Current Events in May 2018

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    Trump to help ZTE ‘get back into business’

    The announcement comes amid continuing negotiations between the U.S. and China over trade and intellectual property

    President Trump announced on Sunday that he and Chinese President Xi Jinping are working together to help ZTE, the world’s fourth-largest cell phone maker, save jobs after it pleaded guilty to selling U.S. technology to Iran and North Korea and then violated the terms of the settlement.

    The two sides "are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast," Trump said in a tweet, adding that he has instructed the Commerce Department "to get it done."

    ZTE previously agreed to pay $1.2 billion as reparation for selling U.S. technology to Iran and North Korea. It later violated the terms of the settlement by failing to fire or discipline the employees who were involved in the illegal actions.

    As penalty for its actions, the Commerce Department imposed a seven-year ban on the company that prevented it from buying parts from U.S. manufacturers. ZTE said the Denial Order would “severely impact” its business. Experts called the ban a “death sentence” for the company.

    Last week, ZTE disclosed that it had halted "the major operating activities of the company” as a result of the ban.

    Surprising turn of events

    President Trump’s lifeline to China is being viewed as a drastic shift from his “America First” stance. President Trump has in the past accused China of stealing U.S. jobs and vowed to crack down on what he says are unfair trade practices.

    A few hours later, President Trump followed up with another tweet: "China and the United States are working well together on trade, but past negotiations have been so one sided in favor of China, for so many years, that it is hard for them to make a deal that benefits both countries. But be cool, it will all work out!"

    "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.

    The two countries are preparing to continue trade talks in Washington this week.

    "The President's tweet underscores the importance of a free, fair, balanced, and mutually beneficial economic, trade and investment relationship between the United States and China," said White House deputy press secretary Lindsay Walters in a statement.

    President Trump announced on Sunday that he and Chinese President Xi Jinping are working together to help ZTE, the world’s fourth-largest cell phone maker,...

    Chili's data breach exposes customer credit card information

    The Tex-Mex chain is still unsure how many customers have been affected by the breach

    On Saturday, Chili’s parent company Brinker International announced that its payment systems had been infected with malware, potentially exposing customers’ credit and debit card information.

    The company confirmed that personal data such as social security numbers, birthdates, or federal or state identification numbers are still secure, as Chili’s doesn’t request that information from their customers. However, credit or debit card numbers and cardholder names are at risk, though the incident was limited to only some restaurants.

    In a company news release, Brinker said it believes the timeline of the breach was limited to March-April 2018, but the company is continuing to investigate the scope of the issue.

    “We are working diligently to address this issue and our priority will continue to be doing what is right for our Guests,” Brinker said in the release. “We are committed to sharing additional information on this ongoing investigation with our Guests to learn more.”

    What this means for Chili’s

    News of the data breach adds Chili’s to a long list of retailers that have been impacted by similar issues just this year, including Sears, Whole Foods, Under Armour, and Kmart. The news is particularly bad for Chili’s because the chain has been suffering from a rather significant sales decrease for nearly a decade.

    Additionally, data breaches like this one often result in customers losing trust in brands. A recent KPMG study found that 19 percent of consumers would no longer shop at a retailer that has experienced a breach, while 33 percent would take a long break.

    One positive in these circumstances is Brinker’s near immediate response to the situation. The company’s response came just one day after the breach was discovered, which differs greatly from how Facebook’s recent data breach wasn’t made public until it was discovered by reporters.

    What this means for consumers

    Following the breach, Brinker said it will be working with third-party forensic experts to determine its severity and potential impact. The company stated that it would provide fraud resolution and credit monitoring services for guests, and it will continue to update its website as more information is made available.

    Company officials reiterated that the breach only impacted customers at certain Chili’s locations between March and April and that it was safe for consumers to use debit and credit cards at store locations going forward.

    Consumers who used their cards at Chili’s locations during that time period are urged to closely monitor their accounts for any suspicious activity. In its statement, Brinker recommended that customers contact a credit reporting agency and their bank or credit provider to enable additional protections.

    “We sincerely apologize to those who may have been affected and assure you we are working diligently to resolve this issue,” the company said in a news release.

    On Saturday, Chili’s parent company Brinker International announced that its payment systems had been infected with malware, potentially exposing customers...

    Tobi Recalls Babynest crib bumpers

    The strings on the crib bumper pose a strangulation hazard to babies

    Tobi USA of Concord, Calif., is recalling about 200 Babynest crib bumpers.

    The strings on the crib bumper exceed a safe length, posing a strangulation hazard to babies.

    No incidents or injuries have been reported.

    This recall involves Babynest crib bumpers used in Babybay bedside sleeper cribs that attach to adult size beds.

    The recalled bumpers measure 60 inches long by 9.5 inches wide and were sold in brown, green, blue, pink, white, gray with white stars, white with gray stars, gray with white polka dots, white with gray polka dots and white with blue stars.

    SKU

    Description

    Recalled Babynest crib bumpers

    167805

    Yellow

    167806

    Brown

    167807

    Green

    167808

    Blue

    167810

    Pink

    167811

    White

    167814

    Gray w/ White Stars

    167815

    White w/ Gray Stars

    167816

    Gray w/ White Polka Dots

    167817

    White w/ Gray Polka Dots

    167820

    White with Blue Stars

    The crib bumpers, manufactured in Germany, were sold exclusively online at www.babybay.us from April 2016, to January 2018, for between $45 and $65

    What to do

    Consumers should immediately stop using the recalled crib bumpers and contact Babybay for a full refund. Babybay is contacting all known purchasers directly.

    Consumers may contact Babybay toll-free at 844-692-2292 between 9 a.m. to 3 p.m. (PT) Monday through Friday, by email at info@babybay.us or online at www.babybay.us and click on Recall Notice for more information.

    Tobi USA of Concord, Calif., is recalling about 200 Babynest crib bumpers.The strings on the crib bumper exceed a safe length, posing a strangulation h...

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      The Weekly Hack: 4Chan trolls spewing racism try to steal votes in high school science competition

      Three black teenagers reached the finals of a NASA competition. Internet hackers decided to go after them

      For this year’s annual high school science competition sponsored by NASA, many people paid attention to one invention in particular: a water filter designed to bring cleaner drinking water to public schools.

      Public health researchers have for years warned that the water from fountains in public schools is contaminated with lead, bromide, and other chemicals corroding from old pipes.

      Mikayla Sharrieff, India Skinner, and Bria Snell, all in the 11th grade at Benjamin Banneker Academic High School in Washington, D.C, had  engineered a filter designed to detect contaminants in public school water fountains.

      The girls had reached the finals of the NASA competition last month. They were the only black, female group of high school scientists to make the final rounds this year. Winners were to be decided by online voting.

      This apparently caught the attention of 4chan, an online message board that experts warn has attracted increasingly hateful and racist users in recent years. A recent attack in Toronto was linked to a 4chan message board.

      NASA said in a statement that it was ending voting early to prevent people from hacking the vote, showing how even NASA is apparently not immune to online trolls.

      “Some members of the public used social media,” NASA said in a statement, “to attack a particular student team based on their race and encouraged others to disrupt the contest and manipulate the vote.”

      NASA claimed that it closed the competition before the votes were compromised. The winners will be announced later this month.

      But reporters found some evidence suggesting that a voting hack could have already taken place.  An analysis by CNN found several threads on 4chan boards in which users directed each other to an anonymous privacy software to help “hack the voting system” and send votes to a group of boy high school scientists in the competition.

      “...users posted racist insults and urged members to spread the campaign to other 4chan boards,” CNN reported.

      Credit card chips

      Those frustratingly slow readers for credit cards equipped with chips were supposed to be a small price to pay in exchange for safer credit cards. That is, until hackers figured out how to hack the chip readers.

      The Better Business Bureau says that scammers are inserting thin microchips into the chip reader slot, allowing them to steal credit card information.

      Other than catching someone in the act of putting a microchip into the credit card machine, a job that would likely fall on the cashier, there is no easy way to detect that the machines have been hacked.

      “If you insert the card and it’s very tight, that could be a sign,” a Better Business Bureau spokesman told a Fox affiliate, “so make sure that you report it to the merchant.”

      Small businesses

      Major corporations that do not encrypt their data have proven to be vulnerable to hackers again and again. But it turns out that smaller businesses, with fewer resources to protect themselves from a hack, may also be a popular and easier target. Small local businesses in New Jersey make just as ripe targets as big business, the New Jersey Business Journal recently reported.

      Sure enough, hacks targeting local businesses have been reported across the world this week. A salon in the United Kingdom said Friday that it was targeted with ransomware, or a type of malware that shuts down a computer system until owners hand over money.

      In this case, information about all of the salon’s appointments had been deleted. In their place was a message demanding 30,000 pounds and a warning that more records would be deleted if the salon did not comply. The salon was warned by an IT support worker not to hand over the money.

      The city of Atlanta was targeted with a similar type of ransomware attack earlier this year, and lawmakers in the state of Georgia are now mulling over a bill to make “unauthorized computer access “ a crime in the state.

      But a group of so-called ethical hackers, who say they hack for moral and ethical reasons, say that the law would only serve to criminalize their work. To protest the bill, the hackers targeted local restaurants and a church, changing their websites to add clips of pop songs.

      The hackers have threatened to retaliate further if the law passes, a local newspaper reported.

      For this year’s annual high school science competition sponsored by NASA, many people paid attention to one invention in particular: a water filter designe...

      Smart luggage company that insisted it would overcome airline ban is going out of business

      People who purchased a $400 smart suitcase are out of luck

      Internet-connected “smart” suitcases have been the subject of media hype for several years thanks to press-savvy brands like BlueSmart Luggage, the company that claimed to be the original inventor of smart luggage.

      BlueSmart got off the ground with $2.2 million raised through the crowdfunding site IndieGogo and the promise of a $400 suitcase that had more capabilities than a smartphone.

      Less than a year ago, BlueSmart was featured in the New York Times, with chief executive Tomi Pierucci explaining that they preferred to be called a technology company, not a luggage company.

      “We want to remind you to charge the suitcase the night before your trip,” he said of the company’s suitcases last July. “We want to offer you an Uber when your plane lands. We want to notify your hotel if your flight is delayed.”

      The company reportedly sold at least 65,000 of its luxury bags.

      But the smart luggage industry has been at a crossroads after the Federal Aviation Administration (FAA) warned shortly before Christmas last year that the lithium-ion batteries that make the technology possible are a major fire hazard.  

      Now, BlueSmart is going out of business, and people who purchased the expensive bags will not be receiving a refund. “The changes in policies announced by several major airlines at the end of last year—the banning of smart luggage with non-removable batteries—put our company in an irreversibly difficult financial and business situation,” BlueSmart explains.

      Safety risk

      BlueSmart recently wrote a letter to customers announcing the “bittersweet news.”

      “This represents a very unfortunate outcome for everyone involved, and we are all very sorry for this unexpected turn of events,” the company says in the note on its website, adding that warranty support is no longer available for its products.

      The luggage is only as smart as its connected app, of which the “service quality will be reduced in the future,” BlueSmart adds.

      Last year, major airlines announced, per FAA regulations, that all “smart” luggage would be banned from getting anywhere near a plane unless the batteries could be removed from the bags. The regulations went into effect in January 2018.

      FAA spokesman Gregory Martin told ConsumerAffairs at the time that the large lithium-ion batteries in smart bags posed an unacceptable safety risk because they were known to be flammable.

      DOT denies company claims

      However, BlueSmart continued insisting to consumers that the smart luggage ban would not apply to their own products. In a statement on their website, BlueSmart said late last year that “we have organized meetings with the world’s leading airlines to make sure that your Bluesmart will be approved.”

      The company added in a statement to ConsumerAffairs last year that “DOT [the Department of Transportation] has already reviewed our products and all the technical documentation. The products passed all the necessary reviews and we are now waiting to get the formal letter of approval.”

      But the FAA denied those claims and countered that there was no special review or exemption underway for BlueSmart.

      While competitors like the company Raden sell bags with removable batteries, allowing consumers to temporarily turn their smart luggage into old-fashioned luggage so that they can bring it on a flight, BlueSmart’s batteries were built into the bags, making removing them without damaging the bag nearly impossible.

      Internet-connected “smart” suitcases have been the subject of media hype for several years thanks to press-savvy brands like BlueSmart Luggage, the company...

      Cybersecurity firm identifies Chrome extension malware

      Researchers say the extensions were distributed using Facebook

      Researchers at Radware, a cybersecurity firm, have uncovered what they describe as a number of malicious Chrome extensions, which were available for download at the official Chrome Store.

      They say the extensions have been deployed by hackers to steal log-ins, engage in cryptomining, and carry out click fraud campaigns.

      Chrome, the popular browser owned by Google, has an estimated 1 billion users worldwide.

      “This malware campaign is propagating via socially-engineered links on Facebook and is infecting users by abusing a Google Chrome extension – the ‘Nigelify’ application,” the company wrote on its blog.

      The researchers believe the group behind the malware has been active since March and, to date, has infected more than 100,000 users in more than 100 countries.

      Clever group of hackers

      “Facebook malware campaigns are not new,” the researchers said. “Examples of similar operations include facexworm and digimine, but this group appears to have been undetected until now thanks to the campaign consistently changing applications and the use of an evasive mechanism for spreading the malware.”

      The malware sends unsuspecting victims to a fake YouTube page and asks the user to install a Chrome extension to play the video. If the user clicks “add extension,” the action installs the malicious extension, making the device part of the hackers' botnet army.

      To become infected, users must have followed instructions to add extensions to view a YouTube video.

      Users of infected computers are eventually redirected to Facebook, where the malware steals the users' log-in information. So far, the Radware researchers believe the threat only affects Chrome users.

      Denial of service attacks

      Once the infected computer is under control of the hacker group, it can be used to carry out a number of nefarious activities. It can be part of a massive denial of service (DOS) attack on major institutions and websites.

      It can also be used to mine crypto coins, since that process requires significant amounts of processing power. Using hundreds, or even thousands of infected computers, hackers can carry out a remote, but highly profitable, cryptomining operation.

      The researchers say the malware has several ways it can stay persistent on the machine and ensure its activities on Facebook are persistent. If the user tries to open the extensions tab to remove the add-on, the malware closes it and prevents removal.

      Radware says it found a total of seven compromised extensions and says all have been removed from the Chrome store and infected browsers.

      Researchers at Radware, a cybersecurity firm, have uncovered what they describe as a number of malicious Chrome extensions, which were available for downlo...

      USPS posts $1.3 billion loss in second quarter

      The service cites increased expenses and regulatory hardship as the main contributors

      The United States Postal Service (USPS) has released its earnings report for the second quarter, and things aren’t looking good.

      Despite posting a five percent gain in package volume, the company is reporting a total net loss of $1.3 billion. Revenue was up slightly (1.4 percent) year-over-year, but controllable loss totaled $656 million, up from $12 million from the year before.

      Chief Financial Officer Joseph Corbett cites a number of factors for the increase, including rising expenses and regulatory hurdles.

      “The continued secular decline in First Class mail, rising costs and legislative and regulatory constraints resulted in larger losses this quarter,” he said.

      Millions in expenses and coverage

      In its report, USPS stated that the total operating expenses for its service rose by $1 billion from the second quarter last year, with large increases across several different categories.

      Of the $656 million that the company faced in controllable loss, there were increases of:

      • $236 million for the cost of covering retiree health benefits due to changes in actuarial assumptions;

      • $364 million in compensation expenses due to additional hours worked by employees to keep up with increased shipping demands; and

      • $155 million in additional transportation expenses due to highway contract rate inflation and higher fuel costs.

      “Despite growth in our package business, our financial results reflect systemic trends in the marketplace and the effects of an inflexible, legislatively mandated business model that limits our ability to generate revenue and impose costs upon us that we cannot afford,” said Postmaster General and USPS CEO Megan J. Brennan.

      Not dead yet

      Brennan goes on to say that the Postal Service is not dead yet, despite additional costs and increased competition from online retailers like Amazon. She hopes that regulatory changes can help give the company breathing room to return to profitability.

      “America needs a financially strong Postal Service that can invest in its future and can continue to fulfill the needs of American businesses and consumers,” she said.

      “With continued aggressive management and greater legal authority to respond to changes in our marketplace and to control our costs, the Postal Service can return to financial sustainability.”

      The United States Postal Service (USPS) has released its earnings report for the second quarter, and things aren’t looking good.Despite posting a five...

      Survey finds consumers are going deeper into debt

      An analysis projects consumers will owe $4 trillion by the end of 2018

      The economy is improving and consumers are spending more money. And a new survey shows they're going deeper into debt to do so.

      LendingTree has released its Consumer Debt Outlook, based on an analysis of Federal Reserve data. It projects that U.S. consumers will owe a total of $4 trillion by the end of 2018. Consumers now owe 26 percent of their income on debt, up from 22 percent eight years ago.

      The report finds a sharp increase in consumer debt beginning in 2013, which is about the time the U.S. economy began to recover from the Great Recession. Today, the percentage of non-housing debt is even higher than it was during the economic boom times of the early 2000s.

      But the LendingTree report highlights a change in the way consumers are borrowing. Auto loan and credit card debt is growing at more than 7 percent per year, while mortgage debt is growing at a more modest 2 percent rate.

      The downside of debt

      Debt is not necessarily toxic, as long as the consumer has a growing income and can afford it. However, rising debt levels can cause greater strain on personal finances. When debt is used to pay for consumables and depreciating assets like cars, it diverts future earnings to pay for today's expenses.

      One bright spot in the report is credit card debt. Revolving credit – which is based primarily on credit cards – fell in March for the second straight month. In fact, non-revolving credit, like college and auto loans, was also down for the month.

      But LendingTree suggests the dip is only temporary. The report's authors point to the longer term trend to predict that total consumer debt will eclipse $4 trillion during this calendar year.

      Not overly concerned

      So far, consumers don't appear overly concerned about taking on additional debt. A recent Federal Reserve Survey of Consumer Expectations shows consumers feel fairly confident in their ability to service their debt.

      On average, consumers said there was less than an 11 percent chance they would miss a loan payment, the lowest average since the survey began.

      Meanwhile, LendingTree says credit card delinquency rates remain relatively low, despite recent reports of increases in charge-offs at some credit card issuers.

      The economy is improving and consumers are spending more money. And a new survey shows they're going deeper into debt to do so.LendingTree has released...

      Starbucks changes its bathroom policy to be open to all

      Anyone can now use the company’s bathrooms, regardless of whether they made a purchase

      Weeks after the arrest of two African American men in Philadelphia, Starbucks has changed its bathroom policy to be open to everyone -- including people who haven’t bought anything.

      Starbucks said it doesn’t want to become a public bathroom, but it hopes the new policy will help employees make the "right decision 100% of the time.”

      “We don't want anyone at Starbucks to feel as if we are not giving access to you to the bathroom because you are less than," Starbucks chairman Howard Schultz said on Thursday at the Atlantic Council. "We want you to be more than."

      Decision follows arrest scandal

      The decision was made after the April 12 arrest of two black men at a Starbucks in Philadelphia. The two childhood friends and business partners were waiting for a business meeting they had scheduled there. One of the men arrested was denied use of a bathroom.

      Starbucks said it previously had a “loose policy” that only customers are allowed to use the bathrooms, but it was ultimately up to each store manager to make the call.

      "We have a — kind of a loose policy [that] you should be able to use the bathroom if you buy something," Schultz said. "And it's really the judgment of the manager. And in this particular case, she asked the gentleman: Are you a customer? And he said, no. And they go into a conversation. And one thing led to another. And she made a terrible decision to call the police."

      “We were absolutely wrong in every way. The policy and the decision (the store manager) made," he said. "It's the company that's responsible."

      The arrest, which quickly went viral, prompted Starbucks to close 8,000 U.S. locations for the afternoon on May 29 to "conduct racial-bias education geared toward preventing discrimination in our stores."

      Not long after the Philadelphia arrests, a video surfaced of another incident in California that had taken place in January. The video shows a black man claiming he was denied access to a bathroom while a white man was given the entry code. Neither man had made a purchase.

      Schultz said the company’s upcoming bias training "will be the largest kind of training of its kind on perhaps one of the most systemic subjects and issues facing our country."

      Weeks after the arrest of two African American men in Philadelphia, Starbucks has changed its bathroom policy to be open to everyone -- including people wh...

      Wells Fargo ordered to pay over $97 million to California workers

      The bank adds another blemish to its marred record

      Late Tuesday, a federal judge ordered Wells Fargo to pay over $97 million to California mortgage workers who weren’t paid enough for their breaks. The damages, which come after a January ruling that found Wells Fargo in violation of California’s strict labor laws, are nearly four times what the company argued it should owe.

      The ruling applies to those workers - both mortgage consultants and bankers - who worked in California between March 2013 and August 2017.

      “Finally, I feel like justice has been served,” said Jackie Ibarra, a former Wells Fargo employee and the suit’s lead plaintiff. “It’s unfair not to pay us properly when we’re essentially working on commission.” Ibarra worked for Wells Fargo for 10 years.

      However, the company isn’t going down without a fight. Bank representatives say Wells Fargo plans to appeal the ruling.

      “We disagree and believe the court misunderstood our compensation plan and misunderstood the law,” a Wells Fargo spokesperson said.

      Violating the law

      The main accusation in the case involves the company’s inability to properly compensate employees for their break time.

      California law mandates that employees must have a 10-minute paid break for every four hours they’re on the clock, and U.S. District Judge Percy Anderson found Wells Fargo in violation of that regulation.

      While Wells Fargo tried to knock the settlement down to around $24 million -- the hourly rate the employees would be owed for their time on break -- the judge sided with the employees. Judge Anderson said the employees’ break pay should also factor in their commissions, which are rather a significant portion of their income, and noted that the commissions make the hourly wages “essentially irrelevant.”

      Another big blow

      This hefty settlement is one of many hits Wells Fargo has taken as of late. Over the last year and a half alone, the company has been accused of creating over three million fake accounts for customers, charging customers for unnecessary car insurance, and hitting customers with unfair mortgage fees.

      This also isn’t the first time Wells Fargo has been accused of mistreating employees. There have been reports of employees being forced to work overtime without pay. Others were fired after reporting misconduct on the company’s ethics hotline.

      In April, the Department of Labor (DOL) forced the bank to rehire a known whistleblower -- who was fired in 2010 after suspected fraud -- and forced the company to pay him $5.4 million in back pay. In late April, the company was the subject of a government probe following mistreatment of 401(k) retirement accounts.

      Just last week, Wells Fargo reported being under fire with the DOL again after facing both complaints and whistleblower actions. The company cites “adverse employment actions” for raising “misconduct issues,” and the DOL will be opening an investigation.

      Facing scrutiny from lawmakers

      Following the fake-account scandal, Senator Elizabeth Warren, a staunch critic of Wells Fargo, took to Twitter to urge the company to rethink its internal personnel.

      “The federal reserve should remove every Wells Fargo board member who served during this scandal. I don’t know what they’re waiting for,” Warren tweeted.

      This most recent court ruling comes on the heels of Wells Fargo’s latest attempt to restore faith in their customers and stakeholders with a marketing campaign entitled “Re-Established.”

      “Re-Established means recommitting to our customers and team members, reaffirming support of our communities and reinventing how we serve our customers through every interaction in new and improved ways,” said Jamie Moldafsky, Wells Fargo’s chief marketing officer. “It is about holding ourselves to a higher standard and our unwavering commitment to become a better bank.”

      Late Tuesday, a federal judge ordered Wells Fargo to pay over $97 million to California mortgage workers who weren’t paid enough for their breaks. The dama...

      Apple, Goldman Sachs partnering to develop a new credit card

      The card could launch early next year

      Apple and Goldman Sachs are reportedly working together to develop a new credit card product, which could be introduced as early as next year.

      The card would be branded with Apple Pay, the tech giant’s digital payment service, the Wall Street Journal reported, citing people with familiar with the matter.

      The deal would help extend Apple’s payment brand, as well as help the company make money from products other than iPhones and other gadgets.

      The joint venture will also benefit Goldman Sachs by helping the financial institution enter the consumer finance business, which it has been trying to do for some time. Goldman Sachs has been seeking to branch out from investment banking and trading to everyday consumer banking activities, such as deposit-taking and personal loans.

      Apple currently has a credit card with London-based Barclays, which Goldman will replace. The Barclays card offers interest-free financing on Apple product purchases. However, Apple makes only 0.15 percent per transaction. Goldman Sachs could more than double that percentage, according to the Journal.

      The partnership could also include Goldman offering in-store loans to Apple customers for the tech company's products, the report said.

      Apple and Goldman Sachs are reportedly working together to develop a new credit card product, which could be introduced as early as next year. The card...

      Democrats' bill would severely limit the 'gig economy'

      The proposal would impose stiff requirements to classify workers as independent contractors

      Congressional Democrats have proposed legislation to update labor laws, making it more difficult for companies to classify workers as independent contractors.

      It follows last week's California Supreme Court ruling that tightened standards at the state level when it comes to deciding whether a worker is an employee, who is entitled to benefits and protections under the law.

      Independent contractors proliferated in the aftermath of the Great Recession, when companies laid off millions of workers but then found they still needed some of their services. It led to creation of the so-called “gig economy,” where workers were hired as independent contractors for periodic work.

      As the economy recovered, many of these “gig” workers found themselves working full time but without employee benefits, which saved the employer money.

      Stiff test

      Sen. Bernie Sanders (I-Vt.) and Rep. Mark Pocan (D-Wis.) are proposing legislation they say would strengthen the middle class by severely limiting the gig economy, requiring employers to meet a stiff test in their classification of workers.

      The two lawmakers say their goal is “restoring workers' rights to bargain for better wages, benefits and working conditions.” The bill has the support of most labor unions.

      “We must no longer tolerate CEOs and managers who intimidate, threaten or fire pro-union workers, who threaten to move plants to China if their workers vote in favor of a union, and who refuse to negotiate a first contract with workers who have voted to join unions,” Sanders said. “If we are serious about reducing income and wealth inequality and rebuilding the middle class, we have got to substantially increase the number of union jobs in this country.”

      Follows California's lead

      The measure would impose many of the same tests for worker classification as set forth last week by the California court. The justices ruled that an employer can only classify a worker as an independent contractor if they are doing work “outside the usual course” of work done by the company.

      The Sanders-Pocan measure would go farther, making it easier to form unions and banning state right-to-work laws that prevent unions from collecting fees from all employees, whether they belong to the union or not.

      At the moment, the measure is simply an idea for the future. Republicans are unenthusiastic, so it would require Democrats gaining control of both houses of Congress this fall, and capturing the White House in 2020, for the bill to become law.

      Congressional Democrats have proposed legislation to update labor laws, making it more difficult for companies to classify workers as independent contracto...

      Munchkin recalls Waterpede bath toys due to choking hazard

      The product can break apart and expose small internal pieces, posing danger to young children

      Munchkin Inc. is recalling appoximately 72,000 units of its Waterpede bath toy because the product can break apart and expose small pieces that pose a choking hazard to young children.

      Thus far, there has been one report of the toy breaking apart and exposing small beads; however, there have been no injuries reported at this time.

      The products were sold at Babies R Us, Target, and other retailers across the U.S. from September 2015 to January 2018 for between $5 and $7. Consumers are being urged to immediately take the bath toy away from young children and contact Munchkin for a free replacement bath toy of comparable value. 

      Consumers can contact Munchkin for their free replacement by visiting its website and clicking "Help" at the bottom of the screen, followed by clicking on "Recalls." The company can be contacted by phone from 8 a.m. to 5 p.m. (PST), Monday through Friday, at 877-242-3134.

      Munchkin Inc. is recalling appoximately 72,000 units of its Waterpede bath toy because the product can break apart and expose small pieces that pose a chok...

      Pinnacle Foods recalls beef products due to possible contamination

      The products may have been exposed to dangerous bacteria

      Pinnacle Foods, Inc. is recalling over 32,000 pounds of its heat-treated, shelf stable beef products due to possible contamination with staphylococcal enterotoxin and clostridial toxin.

      The recall covers:

      • 2.25 oz. glass jars containing “ARMOUR GROUND & FORMED SLICED Dried Beef” with best by dates of JAN-07-21, JAN-08-21, JAN-09-21, JAN-10-21, JAN-11-21, APR-15-21, APR-16-21, APR-17-21, APR-18-21 and APR-19-21 and lot codes 0707011Y11, 0708011Y11, 0709011Y11, 0710011Y11, 0711011Y11, 0715041Y11, 0716041Y11, 0717041Y11, 0718041Y11 and 0719041Y11 .
      • 4.5 oz. glass jars containing “ARMOUR GROUND & FORMED SLICED Dried Beef” with best by dates of JAN-23-21, JAN-24-21, JAN-25-21 and APR-22-21 and lot codes 0723011Y11, 0724011Y11, 0725011Y11 and 0722041YW1.

      The products were shipped across the U.S., with affected products bearing an establishment number of "EST.2AD" inside the USDA mark of inspection. 

      Consumers who have purchased any of the affected products are being asked to dispose of them immediately or return them to the place of purchase. Pinnacle Foods is providing further information for those who call its Customer Care office at (888) 299-7646. 

      Pinnacle Foods, Inc. is recalling over 32,000 pounds of its heat-treated, shelf stable beef products due to possible contamination with staphylococcal ente...

      Ford recalls 2015-2017 Transit vehicles with tow modules

      Water can enter the module and cause an electrical short

      Ford Motor Company has issued a recall for over 25,000 2015-2017 Ford Transit vehicles that came equipped with a trailer tow module. 

      The company says that water can enter the module and corrode the internal wiring. This can cause problems such as rapidly flashing turn signals and loss of the instrument panel display, which may increase the risk of a crash.

      In worse cases, the problem can cause an electrical short that increases the risk of a fire.

      Ford representatives say they are notifying owners of the recall. The company is also instructing dealers to add a drainage hole to the driver's door stepwell and install a fuse into the vehicle's wiring harness free of charge.

      For more information, consumers can contact Ford's customer service line by calling 1-866-436-7332. Owners can also contact the National Highway Traffic Safety Administration (NHTSA) by visiting the agency's online site at www.safercar.gov or calling its hotline at 1-888-327-4236.

      Ford Motor Company has issued a recall for over 25,000 2015-2017 Ford Transit vehicles that came equipped with a trailer tow module. The company says t...

      Ford suspends F-150 production due to fire at parts factory

      The automaker is confident the supply interruption will be short

      Consumers planning to buy a new Ford F-150 pick-up truck this year had better hurry to their Ford dealer and be prepared to pay the sticker price.

      A fire at a major parts supplier last week has forced the automaker to suspend production of the F-150, the best-selling truck in America for more than three decades.

      Last year, consumers purchased nearly 900,000 of the trucks, paying an average of $47,000 each. Ford says F-150 sales have been exceptionally strong so far in 2018.

      The major fire occurred May 2 at a large parts plant in a small Michigan town. It halted production of a key part that is also affecting GM, Chrysler-Fiat, and Mercedes, but it appears to have hit Ford hardest.

      'Fluid situation'

      Ford said it is working with its supply base to offset the impact, but it acknowledges the shortage of die-cast components is a big blow.

      “This is a fluid situation, but we are working closely with our supplier partners to do everything we can to limit the impact on our production,” said Joe Hinrichs, executive vice president and president of Global Operations.

      Hinrichs said he thinks the effects will be short-term. He noted that the company has "strong inventories" for its best-selling F-150. According to one Ford analyst, the automaker has about an 84-day supply of trucks on hand.

      “Customers won’t have a problem finding the model they want,” he said.

      But because of the parts interruption, Ford has suspended production of the F-150 and F-Series Super Duty truck at its Louisville, Kentucky plant.

      F-150 competitors

      Depending on how severely the parts shortage affects Ford, competitors may be able to entice truck shoppers with increased incentives. Among the top competitors to the F-150 are GM's Chevrolet Silverado, the GMC Sierra 1500, the Dodge Ram 1500, and the Toyota Tundra.

      Late model Ford F-150s on used car lots may also get some extra attention in the weeks ahead. But until Ford can get its production lines moving again, consumers should be prepared for dealers to be a little less willing to cut a deal.

      Consumers planning to buy a new Ford F-150 pick-up truck this year had better hurry to their Ford dealer and be prepared to pay the sticker price.A fir...

      CFPB eliminates student loan office

      Consumer advocates accuse the acting director of trying to make the agency less effective

      Since it was established, the Consumer Financial Protection Bureau (CFPB) has had a division focused on protecting consumers from student loan abuses. It has set rules to protect borrowers and sued lenders that violated those regulations.

      But under the Trump administration, the Office for Students and Young Consumers is now being absorbed by the agency's consumer information unit. John Czwartacki, a spokesman for the agency, told the New York Times the move is a “very modest organizational chart change.”

      But one-time staunch CFPB advocates, who have become vocal critics since Mick Mulvaney has become the acting CFPB director, argue the move is part of a pattern to make the only agency in the federal government solely dedicated to protecting consumers' financial interests less effective in that role.

      “Shuttering the CFPB’s student lending office is an appalling step in a longer march toward the elimination of meaningful American consumer protection law,” said Christopher Peterson, financial services director at Consumer Federation of America (CFA). “This action actively promotes greater profits for a handful of debt collection businesses at the expense of mistakes, neglect, and confusion for millions of student loan borrowers.”

      Total debt reaches $1.5 trillion

      CFA notes that the move comes in the same week that total student loan debt in America reached $1.5 trillion. The student loan division, the group says, has been able to return more than $750 million to student loan borrowers who suffered harm at the hands of predatory lenders.

      Americans for Financial Reform sees political motives behind Mulvaney's moves since taking over as acting director. The group claims Mulvaney is creating a team reporting to him that will "vet previously non-political research."

      "Why is Mick Mulvaney creating a new office on 'costs and benefits' directly under his control, when the CFPB already has a robust research department?” asked Lisa Donner, executive director of Americans for Financial Reform. “What he is really interested in is not serious research, but information that advances the interests of the Wall Street banks and predatory lenders he serves."

      Career officials in the CFPB told the Times that the timing of the move is suspect. They note that the change could threaten a major enforcement case against Navient, the nation's largest student loan servicer.

      You're on your own

      Brianna McGurran, a student loan expert at NerdWallet, says closing the one office specifically focused on students is, at the very least, a symbolic step that tells student loan borrowers that they're on their own.

      "Borrowers may feel confused or even disheartened, but they should know that there are still options if they’re experiencing problems with their loan servicers," McGurran told ConsumerAffairs. "They can reach out to their state attorneys general offices, senators and representatives, state consumer protection offices, and the GI Bill Feedback System for veterans."

      Mulvaney, who as a member of Congress voted to abolish the CFPB, has consistently said the agency has too much power and is unaccountable.

      He has tried to limit the agency's efforts to providing information to consumers, rather than initiating enforcement actions against financial services companies.

      Since it was established, the Consumer Financial Protection Bureau (CFPB) has had a division focused on protecting consumers from student loan abuses. It h...

      NTSB opens investigation into another fatal Tesla crash

      A Tesla S model caught on fire, killing two Florida teens

      On Tuesday evening, a 2014 Tesla S model caught fire in Fort Lauderdale, Florida after slamming into a concrete wall, killing the driver and front-seat passenger, and injuring the backseat passenger.

      Following this fatal crash, the National Transportation Safety Board (NTSB) opened an investigation into the accident, marking the agency’s fourth active probe into Tesla’s electric vehicles. While the area is known for numerous crashes, police reports say that the car’s speed was a factor in the accident.

      “We have not yet been able to learn the vehicle identification number, which has prevented us from determining whether there is any log data,” Tesla said in a statement. “However, had autopilot been engaged, it would have limited the vehicle’s speed to 35 mph or less on this street, which is inconsistent with eyewitness statements and the damage to the vehicle.”

      According to the NTSB, the investigation will “primarily focus on emergency response in relation to the electric vehicle battery fire, including fire department activities and towing operations.”

      “NTSB has a long history of investigating emerging transportation technologies, such as lithium ion battery fires in commercial aviation,” NTSB Chairman Robert Sumwalt said. “The goal of these investigations is to understand the impact of these emerging transportation technologies when they are part of a transportation accident.”

      Safety first

      Despite Tesla receiving heat as of late for many of its safety features, the vehicle involved in this accident received a high safety rating in 2013.

      It has yet to be revealed whether the Model S’ semi-autonomous autopilot feature was engaged at the time of the accident. The feature caps the vehicle’s speed at 5 mph above the local speed limit on residential roads.

      In 2013, the Model S received a higher safety rating from the National Highway Traffic Safety Administration (NHTSA) than any car the agency had previously tested.

      Following another fatal accident in March that involved the car’s battery bursting into flames, Tesla reported that the batteries in its vehicles are designed to decrease the rate fire spreads, leaving enough time for occupants to exit the vehicle.

      A rocky history

      As of late, there has been much contention between the NTSB and Tesla.

      After a Tesla vehicle slammed into a tractor-trailer in 2016, killing the driver, the agency opened an investigation into the accident. It found that Tesla wasn’t at fault, instead saying the driver didn’t follow the company’s warnings to stay in control of the vehicle at all times.

      In late March of this year, the NTSB opened another investigation in yet another fatal Tesla crash in Mountain View, California, after a driver crashed into a highway barrier and the car burst into flames. The agency doesn’t typically look into these sorts of accidents, but it did so because of Tesla’s much-scrutinized autopilot feature.

      To make matters worse following the March incident, Tesla and the NTSB were at odds after Tesla released vetted information about the crash while the investigation was still open.

      Due to the information leak, the NTSB removed Tesla from the investigation; losing party status ended Tesla’s ability to share technical assistance with the NTSB. The agency defended their decision to remove Tesla, citing the company’s decision to deliberately violate procedure by prematurely releasing information.

      Tesla, however, went after the NTSB, saying the board was “more concerned with press headlines than actually promoting safety.” Tesla accused the NTSB of violating its own rules, while trying to prevent the automaker from releasing all available information.

      What will the future hold?

      The NTSB will be sending a team of four to Fort Lauderdale to investigate the accident, and the agency does not believe the semi-autonomous autopilot feature will be part of this investigation. Tesla plans to fully comply with the investigation and stands behind its vehicle and safety features.

      “Our thoughts are with the families and friends affected by this tragedy,” Tesla said in a statement. “We are working to establish the facts of the incident and offer our full cooperation to local authorities.”

      On Tuesday evening, a 2014 Tesla S model caught fire in Fort Lauderdale, Florida after slamming into a concrete wall, killing the driver and front-seat pas...

      Apple is speeding up its $29 battery replacement program

      iPhone users should no longer face long wait times to get a replacement battery

      Consumers may have an easier time getting a battery replacement for their aging iPhone. Apple has reportedly confirmed that "service inventory of all iPhone replacement batteries is now available without delay," according to an internal memo obtained by MacRumors.

      In late 2017, Apple was accused of intentionally slowing down older iPhone models to preserve battery life and prevent unexpected shutdowns. The company’s brand was negatively impacted by its lack of transparency regarding the issue and dozens of class action lawsuits followed.

      In an effort to make amends, the company decided to be more transparent about its actions and how its batteries age. It also began offering a new, discounted replacement battery that could help resolve the issue.

      No more delays

      Some customers encountered long wait times of up to several weeks due to short supply of the $29 replacement batteries.

      Apple previously said delays would likely be an issue, given the demand for the discounted batteries. It said replacements for select iPhone models could be delayed until late March or early April.

      However, delays are less likely now. Apple has confirmed that all Apple stores and service providers can order the replacement batteries and get them without delay from supply constraints. Apple's support website still notes that the replacement process may take up to five business days for iPhones to be serviced and returned.

      Battery health

      Apple maintains that it never intentionally did anything to shorten the life of a user’s Apple product or “degrade the user experience to drive customer upgrades.”

      "About a year ago, we delivered a software update that improves power management during peak workloads to avoid unexpected shutdowns on certain iPhones with older batteries,” the company explained in a previous statement.

      “We know that iPhones have become an important part of the daily lives of our customers and our intention was to improve the customer experience.”

      Apple said its actions to resolve the issue, including dropping the cost of out-of-warranty battery replacements from $79 to $29 and developing a new feature to show battery health, “were taken to further assist our customers and help extend the life of their iPhones.”

      iPhone users who download iOS 11.3 or later can see how much the original battery has degraded over time by going to Settings > Battery > Battery Health (Beta). A reading of 80 percent or below means it may be time to replace the battery, according to Apple.

      Consumers may have an easier time getting a battery replacement for their aging iPhone. Apple has reportedly confirmed that "service inventory of all iPhon...