Current Events in April 2018

Kroger said in a statement Tuesday that it is adding 11,000 positions this year, including nearly 2,000 management jobs.

The Cincinnati-based chain also said it is investing $500 million in employee wages, training, and development over the next three years due to the money it saved from the tax reform. Details of the “Restock Kroger” plan will be announced later this month.

The grocer said it had created 10,000 new jobs in 2017 and 12,000 in 2016. Today, Kroger and its subsidiaries employ nearly half a million associates.

"Over the last decade, Kroger has added 100,000 new jobs in communities across America," said Tim Massa, Kroger's group VP of human resources and labor relations. "In addition to fueling the U.S. economy, many of our supermarket jobs are an opportunity for associates to grow and advance their careers."

"Kroger is a place where you can come for a job and stay for a career," Massa said. "We are committed to creating great entry-level jobs and investing in our associates so they can reach their full potential."

Keeping up with the competition

The company’s growth comes at a time when the grocery industry is undergoing big changes. Amazon’s acquisition of Whole Foods, as well as efforts made by other grocers to align with changing consumer preferences, have fueled competition among food retailers.

Walmart has made several moves to stay competitive in the industry, including expanding delivery options and launching its own line of meal kits.

Efforts made by Kroger include expanding its “Scan, Bag and Go” platform, which allows shoppers to scan and bag items as they shop. The company aims to make the service available in 400 locations by the end of this year.

The government's gauge of consumer prices fell in March, pulled lower by an unexpected decline in gasoline prices.

The Consumer Price Index (CPI) fell 0.1 percent after rising 0.2 percent in February. It was the first drop in prices in almost a year.

That's not to say everything was cheaper last month. The costs of food, shelter, and medical care were all higher in March, but they were outweighed in the CPI by a 4.9 percent drop in prices at the pump.

When you strip out food and energy from the March index, prices were up a modest 0.2 percent, in line with estimates. Over the last 12 months, inflation is running at a rate of 2.4 percent.

That's the largest 12-month increase since March 2017 and higher than the 1.6 percent average annual rate over the past 10 years. Energy prices were up 7.0 percent over the past 12 months, with gasoline up 11 percent.

Rising food costs

Overall food costs rose 1.3 percent last month, with prices for meats, poultry, fish, and eggs rising 0.8 percent. Prices of cereals and bakery products rose 0.4 percent. The cost of dairy products was up 0.3 percent after being up the same amount in February.

The Bureau of Labor Statistics report shows prices for new cars and trucks showed no increase in March, while prices of used vehicles fell 0.3 percent. Prices consumers paid for clothing went down 0.6 percent.

Overall prices were a little softer than most economists predicted. The consensus estimate was for the CPI to match February's level. However, prices could soon resume their upward movement.

On Tuesday the Producer Price Index (PPI), a measure of inflation at the wholesale level, ticked up 0.3 percent, suggesting building price pressure among producers. While those higher prices normally get passed along to consumers, economist Joel Naroff, of Naroff Economic Advisers, says that it's not clear they will in this case.

Chrysler (FCA US LLC) is recalling 12,595 model year 2018 Alfa Romeo Stelvios.

Water may leak into the wiring connectors for the rear liftgate and the liftgate-opening switch, causing corrosion.

Corrosion at the connectors may cause the liftgate to open unintentionally while moving at speeds of less than three miles per hour, allowing cargo to fall out of the vehicle, creating a road hazard and increasing the risk of a crash.

What to do

Chrysler will notify owners, and dealers will install additional protection against water leaking into the liftgate wiring connectors and switch, free of charge.

The recall is expected to begin May 18, 2018.

Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is U34.

Izzy’s Ice Cream is recalling a limited amount of its Maple Nut Ice Cream pints.

The product may contain peanut residue, an allergen not declared on the label.

No illnesses have been reported to date in connection with this problem.

The recalled items, produced on January 29,, 2018, February 6, 2018, February 12, 2018, February 19, 2018, and February 27, 2018, can be identified by the following codes on the bottom of the pint:

• 18012729
• 18020312
• 18024706
• 18028819
• 18025206
• 18020327
• 18028806

What to do

Consumers with question may contact Jeff Sommers at (651) 341-7709 or Shannon Leach at (612) 554-5196, or by email at shannon@izzysicecream.com.

Thank you for your help in maintaining our commitment to consumer safety. This recall is being made with the knowledge of the Food and Drug Administration.

Mercedes-Benz USA (MBUSA) is recalling 3,088 model year 2017-2018 C43 AMG 4Matic Coupes, C300 Coupes, C300 4Matic Coupes, C300 4Matic Cabriolets, C300 Cabriolets, C43 AMG 4Matic Cabriolets and C63S AMG Cabriolets; model year 2017 C63 AMG Cabriolets, C63S AMG Coupes and C63 AMG Coupes; and model year 2018 E400 Coupes and E400 4Matic Coupes.

The seatbacks of the front seats may not properly lock on the right side of the seat.

As a result, the seatbacks may fold forward, increasing the risk of injury.

What to do

MBUSA will notify owners, and dealers will inspect the locking of the seatbacks, replacing the seatbacks lock, as necessary, free of charge.

The recall is expected to begin May 25, 2018.

Owners may contact MBUSA customer service at 1-800-367-6372.

In its early, unregulated days as a ride-hailing company, Uber introduced itself by simply showing up in major American cities. The company soon became known for angering an entrenched taxi cab lobby and local officials by claiming it shouldn't have to obtain permits because it is a ride “sharing” application and not a taxi service.

The dockless bike industry, now the center of municipal controversies for suddenly loading thousands of bikes on city sidewalks and tapping a new unregulated market, would seem only a natural fit.

Uber announced Monday that it is acquiring Jump, a New York start-up with an all-electric fleet of dockless bikes.

“Today, we help tens of millions of people get a ride at the tap of a button. But our ultimate goal is one we share with cities around the world: making it easier to live without owning a personal car,” Uber’s CEO Dara Khosrowshahi said in a statement.

Dallas’ bike drama

Automated bike rentals that require only a credit card to unlock have taken off in recent years. The services started off as city-backed, public-private partnerships that involved months of planning before they rolled out on streets. In successful models, such as the Citi Bikes that unveiled in New York City and Miami, docks were placed in key destinations across town, allowing residents and tourists to take the rentals from point A to point B.

But the red tape that came with building bike stations hampered efforts in other cities. In 2014, Dallas officials unveiled what came to be known as the world’s saddest bike sharing program, with exactly two bike-parking stations installed in the same deserted location.

Three years later, a new breed of private bike sharing services suddenly dropped their inventory off in the notoriously bike-unfriendly city. The dockless company LimeBike placed 10,000 bikes in Dallas for its debut. With LimeBike and its competitors, the lock connects the rear wheel to the bike itself, allowing riders to leave their bike wherever they choose when they are done.

“LimeBike eliminates docking stations by providing a flexible system of bikes that can go anywhere,” the company explains on its website.

The business model has been enormously successful; both LimeBike and Ofo, a Beijing-based competitor, have raised millions of dollars from investors. But the model is also ripe for vandalism.

In Dallas, pranksters have placed piles of LimeBikes in homeowners’ front yards; in one remarkable work of art, a LimeBike was sawed in half and attached to a telephone pole. Earlier this year, Ofo and LimeBike debuted in San Diego, where their inventory has already been thrown off cliffs.

Residents and local officials also complain about stray dockless bikes blocking their driveway or the right-of-way in the middle of the sidewalk.

In France, the Hong Kong-based dockless bike company Gobee.bike recently ended its service, saying in a statement that “the mass destruction of our fleet has become the new entertainment of underaged individuals.”

But most companies have raised too much funding to give up that easily. LimeBike initially responded to criticism in Dallas by blaming residents for the pile-ups.

"Are the bikes making it look like a dump?”  the company wrote in one especially accusatory Tweet. “Or are your fellow citizens, who are turning over the bikes, and abusing the property we provide for our thousands of riders in Dallas a week...making it look like a dump??”

The company back-tracked not long after, deleting the post and promising to increase its staff in Dallas to better manage the inventory.

Electric-assist bicycles with different locks

Jump may be able avoid such headaches with a built-in lock that attaches to a fixed object rather than the bike itself. In other words, riders won’t be able to stop the trip (and their credit card from being charged) by leaving the bike in the middle of a sidewalk. They’ll have to find a street sign or an actual bike rack.

What cities will like look when electric bikes flood the streets remains to be seen, as the industry is still in its “testing” phase. In Washington D.C., Jump rolled out its services with just 20 bikes to start.

In San Francisco, the company recently won an exclusive permit from city officials that allows for 250 bikes at the behest of its non-electric competitors -- though LimeBike and others also plan on rolling out their own electric fleets in other cities as well.

The bikes can travel up to 20 miles an hour and at times act more like a motorcycle than a bicycle, requiring riders to take the streets rather than car-free bike paths.

There is no guarantee that the battery will be fully charged when riders hop on; according to the company, the batteries last approximately 40 miles. Once they lose charge, users will have to be in decent enough shape to handle a 210 pound bike manually.

“Please do not travel outside of the system area unless you are comfortable pedaling without the electric assist should the battery run out,” Jump says on its Support page, adding that the onus is on riders to let the company know when a a battery has lost charge. “If you are riding a bike and the pedal assist runs out, please put it in repair on the bikes controller when ending your rental.”

The service may also raise privacy concerns. According to Jump’s rental agreement, riders will be photographed and recorded while they are on the bike. “We reserve the right to photograph and record You using the Bicycle(s),” it says.

The company has not yet returned inquiries about its batteries and waiver.

Wells Fargo could face record fines for past financial abuses, according to a published report.

Rueters quotes three sources close to the situation that say the Consumer Financial Protection Bureau (CFPB) is working with the Office of the Comptroller of the Currency (OCC) to levy fines against the bank for abusive actions in the administration of auto insurance and mortgages.

The bank has already paid a huge fine to settle 2016 charges that it enrolled millions of customers in checking and credit card accounts without their knowledge or permission.

According to Reuters, CFPB acting director Mick Mulvaney is considering fines that would approach one billion dollars, making it a record sanction.

Different approach for Mulvaney

It would be the first major CFPB enforcement action under Mulvaney, who has come under criticism from consumer advocates for his approach to policing the financial services industry. Mulvaney has repeatedly criticized the agency he heads, saying it is unaccountable and has too much power. As a member of Congress, he voted to abolish it, calling it a "sick, sad, joke."

The difference in Mulvaney's interest in the Wells Fargo case may be his boss. President Trump has taken to Twitter on several occasions to criticize Wells Fargo for its sales practices.

"Fines and penalties against Wells Fargo Bank for their bad acts against their customers and others will not be dropped, as has incorrectly been reported, but will be pursued and, if anything, substantially increased," Trump tweeted on December 8. "I will cut Regs but make penalties severe when caught cheating!"

Extra mortgage fees

Last September, plaintiffs filed a class action suit against the bank, claiming it bilked home loan borrowers by charging them extra fees when their applications were denied, even when a bank error caused the denial.

The case revolved around rate-lock extension fees -- the fees borrowers pay to "lock in" an interest rate for a specific period of time, usually 30 to 45 days. If it takes longer than that for the loan to be approved, the borrower was charged an extra fee.

A couple of months before that suit, it was revealed more than a half million consumers who financed auto purchases through Wells Fargo may have been sold a collateral protection insurance (CPI) policy without their knowledge or consent.

All auto lenders require borrowers to maintain adequate insurance on the financed vehicle to ensure the lender is repaid if the vehicle is stolen or damaged in a crash. Wells Fargo says its lending agreement allowed it to buy a CPI policy from a vendor on the customer’s behalf if there was no evidence — either from the customer or the insurance company — that the customer already had the required insurance. Wells Fargo says it discontinued the practice in 2016.

Reuters reports all of the parties involved in its report -- Wells Fargo, the CFPB, and the OCC -- declined to comment on the report.

Seven people face a total of 93 federal charges in connection with the now-seized Backpage.com for allegedly facilitating prostitution and other charges.

The FBI shut down the personals ad website over the weekend. The U.S. Justice Department said it was responding to charges that the website had become a venue for human traffickers, particularly those trading in children.

According to the government, the seven defendants charged in a federal indictment are Michael Lacey, of Paradise Valley, Arizona; James Larkin, of Paradise Valley, Arizona; Scott Spear, of Scottsdale, Arizona; John E. “Jed” Brunst, of Phoenix, Arizona; Daniel Hyer, of Dallas, Texas; Andrew Padilla, of Plano, Texas; and Jaala Joye Vaught, of Addison, Texas.

'Illicit commercial sex'

“For far too long, Backpage.com existed as the dominant marketplace for illicit commercial sex, a place where sex traffickers frequently advertised children and adults alike,” said Attorney General Jeff Sessions. “But this illegality stops right now."

In addition to sex trafficking, the defendants also face financial-related charges, including conspiracy to commit money laundering, concealment of money laundering, international promotional money laundering, and transactional money laundering.

“An indictment of this magnitude is particularly troubling when you look at the various layers of corruption and exploitation that are alleged to have occurred,” said Don Fort, chief of Internal Revenue Service Criminal Investigation. “The masterminds behind Backpage are not only alleged to have committed egregious amounts of financial crimes such as money laundering, they did so at the expense of innocent women and children."

Challenging case

Fort said the government's case is impressive because of the challenges it had to overcome, including the use of digital currency, offshore banking, and the anonymity of the internet.

The action against Backpage.com and its principals follows a nearly two-year investigation by Congress. Sen. John McCain (R-Ariz.), representing the state where Backpage was based, said the action against the company and its principals is "an important step forward in the fight against human trafficking."

U.S. District Judge Gonzalo Curiel signed off Monday on a $25 million settlement in lawsuits filed by attendees of a real estate seminar called Trump University.

The plaintiffs claimed they had been promised that the courses would provide them with the knowledge they needed to make huge returns in real estate. However, they said that most of the classes were comprised primarily of sales pitches for additional packages. The students claimed they were defrauded and bilked out of millions of dollars by the program.

New York Attorney General Eric T. Schneiderman said the settlement will give “victims of Donald Trump’s fraudulent university” the relief they deserve.

“We are particularly pleased that the final settlement we negotiated with class counsel ensures that members of the class will receive an even higher settlement than anyone originally anticipated,” Schneiderman said in a statement.

"This settlement marked a stunning reversal by President Trump, who for years refused to compensate the victims of his sham university," he added. "My office won't hesitate to hold those who commit fraud accountable, no matter how rich or powerful they may be."

Former attendees eligible to be paid back

President Trump originally agreed to the settlement in November 2016, days after winning the presidential election. The settlement was approved a year ago by U.S. District Judge Gonzalo Curiel, but it hit a roadblock when a former Trump University student challenged the agreement.

Sherri Simpson filed an objection to the settlement, saying she wanted to file her own lawsuit in hopes of recouping more money and getting then-candidate Trump to apologize.

A federal appeals court rejected Simpson’s challenge, ruling that she did not have the right to opt out of the appeal under the terms of the class-action suit. Judge Curiel approved the settlement once Simpson agreed to drop further appeals.

About 8,000 former Trump U. attendees are eligible for a refund of up to 90 percent of the money they spent on courses.

Walmart is partnering with delivery service Postmates to expand its grocery delivery program, the companies announced today.

Walmart Online Grocery Delivery will start in Charlotte, North Carolina and will expand to other markets “soon.” The retailer says its goal is to reach more than 40 percent of U.S. households in the coming months.

In March, Walmart announced it would be expanding home delivery to an additional 800 stores by the end of this year, with grocery transportation provided by companies including Uber and Deliv.

"We will ... reach as many households as we can," said Tom Ward, the vice president of Walmart's digital operations in the U.S. "We will leverage our footprint where it makes the most sense."

Reaching more customers

A recent study conducted by the Food Marketing Institute and Nielsen found that 70 percent of consumers will be grocery shopping online in as few as five to seven years.

Partnering with Postmates to expand its grocery delivery service may help Walmart compete with the likes of Amazon, Target, and other retailers who have started delivering groceries to consumers’ homes.  

“Both Walmart and Postmates strive to make the lives of our customers easier,” said Dan Mosher, senior vice president, merchant lead, Postmates. “With our growing fleet of 160,000 couriers, we are confident that we’ll be providing Walmart customers with the ultimate convenience.”

Competing with Amazon

The push to make same-day grocery delivery available to more Walmart shoppers comes as Amazon is ramping up its own grocery delivery service. Earlier this year, Amazon started delivering groceries from Whole Foods through its two-hour Prime Now platform.

Meanwhile, other big grocers -- including Kroger, HEB, Albertsons, and Publix -- have teamed up with Instacart to expand their own same-day delivery services.

Walmart’s Online Grocery Delivery service gives customers the ability to get groceries from the retailer delivered to their home within the same day as an order being placed. The minimum purchase amount is $30, and there's a fee of $9.95 for delivery.

Walmart also announced earlier this year that it would begin selling its own line of meal kits in stores to make meal preparation easier and more convenient for consumers.

Apple announced on Monday that its entire global business is fueled by 100 percent clean energy. Everything that powers the company -- from its new Cupertino headquarters to stores and data facilities -- is certifiably renewable, fulfilling its 2016 commitment to becoming totally green.

“We’re committed to leaving the world better than we found it. After years of hard work we’re proud to have reached this significant milestone,” said Tim Cook, CEO of Apple.

“We’re going to keep pushing the boundaries of what is possible with the materials in our products, the way we recycle them, our facilities and our work with suppliers to establish new creative and forward-looking sources of renewable energy because we know the future depends on it.”

Producing clean energy

However, Apple's flag-waving should be viewed with an ounce of caution. While it says its energy is "100 percent renewable," a report from The Verge points out that the company "uses the term to signal that it buys enough green energy to offset its global power consumption."

This line of reasoning allows the company to meet its goals in areas of the world where relying on renewable energy isn't necessarily viable; for example, clean energy isn't readily available in areas like China where Apple operates overseas facilities.

Nonetheless, Apple’s efforts are worthy of being considered proactive in Mother Earth’s eyes. All in all, Apple has 25 operational renewable energy projects around the world, totaling 626 megawatts of generation capacity, with 286 megawatts of solar PV generation coming online in 2017, its most ever in one year. It also has 15 more projects underway.

Once everything is in place, more than 1.4 gigawatts of clean renewable energy generation will be dispersed across 11 countries.

Good for both business and communities

Over the course of the next five years, renewable energy is set to grow faster than any other power source. The International Energy Agency’s crystal ball sees a future where renewable energy will make up 40 percent of the world’s power by 2040 and, no doubt, Apple wants to be a leader in that metric.

At present, Apple ranks sixth on the United States Environmental Protection Agency (EPA)’s Green Power Partnership National Top 100, behind Microsoft, Intel, Google, Kohl’s Department Stores, and Bank of America.

Others on that list include a variety of corporate green energy trailblazers ranging from the National Hockey League (NHL) to Netflix, IKEA, University of Tennessee (Knoxville), and the cities of Dallas, Austin, and Portland, Oregon.

Good for Apple’s bottom line, too

In 2016, The Federal Energy Regulatory Commission (FERC) granted Apple the right to sell power it doesn’t need from renewable resources it owns or has under contract.

As part of its green energy plan, Apple is buying Renewable Energy Certificates -- tradable, non-tangible energy commodities -- that provide a mechanism for the purchase of renewable energy that is added to or pulled from the electrical grid.

Apple’s clean power investments also include wind and solar energy facilities, and the company is set on making sure all new facilities meet the clean energy mark. All in all, the company counts 25 renewable energy projects around the world.

Payday lenders sued the Consumer Financial Protection Bureau (CFPB) on Monday in an attempt to block the agency’s “draconian” final rule on short-term loans, which they say would “virtually eliminate” the payday-lending industry.

The regulation, which was finalized under the Obama administration, would require payday lenders to verify that borrowers can afford the debt before giving them the money and would limit the number of times a person can take out successive loans.

The lawsuit -- which was filed in Texas federal court by the Community Financial Services Association of America (CFSA) -- alleges that the rule is "arbitrary, capricious, and unsupported by substantial evidence," and is in violation of the Administrative Procedure Act.

Would be implemented in 2019

The CFSA argues that the rule “was motivated by a deeply paternalistic view that consumers cannot be trusted with the freedom to make their own financial decisions.” It is not yet known whether the CFPB will fight the lawsuit.

Republicans in the House and Senate have already introduced legislation to try to block the rule, which would go into effect in 2019. By taking legal action, the two payday lending trade groups aim to put even more pressure on the CFPB to block the rule from being implemented.

“We do not take lightly that we are suing our federal regulator, however, we have long said we are pursuing all options with regard to the CFPB’s harmful small-dollar lending rule, and one of these options was litigation,” said Dennis Shaul, chief executive of the Community Financial Services Association of America, the primary industry group for payday lenders.

Chrysler (FCA US LLC) is recalling 12,595 model year 2018 Alfa Romeo Stelvios.

Water may leak into the body control module and its connectors, causing corrosion, resulting in illumination of one or more malfunction indicator lamps, a loss of windshield wiper function, a loss of exterior lighting, a loss of horn function and/or unintended turn signal activation.

Electrical malfunctions such as windshield wipers that may not work in the rain and lights that may not work at night increase the risk of a crash.

What to do

Chrysler will notify owners, and dealers will install additional sealing protection to prevent water from entering the body control module and its connectors.

The recall is expected to begin May 18th, 2018.

Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is U36.

Vornado Air of Andover, Kan., is recalling about 350,000 VH101 Personal Vortex electric space heaters.

The space heater can overheat when in use, posing fire and burn hazards.

The firm has received 15 reports of the heaters catching fire.

This recall involves Vornado VH101 Personal Vortex electric space heaters sold in black, coral orange, grayed jade, cinnamon, fig, ice white and red.

The heaters measure about 7.2 inches long by 7.8 inches wide by 7.10 inches high and have two heat settings (low and high) and a fan only/no heat setting. “Vornado” with a “V” behind it is printed on the front of the unit.

The model/type “VH101,” serial number and ETL mark are printed on a silver rating label on the bottom of the unit.

The heaters, manufactured in China, were sold at Bed Bath & Beyond, Home Depot, Menards, Orchard Supply, Target and other stores nationwide and online at Amazon.com, Target.com, Vornado.com and other websites from August 2009, through March 2018, for about $30.

What to do

Consumers should immediately stop using the recalled heaters and contact Vornado for instructions on how to receive a full refund or a free replacement unit, including free shipping.

Consumers may contact Vornado toll-free at 855-215-5131 from 8 a.m. to 5p.m. (CT) Monday through Friday, or online at www.vornado.com and click on “Recalls” in the lower right corner of the homepage.

NutriZone of Houston, Texas, is recalling various lots of multiple dietary supplements that may be contaminated with Salmonella.

No illnesses have been reported to date in connection with this problem.

The following dietary supplements are being recalled:

Lot numbers can be found on the packaging near the Nutrition Facts Panel.

The recalled products were sold in Pennsylvania, Oklahoma, Washington, Missouri, Florida, Mississippi, California and Texas.

What to do

Customers who purchased the recalled should discontinue their use and return the unused portion to the place of purchase for a full refund.

Consumers with questions may contact NutriZone at 1-800-936-7936, Monday through Friday, 9am-5pm (CST).

Ford Motor Company is recalling 142 model year 2017-2018 Ford F-150s, and model year 2018 Ford Expeditions, Mustangs and Lincoln Navigators equipped with 10-speed automatic transmissions.

A roll pin may not have been installed in the transmission, potentially causing a loss of the "Park" function.

Even though the transmission shift lever is placed in 'Park' and the instrument panel display indicates 'Park,' the vehicle may roll away after it has been exited if the parking brake has not been applied, increasing the risk of injury or a crash.

What to do

Ford will notify owners, and dealers will inspect the transmission to make sure it has the roll pin, installing one if it is missing, free of charge.

The recall is expected to begin April 16, 2018.

Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 18S09.

In a complaint filed Monday, a group of child, consumer, and privacy advocates claim YouTube illegally collects data about underage viewers and uses that data to advertise to its youngest users.

The group of advocates, led by the Campaign for a Commercial-Free Childhood, said it wants the Federal Trade Commission to investigate Google -- which owns YouTube -- for violating the Children’s Online Privacy Protection Act (COPPA), which sets strict rules for how companies can collect data about children under the age of 13.

Per COPPA regulations, companies that run websites targeted at children must notify parents and obtain their consent before collecting any personal data.

“Acted duplicitously”

The group says YouTube avoided COPPA requirements by saying in its terms of service that YouTube is only intended to be used by those over 13, even though Google knows YouTube is widely used among kids in the 6-12 age range.

The site even caters to young viewers, the group said, citing content that is specifically aimed at children under 13.

“Google has acted duplicitously by falsely claiming in its terms of service that YouTube is only for those who are age 13 or older, while it deliberately lured young people into an ad-filled digital playground,” said Jeff Chester of the Center for Digital Democracy. “Just like Facebook, Google has focused its huge resources on generating profits instead of protecting privacy.”

Calls for a fine

The group wants YouTube to change how it deals with content for children, pay a fine for allegedly profiting off young viewers, and “assess civil penalties that demonstrate that the FTC will not permit violations of COPPA.”

"Google has made substantial profits from the collection and use of personal data from children on YouTube. Its illegal collection has been going on for many years and involves tens of millions of US children," the complaint reads.

YouTube issued a statement saying that it “will read the complaint thoroughly and evaluate if there are things we can do to improve. Because YouTube is not for children, we’ve invested significantly in the creation of the YouTube Kids app to offer an alternative specifically designed for children.”

This isn’t the first time a complaint has been filed against YouTube for the way it handles children’s privacy. In 2015, advocacy groups said the site was violating FCC laws about advertising to children.