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Friday, June 24, 2016

New Macy’s CEO Tasked With Saving Company, Entire Idea Of Department Stores

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Can department stores become relevant again? Figuring that out will be the job of the next CEO of Macy’s, Jeff Gennette. He currently serves as the company’s president, and will take over as CEO in early 2017. His job will be to get the company through a tough period as middle-class shoppers seem to be questioning the whole department store business model and hitting off-price and discount stores instead.

Most mall clothing retailers aren’t doing great right now, though they were able to blame plummeting sales on unseasonably warm weather at the beginning of the year. Macy’s is trying to go where its customers are, opening its own off-price chain, Macy’s Backstage, and putting mini Backstage stores inside existing Macy’s stores.

Gennette is the executive behind some of the company’s innovations that we’ve discussed here, like its Millennial Bargainless Basement (not the project’s actual name) at the flagship Manhattan store, and placing mini Finish Line stores inside Macy’s stores.

He’s been with the company since 1983, and has worked on both the merchandise and operations sides of the business. One of his priorities will be to create more entertainment in stores and simplify pricing, though he hasn’t explained exactly what either of those things means yet.

Macy’s New Chief Aims to Liven Up Department-Store Chain [Wall Street Journal]


by Laura Northrup via Consumerist

Reminder: You Have Until Tuesday To Use Your Sports Authority Gift Cards

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If you still have a Sports Authority gift card lurking somewhere in your papers, it’s time to pull it out and spend it on some ski pants or a camping knife or something. As the company’s business winds down, the last day that its remaining stores and website will accept gift cards is Tuesday, June 28, 2016.

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If you’re reading this post at some point after that date, you’re out of luck: you won’t be able to spend the card at a Sports Authority store, largely because they will all have closed by the time you read this. Unless the company’s estate sets up another option, your only option will be to file a claim in the company’s bankruptcy. Gift card holders are at the very back of the line behind lenders, vendors, landlords, and everyone else that a company owes money, but you may get something back.

There are some other scheduled execution dates for gift cards that you should keep in mind: gift cards for media retailer Hastings will only be accepted through July 14, 2016. Hancock Fabrics gift cards will be honored as long as there are still liquidating stores to go to. Finally, you have until December 2, 2016 if you’re still holding on to a RadioShack gift card.

Chapter 11 Gift Card Watchlist [GiftCards.com]


by Laura Northrup via Consumerist

Can You Remember What Happened This Week? Prove It!

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Another week has passed, and more events have occurred, some of which we’ll eventually forget about entirely or mangle into vague, hazily remembered recollections. But let’s focus on the here and now, and see what we can recall about the last few days, shall we?

It’s time once again for the Consumerist Quiz! Time to divide the Sheldons from the Leonards in a test of memory so brutal that you might sprain your face from all the squinting, furrowing, and lip-gnawing. For two weeks in a row, the median score on the Consumerist Quiz has been 60%. Let’s just say you’re all lucky that graduate schools haven’t started using these scores as admissions criteria.

Just a hint to people who are struggling: You can cheat. The answers are all here on the pages of Consumerist; in stories posted this week (June 20 – June 24). We can’t tell if you peeked around for answers, and we’re the kind of friends that wouldn’t rat you out even if you did… because it’s a silly trivia quiz.


by Chris Morran via Consumerist

103,000 Minnesotans Will Need To Find New Health Insurance For Next Year

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More than 100,000 Minnesota residents will have to hunt around for a new health insurance provider, after Blue Cross and Blue Shield of Minnesota announced it’s taking a step back from offering health plans to individuals and families in the state as of 2017.

The company, which is Minnesota’s largest health insurer, pegged the move on major financial losses, after leaking a reported $265 million on insurance operations from individual market plans in 2015.

“The individual market remains in transition and we look forward to working toward a more stable path with policy leaders here in Minnesota and at the national level,” the company said in a statement. “Shifts and changes in health plan participation and market segments have contributed to a volatile individual market, where costs and prices have been escalating at unprecedented levels.”

The move will affect about 103,000 Minnesotans who have purchased Blue Cross coverage on their own, through an agent or broker, or on MNsure, the state’s insurance exchange, the company says. Though the main Blue Cross Blue Shield unit is leaving the state’s individual market, its smaller subsidiary, Blue Plus, will still offer plans on the individual market. Blue Plus has about 13,000 members.

The last day of coverage for all other Blue Cross individual and family plans, other than those offered through Blue Plus HMO, will be Dec. 31, 2016.

“We understand and regret the difficulty we know this causes for some of our members,” the insurer wrote. “We will be notifying all of our members individually and work with them to assess and transition to alternative coverage options in 2017.”

A representative with the Kaiser Family Foundation, which analyzes individual health insurance markets nationwide, told NPR News that Blue Cross Blue Shield isn’t the only company doing a walk back in this area.

“Right now what it seems like is that insurance companies are really trying to reset their strategy,” she said. “So they may be pulling out selectively in certain markets to reevaluate their strategy and participation in the exchanges.”

Minnesota’s Largest Health Insurer To Drop Individual Plans [NPR News]


by Mary Beth Quirk via Consumerist

Three Flavors Of Raw Cat Food Recalled Over Listeria, Salmonella Contamination

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In general, it’s not a good idea to feed food potentially tainted with salmonella or listeria to anyone, let alone your favorite pets. That’s why Radagast Pet Food, makers of the Rad Cat line of raw cat foods, is recalling three of its flavors.

Radagast announced Thursday that it would recall certain lots of beef, chicken, and turkey Rad Cat Raw Diet pet food because they may be contaminated with Salmonella and/or Listeria monocytogenes.

According to a notice posted with the Food & Drug Administration, the recall was initiated after lab tests confirmed salmonella and/or listeria in samples of the cat food.

An FDA-contracted third-party lab found two lots of Grass-Fed Beef tested positive for listeria, one lot of Free-range Chicken tested positive for listeria, and one lot of Free-range Turkey tested positive for salmonella and listeria.

The recall covers products, which were sold at retailer in 48 states except for Hawaii and Mississippi, in a variety of sizes and package styles of the Rad Cat Raw Diet pet foods, including free 1-ounce sample cups as well as 8-, 16- and 24-ounce tubs.

Affected products can be identified by the lot codes 62384, 62361, 62416, and 62372 and Best By dates are located on the lid of all products packaged in tubs and on the bottom of the sample cups.

The following products are included in the recall:

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Radagast Pet Food warns that the bacteria found in the food can pose a risk to both pets and humans, especially if they have not thoroughly washed their hands after having contact with the products or any surfaces exposed to these products.

Pets with salmonella or listeria infections may be lethargic and have diarrhea or bloody diarrhea, fever and vomiting. Some pets may have only decreased appetite, fever and abdominal pain, according to the recall notice.

Infected but otherwise healthy pets can be carriers and infect other animals or humans. If your pet has consumed the recalled product and has these symptoms, contact your veterinarian.

Consumers who purchased recalled products should not return them to a retailer but dispose of them securely.

However, Radagast will provide customers with refunds. This can be done by filling out all sections of the company’s Consumer Claims Form which can be found on their website www.RadFood.com and returned to the retailer where they purchased the product for a refund.


by Ashlee Kieler via Consumerist

Pilot Who Failed Drug Test Can’t Try To Use DNA To Prove He Was Clean

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Imagine you’re one of the many American workers subject to random tests for the presence of drugs or alcohol in your system, and a test turns up high levels of heroin and cocaine. If you contend that the lab must have mixed up your urine sample with someone else’s should you be able to demand a DNA test to prove your innocence? If you’re a pilot, the answer is no.

Federal law mandates random drug and alcohol screening for pilots and certain other airline and airport employees. And federal regulations spell out just about every step of the procedure for these testing programs, and what happens to samples after they’ve been tested.

However, a now-former pilot for Spirit Airlines claims that something must have broken down in this rigid system and, just like all the hopeful non-fathers on Maury, he needs a DNA test to prove his innocence.

In 2007, after landing at the airport in Ft. Lauderdale, FL, the pilot was selected for a random drug test. He provided his urine, signed off that “each specimen bottle used was sealed with a tamper-evident seal in my presence; and that the information provided on this form and on the label affixed to each specimen bottle is correct.”

The sample was then sent to Quest Diagnostics, a third-party testing firm that subsequently notified Spirit the pilot’s sample tested positive for high levels of morphine and metabolites of heroin and cocaine.

Following a protest from the pilot, a second lab — Diagnostic Sciences, Inc. — tested the sample and came up with the same positive (for drugs; not for the pilot) results, leading the FAA to issue an emergency order revoking his license and certifications.

The pilot appealed this decision to the National Transportation Safety Board, where an administrative law judge presided over a two-day hearing on the matter.

In spite of the pilot’s protestations that he did not use any drugs and that his samples must have been mishandled, the judge found in 2008 that there was “no reason to doubt” the validity of the two tests of his urine. Both the full board of the NTSB and the 11th Circuit Court of Appeals subsequently affirmed the administrative law judge’s decision, holding that “it was not arbitrary and capricious for the Board to conclude that the FAA had made a prima facie showing,” and that the pilot had failed to rebut that case.

The pilot, still maintaining he’d done nothing wrong, eventually filed a lawsuit against Concentra, the company responsible for actually gathering the urine sample. As part of that case, he tried to compel Quest to provide some of his original urine sample for further testing.

Quest objected and was eventually successful in quashing the court order to turn over the sample, with the court agreeing that federal regulations prohibit Quest and other labs from turning over samples without approval from the Dept. of Transportation.

So in 2014, the pilot’s attorney filed formal requests with the DOT seeking approval to have the sample released by Quest.

Problem is, one of those many federal regulations on drug testing procedures explicitly states that a testing laboratory is “prohibited from making a DOT urine specimen available for a DNA test.”

Since the pilot was specifically looking to test this sample for DNA, lawyers for the DOT denied his request.

And so the pilot appealed to the D.C. Circuit Court of Appeals, arguing that the DOT’s reasoning for the refusal is “arbitrary and capricious,” that the DOT was misreading its own rules, that the anti-DNA testing rules are inconsistent with the law that established the testing program, and that his constitutional rights are being violated by being denied access to his own urine sample.

The appeals panel response? In short: “None of these arguments is persuasive.”

In an opinion [PDF] released earlier today, the court found that there was no ambiguity about the regulation preventing the release of samples for the purpose of DNA testing.

Yes, there is a later requirement in the regulations mandating that labs must keep samples on hand for the purpose of “preserving evidence for litigation,” but the court said this rule says nothing about the actual conditions for release.

Moreover, the court concluded that the pilot could not demonstrate that the “no DNA testing” rule is “irrational or inconsistent” with existing law.

First, concluded the court, the strict chain of custody for these samples renders the likelihood of a mixup “very unlikely.”

Second, even if a DNA test were to prove that the urine in the sample does not belong to the pilot, it doesn’t prove when or where the mix-up occurred.

And because of the previously mentioned strict chain of custody involved, the court concluded that the presence of a third party’s DNA would only indicate that “a guilty employee was trying to defeat the test,” presumably by using someone else’s urine.

“[T]he DoT quite reasonably – in view of the risk to airline safety – wants to avoid reinstating a pilot’s license on the basis of a DNA mismatch,” wrote the court.

The pilot had argued that it would be downright silly and stupid for him to have substituted a drug-user’s urine for his own if he was trying to fool a drug test. Again, the court was not swayed, agreeing with the DOT that “one might substitute a tainted sample unwittingly, believing the source was clean.”

Finally, the pilot argued that DNA technology has become more accurate in the 16 years since the DOT first explained its rationale against allowing DNA tests of samples. The court countered that accuracy was never the issue for the DOT: “rather, the Department is concerned that a mismatch could not rule out manipulation by substitution.”

Given that pilots have ample other methods to appeal and argue their case for a false-positive, the appeals court found no reason to set aside the DNA testing rule.

As for the pilot’s claim that his constitutional right to due process was being violated by not having access to the sample, the court concluded that “He offers no legal support for his position that the Constitution entitles him to such discovery,” pointing to a 2009 Supreme Court ruling , in which SCOTUS denied a prisoner’s petition to obtain postconviction access to the State’s evidence for DNA testing.’

“If postconviction incarceration is an insufficient deprivation of liberty to create a right to DNA testing,” concluded the court, “then… [the pilot’s] liberty interest in being free of a government-imposed stigma on [his] professional reputation is likewise insufficient.”


by Chris Morran via Consumerist

Illinois Rakes In More License Plate Renewal Fees Than Usual After Failing To Mail Reminders

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Some Illinois residents are a bit ticked off right now, after the state reaped $5.24 million more this year than it did in 2015 from license plate renewal fees. That’s a lot of money — were people just really distracted or forgetful this year? Not quite. An impasse on the state budget meant officials didn’t have the cash to mail reminders out to drivers.

Without reminders, people were hit with $20 late fees, and a lot of them, reports the Belleville News-Democrat: through June 20 this year, the Illinois Secretary of State collected $5.24 million more this year than during the same time period last year in late fees for vehicle license plates. That amounts to 476,551 late fees collected from drivers thus far in 2016, compared to 214,467 late fees through June 20, 2015.

So what happened? State legislators legislators and Gov. Bruce Rauner couldn’t agree on a fiscal year 2016 budget. And without that budget in place, Illinois Secretary of state Jesse White said his office couldn’t swing the $450,000 per month in postage required to mail the reminders, so renewal notices stopped going out in October. As it stands now, the state won’t have a fiscal 2017 budget in place on July 1, either.

A spokesman for the Secretary of State’s office says 2.3 million drivers have now been signed up for email reminders about renewals instead. If you want to be on that list, you an sign up at cyberdriveillinois.com.

After drivers complained about the lack of reminders, the Illinois House passed a bill that would allow a 30-day grace period wherein police couldn’t ticket motorists for having expired stickers. A final bill wasn’t passed by both chambers before the regular legislative session ended.

Rep. Dwight Kay of Glen Carbon, a co-sponsor of the House legislation, called the late fee an “unjust penalty.”

“People are pretty concerned that the state didn’t remind them when they were used to getting notices,” Kay said, adding that the bill could still be passed but expires June 30, the end of the current fiscal year.

Illinois gets $5.24 million windfall from late license plate fees [Belleville News-Democrat]


by Mary Beth Quirk via Consumerist

Dunkin’ Donuts Manager Drops Tray Of Donuts On Floor, Puts Them Out For Sale Anyway

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Eating any food not grown in your own garden and cooked yourself means putting a certain amount of trust in the people who prepare and handle your food. A former Dunkin’ Donuts employee leaked a video this week that shows another employee dropping a tray of donuts on the floor, then calmly putting them back on the tray and putting the tray out for sale.

When you eat a donut, which can’t be washed, you trust that it hasn’t been anywhere than the fryer, the tray, and the bag. The former employee shared the video, which was taken back in November, on Facebook, where it became a viral hit. He also shared unrelated grievances against the restaurant on Facebook.

donuts_floorThe clip shows mobile phone footage of the restaurant’s surveillance camera system, and it does fast-forward through a significant chunk in the middle, during which some viewers suspected the tray could have been swapped out for a different one. However, Dunkin’ Donuts did confirm that the events in the video happened as shown, and the employee reminded that this is not a good idea.

“We are aware of the video and we take matters like this very seriously. The actions seen in the video at a franchised Dunkin’ Donuts restaurant are absolutely inconsistent with our strict food safety standards and requirements.

According to the franchisee, upon hearing of this incident in November 2015, he investigated the matter and met with the employee to discuss the fact that the donuts should have been immediately disposed of in keeping with our standards.”

It’s good to know that scooping food off the floor isn’t an official policy, and we can eat donuts with confidence.

Dunkin’ manager drops tray of donuts, sells them to customers [WCVB] (Warning: auto-play video)
Video Shows Dunkin’ Donuts Worker Dropping Food, Putting It In Display [CBS Boston] (Warning: auto-play video)


by Laura Northrup via Consumerist

Converse Wins Trademark Battle Over Chuck Taylor’s Sole

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As Converse’s Chuck Taylor sneakers have become as ubiquitous smartphones these days — heck, even your grandma might own a pair — parent company Nike has been trying block other retailers from cashing in on that popularity and selling copycat sneakers. The company just won one trademark battle over Chuck Taylor’s sole design, but is promising to keep fighting after an industry group said other aspects of the shoe’s style aren’t covered by the same protection.

In an effort to rid shelves of lookalike shoes, Converse filed a complaint with the International Trade Commission — an independent, bi-partisan, sorta-U.S. agency — in 2014, while also filing 22 separate trademark infringement lawsuits against companies like Walmart, Kmart, and Skechers.

The ITC ruled on Thursday that Converse’s distinctive outsole, with its diamond-shaped pattern, should be protected by trademark, barring any company from importing shoes that violate that trademark, reports The New York Times. The order applies not only to any company that may currently be selling shoes with that sole pattern, as well as any future knockoff attempts.

But in a win for retailers like Walmart, the commission said other parts of the Converse style, like its rubber-toe band, toe cap, and stripes — don’t have the same protections. This means other companies can import and sell shoes that look similar, as long as they don’t have a diamond outsole.

Nike says it will keep up the fight regardless.

“While we do not agree with all of the ITC’s findings, we feel confident our rights will be vindicated on appeal,” said Brian Fogarty, senior director, global intellectual property litigation at Nike. “This is but one step in a long process.”

If Converse had won an exclusion order from the ITC regarding those design aspects, it would’ve been able to go after any products that violated its trademark designs, even if those companies weren’t named in the original ITC complaint.

In the meantime, most of the 31 defendants in the Federal District Court case brought by Converse, including Kmart, have settled, the NYT notes, with only Walmart, Skechers, and Highline United remaining. Both Walmart and Skechers applauded the ITC’s decision.

“Walmart is an intellectual property owner and respects the intellectual property rights of others,” the company said.

For Chuck Taylor, a Sole Trademark Is Upheld [The New York Times]


by Mary Beth Quirk via Consumerist

YouTube Will Add A Live-Streaming Feature To Its Mobile App As Expected

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It’s not enough just to have a video service, technology companies these days are now falling all over themselves to deliver those videos live to social audiences. As predicted a few months back, YouTube will be the latest to join the live-streaming fray, with a new feature that will allow users to broadcast live from mobile devices. This way, everyone will get to see how funny your cat is in real time.

At first, only certain creators on YouTube will have access to the feature, which seems a lot like Twitter’s Periscope function, with comments from other users scrolling over the screen as the video plays:

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Streamers and viewers will be able to search live broadcasts the same way they search recorded videos as well. YouTube says its offering has an edge over rivals, noting that because it “uses YouTube’s peerless infrastructure, it’ll be faster and more reliable than anything else out there.”

There’s no timeline on when regular users will get the new feature, with YouTube saying only that it launched live-streaming on Thursday with a select list of video creators at VidCon, “and will be rolling it out more widely soon.”


by Mary Beth Quirk via Consumerist

Robot Pizza Company Wants To Be “Amazon Of Food”

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A Silicon Valley startup created by a former video game executive is taking aim at Domino’s and Pizza Hut, promising to deliver mostly robot-made pizzas in a truck that cooks the pie en route to your house. 

In a profile with Bloomberg, the founder of Zume Pizza claims he can do better than the competition with his small army of robot sauce-spreaders and oven-filled trucks.

While your mind might automatically envision a robot like Judy from The Jetson ladling sauce on dough in the kitchen at Zume, that definitely isn’t the case.

Instead, the robots, which are separated from humans by glass boxes, are more or less arms and spider-like machines working in an assembly line crafting each pizza.

Marta spreads the sauce “perfectly, but not too perfectly,” before sending the pie down the conveyor belt to be decorated, before it finally arrives at a 5-foot tall arm-like robot named Bruno, that places the pie in the oven.

For now, Bloomberg reports, the pizzas are delivered to customers in Fiats, but the company hopes to use specifically created delivery trucks that finish cooking pizzas on the way to customers’ homes.

The startup’s delivery vans, which are awaiting approval from the Santa Clara County Department of Environmental Health, each come equipped with 56 remotely controlled ovens.

Zume co-founder Alex Garden, a former executive at mobile gaming giant Zynga, tells Bloomberg that once the vans are operational, the process will work by having the robots load each oven with different orders. At approximately three minutes and 15 seconds before arriving at the delivery destination, the oven will be turned on remotely from the Zume office, and “boom, the customer gets a fresh, out-of-the-oven pizza delivered to their door.”

“We want to be the Amazon of food,” Garden says, noting that the new process, if used by other companies, could be “incredibly profitable.”

In fact, Bloomberg points out that some pizza companies have already begun experimenting with robots and more automative processes. Pizza Hut previously partnered with MasterCard and Softbank to develop a robotic cashier, while Domino’s is testing an autonomous delivery vehicle.

Despite advancements in technology and the potential profitability of using robots, analysts warn that Zume’s revisioned pizza company could face an uphill battle considering Papa Johns, Domino’s, and Pizza Hut account for 58% of the U.S. pizza delivery market.

Inside Silicon Valley’s Robot Pizzeria [Bloomberg]


by Ashlee Kieler via Consumerist

Walmart Trying To Cut Back On Calls To Cops By Offering Small-Time Shoplifters Chance To Reform

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Police who work near any large retail store are probably all too familiar with responding to calls for shoppers caught trying to make off with a pack of socks or a pilfered Pepsi. A test program at Walmart aims to reduce these nuisance calls by giving small-time shoplifters a second chance.

News reports out of Tampa indicate that the retailer is trying out a “diversion” program at two stores in the area, with plans of expanding it elsewhere in the region.

The program is operated by Turning Point Justice and the National Association for Shoplifting Prevention. Rather than call the cops on every shopper stopped with a copy of Us Weekly in their pants, the stores are allowing perpetrators of low-dollar theft to avoid handcuffs by volunteering to pay restitution and possibly taking an online class to learn about the impact of these crimes.

This week, the Tampa City Council asked a representative from the city’s police department if the program is indeed having any effect on how frequently officers have to respond to incidents at these Walmarts.

According to the officer, police responded to one of the Walmarts 294 times in the first four months of 2016. While that might seem like an extraordinary amount, police say it’s a nearly 40% reduction from the 486 times police visited this store during the same time period a year earlier.

Likewise, calls to the police at the other Tampa test store experienced a year-over-year drop from 1,229 calls to only 703 calls during this four-month period.

Police note that some of the calls included in these stats include “self-initiated” responses from officers who were already on site because of routine patrols.

Some have accused Walmart of leaning too heavily on local police after a May 2016 Tampa Bay Times report found that stores in four Tampa-area counties (Pinellas, Hillsborough, Pasco, Hernando) account for nearly 16,800 calls to law enforcement a year. Additionally, that report found that other big box stores like Target were only making a fraction of such calls.

The data presented at this week’s city council meeting seemed to indicate that the drops in police calls at the two test stores was not a fluke, as police calls to all other area Walmarts increased by as much as 10% at one store.

As for the expansion of this program, a Walmart rep tells the Times, “We’re always looking at rolling out the program where it makes sense… There may be stores in the area that will get it in the future.”

Walmart program is reducing calls to service for Tampa Police [ABC Action News]

Police say Walmart program is reducing arrests, but one Tampa City Council member is not satisfied [Tampa Bay Times]


by Chris Morran via Consumerist

Apple Pulling The Plug On The Only Computer Monitor It Makes

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It looks like Apple is done with the standalone monitor business: the company confirmed it won’t make any more Thunderbolt Displays, so once the existing inventory is sold, that’s all there is.

The Thunderbolt Display, while popular, hasn’t been updated in the five years it’s existed as Apple’s one and only monitor. It’s still for sale for $999 in the Apple store — a price that will stay steady until the end — while supplies last, the company says.

“We’re discontinuing the Apple Thunderbolt Display,” a company spokesperson confirmed in a statement making the rounds today. “It will be available through Apple.com, Apple’s retail stores, and Apple Authorized Resellers while supplies last. There are a number of great third-party options available for Mac users.”

Those other options won’t be sold by Apple, however, so if you want a monitor for your Mac, you’re on your own. And as for whether or not Apple will be coming out with something to replace the Thunderbolt, that’s still unclear.

(h/t TechCrunch)


by Mary Beth Quirk via Consumerist

Wells Fargo Must Remove Signs Built To “Photo Bomb” New Minnesota Vikings Stadium

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Our brief regional nightmare is over, after a federal court ordered Wells Fargo to take down two rooftop signs erected to cash in on the impending media coverage of the new Minnesota Vikings stadium in Minneapolis.

When the NFL season kicks off this summer, the Vikings will debut their new digs. U.S. Bank has paid a significant fortune for the naming rights of the angular stadium, which includes having the bank’s logo splashed on the building’s sides and roof.

When constructing the stadium, the Vikings made deals with the landlords of surrounding buildings — including Wells Fargo, which has two new buildings adjacent to the stadium site — that limits competing signage on these structures.

However, Wells went ahead and built two large, illuminated bank logos on the roofs of their buildings. The Vikings said this violated their agreement and were a blatant attempt to “photo bomb” U.S. Bank Stadium with Wells Fargo advertising, but Wells countered that because the signs were flat and only visible from the sky, they were not in violation of the deal.

Shortly before Christmas, the team sued Wells Fargo, seeking an injunction against the continued use of these controversial signs.

The federal judge in the dispute didn’t grant the preliminary injunction request because the team hadn’t made a good enough case to show what sort of specific damage it would incur otherwise. Then in April, the judge directed both sides to just hash out a settlement already.

That didn’t happen, and yesterday the court granted summary judgment [PDF] in favor of the Vikings, ruling that Wells Fargo is liable for breach of contract because the contract it signed with the team “unambiguously prohibits the roof-top signs that Wells Fargo has installed on the Wells Fargo Towers.”

The team had originally signed off on a Wells Fargo signage plan that included perfectly flat, un-illuminated rooftop signs. The bank argued that this plan never explicitly stated that the signs could not be illuminated. However, the court pointed out that this same plan specifically mentioned the illumination of other Wells Fargo logos elsewhere on the building, so not describing these signs as illuminated in the plan was the same as saying they would not be lit-up.

The bank also claimed that the rooftop signs were within the scope of the agreed-upon plan because they looked just like the signs depicted in the drawings approved by the team. Once again, the judge disagreed, pointing to language in the agreement describing the rooftop signage as “Non-Mounted Skyview Graphic… Painted Roof Sign,” which can’t really be interpreted as being the same as a slightly raised, illuminated sign.

The court found that the Vikings has satisfied the Supreme Court’s test for granting a permanent injunction against these signs: That the WF signs posed the threat of irreparable injury; that money damages alone would not be a sufficient remedy; that the balance of harms weighed in the team’s favor; and that removing these signs would not be a disservice to the public interest.

Thus, Wells must remove the sign within 30 days, and the bank is prohibited from “installing or maintaining any other mounted or illuminated signs on the Wells Fargo Towers.” Additionally, the court granted the Vikings’ request that Wells Fargo compensate the team for reasonable attorney fees and costs.

[via StarTribune.com]


by Chris Morran via Consumerist

You Might Be Able To Watch Some Netflix Content Offline By The End Of The Year

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After a few months of wondering whether Netflix may usher in a new offline viewing era, reports are circulating now that say the feature could be launched by the end of the year.

Netflix CEO Reed Hastings changed his tune from “Never gonna happen!” to, “Maaaaybe” in April when asked about offline viewing, saying the company should “keep an open mind” to the idea.

Now, a new report from communications trade company LightReading (h/t Gizmodo) citing an industry insider suggests that the feature could be coming to the streaming platform before 2016 is over and done.

“We know from our sources within the industry that Netflix is going to launch this product,” says Dan Taitz, COO of Penthere, a company that works with download-to-go mobile video software. “My expectation is that by the end of the year Netflix will be launching download-to-go as an option for their customers.”

LightReading also spoke to a Frost & Sullivan analyst who backed up the rumor, saying that Netflix is working on a downloading solution, calling the move somewhat of an “open secret” in the streaming video world.

“It’s a natural progression for Netflix to want to have some of their content available for consumers to watch offline, and we’ve been hearing for months now that they are in fact going to roll something out soon,” the analyst said.

Netflix is officially staying mum, however, saying in a statement, “While our focus remains on delivering a great streaming experience, we are always exploring ways to make the service better. We don’t have anything to add at this time.”


by Mary Beth Quirk via Consumerist

Judge Approves $27 Million Settlement In Lyft Case

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The class action lawsuit filed on behalf of drivers against ride-hailing service Lyft is one legal step closer to resolution: the judge has approved the $27 million settlement, which is more than doubled from the original $12.5 million proposal. Drivers in California for ride-hailing service Lyft will stay independent contractors, but at least they will receive cash settlements, and the service will change some policies that affect drivers.

There are about 163,000 current or former drivers who are eligible for the settlement. They will be offered the opportunity to take part in the settlement, object to it, or to opt out.

Non-monetary benefits of the settlement include a promise from the company not to fire drivers (really, deactivate their accounts on the app) with no reason given or recourse, and the company would have to cover drivers’ fees when a dispute goes to arbitration. Yes, that’s right: disputes would have to go to arbitration, but at least the drivers wouldn’t need to pay arbitrators themeslves.

Drivers’ settlements would be prorated according to the number of hours they’ve driven for the service: someone who has worked 2,000 hours, or driving full-time for almost a year, would receive at least $5,556.

The judge calculated that the actual amount owed to drivers could be as high as $170 million including all vehicle expenses and other costs of not being employees.

Lyft’s $27 Million Accord With Drivers Wins Court Approval [Bloomberg News]


by Laura Northrup via Consumerist

Advisory Panel Votes To Revoke Troubled College Accreditor’s Recognition

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A week after staff with the Department of Education recommended the termination of federal recognition for the accrediting body that ignored red flags at failed for-profit educator Corinthian Colleges and allowed billions in federal aid to go to schools under investigation, the panel on the receiving end of that recommendation voted to sever ties with Accrediting Council for Independent Colleges and Schools. 

ACICS came one step closer to losing its federal recognition on Thursday when the panel that oversees accrediting agencies — the National Advisory Committee on Institutional Quality and Integrity (NACIQI) — voted to de-organize the largest national accreditor.

The vote represents the latest step in what could ultimately remove ACICS from federal financial aid programs.

The Associated Press reports that NACIQI’s meeting on Thursday lasted more than 10 hours, with the head of ACICS pleading with the panel to give it another shot.

“We sincerely believe that we can solve and address the legitimate issues the department has flagged,” Anthony Bieda, top executive with ACICS, said. “We do not say this lightly and we take the department’s concerns very seriously.”

In the end, the panel voted 10-3 against continuing recognition for the accreditor.

“This agency failed to act in an appropriate and timely manner,” panel member Ralph Wolff said, adding that ACICS neglected to dive deeply into years of allegations of fraud and misrepresentation for some of its schools.

Over its history, ACICS has accredited 725 different institutions, and currently accredits 243 institutions, according to a previous report from the Center for American Progress. Most of these schools are for-profit colleges.

Without this accreditation, schools cannot receive federal student grants and loans.

CAP’s report [PDF] found that 17 institutions, campuses, or corporate entities under investigation by the federal or state government received accreditation from ACICS, taking in more than $5.7 billion in federal funds over the past three years.

When compared to campuses receiving accreditation from the top five national companies, ACICS’s institutions have the worst graduation rates, the lowest rate of students repaying their student loans, and the second-worst student loan default rates.

There’s still a slim chance that ACICS — which accredits many for-profit colleges — won’t lose its recognition. The final decision on its status will be determined by a senior official at the DOE. Once this official receives the staff and NACIQI recommendations, that person will have 90 days to review and make a decision.

Still, a reprieve for ACICS appears unlikely, as several consumer advocates, lawmakers, and even DOE staff, have pushed for the agency to lose its recognition. 

Last week’s DOE staff report found numerous issues on ACICS’ part, including failing to address how well graduates of its accredited institutions succeed on licensing exams, failing to provide documentation of schools’ relationship with licensing related entities, and failing to clarify and document its entire process for the recruitment, selection, and verification of the qualifications and experience possessed by those selected to serve on the agency’s evaluation teams and decision-making bodies.

If the DOE decides to revoke ACICS’s status, the 243 schools that have received its accreditation will have 18 months to find a new accreditor and remain eligible for federal student aid programs, the DOE said in a FAQ last week.

In the case that a school can not find another accreditor, students would no longer be able to use their federal aid at those schools.

“Students who want to continue their education using federal loans or grants past that point would need to transfer,” the DOE says. “Schools also need to have a plan in place to inform students about their options so students are not left scrambling.”

Issues for ACICS came to a head in this spring.

Earlier this month, Massachusetts Senator Elizabeth Warren published a report related to the DOE’s accreditation practices and the failures of ACICS. Warren urged the Dept. of Education to take “strong, aggressive” action against the accreditor, pointing to ACICS’s “dismal record of failure,” including its repeated accreditation of schools operated by the now-defunct Corinthian Colleges Inc., in spite of evidence of obvious shortcomings and problems at these colleges.

Prior to that, California Attorney General Kamala Harris also sent a letter to the DOE urging it to revoke federal approval from ACICS.

With the letter, Harris expressed support for 13 other state Attorneys General who previously voiced their concerns over the renewal of ACICS as an accreditation agency.

Panel votes against accreditor of for-profit colleges [The Associated Press]


by Ashlee Kieler via Consumerist

Yuengling To Pay Nearly $10M To Settle Pollution Allegations

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Facing federal allegations of violating the Clean Water Act, D.G. Yeungling and Son, the country’s oldest brewing company, has agreed to pay nearly $3 million in penalties and invest $7 million for improvements to its two breweries in Pennsylvania.

The Department of Justice and Environmental Protection Agency announced the agreement Thursday, effectively settling charges that Yuengling illegally discharged pollutants into the Greater Pottsville Area Sewer Authority municipal wastewater treatment plant.

According to the EPA, from 2008 to 2015 Yuengling violated the Clean Water Act requirement for companies that discharge industrial waste to municipal publicly owned wastewater treatment facilities.

Under the Act, companies like Yuengling must obtain and comply with permit limits on discharges of industrial waste that goes to public treatment facilities, which in many cases require “pretreatment” of waste before it is discharged.

The EPA and DOJ accused Yuengling of violating these standards at least 141 times in the eight year period.

“Yuengling is responsible for serious violations of its Clean Water Act pretreatment discharge limits, posing a potential risk to the Schuylkill River which provides drinking water to 1.5 million people,” EPA Regional Administrator Shawn M. Garvin said in a statement. “This history of violations and failure to fully respond to orders from the Greater Pottsville Area Sewer Authority and EPA to correct the problems resulted in this enforcement action.”

Under the settlement agreement, Yuengling will spend approximately $7 million to improve environmental measures by, among other things, conducting audits and inspections, creating a comprehensive pretreatment system, improve operation and maintenance of pretreatment systems, and hiring two certified wastewater treatment operators.

Additionally, the company will pay $2.8 million in penalties.


by Ashlee Kieler via Consumerist

Uber Switching To Upfront Pricing Model, Ditching Surge Icon (While Keeping Surge Prices)

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While Uber is changing its app to make it easier for customers to see what they’ll pay for a ride upfront, the new version will make it harder to know when “surge pricing” has taken hold.

Uber announced Thursday that its ride-hailing app will now require customers to enter their destination when requesting a ride. The app will then show them how much they’re likely to pay — but there will be no more thunderbolt of doom, the “surge pricing” icon, to indicate when fares are going to be higher.

Instead of showing multiples of how much more a ride will be and asking riders if they’re willing to pay that — 1.5X or 2X, for example — an estimated fare will appear with a message that “fares are higher due to increased demand.”

Drivers who want to chase after those juicy surge fares will still be able to see a heat map showing which areas of a city have higher and lower surge pricing, Uber said.

Though the change will make it harder to tell how much more you’re paying than normal, Uber says the change is a good one for customers and easier to understand, because of course it says that:

“Imagine buying an airline ticket without knowing the full fare until the end of your trip. Or booking a hotel room online and being told that the real price would be 1.3X,” the company explained in its blog. “Yes, that sounds odd—but it’s what happens with many Uber trips today.”

Uber said the changeover to upfront fares started in April for regular uberX trips in some U.S. cities and in India, and more will follow as part of the new app’s rollout.


by Mary Beth Quirk via Consumerist

Consumerist Friday Flickr Finds

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Here are 15 of the best photos that readers added to the Consumerist Flickr Pool in the last two weeks, picked for usability in a Consumerist post or for just plain neatness.

(Ryan Davison)
(Xavier J. Peg)
(Eric BEAUME)
(吉姆 Jim Hofman)
(Ann Fisher)
(Carbon Arc)
(Nicholas Eckhart)
(Jason Cook)
(Mike Matney)
(Phillip Pessar)
(Karen Chappell)
(Eric BEAUME)
(Karen Chappell)
(velkr0)
(Sebastien Wiertz)

Want to see your pictures on our site? Our Flickr pool is the place where Consumerist readers upload photos for possible use in future Consumerist posts. Just be a registered Flickr user, go here, and click “Join Group?” up on the top right. Choose your best photos, then click “send to group” on the individual images you want to add to the pool.


by Laura Northrup via Consumerist

Thursday, June 23, 2016

Re-Zombified Circuit City Opens New Storefront On Amazon.com

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Back in 2009, electronics shoppers turning to Amazon was one of the factors blamed for the demise of the retailer Circuit City. Now Circuit City, under its second post-bankruptcy owner, is beginning a retail comeback by opening a retail storefront on Amazon. They’re starting out by going where the customers already are.

Circuit City is the rare zombie retailer that has been raised from the dead twice. The company came back as an online store shortly after the chain shut down, and now another company purchased the brand from former owner Systemax and plans to revive it as a mall and e-commerce retailer.

To make this situation even more strange and circular, note that back in 2005, the original incarnation of Circuit City severed its e-commerce relationship with Amazson, deciding instead to build up its own e-commerce operation.

The new owner plans to open a chain of small retail stores: yes, someone thinks it makes good business sense to open new electronics stores. Perhaps it does, but the CEO of the new Circuit City insists that the brand’s comeback has been going very well. However, according to the Dallas Morning News, the opening of its first prototype store was scheduled for June in Dallas, but has been pushed back as the company changed the plans for its prototype store, including the store’s size.

In the meantime, you can always check out their Amazon storefront. Again.

Circuit City closer to Dallas debut; just launched online with Amazon [Dallas Morning News]


by Laura Northrup via Consumerist

Dish Network Sues Tribune Broadcasting Over ‘Dump Dish’ Campaign

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The retransmission agreement between Dish Network and Tribune Broadcasting is up, and that means it’s time for a protracted negotiation. This time, the content company and the satellite company are dragging customers who probably just want to go watch some baseball into the dispute. This time, Tribune is urging Dish subscribers to just use a different cable provider. Dish Network doesn’t appreciate the campaign or its website, and has sued Tribune Broadcasting.

dishturbing

There’s a general “Dump Dish” site, and then sites for each of the Tribune Broadcasting-owned local network affiliates.

On the sites, Tribune encourages Dish customers to haul out their antennas and view local stations that way, or “switch to an alternative pay-TV provider,” the company suggests, pointing out that “many offer excellent incentives to switch.”

Tribune is also encouraging customers to complain on Dish’s Facebook page, which they have been doing.

Dish Network’s latest move has been to file a lawsuit [PDF] against the the owner of local stations and cable network WGN America.

“Tribune’s publication of the misleading and deceptive statements on its channels and these websites causes actual harm to DISH,” the company’s attorneys explain in their initial complaint. “Among other things, DISH’s subscribers flood DISH’s customer service lines with questions about the Tribune messages, some subscribers cancel their DISH subscriptions, and DISH’s goodwill as a reliable service provider is eroded.”

In response to the lawsuit, Tribune reiterated its key talking point that this is Dish’s fifteenth blackout against a channel or group of channels in the last three years, and claims that the company refused to sign extensions that would have kept Tribune-owned stations on the air into August so the companies would have more time to negotiate.

Tribune isn’t even the only fight that Dish is in with a content company right now; they’re also blacking out the National Football League’s cable channels. The NFL has a more polite website than the “Dump Dish” campaign, but it also encourages Dish customers to go ahead and find a more football-friendly TV provider if they want the channels back.

A few years ago, during a protracted dispute with the AMC family of cable networks, Dish representatives actually offered persistent customers a Roku streaming device and a subscription through Amazon for Breaking Bad. Sending a subscriber a digital antenna doesn’t have quite the same impact.

Dish Sues Tribune For Urging Customers to Switch TV Providers [DSLReports]


by Laura Northrup via Consumerist

Barnes & Noble Is Starting A Restaurant Group: Wait, What?

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Barnes & Noble is looking at ways to keep people coming to their stores in the future, and that will mean opening prototype stores later this year. One unexpected thing that the prototype stores will have will be a restaurant. Nope, not just a Starbucks or a cafe: a restaurant.

If you’re anxious to eat at a restaurant in a bookstore (and who wouldn’t be?) you’ll be able to check out the new Barnes & Noble format this fall. The first prototype stores in Eastchester, NY is scheduled to open on October. The other stores will come later in fiscal year 2017, and they’ll be located at the Edina Galleria in Edina, MN; the Palladio in Folsom, CA; and at One Loudon in Loudon, VA.

Those are all upscale markets in the New York City, Minneapolis, San Francisco Bay area, and Washington, DC metropolitan areas, where presumably very classy people will head to bookstores to eat and drink. Yes, drink: the company says that the bookstore restaurants will have “an expanded menu along with a beer and wine offering.”

Will people be interested in using a bookstore as a space to gather and eat? Barnes & Noble stores already sell food if they have a Starbucks, but a full-service restaurant is more complex.

Barnes & Noble predicted in 2013 that they would be closing more of their stores in the near future; they’ve closed fewer of their stores than anticipated.

Barnes & Noble Announces Two Executive Appointments [Barnes & Noble Corporate]


by Laura Northrup via Consumerist

Teen Dies After Getting Infected By Brain-Eating Amoeba While Swimming In NC

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Every year, we’re more than happy to welcome back summer and all the fun that goes with it. But with those warm-weather activities also comes an unfortunate but important safety reminder: don’t let warm, fresh water go up your nose, lest a brain-eating amoeba swims up there with it.

The brain-eating amobea, known as Naegleria fowleri in the scientific community, is the suspect in another death this week, killing an 18-year-old Ohio girl who’d gone swimming in North Carolina during a church trip, reports WCMH-TV Columbus.

It’s still unclear exactly she encountered the amoeba, but a senior pastor at her church told the news station the group went whitewater rafting in North Carolina during the trip, which was the only time she was in the water. North Carolina’s Department of Health and Human Services also said the U.S. Centers for Disease Control and Prevention suspects the amoeba was the culprit.

The amoeba causes a rare yet devastating infection called primary amoebic meningoencephalitis, which is almost always fatal, according to the CDC. It enters the body through the nose and makes its way to the brain to feed, and is usually the result of swimming in bodies of warm freshwater — often found in southern states — though it can exist in fresh waters in the north as well.

It can’t get into your brain by drinking water, only if you sniff or inhale fresh water directly into your nose. Though it’s not a common infection, just the words “brain-eating amoeba” provide a great reason to wear nose plugs while swimming in fresh water, or to keep your head above water.

Symptoms like headache, fever, nausea, vomiting and a stiff neck can show up anywhere between one and seven days after the infection occurs, says the CDC.

“Later symptoms include confusion, lack of attention to people and surroundings, loss of balance, seizures and hallucinations,” the CDC notes. “After the start of symptoms, the disease progresses rapidly and usually causes death within one to 12 days.”


by Mary Beth Quirk via Consumerist

Report: VW To Pay $10.2B To Settle Emissions Issues

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It doesn’t pay to cheat. That’s the lesson Volkswagen will likely learn next Tuesday, when the (extended) deadline expires for filing a final settlement agreement to resolve its use of emissions-cheating “defeat devices” in more than 500,000 vehicles in the U.S. According to one report, VW’s “clean diesel” debacle will cost the carmaker $10.2 billion.

The Associated Press, citing sources close to the matter, reports that VW has agreed to pay $10.2 billion to begin the process of putting the diesel scandal behind it.

The bulk of the funds earmarked in the agreement, which is tentative and could change before it’s filed on Tuesday, will go toward compensation for the owners of VW’s affected diesel-engine vehicles.

As previously reported, compensation is expected to be offered in two forms: VW will buy back affected cars at the value before the scandal broke in September 2015, or owners can keep the cars and VW will fix them free of charge.

The proposed settlement does not include 3-liter Volkswagen diesel vehicles affected by the cheating scandal.

The sources say the value of compensation is expected to range from $1,000 to $7,000 depending on the cars’ age, with an average payment of about $5,000.

After the cost of compensation is deducted from the $10.2 billion tab, the sources say the remaining funds will be go toward penalties and for a program to remediate the environmental damage caused by pollution.

However, the carmaker could face additional penalties to government agencies, including the Federal Trade Commission, California Air Resources Board, and the Department of Justice, according to the sources.

VW was originally supposed to file a finalized agreement on June 21, but U.S. District Judge Charles R. Breyer entered an order last week giving the carmaker until June 28 to file the agreement and provide him with a detailed plan to bring affected vehicles into compliance with clean air laws.

The extension came at the request of the court-appointed mediator handling the case, former FBI director Robert Mueller.

“Given the highly technical nature of the proposed settlements in these complex proceedings, the court extends the deadlines for the Plaintiffs’ Steering Committee to file its motion for preliminary approval of settlement,” Breyer said in the order.

More details on the settlement are expected to be released on Tuesday. It will then be subject to a public comment period before final judicial approval, which could come at a July 26 hearing.

AP Sources: VW to pay near $10.2B to settle emissions claims [The Associated Press]


by Ashlee Kieler via Consumerist

For-Profit College Or Fictional School: Can You Tell Them Apart?

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When coming up with the name for a institution of higher learning, you often want to find that sweet spot where academia, history, and marketability meet; and you also have to make sure no one else is already using that name.

It’s an issue faced both by creators of for-profit schools who need to find a name that lends their school an instant air of recognition and fiction writers tasked with picking a name that concisely paints the desired picture without being too on-the-nose.

As a result, you end up with reality and fiction sometimes being difficult to discern. Take our test to see if you can tell the difference:


by Chris Morran via Consumerist

Starbucks Releasing Bottled Cold Brew In July

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Starbucks already offers a variety of bottled beverages for sale at grocery and convenience stores around the country. But if you’re looking for something a little less sweet than a White Chocolate Mocha Frappuccino, you don’t have a ton of options, until now. The coffee giant will begin selling bottles of its unsweetened cold brew at stores starting next month. 

Starbucks began shipping bottles of the cold brew to retailers earlier this month and expects the on-the-go drinks to be on shelves starting July 1.

Cold brew, the cool kid on the caffeinated block, is brewed slowly with coffee grounds that are steeped in cool water for an extended period of time — in Starbucks’ case, 20 hours.

Many consider cold-brewed coffees to be a smoother, less bitter drink than hot-brewed coffees, while packing a more caffeinated punch. Like traditional hot coffee, the drink also comes free of sweeteners and creams, as customers can add their own.

Starbucks first began offering cold brew in its coffee shops last July. More recently, the company announced it would add Nitro Cold Brew to the menu at 500 locations starting this summer.

Nitro Cold Brew infuses nitrogen in cold-brewed coffee, which gives it a “smooth and creamy sweetness,” the company said at the time, noting that the drink almost comes out looking like a Guinness beer.

Starbucks isn’t the only coffee shop to jump on the cold brew bandwagon. Dunkin’ Donuts announced this week that it would begin offering the beverage nationwide this summer, Fortune reports.

To begin with, the drink will be available in restaurants in New York and Los Angeles on June 27. More areas will sell the drink throughout the summer. Dunkin’ says the cold brew will be served each day in small batches while supplies last.


by Ashlee Kieler via Consumerist

Lawsuit Claims Two McDonald’s Franchises Are Overcharging Customers At O’Hare Airport

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What you see on the electronic menu may not always be what you get at two McDonald’s franchises located inside Chicago’s O’Hare International Airport, according to a new lawsuit that claims the fast food spots are overcharging customers, sometimes by as much as 30%.

A Kansas woman is the lead plaintiff in a complaint filed this week in Cook County Circuit Court, that accuses two franchises of hiking prices, Courthouse News reports. There are a total of seven McDonald’s locations operating within the airport, according to this official map.

A Kansas woman is the lead plaintiff in a complaint filed this week in Cook County Circuit Court, that accuses two franchises of hiking prices, Courthouse News reports. There are a total of seven McDonald’s locations operating within the airport.

According to her lawsuit, she was at the airport last month on a layover, and ordered breakfast. The total come to more than what was posted on the menu board, but when she asked about the discrepancy, the cashier said the board prices were incorrect, according to the complaint.

She chose different items but again, the price was more than what the menu said. She claims the cashier tried to shame her into paying the added cost, and conceded eventually “that the advertised prices had been wrong for some time, and that neither she nor a McDonald’s manager would alter or lower the price of the order to adhere to the price advertised,” the lawsuit alleges.

The customer said she finally went with a steak and egg McMuffin meal, which was advertised at $4.80 but for which she paid $6.20.

When she took her issue to the company and filed a complaint, she says she only got a “nondescript response” saying the company would investigate her concerns.

Her attorney says he investigated prices at two locations and found similar overcharges.

According to her complaint, the menu board could easily be reprogrammed.

“McDonald’s IT department, as one of the largest restaurant businesses in the world, could also, on information and belief, adjust and synchronize pricing issues on its own computerized cash registers and menus in a minimal amount of time,” the lawsuit states.

Would You Like Some Scam on Your Big Mac? [Courthouse News]


by Mary Beth Quirk via Consumerist

Listen To A U.S. Senator Try To Get Bogus $8 “Protection” Fee Removed From Cable Bill

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You’d think that being the senior U.S. Senator from Missouri would help Claire McCaskill get better service from her cable company, but you’d be wrong. As this recording demonstrates, the legislator has just as much trouble as the rest of us trying to get anything resembling decent service from her pay-TV provider.

Having just concluded participating in a Senate subcommittee investigation into cable company billing practices [more to come later today on that], McCaskill thought she’d take what she learned and try to finally have her provider remove a $8/month “protection” fee that the senator never okayed.

Thankfully, Sen. McCaskill recorded the call for posterity:

[NOTE: Based on some of the lingo used, it appears to be DirecTV, though that the company’s name is redacted from the recordings]

For those who can’t or don’t want to listen, you won’t be surprised to learn that the immediate response from the customer service rep isn’t to oblige the senator’s request to have the fee removed, but to explain — robotically, from a script — what the protection plan is.

“Let’s just say if it’s your equipment and something goes wrong with it, don’t you have to fix it anyway if I’m going to be able to get the service I’m paying for since you own the equipment?”

The rep’s response is to explain that this covers things like, “if your remote control stops working,” but when the senator asks what it would cost to have a repair like that done without the plan, the rep says “that information is actually with our equipment department.”

“I just want to find out about why I cannot this $7.99 for the protection plan,” counters McCaskill.

“I’m not saying I’m not able to take it off,” explains the rep, “I’m just letting you know the benefits that you get with the protection plan.”

But that’s when the rep drops the Additional Fee Hammer: “If I actually have the protection plan taken off, there would be a $10 disconnection fee.”

“What am I paying for?” asks the senator. “For you just to quit charging me for this service I’m paying you $10?… You’re going to charge me $10, and I have no choice — you have to do that?… You have no discretion on whether to waive that $10… you’re telling me that’s required.”

Sayeth the robot rep, “We really do value your business. It’s just the policy.”

Asks McCaskill, “If I told you I was going to go ahead and terminate my service, would you have the ability to give me some sort of lesser price?”

The senator eventually gets through to a “retention specialist,” who makes her sit through several minutes of nothing before she’s eventually able to ask why customers are expected to pay for service when equipment owned by the pay-TV company breaks.

“The equipment is under your care… and we’re not the only company in the industry that charges for service calls,” explains the special specialist.

He then explains that the $10 cancelation fee is for people who cancel the protection plan before a year is up. But it’s only after she asks when she supposedly signed up for the program that the retention specialist notes that it’s been more than a year.

“If I hadn’t threatened to quit [my service], you wouldn’t have ever gotten to me and I would have been charged the $10,” McCaskill points out.

She eventually gets the $8/month fee removed and some credits added to her account, but not until after she wrings a truly telling statement from the retention rep.

When she asks whether staff is trained to upsell the protection plan because it’s a profit center for the company, the rep curtly responds, “If we’re not making profit off every single line-item, we’re doing something wrong.”

Take those words, think on them a minute, then revisit the bills we recently went through line-by-line.


by Chris Morran via Consumerist