Current Events in May 2018

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    Kent Quality Foods recalls hot dog and sausage products

    The products contain soy, an allergen not declared on the label

    Kent Quality Foods of Grand Rapids, Mich., is recalling approximately 308,430 pounds of ready-to-eat hot dog and sausage products.

    The products contain soy, an allergen not declared on the label.

    The label for the spice mixture used in the production of one of the Beef Polish sausage contained hydrolyzed soy protein as an ingredient. However, the Beef Polish Sausage does not list the soy ingredient on the finish product label.

    Although the Beef Polish sausage product is the only product that is formulated with the spice mix containing the soy ingredient, there are several other ready-to-eat sausage and hot dog products that are implicated in this recall action due to potential cross contamination via shared equipment during the raw and ready-to-eat processing steps.

    There have been no confirmed reports of adverse reactions due to consumption of these products.

    The complete list of recalled items, produced from September 9, 2017, through April 29, 2018 can be found here.

    The recalled products, bearing establishment number “EST. 5694” inside the USDA mark of inspection, were shipped to distribution and restaurant locations nationwide.

    What to do

    Customers who purchased the recalled products should not consume them, but discard them or return them to the place of purchase.

    Consumers with questions about the recall may contact Stephen Soet at (616) 459-4595.

    Kent Quality Foods of Grand Rapids, Mich., is recalling approximately 308,430 pounds of ready-to-eat hot dog and sausage products.The products contain...

    Mercedes-Benz recalls E300 4Matics, E300s, E43 AMGs and E400s

    The vehicle's headlights could become misaimed

    Mercedes-Benz USA (MBUSA) is recalling 42 model year 2017 E300 4Matics, E300s, E43 AMGs and E400s.

    The headlight horizontal adjustment screws on these vehicles may not be properly sealed behind a non-removable sealing cap to keep headlights from being readjusted.

    If the headlight's horizontal aim is altered, a misaimed headlight may lead to an insufficiently illuminated roadway, which may increase the risk of a crash.

    What to do

    MBUSA will notify owners, and dealers will retrofit the sealing caps for the headlights, free of charge.

    The recall is expected to begin in June 2018.

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

    Mercedes-Benz USA (MBUSA) is recalling 42 model year 2017 E300 4Matics, E300s, E43 AMGs and E400s.The headlight horizontal adjustment screws on these v...

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      Safety agency opens investigation into Tesla crash in Utah

      The vehicle was using the carmaker’s semi-autonomous Autopilot software when the accident occurred

      Regulators with the National Highway Traffic Safety Administration (NHTSA) are opening an investigation into a crash involving a Tesla Model S vehicle.

      The accident, which took place in Utah earlier this month, occurred when a 28-year-old woman crashed into the back of a fire truck while relying on the vehicle’s semi-autonomous Autopilot program. The driver told police that she was driving at 60 mph at the time of the crash while looking at her phone with her hands off the wheel. Despite heavy damage to the vehicle, she walked away with only minor injuries.

      “The agency has launched its special crash investigations team to gather information on the South Jordan, Utah, crash. NHTSA will take appropriate action based on its review,” the agency told Reuters.

      Driver error

      While Tesla declined to issue an official statement on the NHTSA’s involvement, it did confirm that Autopilot was engaged when the crash took place. A company spokesperson reaffirmed that drivers using its Autopilot system are required to stay alert and keep both hands on the wheel.

      “When using Autopilot, drivers are continuously reminded of their responsibility to keep their hands on the wheel and maintain control of the vehicle at all times. Tesla has always been clear that Autopilot doesn’t make the car impervious to all accidents,” the spokesperson said.

      Tesla CEO Elon Musk took a more unbridled approach to the accident in a series of tweets, saying that it was “super messed up” that the media was focusing on this accident while far more serious incidents occurred every day. Musk even doubled down by pointing out that the lack of serious injuries could be seen as a positive.

      “What’s actually amazing about this accident is that a Model S hit a fire truck at 60 mph and the driver only broke an ankle. An impact at that speed usually results in severe injury or death,” he tweeted.

      Tesla investigations continue to rise

      The NHTSA’s investigation is certainly not the first aimed at a crash involving a Tesla vehicle. The National Transportation Safety Board (NTSB) is currently investigating three other Tesla accidents, with the most recent involving a fatal crash in Florida.

      After facing heavy criticism from regulators and safety groups, Tesla announced earlier this month that it would be publishing quarterly reports on the safety of its Autopilot program. In an earnings call, Musk said that the company’s software has room for improvement while also pointing to drivers’ responsibility to stay engaged.

      “When there is a serious accident it is almost always, in fact maybe always, the case that it is an experienced user, and the issue is more one of complacency. They just get too used to it. That tends to be more of an issue. It’s not lack of understanding of what Autopilot can do. It’s  [drivers] thinking they know more about Autopilot than they do,” he said

      Regulators with the National Highway Traffic Safety Administration (NHTSA) are opening an investigation into a crash involving a Tesla Model S vehicle....

      SEC creates fake cryptocurrency to warn consumers of potential scams

      The agency included and explained many of the most common red flags

      On Wednesday, the Securities and Exchange Commission (SEC) launched a website advertising a fake initial coin offering (ICO), intending to show consumers the dangers of a cryptocurrency scam.

      The agency says that most ICOs tend to be fraudulent, as the digital tokens sold to buyers can often turn out to be worthless. In an effort to save consumers the turmoil of getting caught up in one of these scams, the SEC created “HoweyCoin” under the guise of an ICO that’s partnered with the travel industry.

      The agency peppered the site with typical red flags, such as celebrity endorsements and guaranteed returns on investment. The mockup also features a “white paper” explaining the project in full. The token’s name comes from the Howey test -- the Supreme Court’s way of determining whether certain transactions qualify as investment contracts.

      “The rapid growth of the ‘ICO’ market, and its widespread promotion as a new investment opportunity, has provided fertile ground for bad actors to take advantage of our Main Street investors,” said SEC Chairman Jay Clayton. “We embrace new technologies, but we also want investors to see what fraud looks like, so we built this educational site with many of the classic warning signs of fraud.”

      Red flags explained

      The SEC explains that it doesn’t take much effort for a scammer to create a fake website. Many of these cons share common themes and strategies that are used in other types of scams.

      “Fraudsters can quickly build an attractive website and load it up with convoluted jargon to lure investors into phony deals,” said Owen Donley III, chief counsel of the SEC’s office of investor education and advocacy. “But fraudulent sites also often have red flags that can be dead giveaways, if you know what to look for.”

      For starters, the SEC warns consumers against claims of high, guaranteed returns. HoweyCoin boasts over one percent daily returns with double two percent returns on tier one investors in pre-ICO stage secured purchases. The offering also claims to serve as a guaranteed hedge against inflation and market loss.

      According to the SEC’s website, any kind of investment comes with a risk, and consumers should be wary of any offering that tries to convince investors of extremely high or guaranteed rewards.

      Celebrity endorsements are another warning sign. Consumers tend to be lured in when they see their favorite athlete, actor, or singer promoting anything from sneakers and clothes to the latest cryptocurrency. However, the SEC is adamant that just because an ICO drops a big celebrity name, that doesn’t make the product legitimate.

      “It is never a good idea to make an investment decision just because someone famous says a product or service is a good investment,” the SEC website warns.

      Claims of SEC compliance are also reason to give an offering a second look. HoweyCoin claims to trade on an SEC-compliant market where users can buy and sell for profit. However, this is one of the primary ways to deceive investors; the word “exchange” gives the false impression that investors’ money is being traded based on nationally recognized standards. In reality, the SEC does not regulate any of the platforms most ICOs select.

      Investing with a credit card is another red flag. It’s important for consumers to know that most recognized investment firms don’t allow their customers to use credit cards to buy investments or to fund investment accounts. Therefore, consumers -- and any potential investors -- should be skeptical of any organization asking them or allowing them to use their credit cards for such purchases.

      Lastly, the SEC warns against pump and dump scams. In these scenarios, fraudsters spread false or misleading information to entice customers to buy into an offering to “pump” up the price of the stock and then “dump” shares by selling at the newly inflated price. In time, the good word regarding the stock will die down, the price will fall, and investors lose money.

      Safe investments are possible

      The SEC has yet to approve any public ICO sales, as the agency feels they should comply with certain rules, like giving investors audited financial statements and descriptions of the business and its risks. While cryptocurrency supporters say rules like these go against the purpose of the business models of token-selling, the SEC says operating under the current system is illegal.

      “The fact that our staff could put something together that looks just like an ICO in very little time and with very little resources shows how little you have to put into this to market a token,” Clayton said.

      Crypto advocates have been showing incredible support of the HoweyCoin campaign since the SEC made it public on the last day of Consensus -- one of the biggest conferences for cryptocurrency investors and developers.

      “It’s great that they’re educating investors and not just being paternalistic,” said Trevor Koverko, chief executive of Polymath, a Toronto-based blockchain company. “And it’s creative too, which I wouldn’t have expected.”

      “I am not a fan of overt regulation -- but damn, SEC, this is clever and beneficial to the #crypto market. Point Feds,” wrote Dank Coins on Twitter. “P.S. don’t invest in Howeycoin lol.”

      On Wednesday, the Securities and Exchange Commission (SEC) launched a website advertising a fake initial coin offering (ICO), intending to show consumers t...

      FDA approves first non-opioid drug for treating opioid withdrawal symptoms

      The new drug helps ease the symptoms of opioid dependency

      The Food and Drug Administration (FDA) has approved the first non-opioid therapy for the management of opioid withdrawal symptoms.

      Lucemyra has been approved to treat vomiting, muscle aches, agitation, and other symptoms associated with quitting opioids. Although it is not an addiction medicine, it can be part of a longer-term treatment plan, according to the FDA.

      In a statement, FDA Commissioner Scott Gottlieb said the approval was a positive development in the agency’s continued effort to help people overcome opioid addiction.

      “The fear of experiencing withdrawal symptoms often prevents those suffering from opioid addiction from seeking help,” Gottlieb said.

      "As part of our commitment to support patients struggling with addiction, we're dedicated to encouraging innovative approaches to help mitigate the physiological challenges presented when patients discontinue opioids,” he added.

      Alleviates withdrawal symptoms

      The FDA said its decision to approve the drug was supported by data gathered from two clinical studies involving 866 clinically opioid-dependent adults, following abrupt discontinuation of use.

      Data from the studies revealed that those treated with Lucemyra had less severe withdrawal symptoms and were significantly more likely to complete a seven-day opioid detoxification treatment compared to individuals in the group given placebo pills.

      Side effects of the treatment included low blood pressure, dizziness, sleepiness, slow heart rate, and a few cases of syncope (fainting).

      US WorldMeds explained that Lucemyra “suppresses the neurochemical surge that produces the acute and painful symptoms of opioid withdrawal.” Lucemyra was approved to treat withdrawal symptoms for up to two weeks.

      The FDA has requested 15 post-marketing studies, in both animals and humans, to support longer-term use of the drug and use in children or adolescents under 17. The new drug is expected to become available in the U.S. in August 2018.

      The Food and Drug Administration (FDA) has approved the first non-opioid therapy for the management of opioid withdrawal symptoms. Lucemyra has been ap...

      CEO of Bumble Bee Foods indicted on price-fixing charge

      The Justice Department claims the executive conspired with other tuna companies to set prices

      Federal prosecutors have secured an indictment against Christopher Lischewski, the CEO of Bumble Bee Foods, on one count of price fixing.

      The indictment, returned by a grand jury in San Francisco, claims that Lischewski conspired with others in the industry, from November 2010 to December 2013, to set prices for canned tuna.

      Through his lawyer, Lischewski said he is innocent.

      "When the facts are known and the truth emerges, Mr. Lischewski will be found not guilty, and that vindication will rightfully restore his good name," attorney John Keker said in a statement to the media.

      Lengthy investigation

      Prosecutors began investigating possible price collusion in the canned tuna industry during the Obama administration, focusing on three companies – Bumble Bee, StarKist, and Chicken of the Sea. Former StarKist executive Stephen Hodge entered a guilty plea to a price-fixing charge in 2017.

      In a separate action, retail giant Walmart filed a civil suit last year claiming that the industry illegally set canned tuna prices over a five-year period.

      “The Antitrust Division is committed to prosecuting senior executives who unjustly profit at the expense of their customers,” said Assistant Attorney General Makan Delrahim, of the Justice Department’s Antitrust Division. “American consumers deserve free enterprise, not fixed prices, so the Department will not tolerate crimes like the one charged in today’s indictment.”

      Defrauding consumers

      FBI Special Agent in Charge John F. Bennett said the indictment shows that corporate executives will be held accountable for actions that occur on their watch, especially when they “defraud American families.”

      According to the National Fisheries Institute, U.S. consumers eat about 1 billion pounds of canned and pouched tuna a year. Only coffee and sugar exceed canned tuna in sales per foot of shelf space in grocery stores. In 2007, Americans ate 2.7 pounds of canned tuna per capita.

      The one-count felony indictment claims that Lischewski, through meetings and other forms of communication, carried out a conspiracy by agreeing to fix the prices of packaged seafood.

      The Justice Department says Bumble Bee Foods has already pleaded guilty and been sentenced to pay a criminal fine of at least $25 million as a result of the investigation.

      Federal prosecutors have secured an indictment against Christopher Lischewski, the CEO of Bumble Bee Foods, on one count of price fixing.The indictment...

      Number of E. coli cases tied to romaine lettuce has risen, CDC says

      However, public health officials say the outbreak is coming to a close

      Health officials have reported that the number of cases of E. coli tied to tainted romaine lettuce has grown to 172. Twenty-three new illnesses have been reported, the Centers for Disease Control and Prevention (CDC) said Wednesday.

      Although the number of illnesses are mounting, the CDC says the outbreak -- which originated in the Yuma, Arizona region -- is likely nearing its end since the last shipment of romaine lettuce from Yuma left on April 16 and the harvest season there is over.

      "It is unlikely that any romaine lettuce from the Yuma growing region is still available in stores or restaurants due to its 21-day shelf life," the CDC said.

      "It takes two to three weeks between when a person becomes ill with E. coli and when the illness is reported to CDC,” the agency said. “The most recent illnesses reported to CDC started when romaine lettuce from the Yuma growing region was likely still available in stores, restaurants, and in peoples’ homes.”

      Higher hospitalization rate than usual for E. coli

      To date, 75 people have been hospitalized and one person has died from the illness; 20 people have suffered a dangerous form of kidney failure as a result of the bacterial infection.

      "This is a higher hospitalization rate than usual for E. coli O157:H7 infections, which is usually around 30 percent," the agency said of the outbreak, which began in March.

      In April, the CDC warned consumers to toss out any romaine lettuce they may have purchased in stores. The agency later expanded its warning from chopped romaine lettuce to any and all forms of the lettuce. Restaurants were also advised not to serve romaine lettuce.

      Consumers are no longer being advised to avoid buying lettuce in connection with the recent outbreak since romaine lettuce grown in Yuma, Ariz. is likely no longer on store shelves.

      Symptoms of the illness usually surface "an average of three to four days after swallowing the germ,” according to the CDC. Common symptoms include diarrhea, severe stomach cramps, and vomiting. Most people recover within a week, but more severe cases may last longer.

      "Talk to your doctor if you have symptoms of an E. coli infection and report your illness to your local health department," the agency said.

      Health officials have reported that the number of cases of E. coli tied to tainted romaine lettuce has grown to 172. Twenty-three new illnesses have been r...

      Senate approves rollback of FCC’s net neutrality ruling

      Despite the victory, a long road remains for saving the popular internet policy

      By a vote of 52 to 47, senators voted to overturn the Federal Communication Commission’s Restoring Internet Freedom Order. The FCC repealed the Obama-era net neutrality policy last December.

      On Wednesday, all 49 Democrats voted in favor of restoring the consumer-friendly rule, as well as Republican Senators Susan Collins, of Maine; John Kennedy, of Louisiana; and Lisa Murkowski, of Alaska.

      Democrats used a tool called the Congressional Review Act (CRA) to reverse the ruling. The CRA allows Congress to review and potentially reverse recent decisions made by federal agencies.

      "Today is a monumental day," said Sen. Edward Markey, D-Mass., during debate over the resolution. "Today we show the American people who sides with them, and who sides with the powerful special interests and corporate donors who are thriving under this administration."

      Long road ahead

      The action represented a blow to the FCC’s new rule, which is set to go into effect June 11. However, the vote was mostly symbolic. Net neutrality still faces a long, uphill battle toward restoration.   

      The House -- which is comprised of a large GOP majority -- doesn’t intend to take similar action. Democrats will need at least 25 Republicans to join them in the House. After that, President Trump would need to give final executive approval, which he is unlikely to provide since he has said that he agrees with the FCC’s policy.

      Democrats say they’re planning to carry the fight to salvage the concept that internet service providers (ISP) must treat all content the same into the 2018 midterms. Senate Minority Leader Chuck Schumer believes the vote will energize Democratic voters in the midterm elections and help the party capture seats currently held by Republicans.

      “A vote against this resolution will be a vote to protect large corporations and special interests, leaving the American public to pay the price,” Schumer said.

      ‘Disastrous’ for the average consumer

      Critics of the FCC’s net neutrality rules, which have been in place since 2015, say they’re worried about consumers being forced to pay more for slower or less consistent service. FCC Chairman Ajit Pai, part of the Republican majority, has called the rule "heavy-handed" and unnecessary.

      Those fighting to restore net neutrality have called the FCC’s decision to repeal the policy “disastrous” for its potential impact on the average consumer and middle-class family.

      “The internet should be kept free and open like our highways, accessible and affordable to every American, regardless of ability to pay,” Schumer said.

      “The repeal of net neutrality is not only a blow to the average consumer, but it is a blow to public schools, rural Americans, communities of color and small businesses. A vote against this resolution will be a vote to protect large corporations and special interests, leaving the American public to pay the price.”

      By a vote of 52 to 47, senators voted to overturn the Federal Communication Commission’s Restoring Internet Freedom Order. The FCC repealed the Obama-era n...

      Ford ready to resume F-150 truck production

      The company overcame a parts shortage in record time

      To the surprise of nearly everyone in the industry, Ford has recovered from the parts shortage that halted production of the popular F-series pick-up trucks. The assembly lines will begin rolling again Friday, company officials say.

      It was just last week that the automaker was forced to suspend production of the F-150 and F-series Super Duty trucks because of a fire at a parts plant in Michigan. The fire created a shortage of a key die-cast part.

      It was significant for consumers because the F-150 is the best selling pick-up in the U.S. Consumers purchased nearly 900,000 of the trucks in 2017 and sales have been strong in the first quarter of this year. Because dealers had a more than 80-day inventory of trucks on hand, the limited production delay has not had a noticeable impact, Ford says.

      'Extraordinary intercontinental effort'

      In reporting on the quick recovery, Forbes credits “an extraordinary, intercontinental effort” to gather critical manufacturing tools and airlift them across the ocean to another facility, with the precision of a military operation.

      Ford reportedly assembled experts from partners and suppliers to resume production of the parts needed for the two pick-up truck lines, as well as the Ford Expedition, Explorer, Flex, and Lincoln Navigator and MKT.

      The May 2 fire at the Meridian Magnesium Products of America plant in Eaton Rapids, Michigan hit other automakers as well. Though Ford was hit hardest, the fire has also affected production for General Motors and Fiat Chrysler.

      The parts interruption forced GM to suspend production of its full-size vans and Fiat Chrysler to pull the Chrysler Pacifica off the assembly line.

      To the surprise of nearly everyone in the industry, Ford has recovered from the parts shortage that halted production of the popular F-series pick-up truck...

      Purdue Pharma sued by six states over opioid marketing

      The complaints charge the company of misrepresenting the benefits and dangers of OxyContin

      Six more states have sued Purdue Pharma, a manufacturer of the opioid painkiller OxyContin. They accuse the company of contributing to a growing opioid addiction crisis.

      Specifically, the attorneys general of Florida, Nevada, North Carolina, North Dakota, Tennessee, and Texas say the pharmaceutical company used deception in marketing opioid drugs to health professionals by over-selling their benefits and neglecting to mention their risks.

      They join several other states and Indian tribes that have filed similar suits, seeking to recoup some of the money states have spent dealing with the resulting public health crisis.

      In a statement to the media, Purdue noted that its products are approved by the Food and Drug Administration (FDA) and accounted for only 2 percent of all opioid prescriptions. It also denied the allegations made in the six lawsuits.

      Florida sues distributors as well

      In addition to suing Purdue, Florida Attorney General Pam Bondi included Endo Pharmaceuticals, Inc., Janssen Pharmaceuticals, Inc., Cephalon, Inc., and Allergan plc, and opioid distributors AmerisourceBergen Drug Corporation, Cardinal Health, Inc., McKesson Corporation, and Mallinckrodt LLC, in her complaint.

      “We are in the midst of a national opioid crisis claiming 175 lives a day nationally and 15 lives a day in Florida, and I will not tolerate anyone profiting from the pain and suffering of Floridians,” Bondi said.

      Florida's suit accuses the opioid manufacturers of using a “campaign of misrepresentations and omissions” about the use of opioids, including false statements about the addictive nature of opioids and omissions of the severe risks posed by taking opioids.

      Bondi seeks to hold opioid distributors accountable as well, claiming these companies shipped “inordinately high volumes of opioids” to customers in Florida without reporting these suspicious orders.

      “Purdue’s deception lined the pockets of its owners and led to the deaths and hospitalization of thousands of Nevadans,” said Nevada Attorney General Adam Paul Laxalt in reference to his own state’s opioid problem.

      “Since the release of OxyContin, Purdue has engaged in an extensive, well-crafted and highly targeted deceptive marketing campaign to spread false and misleading messages to health care professionals and patients in Nevada. Purdue must be held accountable for its actions and its role in Nevada’s opioid epidemic.”

      Laxalt says Nevada’s per capita prescription rate for opioids was 87 out of 100 residents in 2016. Between 2010 and 2016, he says opioid-related emergency room encounters increased by 136 percent.

      'Pseudo-addiction'

      North Carolina Attorney General Josh Stein claims that as concerns rose over opioid addiction, Purdue advanced the concept of “pseudo-addiction,” telling doctors that patients were not really addicted to the drugs but simply needed more.

      “Purdue Pharma repeatedly deceived prescribers and patients in its pursuit of profits – and far too many North Carolinians lost their loved ones as a result,” Stein said . “Purdue crossed the line, and I intend to hold them accountable.”

      A total of 22 states have now filed actions against one or more opioid drug markers, seeking financial compensation for states' law enforcement and drug treatment expenses. In addition, hundreds of U.S. cities and counties have filed their own lawsuits against various opioid drugmakers.

      Six more states have sued Purdue Pharma, a manufacturer of the opioid painkiller OxyContin. They accuse the company of contributing to a growing opioid add...

      Seattle votes to tax high-grossing companies to help the homeless

      Amazon and Starbucks are fuming after learning of the City Council decision

      On Monday, the Seattle City Council voted unanimously (9-0) to tax the city’s highest grossing companies in an effort to combat homelessness.

      Despite tough negotiations between the City Council and Mayor Jenny Durkan over the weekend, the city will now tax companies who bring in over $20 million in revenue $275 per employee per year. The decision came after Mayor Durkan vetoed an initial $500 per head tax.

      “This was a tough debate,” Mayor Durkan said. “Not just here at City Hall, but all across the city. No one is saying that this will solve everything, but it will make a meaningful difference. The legislation will help us address our homelessness crisis without jeopardizing critical jobs.”

      About three percent of Seattle businesses will be liable to pay the tax, which can end after five years through a city council vote. The city is estimated to make roughly $47 million a year from the tax that will go towards housing and healthcare initiatives for the homeless.

      Amazon and Starbucks fight back

      Despite the positive implications the tax is designed to have, both Amazon and Starbucks -- arguably the two biggest companies in Seattle -- have already voiced their negative feelings. And Amazon has already taken action.

      Upon hearing the tax proposal earlier this month, Amazon decided to halt two major construction projects, and it is currently rethinking plans to move into a different building. The company has its headquarters in Seattle and employs roughly 45,000 people; the tax could cost Amazon over $10 million annually.

      “We are disappointed by today’s city council decision to introduce a tax on jobs,” Amazon Vice President Drew Herdener said in a statement. “While we have resumed construction planning, we remain very apprehensive about the future created by the council’s hostile approach and rhetoric toward larger businesses, which forces us to question our growth here.”

      “The city does not have a revenue problem -- it has a spending efficiency problem,” Herdener continued. “We are highly uncertain whether the city council’s anti-business positions or its spending efficiency will change for the better.”

      Starbucks -- another one of the nearly 300 Seattle businesses that will have to pay the tax -- voiced similar concerns.

      “This city continues to spend without reforming and fail without accountability, while ignoring the plight of hundreds of children sleeping out,” said senior vice president of global affairs John Kelly.

      “If they cannot provide a warm meal and safe bed to a five-year-old, no one believes they will be able to make housing affordable or address opiate addiction. This City pays more attention to the desires of the owners of illegally parked RVs than families seeking emergency shelter.”

      Fighting Seattle’s homelessness

      Despite criticisms from Amazon and Starbucks, officials believe the new tax will help address the city’s severe homelessness problem.

      In 2015, Seattle declared a homelessness state of emergency. Based on a tally from last year, there were over 11,600 homeless people in King County. An investigation discovered that one out of every 16 public school students in Seattle are homeless..

      “We have community members who are dying,” Councilmember Teresa Mosqueda said before the vote. “They are dying on our streets today because there is not enough shelter.”

      By implementing the tax, the city plans to both build housing and provide additional health services. The council approved spending 66 percent of the funds on affordable housing, 32 percent on emergency shelter, trash pickup, raises for service workers and other needs, and two percent on administration.

      “I think it was a job well done and now we have to actually prove to the public that we’re actually investing wisely and strategically,” said Council President Bruce Harrell.

      On Monday, the Seattle City Council voted unanimously (9-0) to tax the city’s highest grossing companies in an effort to combat homelessness.Despite to...

      Walmart adds Lord and Taylor brands to its website

      The company hopes adding upscale apparel will help it become a ‘fashion destination’ for shoppers

      Walmart has announced that it’s adding high-end items to the fashion section of its website as part of a site upgrade first teased back in April.

      Consumers will soon see two different categories on the fashion section of Walmart’s website: Premium Brands and Walmart’s Everyday Brands.

      The company’s Premium Brands section will include offerings from more than 125 Lord & Taylor brands, including Tommy Bahama, Vince Camuto, Miss Selfridge, and Lucky Brand. A separate tab will house Walmart’s Everyday Brands, which will be “part of Walmart.com’s broader fashion destination.”

      The assortment of Lord & Taylor products available at Walmart.com will include men's, women's, and kids' clothing, as well as shoes, accessories, and jewelry. The range of offerings will be updated “regularly,” the company said.

      “We want each category to feel like you are shopping a specialty store,” said Marc Lore, president and CEO of Walmart's U.S. e-commerce business, adding that similar partnerships with other apparel brands are planned for later this year.

      Competing with Amazon

      Walmart and Lord & Taylor first announced their partnership last November. The Bentonville, Arkansas-based retailer said at the time that it wanted to turn its website into a “premium fashion destination.”

      "We see customers on our site searching for higher-end items, and we are expanding our business online to focus on adding specialized and premium shopping experiences, starting with fashion," said Denise Incandela, the head of fashion for Walmart US e-commerce.

      Walmart says the new shopping experience will be rolled out “in the coming weeks.”

      "The new experience is aligned with how customers shop the category, with editorial elements that inspire customers to browse and buy, and has already generated positive customer response,” Incandela said in a statement on Tuesday.

      "The next step is the launch of the Lord & Taylor flagship store, which introduces exciting new premium brands to our customers,” she added.

      Adding new retail brands and products to its website will help Walmart compete with Amazon, which is poised to surpass Walmart to become the number one apparel retailer in the country later this year.

      Walmart has announced that it’s adding high-end items to the fashion section of its website as part of a site upgrade first teased back in April. Consu...

      Whole Foods offering Prime members 10 percent off sale items and other weekly discounts

      Consumers don’t have to sign up for a loyalty card to receive the discounts

      Amazon is giving Prime members a 10 percent discount on some sale items at Whole Foods markets, as well as weekly discounts on popular items.

      The program kicks off at stores in Florida on Wednesday and will extend to all Whole Foods Market and Whole Foods Market 365 stores nationwide this summer.

      To take advantage of the deals, Prime members must download the Whole Foods app, sign in with their Amazon account, and scan the app’s Prime code at checkout. Alternatively, shoppers can simply provide their phone number, as long as the number is linked to their Prime account.

      Sale applies to hundreds of products

      Amazon said the 10 percent discount on sale items will apply to hundreds of products throughout the store while the “weekly deep discounts” will apply to best-selling items. The former will be labeled with yellow “10% off” sale signs and the latter with “Prime Member Deal” signs.

      This week (5/16 through 5/22) in Florida stores, shoppers will receive the following deals:

      • Sustainably sourced, wild-caught halibut steaks: $9.99/lb., save $10/lb.

      • Organic strawberries: 1 lb. for $2.99, save $2

      • Cold brew coffee at Allegro coffee bars: 50% off 16 oz.

      • KIND granola: 11 oz. bag 2/$6

      • 365 Everyday Value sparkling water: 12-pack case buy one, get one free

      • Magic Mushroom Powder: 50% off

      More information about the discount program can be found here.

      Previous efforts to reduce prices

      Following its acquisition of Whole Foods in August 2017, Amazon began taking steps to integrate the two companies. The companies previously launched free two-hour delivery from Whole Foods via Amazon’s Prime Now service.

      Amazon also announced earlier this year that Prime members will get 5 percent back on Whole Foods purchases with the Amazon Prime Rewards Visa Card. Experts say Amazon’s latest move to reduce prices at Whole Foods for Prime shoppers is its most aggressive effort to integrate the two companies to date.

      “There have been gradual steps towards integrating Amazon and Whole Foods. But this is a more meaty idea, tying together this idea of providing fresh foods at a good price to Prime members,” Bob Hetu, a retail industry analyst with Gartner, told USA Today.

      In a statement, Amazon Prime vice president Cem Sibay described the new discount program as “a perfect pairing of healthy and delicious food at even more affordable prices.”

      “Our vision is that every day Prime makes your life better, easier and more fun, and shopping at Whole Foods Market with exclusive deals and savings is all of this and more,” Sibay said.

      Amazon is giving Prime members a 10 percent discount on some sale items at Whole Foods markets, as well as weekly discounts on popular items. The progr...

      Subprime auto loan defaults hit 20-year high in March

      Consumers with poor credit may find it harder to buy a car

      Consumers are defaulting on subprime auto loans at the highest rate in two decades, according to new data released by Fitch Ratings.

      It shows the percentage of subprime auto loans more than 60 days overdue hit 5.8 percent in March, the highest rate since 1996 and higher than during the financial crisis.

      The findings may have broad implications for consumers with poor credit who want to purchase a new or used car.

      One reason car sales have been near record levels over the last few years is the growing use of subprime auto financing. People with a low credit score and spotty credit history are able to purchase a vehicle because lenders compensate for the heightened risk by charging a much higher interest rate.

      Less willing to extend credit

      But a report by Bloomberg News suggests the rising default rate means lenders will be less willing to make these loans. Subprime auto loans are bundled into securities and sold as bonds, but the chance that more of these loans could be bad will likely mean these bonds will be less valuable.

      The same thing happened in the housing market 10 years ago, with catastrophic results. When homeowners defaulted on their subprime loans, it nearly brought down the world's financial system.

      Bloomberg reports that lenders have already increased standards for subprime auto loans and are making fewer of them. Between January and March, subprime auto loan origination plunged by 10 percent.

      Downside of a subprime loan

      While a subprime car loan may mean a consumer with poor credit can buy a vehicle, that's not always to the consumer's benefit. These loans are almost always more costly.

      Since lenders assume a subprime borrower is a higher risk, they charge a higher interest rate than they would give someone with an excellent credit score. According to automotive publisher Edmunds, a typical subprime interest rate on a used car loan is around 16.25 percent, and even higher for a consumer considered “deep subprime.”

      In addition to a higher monthly payment, a subprime loan may carry more processing fees and other costs of securing the loan. The subprime purchaser may also be required to put up a larger down payment.

      The credit score range for subprime auto loans generally extends from 501 to 600, with scores below 680 considered non-prime. The best way to avoid being stuck with a subprime loan is to improve your credit score by paying all of your bills on time and paying down credit card balances.

      Consumers are defaulting on subprime auto loans at the highest rate in two decades, according to new data released by Fitch Ratings.It shows the percen...

      Tension between spouses could worsen disease symptoms, study finds

      Researchers say those suffering from arthritis or diabetes should focus on the health of their marriage

      Previous studies have found that a happy marriage can lead to greater health benefits for both spouses, but a new study finds that the opposite may also be true.

      Researchers from Penn State examined two groups of older individuals – one with members that suffered from arthritis and another with members that suffered from diabetes – and found that symptoms of either disease worsened when spouses were going through a rough patch. Professor Lynn Martire says that the findings reaffirm how important a healthy marriage can be to overall health.

      "We study chronic illnesses, which usually involve daily symptoms or fluctuations in symptoms. Other studies have looked at the quality of someone's marriage right now. But we wanted to drill down and examine how positive or negative interactions with your spouse affect your health from day to day,” she said.

      "It was exciting that we were able to see this association in two different data sets -- two groups of people with two different diseases. The findings gave us insight into how marriage might affect health, which is important for people dealing with chronic conditions like arthritis or diabetes.”

      A vicious cycle

      The study examined 145 people suffering from osteoarthritis and 129 others suffering from type 2 diabetes. Each person was asked to keep a diary of their mood, symptom severity, and the types of interactions they had with their spouses over the course of several weeks.

      In addition to finding a correlation between symptom severity and interactions between spouses, the researchers say that increased levels of pain in the osteoarthritis group could often lead to even more marriage tension the following day.  

      "This almost starts to suggest a cycle where your marital interactions are more tense, you feel like your symptoms are more severe, and the next day you have more marital tension again," Martire said.

      Focusing on relationships

      The study findings could be very impactful for consumers who suffer from diseases that can worsen over time. The researchers indicate that focusing on healthy relationships could potentially delay disability in osteoarthritis patients and other associated complications in diabetes patients.

      "We usually focus on illness-specific communications, but looking at tension in a marriage isn't tied to the disease, it's not a symptom of the disease itself. It's a measure you can get from any couple. It suggests to me that looking beyond the illness, to improve the overall quality of the relationship might have some impact on health,” Martire said.

      The full study has been published in the Annals of Behavioral Medicine.

      Previous studies have found that a happy marriage can lead to greater health benefits for both spouses, but a new study finds that the opposite may also be...

      Lawmakers argue Trump plan to reverse ZTE ban poses a security threat

      Trump says the plan is ‘reflective of the larger trade deal we are negotiating with China’

      Days after President Trump offered an unexpected lifeline to China by tweeting that he and Chinese President Xi Jinping were “working together” to give ZTE “a way to get back into business, fast,” U.S. lawmakers are pushing back on the president’s talk of abandoning legislation that prevents the company from doing business with the U.S.

      ZTE was banned from receiving parts and components from American suppliers for seven years after it violated the terms of a 2017 settlement created after it breached sanctions on Iran and North Korea.

      Trump’s decision to revisit the penalty came as a surprise to many as it appeared to represent a drastic shift from his “America First” stance. On Monday, Trump defended his earlier pledge to help the company.

      "ZTE, the large Chinese phone company, buys a big percentage of individual parts from U.S. companies. This is also reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi," he said in a tweet.

      However, lawmakers have expressed concerns that equipment made by the telecommunications firm could pose a security threat.

      Question of security

      Senator Marco Rubio (R - Fla.) tweeted Monday that the U.S. would be "crazy" to allow ZTE to operate in the U.S. "without tighter restrictions."

      "Any telecomm firm in #China can be forced to act as a tool of Chinese espionage without a court order or other review process," Rubio said.

      “I hope the administration does not move forward on this supposed deal I keep reading about,” Rubio said at a Foreign Relations Committee hearing on Asia policy, referring to a potential arrangement that would ease the ban on ZTE in exchange for elimination of new Chinese tariffs on certain U.S. farm products, first reported by the Wall Street Journal.

      “They are basically conducting an all-out assault to steal what we’ve already developed and use it as the baseline for their development so they can supplant us as the leader in the most important technologies of the 21st century,” Rubio added.

      Senate Democratic Leader Chuck Schumer called the plan "a bad deal if there ever was one."

      “The toughest thing we could do, the thing that will move China the most, is taking tough action against actors like ZTE," Schumer said. "But before it’s even implemented, the president backs off. This leads to the greatest worry, which is that the president will back off on what China fears most — a crackdown on intellectual property theft — in exchange for buying some goods in the short run."

      The U.S. and China are preparing to continue trade talks in Washington this week, which some say is a key reason Trump has decided to revisit the ban.

      "A reversal of the ZTE decision could temporarily tamp down trade tensions by allowing the Chinese to make concessions to the U.S. without losing face," Eswar Prasad, a professor of trade policy at Cornell University, told The Associated Press.

      "Trump may have recognized that backing off on ZTE clears the path for him to claim at least a partial victory in the US-China trade dispute based on the concessions the Chinese seem prepared to offer,” Prasad said.

      Days after President Trump offered an unexpected lifeline to China by tweeting that he and Chinese President Xi Jinping were “working together” to give ZTE...

      Average credit card rate now exceeds 15 percent

      Consumers paid down debt in the first three months of 2018

      The average rate on credit card balances, as measured by a credit card comparison site, has hit an 18-year high, meaning consumers carrying balances are paying more in interest.

      But a bright spot in the CompareCards.com analysis shows consumers paid off a big chunk of their credit card balances, perhaps applying some of their tax refunds to their debt.

      Despite the fact that the interest rate on everything from mortgages to car loans remains near historic lows, CompareCards puts the average credit card interest rate at 15.3 percent, an 18-year high. A consumer with a $10,000 credit card balance would pay an average of more than $1,500 in interest if they paid nothing on the principal.

      Credit cards are unsecured loans, which is why their rates are always higher. They are also closely tied to the Federal Reserve's discount rate. As the Fed begins to normalize that rate – which was held at near zero percent for years – it puts upward pressure on credit card rates.

      Credit card rates are also higher now than they were two decades ago, relative to the prime rate – the rate banks charge their best customers. Eighteen years ago, when the average credit card rate was over 15 percent, the prime rate was more than nine percent.

      Today, the prime rate is just 4.75 percent, meaning the average credit card rate is more than 10 percentage points higher.

      Paying off debt

      Between January and March, consumers appeared to make progress in paying down their credit card balances. The CompareCards analysis shows revolving debt, made up primarily of credit card balances, dropped by $52.7 billion. It was the largest paydown since 2010, at the end of the Great Recession.

      March is traditionally the lowest month in the year for credit card balances. If this year follows the usual pattern, balances will begin to rise throughout the year. As we reported last week, LendingTree projects consumers will owe a total of $4 trillion by the end of the year.

      Rising debt is often a sign of an improving economy. With more people employed, more consumers may be willing to make major purchases and finance them with credit cards.

      People are also earning more money, but the CompareCards analysis shows consumers are spending money at a faster rate than they are earning it. Spending rose in March for the first time in two months.

      The average rate on credit card balances, as measured by a credit card comparison site, has hit an 18-year high, meaning consumers carrying balances are pa...

      Whole Foods Market recalls Reblochon Cheese

      The product may be contaminated with E. coli O26

      Whole Foods Market is recalling Reblochon Cheese "raw cow cheese" that may be contaminated with E. coli O26.

      There have been no reported illnesses associated with the consumption of this product in Canada, although illnesses have been reported in France.

      The following product is being recalled:

      Brand NameCommon NameSizeCode(s) on ProductUPC
      Whole Foods MarketReblochon Cheese "raw cow cheese"VariableAll "Packed On" dates from March 20, 2018 up to and including May 15, 2018Starts with
      0293524

      The recalled product was been sold at the following Whole Foods Market locations in Ontario:

      • 4771 Yonge Street, North York
      • 301 Cornwall Road, Oakville
      • 951 Bank Street, Ottawa
      • 87 Avenue Road, Toronto

      What to do

      Customers who purchased the recalled product should not eat it, but discard it or return it to the store where it was purchased.

      Whole Foods Market is recalling Reblochon Cheese "raw cow cheese" that may be contaminated with E. coli O26.There have been no reported illnesses assoc...