen people were hospitalized, but none developed the serious kidney condition that can be a complication of E. coli, especially in young children, and none of the patients died.

Since then, the issue has seeped past the regional area with two patients each in California and in Minnesota, and one each in New York and Ohio.

And that’s only the people who visited a medical professional and had samples taken: there are usually many more people who were sick but never made it to see a medical professional, instead choosing the “Netflix and ginger ale” treatment method.

While the CDC and Chipotle continue to investigate the outbreak, searching for the root cause, the restaurant has started to revamp its food-supply standards, Bloomberg reports.

Chipotle, working with Seattle-based IEH Laboratories and Consulting Group, announced a new program aimed at improving its supply chain and doing DNA testing of produce — a procedure that could better determine possible contamination.

It also plans to retool its training to help employees handle food more carefully.

“While it is never possible to completely eliminate all risk, this program eliminates or mitigates risk to a level near zero, and will establish Chipotle as the industry leader in this area,” Mansour Samadpour, head of IEH Laboratories, tells Bloomberg.

Chipotle Says More Cases May Be Reported in E. Coli Outbreak [Bloomberg]


by Ashlee Kieler via Consumerist

Fiat Chrysler Spins Off Ferrari Division, Drops Hostile Bid To Merge With General Motors

http://ift.tt/1LyjsvV
(Ian)

With all the mergers – or would-be mergers – floating around out there, Fiat Chrysler is going in the opposite direction: spinning off its Ferrari division and dropping talks of a hostile takeover of rival General Motors. 

Reuters reports that Fiat Chrysler’s investors approved the move to separate Ferrari from the mothership on Thursday, paving the way for the company to distribute its 80% share in the company to its shareholders next month.

By spinning off the luxury brand, Fiat Chrysler plans to allow the division to undergo an aggressive growth strategy.

“This separation will better enable the company to realize its full potential …. Ferrari will be able to pursue its business strategies with grater operational and financial independence,” FCA Chief Executive and Ferrari Chairman Sergio Marchionne said during the meeting.

Under the growth plan, Ferrari would move the brand beyond cars that can top $1 million and begin selling everything from T-shirts to pens.

It has licensed the brand to companies ranging from children’s toy maker Lego to high-end Italian shoe manufacturer Tod’s, the Wall Street Journal reports.

In other FCA news, the company dropped its hostile takeover attempt of General Motors. Reuters reports that instead of pursuing the merger, the automaker will instead focus on its own growth until the right partner comes along.

“We are not choking. We are in relatively decent shape,” Marchionne said. “This is not an indiscriminate dating game. I’m not willing to go with anybody to get it done. We have been publicly rebuffed, we have been rejected and you cannot force these things. I don’t want to. At the moment, we have no intention to do anything hostile.”

Fiat Chrysler shareholders approve de-merger of Ferrari from group [Reuters]
Fiat Chrysler to focus on growth plan as GM merger hopes fade [Reuters]
Fiat Chrysler Approves Ferrari Spinoff [The Wall Street Journal]


by Ashlee Kieler via Consumerist

Restaurant Group Sues NYC Over New Salt Warning Labels

http://ift.tt/1IZanbh
(JD Hancock)
Well, that was quick: two days after New York City’s new salt labeling rules went into effect — requiring chain restaurants to slap a salt shaker symbol on especially salty menu items — a restaurant group is suing the city, arguing that health regulators have gone too far.

The National Restaurant Association sued Thursday, claiming the city’s health officials overstepped legal bounds in enacting the first-of-its kind rule. That rule requires any menu item at a chain restaurant that exceeds the daily recommended limit of 2,300 milligrams of sodium with a salt shaker symbol, as part of the city’s effort to help residents make healthy choices.

It’s not like the lawsuit is a surprise: the group had vowed to fight back against the rule as it made its way from the idea phase to a requirement approved by the city’s health department.

“Ironically, this regulation will confuse and mislead consumers into potentially making less healthy food choices through the law’s spotty, inconsistent application and inaccurate scientific distortions,” says a copy of the lawsuit obtained by the Associated Press.

The association went back to a common criticism in the restaurant industry: what with federal regulators currently working on nationwide menu labeling rules, the city’s requirement just makes things more difficult for restaurateurs who will have to change their menus when those rules are final as well. The group also calls the salt warning “nonsensical” in applying to some food vendors and not others, and claims it violates restaurateurs’ free speech rights by making them put a warning on something it disputes as based on “scientifically controversial opinion.”

NYC’s Law Department says it’ll review the claim but is “confident that the Board of Health has the authority to enact this rule.”

On the side of the restaurant association is the Salt Institute, which has also come out against the warning labels along the rule’s path from inception to implementation.

“Regulations to discourage salt consumption are sending the wrong message,” said Lori Roman, president of the Salt Institute, which is supporting the restaurant association’s lawsuit.

While the new rule went into effect Dec. 1, NYC won’t be enforcing it until March. The warning labels will apply to about 10% of menu items of chains with at least 15 outlets nationwide, health officials say, with those chains doing about a third of the city’s restaurant business.


by Mary Beth Quirk via Consumerist

Thursday, December 3, 2015

Facebook Wants You Able To Live-Stream Whatever You’re Doing To Everyone You Know… Eventually

http://ift.tt/1MZ2JSl
(Bob
You can already use Facebook to sign in to locations, tell everyone what you think about them, post pictures of what you did there, leave reviews of how it went, and host video of all your shenanigans. So why not use it as a platform to live-stream your escapades too?

That’s the big new feature coming next to Facebook, The Verge reports. And really, it’s not a huge surprise. Facebook let certain, verified, “public figure” (celebrity or news) accounts start live-streaming through the social network a few months back; now, the rest of us get to try it out.

Where a major media outlet might live-stream some piece of news in the same way they might broadcast it, Facebook anticipates that most private individuals will use the service in a different way. They might, for example, live-stream a kid’s birthday party so that family around the country can tune in, or broadcast the moment of some major accomplishment.

Facebook is just the latest to jump onto the live-streaming bandwagon; the tech has shaped up to be the big trend of 2015 and beyond. Not only is it fully integrated into the world of gaming — Amazon paid nearly $1 billion for Twitch last year for good reason, and both Xbox and PlayStation current-gen consoles have ways for users to stream and view — but also is showing up all over the world of mobile as well. Meerkat became a phenomenon early this year, with Twitter-owned Periscope right behind it.

The ability for anyone, anywhere, to instantly live-broadcast whatever they’re doing over the internet has had huge implications for everything from protest movements to media piracy. Integrating it with Facebook and its 1.5-billion-strong user base puts it in essentially every pocket, inside an app that billions already know inside-out.

Don’t rush out and start broadcasting your evening commute just yet, though: like many other features, it’s coming out on a careful, staggered basis. Some iOS users will be updated to seeing “live video” as an option in their status menu today, but it’s going to take time for it to show up for everyone else.

Facebook begins testing live video streaming for all users [The Verge]


by Kate Cox via Consumerist

Judge Says Cox Refused To Pull Plug On Known Copyright Pirates

http://ift.tt/1Pa2pSH
(Mike Mozart)
Earlier this year we told you how apparently innocent Cox cable/Internet customers had gotten caught up in a piracy lawsuit filed against the company by a music publisher. While some of those customers were able to remove themselves from the dispute, a judge has ruled that Cox knowingly allowed pirates to continue using their broadband accounts in violation of the law.

In the lawsuit, music publishing giant BMG Rights Management accused Cox of failing to live up to its obligations under the Digital Millennium Copyright Act. By law, ISPs are supposed to do what they can to stop repeat copyright infringers from continuing to use their networks. If they follow these “safe harbor” guidelines, ISPs are effectively shielded from being held responsible for the bad behavior of their customers.

BMG alleged that, rather than cut off service to known pirates, the cable company “continued to permit its repeat infringer subscribers to use the Cox network to continue to infringe Plaintiffs’ copyrights without consequence.” Thus, according to the plaintiffs, Cox should not be able to claim safe harbor protections.

And earlier this week, a federal judge agreed.

In granting BMG and the other plaintiffs summary judgement [PDF], the judge notes that Cox’s system of dealing with alleged copyright infringers allows customers to be flagged upwards of 14 times for abuse before Cox “will review the full account history and consider termination.”

Compare that to the Copyright Alert System adopted by Comcast and other major ISPs, which earned its “six strikes” nickname by capping at six alerts before an account will be disconnected.

But, notes the court, even with more than a dozen complaints against a Cox customer, “Termination is never automatic, however, and is left to the discretion of Cox employees.” The cable company told the court that it deals with the “vast majority” of cases early on and that they rarely get to the point of taking the “drastic measure” of terminating the account.

Yet the judge ruled that Cox had been overly lenient in allowing repeated appeals and reinstatements of customers’ accounts.

“Cox employees followed an unwritten policy put in place by senior members of Cox’s abuse group by which accounts used to repeatedly infringe copyrights would be nominally terminated, only to be reactivated upon request,” reads the judgment. “Once these accounts were reactivated, customers were given clean slates, meaning the next notice of infringement Cox received linked to those accounts would be considered the first in Cox’s graduate response procedure.”

Why would Cox allow pirates to continue using their broadband accounts? Because disconnecting them would mean fewer dollars in the cable company’s coffers.

That’s not us being cynical. An e-mail from Cox’s Manager of Customer Abuse Operations cited in the ruling instructs employees to “start the warning cycle over” for customers with cox.net e-mail addresses. “This way, we can collect a few extra weeks of payments for their account,” reads the e-mail.

The same executive said in another message that it was fine to reactivate known offenders because “We need the customers.”

There is also the issue with the way that Cox handled DMCA complaints from Rightscorp, the third-party copyright enforcer hired by BMG to deal with alleged pirates.

Rightscorp notices to infringing users include a settlement offer that reads something like “If you click on the link below and login to the Rightscorp, Inc. automated settlement system, for $10.00 [or $20.00] per infringement, you will receive a legal release from the copyright owner.”

Cox has a policy of not only rejecting DMCA notices that include settlement offers but also blacklists companies that send these sort of notices so that they don’t clog up the DMCA notice line.

“On March 14 [2011], Cox blacklisted Rightscorp, meaning from that point on, Cox auto-deleted Rightscorp’s emails and never retrieved the information from the body of those notices,” reads the judge’s ruling. “The following October, Cox claims Rightscorp ‘started inundating’ its inbox, sending as many as 24,000 notices in one day. In response, Cox blocked Rightscorp. Blocking messages goes one step beyond blacklisting… When a complainant is blacklisted, Cox still has a record of the emails received and deleted. When a complainant is blocked at the server level, there is no record of any message received.”

Cox contends that the blocking and blacklisting was not, as BMG accused, a matter of “willful blindness” on the ISP’s part, but the result of Rightscorp’s refusal to work with Cox. The cable company says it offered to forward Rightscorp DMCA requests if they were modified to remove the settlement language. When they were not, that’s when Cox began putting up a wall against Rightscorp claims.

This part of the matter is to be decided at trial (if it gets that far). We would not be shocked if Cox and BMG reach a settlement now that the judge has stripped Cox of its safe harbor protection.

[via TorrentFreak]


by Chris Morran via Consumerist

U.S. Government Wants To Keep 300 Pairs Of Manolo Blahnik Shoes Made From Rare Species Of Snake

http://ift.tt/1NsuRdG
(Pez)
The federal government apparently has an eye for fashion: it wants to keep shipment of nearly 300 pairs of designer shoes made from an endangered species of snake that it got its hands on a few years ago.

In July 201, the Department of the Interior and the U.S. Fish and Wildlife Service seized a shipment of Manolo Blahnik shoes worth an estimated $43,000 at John F. Kennedy International Airport, reports Courthouse News. If you aren’t familiar with the brand, watch any episode of Sex and the City and you’ll get the gist.

Though the shipment came in from Italy, the form that’s supposed to identify where the goods were produced and what animal skins were used to make them — called a “bill of lading” — didn’t provide the required information. It’s illegal to import products made from endangered species in the U.S.

According to the government, the shoes were made from skins of the dog-faced water snake, Cerberus rynchops, a species that’s been listed as endangered since 1973. Officials say the snake skins were used to make the shoes and were sent from China to Hong Kong, then to Italy and then the United States.

The government is now seeking to keep the shoes through the court system, though it’s unclear from the Courthouse News report for what purpose — most likely to keep the shoes from going to the market, and not for any kind of crazy fashion party it’s intending to throw.

Feds Want to Keep Manolo Blahnik Shoes [Courthouse News]


by Mary Beth Quirk via Consumerist

Google Testing Ads That Let You Try Mobile Games Before Downloading Them

http://ift.tt/1IVnddG
(Sigma.DP2.Kiss.X3)
Sometimes, a mobile game may catch your eye — all bright, blinking, beguiling colors — but after you’ve downloaded it, it turns out to be rather… meh. Yes, you can simply delete it from your phone easily enough — but if wasn’t a free game, that might smart a bit. In an attempt to defeat downloader’s remorse, Google is playing around with ads that would allow folks to try games before they’ve taken the leap to install them on their mobile devices.

The launch of “Trial Run Ads” follows Google’s earlier announcement that it would allow search engine users to stream content from inside apps on their phones with a new “app streaming” feature. The new ads would let users play a game for about a minute before deciding whether or not they’ll download it, the company’s director of mobile ads Sissie Hsia and product manager Pasha Nahass wrote in a blog post.

Advertisers will only pay once someone has clicked on the install button, instead of every time someone tries the demo game, a Google spokesman told AdAge. And it’s a win-win for those in the game business as well as customers, Google says.

“The immersive demo increases the likelihood that an install is coming from someone who enjoys playing the game,” the post reads. “Users get a taste of the game before going through the download process, and the app developer attracts better qualified users who’ve chosen the game based on their experiences in the app.”

While having the ability to keep your phone’s storage free of clutter with apps you’ve regretted downloading could be a plus for users, those concerned about eating up cellular data will want to make sure they’re on a WiFi connection when streaming the demos.


by Mary Beth Quirk via Consumerist

Subprime Credit Reporting Company To Pay $8M For Illegally Obtaining Consumers’ Credit Info

http://ift.tt/1TB98pn

Screen Shot 2015-12-03 at 1.27.38 PMUnder the Fair Credit Reporting Act, companies – and lenders – are allowed to access credit reports only for “permissible purposes,” like determining if a person is creditworthy. But federal regulators say a Florida-based subprime credit reporting company illegally obtained tens of thousands of consumers’ credit reports for use in marketing materials for potential clients, including payday lenders.

The Consumer Financial Protection Bureau announced today that it ordered subprime credit reporting company, Clarity Service, Inc. and its owner to pay $8 million for a slew of illegal practices related to mishandling credit reports and failing to investigate consumer disputes.

According to the CFPB’s consent order [PDF], since 2011 Clarity, and its owner Tim Ranney, have illegally purchased credit reports from other credit reporting agencies, supplemented those files with alternative data and resold the new reports to lenders who make small-dollar loans, typically of the payday variety.

A probe of the company’s practices found that Clarity and Ranney collected personal information from hundred of thousands of credit reports for the sole purpose of creating marketing materials used to solicit business from lenders and other financial service providers.

“To generate marketing presentations, Clarity obtained consumer application data from prospective clients relating to consumers that had applied to the client for loans in the past,” the complaint states, noting that Clarity would obtain fully identified, current reports from third-party CRAs.

In one case, the company pulled 190,000 reports for a single client presentation.

The CFPB alleges that Clarity’s use of the reports did not constitute a permissible purpose under the Fair Credit Reporting Act.

Among other things, the Act helps to ensure that consumer reports are obtained and used appropriately and that consumer privacy rights are protected. When a lender requests to pull a credit report for a permissible use, the inquiry often appears on the consumer’s credit file.

Because Clarity obtained the reports without proper permission, consumers’ credit files wrongly reflected a permissible inquiry by a lender.

“When the lender learned of this and raised it with Clarity, Clarity and Ranney requested that the credit reporting companies delete evidence of the unauthorized pulls of information from the consumers’ reports,” the complaint alleges.

In addition to improperly using credit reports, the CFPB claims that Clarity failed to investigate individuals’ disputes – including those related to credit inquiries – even though the company was aware that some files were populated with information from unreliable sources.

“Specifically, the company would not investigate a dispute if a consumer did not supply supporting documents,” the CFPB alleges.

In cases when a consumer identified specific issues and the reason why they thought the item was inaccurate or incomplete, Clarity failed to reinvestigate unless they were provided specific documentation.

Clarity also allegedly failed to investigate disputes related to identity theft and routinely failed to provide information to furnishers about consumer disputes.

Under the CFPB’s proposed consent order, Clarity and Ranney must pay an $8 million civil penalty to the CFPB, end the illegal use of credit reports, implement policies to ensure that reports are used for permissible purposes and fully investigate consumer disputes.

“Credit reporting plays a critical role in consumers’ financial lives,” CFPB Director Richard Cordray said in a statement. “Clarity and its owner mishandled important consumer information and failed to take appropriate action to investigate consumer disputes.”


by Ashlee Kieler via Consumerist

Ford Now Offering Siri Eyes-Free Software Update For 5 Million Older Cars

http://ift.tt/1zJMwNa
(Freat Beyond)
Though we’re living in an increasingly interconnected, digital age, perhaps you drive a car that’s a bit more… analog. For those Ford owners who have older vehicles but want to be linked up with new technology, the carmaker is offering a software update for five million cars that will allow owners to activate Apple’s Siri Eyes-Free feature.

The option allows drivers with iPhones to make phone calls, send texts, set reminders, check the weather, get directions and tell the car to play that new Adele album everyone is apparently obsessed with. All the stuff you might want to do while driving without taking your hands off the wheel or being distracted by a screen.

“SYNC [also known as MyFord Touch], Ford’s entertainment and communications system, was designed to be flexible and updatable, just like other mobile technologies, so our customers are able to get the most out of their smartphones while behind the wheel,” said Sherif Marakby, director, Ford Electronics and Electrical Systems Engineering in a press release. “Siri Eyes-Free is another great voice-activated feature that not only adds convenience but helps our customers keep their eyes on the road and hands on the wheel.”

Some drivers have had access to the Siri Eyes-Free option for a few months, but today Ford is confirming its wider availability: owners of cars from 2011 on that have MyFord Touch (or SYNC in some areas) will be able to download the update from Ford’s website.


by Mary Beth Quirk via Consumerist

Denying Travelers Compensation For Damaged Bags Won’t Fly With The DOT Starting Jan. 9

http://ift.tt/1HIw6JT
(Alan Rappa)

Some airlines aren’t living up to their obligation to compensate passengers for damage to their luggage, recent inspections by the Department of Transportation found. Now, the agency is warning carriers that if their policies and trainings don’t fall in line with federal regulations by Jan. 9, they could face fines and other enforcement action. 

The DOT released a notice last week reminding carriers that they are required to compensate passengers for damage to wheels, straps, zippers, handles and other protruding parts of checked baggage beyond normal wear and tear.

Inspections by the department’s Office of Aviation Enforcement and Proceedings at airports around the country in September found that certain airlines may be refusing to accept reports of such damage.

“The inspections have been helpful in determining whether airlines are treating consumers fairly and providing them the services to which they are entitled under the law,” the DOT said in a statement.

The inspectors are expected to release their findings in a report next month. However, the DOT is saying now that a number of carriers are under investigation for potential violations of consumer protection and civil rights requirements.

The agency did not elaborate on which carriers were being probed or specify what requirements may be violated. It noted that any enforcement action related to the investigations will be made public in the future.

For now, the DOT’s notice warns airlines to immediately review and revise their baggage policies to ensure compliance with the law.

As part of the notice, the DOT directs carriers to ensure that costumer-facing employees such as gate agents understand the rules and don’t turn away travelers who bring complaints of damaged luggage.

The Aviation Enforcement Office says it intends to take enforcement action against airlines that are not in compliance by Jan. 9, 2016.

“We will continue to strengthen how we monitor and enforce compliance with air travel consumer protection and civil rights rules,” U.S. Transportation Secretary Anthony Foxx said in a statement.

[via Time]


by Ashlee Kieler via Consumerist

Cable Company Decides To Shame Overdue Customers By Posting Names On Facebook

http://ift.tt/1Q38xy3
(photo: CBC)
There are a lot of reasons you might fall behind on your cable bill — finances are tight, a medical emergency — or maybe, as we’ve heard all too often, the cable company screwed up and hasn’t properly credited your account. But even if you’re just a cheap jerk with no intention of ever paying your bill until they cut off service, that still doesn’t merit being called out publicly on Facebook.

And yet, Senga Services, a cable operator in Canada’s Northwest Territories, recently decided it would be a great idea to shame some of its in-arrears customers by listing their names and amount owed on the social media site.

“We always got excuses from everybody,” a rep for Senga told the CBC about the decision to shame these customers. “Promissory notes and everything, and it never arrives. So we found the most effective way is to publicly post the names.”

Given that towns in the Territories are often quite small, the people whose names are listed are often familiar with the other locals.

“Everybody knows who owes money to a cable company,” said one local resident who wasn’t on the list but who disagreed with Senga’s tactics. “So we know who is irresponsible with money or who might be struggling. If I were struggling to pay bills, I wouldn’t want my community knowing.”

The company rep said that Senga understands this notion, which is why she contends the company is only going after the biggest scofflaws.

“We know everybody, so we give people a chance,” explained the rep. “It’s the people who dodge us on a regular basis who are the ones being shamed.”

And while the amounts owed by some customers were above the $1,000 range, some customers were being shamed for owing less than $100 to the cable company.

While Senga contends that the Facebook posts were legal, the Office of the Privacy Commissioner of Canada told the CBC that Canadian law only “allows organizations to use or disclose people’s personal information only for the purpose for which they gave consent,” and that, “There is also an over-arching clause that personal information may only be collected, used and disclosed for purposes that a reasonable person would consider appropriate under the circumstances.”

At the urging of the Commissioner’s office, Senga eventually pulled the Facebook posts.

We aren’t familiar with Canadian privacy laws, but here in the States, Section 551(c) of the Cable Communications Policy Act forbids cable companies from disclosing “personally identifiable information concerning any subscriber without the prior written or electronic consent of the subscriber concerned.”

[via Vice]


by Chris Morran via Consumerist