Current Events in May 2018

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    ZTE halts major business operations

    The company said it is seeking to modify or reverse its seven year ban on importing U.S. parts

    Chinese telecommunications firm ZTE has announced that it has ceased its main business operations as it attempts to figure out how to proceed under the ban preventing it from receiving parts from U.S. suppliers.

    “As a result of the Denial Order, the major operating activities of the company have ceased,” the company wrote in an exchange filing.

    Last month, the U.S. government imposed a seven-year ban forbidding the company from getting parts from U.S.-based suppliers, such as Qualcomm and Dolby. The ban was handed down after ZTE was found to have violated U.S. export restrictions by illegally shipping goods to Iran, lying about it, and then failing to reprimand employees who violated the law.

    Intent on resolving the ban

    ZTE said previously that the ban would “severely impact” its business and likely hurt many U.S. companies. The company said on Sunday that it had submitted a request to the U.S. Commerce Department for the suspension of the ban.

    ZTE now says it is trying to have the ban modified or reversed.

    The company said it has been in touch with the U.S. government “in order to facilitate the modification or reversal of the Denial Order by the U.S. Government and forge a positive outcome in the development of matters.”

    ZTE said in its statement that it has sufficient cash and will adhere to its commercial obligations.

    “As of now, the company maintains sufficient cash and strictly adheres to its commercial obligations subject in compliance with laws and regulations,” the company wrote.

    ZTE sees the next two weeks as crucial to its effort to resolve the situation with the U.S. government. “The company is currently working hard to speedily resolve this impasse,” said an email allegedly sent to Bloomberg senior staff.

    Chinese telecommunications firm ZTE has announced that it has ceased its main business operations as it attempts to figure out how to proceed under the ban...

    E. coli outbreak linked to romaine lettuce spreads to more states

    Tainted products have sickened 149 people in 29 states so far

    Twenty-eight more people in four states (Florida, Minnesota, North Dakota, and Texas) have been sickened by E. coli-tainted romaine lettuce, the Centers for Disease Control and Prevention (CDC) said Wednesday.

    That brings the total number of cases to 149. Of the 129 patients the CDC has information on, half have been hospitalized. Seventeen have developed a dangerous form of kidney failure, and one person in California has died. About 65 percent of those sickened are women.

    "This is a higher hospitalization rate than usual for E. coli O157:H7 infections, which is usually around 30 percent," the agency said. "Health officials are working to determine why this strain is causing a higher percentage of hospitalizations."

    Origin of the outbreak

    In April, health officials warned consumers to toss out any romaine lettuce they might have purchased in stores. The advisory came after federal investigators identified one farm in Yuma, Ariz. as having grown lettuce linked to cases of food poisoning in an Alaska prison. Investigators still do not know where that lettuce became contaminated.

    Officials say other area farms could also be affected since many of the E. coli poisoning cases can be traced to chopped lettuce sold in bagged form to restaurants that didn’t come from that Yuma farm.

    The FDA’s Coordinated Outbreak Response and Evaluation Network says it is currently investigating dozens of other fields as potential sources of the tainted chopped Romaine lettuce.

    Advice to consumers

    The CDC is still advising consumers to avoid eating or buying any romaine lettuce from the Yuma growing region.  

    “Product labels often do not identify growing regions; so, do not eat or buy romaine lettuce if you do not know where it was grown,” the agency said in its warning.

    Contaminated lettuce could still be in homes, stores, and restaurants since romaine lettuce has a shelf life of several weeks, the CDC noted, adding that its advice applies to whole heads and hearts of Romaine, chopped romaine, baby romaine, organic romaine, and salads and salad mixes containing romaine lettuce.

    Twenty-eight more people in four states (Florida, Minnesota, North Dakota, and Texas) have been sickened by E. coli-tainted romaine lettuce, the Centers fo...

    California becomes first state in nation to require solar panels on houses

    The state won over builders with exemptions for smaller roofs

    Less than a decade ago, California McMansion owners and others who wanted to install solar panels on the roofs of their own houses risked the wrath of their image-conscious homeowners associations.

    But the state has gradually become more solar-friendly since then, and the rules are about to go a step further. New homes built in California after the start of 2020 will be required to be equipped with solar panels, the California Energy Commission ruled on Wednesday.

    Shortly after California officials announced their decision, homebuilders saw their stock prices drop, while solar shares rose, Bloomberg news reported. The California Energy Commission estimated that the move would drive up housing costs by $10,000, but it says that the decision will eventually save consumers in the form of reduced energy bills.

    Builders had initially criticized the measure but were on board with the final rules, after regulators agreed on Wednesday to a series of exemptions -- including one for houses with roofs too small to support solar installations.

    "We're going to be able to look the home buyer in the eye and say, 'You are going to get your money back,'" Bob Raymer, the technical director for the California Building Industry Association, told the San Francisco Chronicle.

    Improving energy efficiency

    California has led the state with renewable energy programs, including putting pressure on the federal government under Obama to adopt tougher emissions standards for cars and a goal for the state’s electrical grid to be sourced from 50 percent renewable energy by 2030.

    “Improved efficiency unlocks millions in utility bill savings for consumers and lightens the load on our electricity system,” the California Energy Commission has said of its various renewable energy initiatives.

    Homeowners Associations (HOAs) used to file lawsuits against homeowners in California who installed solar panels on their houses until the state passed a law to curb the practice in 2014.

    Other sunny states are still struggling to bring solar panels to the masses. In Florida, the state’s main utility, Florida and Power & Light, had lobbied heavily to keep laws in place that made it illegal for homeowners to power their own homes with solar energy provided by solar panel leasing companies, a popular choice for middle-class consumers who cannot afford to buy their own panels.

    After receiving heavy criticism for their role in limiting solar in the wake of Hurricane Irma, the Florida Utilities Commission last month overturned the long standing rule, opening up the doors for solar companies to start selling power in Florida.

    The solar industry hopes that California will encourage the rest of the nation to follow its lead.

    "California is taking a step further basically recognizing that solar should be as commonplace as a front door welcoming you home," Sean Gallagher, vice president of state affairs for the Solar Energy Industries Association, told CNBC.

    Less than a decade ago, California McMansion owners and others who wanted to install solar panels on the roofs of their own houses risked the wrath of thei...

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      FCC hands down $120 million fine against serial robocaller

      The fine represents the largest forfeiture ever handed down by the agency

      The FCC has handed down a record $120 million fine against Adrian Abramovich for conducting a massive robocall operation that sought to sell timeshares and travel packages.

      Over a three-month period, the FCC says that Abramovich made nearly 100 million spoofed robocalls. The agency stated that the calls were in direct violation of the Caller ID Act, which prohibits the falsification of ID information when it is intended to defraud or harm call recipients.

      In a statement, FCC Chairman Ajit Pai said that Abramovich’s actions caused real harm to consumers who were taken in by the spoofed calls.

      “Mr. Abramovich didn’t just have the intent to defraud or cause harm. He actually caused harm. Just ask his victims – a number of who are elderly – who were duped into purchasing travel deals under false pretenses,” Pai said.

      Misleading consumers

      The FCC says that Abramovich duped consumers by using a specific type of robocall strategy called “neighbor spoofing.” In this type of scheme, a scammer alters their caller ID information to make it seem like they are calling from a local number, which can often entice consumers to pick up.

      Additionally, the FCC says that Abramovich spoofed his ID information to make it seem like he was calling from well-known travel and hospitality companies such as Marriott, Expedia, Hilton, and TripAdvisor. Complaints submitted by both consumers and these companies are what led to the record find.

      “Tough enforcement is a key part of the FCC’s robust strategy for combating illegal robocalls, and this Foreiture Order represents a big step forward in our enforcement efforts,” Pai said.

      “This is the largest illegal robocalling scheme that the FCC has investigated to date, and we are appropriately imposing a $120 million forfeiture in response.”

      The FCC has handed down a record $120 million fine against Adrian Abramovich for conducting a massive robocall operation that sought to sell timeshares and...

      Consumer prices rise less than expected in April

      Besides the jump in gas prices, inflation was tame last month

      Consumer prices rose a less-than-expected 0.2 percent in April, with gasoline, housing, and food contributing most to the increase.

      The Bureau of Labor Statistics puts the Consumer Price Index (CPI) at 2.5 percent over the last 12 months, within the target range set by the Federal Reserve.

      Robert Frick, corporate economist with Navy Federal Credit Union, says the core CPI for April -- which strips out food and energy costs -- came in at an even lower 0.1 percent, good news for both consumers and investors.

      "With inflation rising slowly, unemployment still falling at a healthy rate, and the Fed unlikely to hit the breaks from inflation fears, the economy still has plenty of room to run," Frick told ConsumerAffairs.

      Consumers paid more to fill their tanks last month

      For consumers, gasoline was one of the most expensive items in April. Because of the rise in oil prices, which broke $70 a barrel last week, consumers are paying significantly more for fuel than at this time last year. In April, gasoline prices jumped 3.0 percent, even as other energy costs went down.

      Food costs were also higher, rising 0.3 percent. But in April, the cost of dining out actually rose slower than the cost of eating at home.

      The cost of putting a roof over your head also rose in April. The CPI shelter index gained 0.3 percent, followed by price increases for home furnishings, medical care, and personal care.

      Among the categories where prices declined were airfares, new and used cars and trucks, and recreation.

      Wall Street cheered the news because the tame inflation number makes the Fed less likely to aggressively raise its discount rate. That not only helps the stock market, consumers also benefit when they add to their credit card balance, finance a car, or take out an adjustable rate mortgage.

      Consumer prices rose a less-than-expected 0.2 percent in April, with gasoline, housing, and food contributing most to the increase.The Bureau of Labor...

      Hyundai recalls 2017 Ioniq Hybrid vehicles

      An inner oil seal may leak, increasing the risk of a fire

      Hyundai Motor America has issued a recall for over 10,000 units of its Ioniq Hybrid vehicles.

      The company reports that the Hydraulic Clutch Actuator (HCA) inner oil seal may leak, which could cause oil to accumulate in the cap area and cause an electrical short. These types of shorts can increase the risk of a fire.

      Hyundai representatives will notify vehicle owners of the issue, and dealers will inspect HCA caps and replace the assembly, if necessary, free of charge.

      Consumers can contact the company via its customer service line by calling 1-855-371-9460. Owners can also contact the National Highway Traffic Safety Administration (NHTSA) by visiting the agency's online site at www.safercar.gov or calling 1-888-327-4236.

      Hyundai Motor America has issued a recall for over 10,000 units of its Ioniq Hybrid vehicles.The company reports that the Hydraulic Clutch Actuator (HC...

      Mercedes-Benz USA recalls smart fortwo cabrio and fortwo coupe vehicles

      The rear insulation mat in the engine compartment may deform, increasing risk of a fire

      Mercedes-Benz USA is recalling over 42,000 2008-2009 smart fortwo cabrio and fortwo coupe vehicles.

      The company says that the rear insulation mat found in the engine compartment can deform, loosen, or deteroriate over time. This can increase the risk of a fire if the mat comes into contact with hot exhaust system components.

      Company representatives will be notifying owners of the issue, and dealers will replace the rear insulation mat free of charge. The recall is expected to start in July.

      Consumers can contact Mercedes-Benz USA customer service for more information by calling 1-800-367-6372. 

      Mercedes-Benz USA is recalling over 42,000 2008-2009 smart fortwo cabrio and fortwo coupe vehicles.The company says that the rear insulation mat found...

      Democrats hope to force a Senate vote on net neutrality

      Despite the FCC's action, supporters of the policy haven't given up

      They admit it's a longshot, but supporters of net neutrality think there's a chance to salvage the concept that internet service providers (ISP) must treat all content the same.

      Reuters reports Senate Democrats have secured 50 votes to subject the Federal Communications Commission (FCC) rollback of net neutrality to the Congressional Review Act, which gives Congress a chance or overturn executive branch regulations.

      With the prolonged absence of Sen. John McCain (R-Ariz.) due to illness, Democrats now think they would prevail on a 50-49 vote.

      Democrats are joined by a handful of large technology companies -- such as Amazon, Facebook, Google, and Etsy -- that are urging their users to lobby lawmakers. Users are getting a special message from these sites today when they log in, asking that they call their local representatives.

      Narrow window of opportunity

      Net neutrality supporters say a window of opportunity still exists because the FCC has not moved to finalize its new rule that overturns the old rule. It must submit its new rule to the Office of Management and Budget for formal approval.

      Next, the FCC is required to provide a timeline for the changes to take effect. Complicating matters is a move by Washington, and several other states, to draw up their own net neutrality laws.

      Late last month, Fortune reported that some FCC critics suspect the agency is dragging its feet in order to draw up its own net neutrality rules that would favor large ISPs. A revised federal neutrality rule could then arguably supersede rules passed at the state level.

      Victory in the Senate next week might not be enough, however. Backers of the original policy would also have to win in the GOP-controlled House, then persuade President Trump to sign it.

      That's why tech companies are urging users to pressure House members in an effort to convince GOP lawmakers that saving net neutrality might be a very good survival strategy for the fall's midterm elections.

      They admit it's a longshot, but supporters of net neutrality think there's a chance to salvage the concept that internet service providers (ISP) must treat...

      Equifax filings now admit passport information was stolen

      Hackers made off with information on thousands of passports as part of the massive 2017 breach

      Earlier this year, Senator Elizabeth Warren published a report charging that the Equifax hack was worse than the company initially disclosed, in part because hackers had accessed consumer passport information.

      “Equifax failed to disclose the fact that the hackers gained access to consumers’ passport numbers,” says the report published by Warren’s office in February.

      A passport breach poses obvious identity theft concerns, but it is also a national security risk. Security experts have previously identified passport theft as a terrorism threat.

      At the time, Equifax denied that any passport data was stolen. Instead, the company claimed that hackers were unsuccessful in their attempt to hack passport data.

      “The easiest way to understand this is that there was a field labeled passports [that was hacked] with no actual data in it,” Meredith Griffanti, an Equifax spokeswoman, told the New York Post in February.

      But Equifax is now saying that passport data was stolen from several thousand consumers. The company made the admission in filings it submitted to the Securities and Exchange Commission (SEC) in response to an ongoing congressional investigation.

      Hackers steal information on thousands of passports

      The passport breach affected consumers who were trying to challenge information on their credit reports, according to the SEC filings. Equifax directed such consumers to submit complaints to an online dispute portal. The customers were then required by Equifax to submit scans of their ID cards to verify their identity in some cases -- information that was subsequently accessed in the 2017 hack.

      Equifax says in the recent SEC filings that hackers accessed information uploaded to that dispute resolution center and made off with scans of 3,200 passports or passport cards. “As part of the dispute process, some consumers may have uploaded government-issued identifications through the portal,” Equifax explains in the SEC filing.

      Though this particular aspect of the 2017 hack had not previously been disclosed to the public, Equifax says that it has already notified each affected customer individually. The company claims it had no legal duty to disclose the passport information being stolen to the rest of the general public.

      “Because the company directly notified each impacted consumer, the company had not previously analyzed the government-issued identifications contained in the images uploaded in the dispute portal,” the filing says, adding that the “government-issued identifications that were uploaded by consumers to Equifax’s online dispute portal” were “stolen by the attackers.”

      Stolen information and harder repercussions

      Hackers also managed to steal scans of 38,000 driver’s licenses, 12,000 social security cards, and 3,000 forms of other ID from the same online portal.

      Asked about why Equifax appeared to be giving inconsistent answers about whether passport data had been stolen, the company responded that it had been discussing a different aspect of the hack in the earlier answers it gave this year.

      “Our response earlier this year regarding passports was related to the data elements contained in the database tables accessed by the attackers,”  spokeswoman Meredith Griffanti tells ConsumerAffairs via email. “The analysis conducted on the data elements stolen from those tables found that there were no passport numbers within the passport field accessed by the attacker.”

      Warren’s office is continuing to push for harsher repercussions for Equifax. Last month, she and two other lawmakers found that consumers had filed more than 20,000 complaints to Consumer Financial Protection Bureau (CFPB) following the cyber attack.

      Earlier this year, Senator Elizabeth Warren published a report charging that the Equifax hack was worse than the company initially disclosed, in part becau...

      Congress scraps rule aimed at ending bias in auto lending

      Consumer advocates worry that the move will drive up fees for auto loan candidates

      In a 234 to 175 vote, the House moved to dismantle a 2013 policy that aimed to prevent discrimination in auto lending.

      The Consumer Financial Protection Bureau (CFPB) put forth the policy to prevent auto lenders from charging minorities higher rates for car loans. However, auto lenders have defended the move for years, citing the markups as a “standard practice” that makes car purchases available to more people.

      It shouldn’t be surprising that lawmakers on either side of the aisle disagree on the matter, especially in regards to how the repeal will affect consumers looking for car loans.

      “An ill-advised Obama-era auto-lending rule issued by the CFPB missed the mark on both process and substance,” Senator Jerry Moran (R-Kan.) said in a press release. “This resolution of disapproval provides Congress the opportunity to reverse this overreaching rule to return a sense of stability to the auto marketplace, ultimately providing a path to lower costs for all car purchasers.”

      “This truly repugnant resolution ignores the unacceptable, undeniable truth that consumers’ interests are regularly marked up based on their race or ethnicity - a disgusting practice that continues to run rampant across the country,” countered Senator Richard Blumenthal (D-Conn.).

      The story behind the policy

      The CFPB’s 2013 guidance explained how the Equal Credit Opportunity Act (ECOA) -- responsible for prohibiting lending based on an individual’s race, religion, sex, or age -- bled into the auto lending industry.

      “The ECOA makes it illegal for a ‘creditor’ to discriminate in any aspect of a credit transaction because of race, color, religion, national origin, sex, marital status, age, receipt of income from any public assistance program, or the exercise, in good faith, of a right under the Consumer Credit Protection Act,” the bulletin reads.

      However, both the Senate and the House voted to void this consumer rule under the Congressional Review Act, a law that allows Congress to expunge rules that were created by government agencies.

      Now, consumer advocates worry that destroying anti-discrimination policies will undoubtedly drive up fees for consumers and also put a target on the backs of other consumer protections.

      “Companies will put millions of people into more expensive car loans simply because of the color of their skin,” said Rion Dennis, an advocate of financial overhaul at Americans for Financial Reform.

      “By using the Congressional Review Act to wipe out straightforward regulatory guidance, the congressional majority has also opened the door challenging longstanding efforts to protect workers, consumers, civil rights, the environment, and the economy.”

      The road ahead

      Republicans and Democrats have long disagreed over the CFPB’s mandate, with Republicans claiming that the agency consistently oversteps its bounds. Since President Trump instated Mick Mulvaney to head the bureau in the interim, Mulvaney has worked to scale back much of the department’s activities.

      “By voting to rollback the CFPB’s work, senators have emboldened banks and finance companies to engage in racial discrimination by charging millions of people of color more for a car loan than is justified,” Dennis offered.

      “A loan origination should be as objective as possible, but when you add discretion, you add subjective means that are harder to keep transparent and hold accountable,” said Delvin Davis, lead expert on auto lending at the Center for Responsible Lending, a nonprofit research and advocacy group for consumers.

      Davis encouraged concerned consumers to try to get pre-approved by their bank or credit union for an auto loan prior to entering a car dealership.

      “Once you have that approval, you’re taking that check to the dealership and it can become a good negotiation chip that you can use,” Davis said.

      In a 234 to 175 vote, the House moved to dismantle a 2013 policy that aimed to prevent discrimination in auto lending.The Consumer Financial Protection...

      Sears partners with Amazon to sell tires

      The ailing department store chain is hoping the move will help business

      Amazon and Sears have teamed up to sell tires, CNBC reports. Consumers can buy any brand of tire via the online retailer’s website and then schedule a time to stop by the closest Sears Auto Center to have them installed.

      News of the partnership comes a year after the retailer was forced to shutter numerous locations that were determined to be unprofitable.

      The tire sales program will begin at 47 locations in 8 cities, but Sears says it plans to “quickly expand” the service to every Auto Center around the country. Sears stock jumped 20 percent on news of the Amazon partnership after having falling more than 70 percent over the last year.

      "Amazon.com customers can expect terrific performance and reliability from DieHard tires and professional installation from Sears Auto Centers," Tom Park, president of Kenmore, Craftsman, and DieHard brands at Sears Holdings, said in a statement. "We're thrilled to expand our assortment of this iconic brand to include passenger tires on Amazon.com."

      Expanding partnership

      Last Summer, Amazon announced that it would begin selling Kenmore home appliances on Amazon, with some integrated with Amazon’s Alexa. In December, Sears announced it would begin selling merchandise from its DieHard brand on Amazon, including car batteries and now tires.

      "Kenmore is now distributed nationally on Amazon with over 250 products and we are exceeding customer service level expectations," Park said.

      The tire service will be made available in the following cities in the coming weeks: Atlanta, Chicago, Dallas, Los Angeles, Miami, New York, San Francisco and Washington, D.C.

      Amazon and Sears have teamed up to sell tires, CNBC reports. Consumers can buy any brand of tire via the online retailer’s website and then schedule a time...

      Study identifies factors for improving quality of life for dementia sufferers

      Maintaining positive relationships and feeling included can help immensely

      Despite a wealth of innovative research over the years, dementia is still a big problem for many people around the world. The condition, which describes a range of impairments to memory and other cognitive abilities, can often become more devastating with age.

      However, a recent research analysis from the University of Exeter has identified several factors that can improve the quality of life of those who suffer from dementia. Professor Linda Clare, a co-author of the work, explains just how important the research is.

      “While many investigations focus on prevention and better treatments, it’s equally vital that we understand how to optimize quality of life for the 50 million people worldwide who have dementia,” she said.

      Improving quality of life

      The analysis focuses on several factors that can improve quality of life for consumers suffering from dementia. They include:

      • Maintaining good relationships with family and friends;
      • Being included and involved in social activities;
      • Being able to manage everyday activities; and
      • Having religious beliefs.

      While these weren’t the only factors contributing to a positive quality of life, the researchers found that they were among the most influential. They also found that establishing a solid groundwork for quality of life in the earliest stages of dementia was very helpful later on.

      “Maintaining a healthy social life and doing things you enjoy is important for everyone’s quality of life,” said Dr. Doug Brown, Chief Policy and Research Officer at the Alzheimer’s Society. “Someone develops dementia every three minutes but too many are facing it alone and feel socially isolated – a factor that researchers pinpoint [as a contributor] to a lower quality of life."

      “We now need a way to put these findings into action to make a difference to people’s lives by supporting relationships, social engagement and everyday functioning, addressing poor physical and mental health, and ensuring high-quality care,” added Clare.

      The full study has been published in the journal Psychological Medicine.

      Despite a wealth of innovative research over the years, dementia is still a big problem for many people around the world. The condition, which describes a...

      Walmart agrees to buy 77 percent of Flipkart

      ​Softbank CEO Masayoshi Son let the news slip in an earnings presentation

      Walmart has reached a deal to buy Flipkart, the largest e-commerce retailer in India, for $16 billion dollars. The partnership will give Walmart a 77 percent stake in a rapidly growing market which is currently comprised of 1.3 billion people.

      Softbank, one of Flipkart’s biggest investors, held an earnings presentation on Tuesday and let news of the deal slip slightly early.

      “Walmart is purchasing Flipkart,” Softbank CEO Masayoshi Son said during the presentation (speaking in Japanese with translation provided by a SoftBank representative). “Last night there was the official announcement.”

      After being handed a note that said the announcement had not yet been confirmed, the CEO backpedaled a little. “With regards to Flipkart, it’s not officially announced yet. Maybe I should not have mentioned that … Well, I can’t take it out!” he said.

      Announcement confirmed

      Earlier today, Walmart made the official announcement. In a statement, the Arkansas-based company said the partnership represents a “significant opportunity to partner with local leader” in a key growth market.

      The partnership will be supported by Walmart, Tencent, Tiger Global, and Microsoft.

      “India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market,” said Doug McMillon, Walmart’s president and CEO.

      “As a company, we are transforming globally to meet and exceed the needs of customers and we look forward to working with Flipkart to grow in this critical market. We are also excited to be doing this with Tencent, Tiger Global and Microsoft, which will be key strategic and technology partners.”

      The deal gives Walmart more power over Amazon in its ongoing battle for e-commerce supremacy. As we previously reported, Amazon put in a competing offer to buy Flipkart earlier this month.  

      However, Flipkart’s board reportedly believed regulatory hurdles could ensue in an Amazon-Flipkart deal since Amazon is India’s No. 2 online retailer and Flipkart’s primary competitor.

      The Flipkart-Walmart deal is the largest-ever in e-commerce, according to data compiled by Bloomberg.

      Walmart has reached a deal to buy Flipkart, the largest e-commerce retailer in India, for $16 billion dollars. The partnership will give Walmart a 77 perce...

      Visa policy change credited with speeding dispute resolution

      Merchants have less time to respond when it comes to chargebacks

      When Visa recently introduced changes to its Visa Claims Resolution (VCR) policy, consumers found they were able to resolve credit card charge backs faster and more efficiently, a new report says.

      MyChargeBack, a company assisting consumers in reversing disputed credit card payments, has found the new VCR is making it easier for consumers to recover their money.

      The policy change was introduced last year and standardized procedures and timetables. Alan Tepfer, MyChargeBack's director of client strategies and fund recovery, said Visa's streamlined processes and automation has actually reduced the number of disputed credit card charges.

      "The most significant improvement in the system is that Visa is taking every possible precaution to avoid disputes before they begin and speed them up once they do," Tepfer said. "Card holders now receive more detailed monthly statements, improved attention to customer service, an extra layer of security checks, and quicker approval of chargebacks when they are entitled to them."

      What's a chargeback?

      A chargeback occurs when a consumer makes a credit card purchase, then determines the sale was made under deceptive or false pretenses. If the merchant refuses to offer a refund, the consumer can then go directly to the credit card company and ask that it retrieve the money from the merchant.

      Tepfer says consumers are now seeing a faster response when they request a chargeback. He credits Visa's streamlining of the dispute categories from 22 to four, and reducing the time limit that merchants have to respond, from 45 days to 30 days. In the future, he says that will fall to just 20 days.

      "A major benefit for consumers is that merchants are now required to disprove customer evidence up front," Tepfer said. "Since no additional information is allowed be added afterwards, the merchant now has just a single opportunity to deny the consumer's allegations before Visa reaches its decision regarding the case."

      Disputing a charge

      The flip side of that, of course, is that consumers also have just one opportunity to present their evidence, so it's important to have all your facts straight.

      Creditcards.com advises that a consumer's first step in a dispute is to request a refund from the merchant. If the merchant is not cooperative, call the customer service number on the back of your credit card and tell the representative you want to dispute a charge.

      Different issuers may have different requirements, so follow their specific instructions. Provide any records or evidence to bolster your case.

      Some of the most commonly accepted reasons for a chargeback include not receiving the item you ordered, receiving a substandard product, being incorrectly billed, and being billed for something you didn't order.

      When Visa recently introduced changes to its Visa Claims Resolution (VCR) policy, consumers found they were able to resolve credit card charge backs faster...

      Uber showcases its flying taxi service concept

      The company is working with five aerospace companies to develop the aircraft

      At its second annual Elevate summit in Los Angeles this week, Uber gave a preview of what it believes air taxis could look like.

      One was an all-electric multi-rotor aircraft that uses stacked rotors to lift off vertically, but it can travel at more than 186 mph because of its airplane-like body. Another aircraft uses eight horizontal rotors to lift off vertically from rooftop sky ports (called “vertiports”).

      "We think cities are going to go vertical in terms of transportation and we want to make that a reality," Uber CEO Dara Khosrowshahi told CBS News.

      Uber revealed that it’s partnering with five aerospace companies -- Embraer, Pipistrel, Karem, Aurora Flight, and Bell -- to develop its flying taxi service, which it plans to start testing in 2020.

      A challenging project

      California-based Karem is the latest aircraft manufacturer to partner with Uber to develop its flying taxis. The company’s design involves light but rigid rotors that can reposition depending on whether the aircraft is taking off or flying.

      Founder Abe Karem, a pioneer in drone technology, said this particular project is challenging, because "almost everything is wrong in helicopters for what you have to do. You have to reinvent it." He said the project is, "maybe slightly easier than nuclear physics but not by much."

      Uber is also partnering with Boeing subsidiary Aurora Flight Sciences. Aurora said it is focusing on autonomous technology. Uber has said that once a piloted version of the flying taxi is successfully off the ground, self-flying taxis will be the company’s next goal.

      Fort Worth-based Bell (formerly Bell Helicopters) debuted its electric air taxi cabin concept at CES earlier this year. Bell described the interior cabin it designed as a “comfortable, relaxing space” that acclimates the passenger to the qualities of vertical flight.

      Brazilian aircraft manufacturer Embraer is also working with Uber on the project. “This is a great concept but is a big challenge, no question about that," said CEO Paulo Cesar Silva.

      Slovenia-based Pipistrel (now Pipistrel Vertical Solutions) used the Elevate summit to unveil a concept of its aircraft. The aircraft will be able to go longer distances at higher speeds than previous models and will be part of a “family of eVTOL” that includes three other concept aircraft, according to director of research and development Tine Tomazic.

      Uber has also partnered with NASA to develop technology to control air traffic and prevent crashes. The company said it plans to start demonstrations of its flying taxi service in 2020 with pilots in Dubai, Dallas, and Los Angeles.

      At its second annual Elevate summit in Los Angeles this week, Uber gave a preview of what it believes air taxis could look like.One was an all-electric...

      Fair housing group sues government over discrimination enforcement

      The complaint alleges HUD lacked authorization to suspend tougher housing discrimination rules

      A watchdog against discrimination in housing is suing the Department of Housing and Urban Development (HUD) after the agency suspended an Obama administration housing protection.

      In its complaint, the National Fair Housing Alliance (NFHA) claims the Trump administration did not have the authority to suspend a federal requirement for state and local governments to show they were cracking down on housing discrimination in order to continue receiving money from HUD.

      In January, HUD Secretary Ben Carson announced a five-year delay in implementing the “Affirmatively Furthering Fair Housing” rule, put in place by the Obama administration in 2015. Carson admitted to not being a fan of the rule, calling it “social engineering.”

      Reason for the 2015 rule

      The complaint alleges that HUD had never actively enforced a requirement, contained in the 50 year-old Fair Housing Act, requiring HUD to administer its programs in ways that support the aims of the Fair Housing Act, which was to end discrimination in housing.

      “Although this Affirmatively Furthering Fair Housing (AFFH) requirement was of great importance to Congress in enacting the Act, for decades, HUD inadequately enforced it,” the group said in its suit.

      “The agency has permitted more than 1,200 grantees—mostly local and state government entities—to collectively accept billions of dollars in federal housing funds annually without requiring them to take meaningful steps to address racial segregation and other fair housing problems that have long plagued their communities.”

      NHFA says that was the rationale behind the Obama administration's 2015 rule, which was meant to force state and local governments to take meaningful steps to address housing segregation within their jurisdictions. By suspending the rule, the group says HUD is going back to a way of operating that has, in many ways, ignored the aims of the Fair Housing Act.

      Why the rule was suspended

      A HUD spokesman declined to comment specifically on the suit, but he referred reporters to the agency's January statement which explained that the rule was being suspended because it wasn't working very well.

      As it observed the 50th anniversary of the Fair Housing Act last month, NHFA issued its 2018 Fair Housing Trends Report, noting that it had processed more than a half million housing discrimination complaints since 1996. It said there were more than 28,000 housing discrimination complaints in 2017 alone.

      “The biggest obstacle to fair housing rights is the federal government’s failure to enforce the law vigorously,” the report concluded.

      A watchdog against discrimination in housing is suing the Department of Housing and Urban Development (HUD) after the agency suspended an Obama administrat...

      Specialized Bicycle Components recalls specialized bikes with Stout cranks

      The driveside crankarm can disengage and cause riders to crash

      Specialized Bicycle Components, Inc. -- of Morgan Hill, Calif. -- is recalling approximately 1,800 Specialized Fuse Comp and Fatboy SE bicycles with Stout cranks.

      The company says that the driveside crankarm can disengage and cause riders to lose control, increasing the risk of a fall or related injury.

      Products are only subject to recall if "STOUT" is printed on either of the crankarms and the bike comes equipped with a direct-mount chainring manufactured in 2017. Consumers can identify if cranks were manufactured that year by checking the serial code printed on the inside of either crankarm; affected models will start with "17."

      The company asks consumers to stop using the recalled bicycles immediately and contact an Authorized Specialized Retailer for instructions on how to receive a free replacement crankarm. 

      Authorized Specialized Retailer or Specialized Bicycle Components can be reached via a toll-free number by calling 877-808-8154 from 8 a.m. to 6 p.m. (PST), Monday through Friday.

      Consumers can find more information on the recall by sending an email to ridercare@specialized.com or visiting the Specialized Bicycle Components website and clicking on "Safety Notices."

      Specialized Bicycle Components, Inc. -- of Morgan Hill, Calif. -- is recalling approximately 1,800 Specialized Fuse Comp and Fatboy SE bicycles with Stout...

      Uber autonomous car saw Arizona pedestrian before hitting her, report says

      The software allegedly decided not to take evasive action

      Uber has reportedly concluded that sensors in one of its self-driving cars saw an Arizona pedestrian in the road but failed to take action to avoid hitting her.

      The March accident claimed the life of Elaine Herzberg and triggered a National Transportation Safety Board (NTSB) investigation into what caused the accident. The Information, a technology publication, cites two people who have been briefed on Uber's own investigation as saying that the sensors saw the pedestrian but didn't recognize her as an object to be avoided.

      The sources say the car's object-avoidance software can be adjusted so that the car will make every effort to avoid hitting a solid object but not swerve to miss a paper bag floating in its path.

      According to The Information, the Uber investigation concluded that the car's sensors saw the pedestrian pushing her bicycle in the roadway, but the on-board computer system “decided it didn't need to react right away.”

      'Top-to-bottom safety review'

      Because investigations are still underway, neither Uber nor the NTSB will comment on the report. However, a spokesman for Uber told TechCrunch that the company has started “a top-to-bottom safety review” of the ride sharing company's self-driving car program.

      How an autonomous vehicle sees objects in the roadway could play a critical role in determining when and if the technology is deemed safe to be fully deployed on U.S. highways. Right now, it's something of a controversial question.

      Last fall, a coalition of safety and consumer groups lined up against bipartisan legislation in Congress to fast-track autonomous car testing on public roads. Joan Claybrook, a former administrator of the National Highway Traffic Safety Administration (NHTSA), said the legislation ignores recent history, including mistakes made by the auto industry.

      "It puts auto and tech companies who basically wrote the bill in the driver's seat in the development and deployment of unproven autonomous vehicles," Claybrook said at the time. "It puts the federal auto safety agency in the back seat in terms of ensuring industry accountability."

      Critical decision-making

      In a November interview with ConsumerAffairs, automotive expert Scot Hall, CEO of Swapalease, expressed doubts that current technology is capable of making choices that drivers are sometimes required to make.

      “What if a self-driving car encounters a dangerous situation where there are two alternatives, and neither of them is good?” Hall asked. “How does the computer make that choice?”

      That's a question not only for technology company engineers, but also policymakers, who must decide when fully autonomous cars are safe to operate on public roadways without any human intervention.

      Uber has reportedly concluded that sensors in one of its self-driving cars saw an Arizona pedestrian in the road but failed to take action to avoid hitting...

      Walmart to restrict opioid prescriptions in some cases

      The retail giant is seeking to combat the opioid epidemic

      Walmart promises to be part of the “solution” to the massive opioid epidemic in the United States with new policies that it says will curb opioid abuse and misuse.

      Within sixty days, Walmart and Sam’s Club plan to restrict some opioid prescriptions to a seven-day supply with a maximum of 50 milligrams of morphine per day.

      In a press release, Walmart describes the new policy as applying to “initial acute” prescriptions and one that is in alignment with the Centers for Disease Control and Prevention’s (CDC) guidelines.

      The CDC says that prescriptions for acute pain should be targeted in the fight against the opioid epidemic because “long-term opioid use often begins with treatment of acute pain.” The agency adds that three days or less worth of opioids “will often be sufficient” in acute pain cases for new patients, while “more than seven days will rarely be needed.”

      Walmart criticized over return policy

      It is unclear how Walmart’s policy will be enforced, as it does not appear to apply to people seeking treatment for chronic pain or people who have already been prescribed opioids in the past.  

      But by 2020, Walmart and Sam’s Club will require e-prescriptions for all controlled substances. The corporation says that e-prescriptions cannot be altered and are “electronically trackable.”

      Walmart’s policy follows a similar initiative introduced by CVS last September to limit opioid prescriptions for new patients to a seven-day supply.

      Last October, not long after the new CVS policy was announced, a judge in Pennsylvania criticized Walmart for what she described as being a ”huge part of the problem” and “contributing to this [opioid] epidemic.”

      According to the judge, the problem wasn't the way that Walmart sold opioids; it was its policy of allowing customers to return items without receipts. The judge alleged that people were stealing merchandise, returning it to Walmart, and then using the money they received from the stolen goods to fund their addictions.

      Walmart did not respond to a local newspaper’s request for comment about its return policy at the time.

      Fighting the opioid epidemic

      It’s not the first measure to curb opioid use that Walmart has taken in in recent months. Earlier this year, Walmart introduced  a product called DisposeRX. The product, when mixed with warm water, can turn any opioid product into a soft gel, rendering it unusable.

      While experts agree that safe disposal of leftover opioid drugs is an important measure to fight the epidemic, they point out that plenty of options for the safe tossing of painkillers already exist.

      The CDC advises consumers with unused opioid drugs to participate in their local pharmacy’s drug take-back program or simply “flush them down the toilet.”

      Walmart promises to be part of the “solution” to the massive opioid epidemic in the United States with new policies that it says will curb opioid abuse and...

      Feds want two pick-up models off the road now

      Many 2006 Ford Ranger and Mazda B-series still have dangerous Takata airbags

      The National Highway Transportation Safety Administration (NHTSA) has issued an urgent appeal to owners of two older pick-up truck models: park them, now.

      The agency says the 2006 Ford Ranger and 2006 Mazda B-series trucks are equipped with dangerous Takata airbags – the subject of a massive recall and blamed for at least 22 deaths worldwide. The airbag inflators have been shown to explode, sending bits of metal flying through the cabin with terrific force.

      Because so many vehicles have these airbags, NHTSA says they aren't being repaired fast enough. The agency is especially concerned about the two older pick-up truck models, saying they should be a priority.

      Three months ago, both Ford and Mazda appealed to owners of the trucks to park them and not drive them again until the airbags are replaced. NHTSA is re-issuing the warning, it says, because too many drivers ignored the first one.

      Number one priority

      “NHTSA’s number one priority is making sure that everyone is safe on our roads,” said NHTSA Deputy Administrator Heidi King. “I cannot stress strongly enough the urgency of this recall – these airbags are dangerous. Every vehicle must be accounted for now.”

      King cites statistics from the manufacturers, showing barely half of the 33,320 affected 2006 Ford Rangers have been repaired, and only 58 percent of the 2,205 impacted Mazda B-Series trucks have been mitigated.

      Both Ford and Mazda have authorized their dealers to tow these vehicles free of charge so consumers can safely obtain the free repair.

      Millions of vehicles equipped with Takata airbags have been recalled since 2016, yet many are still on the nation's highways. In March, a Senate Commerce subcommittee convened a hearing into the slow pace of the recall.

      By the middle of last year, automakers had recalled more than 125 million vehicles worldwide, creating a backlog at many dealers.

      What to do

      To find out if you are driving a vehicle with a dangerous Takata airbag, visit the NHTSA website. Once there, enter your 17-character vehicle identification number (VIN).

      Your search result will show if your car or truck is included in this or any other safety recall. Vehicles scheduled for future recalls will not show up in this search, so it is important that you check regularly, at least twice per year.

      If you find your vehicle does have a recall, call a dealer to schedule the free repair. In the Takata airbag recalls, there are priority groups; parts are only available for certain vehicles starting at certain dates.

      At the moment, NHTSA considers the 2006 Ford Ranger and Mazda B-series to be in that priority category.

      The National Highway Transportation Safety Administration (NHTSA) has issued an urgent appeal to owners of two older pick-up truck models: park them, now....