Current Events in June 2018

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2018

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    Tesla worker claims he was prevented from organizing a union

    A hearing seeks to determine if Tesla illegally violated workers’ federal rights

    A Tesla employee testified at a National Labor Relations Board (NLRB) hearing on Monday and said that he was asked by a supervisor and company security guards to leave the factory after handing out pro-union leaflets to colleagues back in February.

    The hearing sought to determine whether the electric car maker had violated federal safeguards for employee activity.

    If Tesla loses its case with the NLRB, the company could be forced to notify employees that it was found to be committing unfair labor practices. This would involve revoking any disciplinary action taken against employees involved in the unionization efforts.

    Tesla denies allegations

    Tesla has described the allegations as an effort to paint Tesla founder and CEO Elon Musk and the company “in a negative light.” Tesla's general counsel Mark Ross asked for a "standing objection" to "any mention of Mr. Musk," but Judge Amita Tracy denied his request.

    In May, Musk tweeted that he had not done anything to prevent workers from unionizing.

    “Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted,” Musk tweeted on May 20.

    At the hearing, Ross named about two dozen other allegations against Tesla that were found to be without merit and dismissed.

    “The fact of the matter is that Tesla is a company that values its employees,” Ross said in his opening remarks.

    Potentially affecting workers

    Lawyers representing the union accused the company of violating the federal law that protects organizing activity.

    "What we see is a very heavy-handed, anti-union campaign that's affected all levels of workers’ everyday lives," said Margo Feinberg, attorney with Schwartz, Steinsapir, Dohrmann & Sommers in her opening remarks.

    Michael Sanchez -- a production associate who has been with the company since 2012 but is currently on medical leave and suing Tesla -- said he was handing out pro-union flyers outside the factory on Feb. 10, 2017 when a security guard approached him.

    “He asked me, ‘Are you an employee?’ I said, ‘Yes, I’ve been at Tesla almost five years,’” Sanchez said. “He said, ‘You should leave the premises.’ I said ‘I’m here within my legal rights.’”

    Sanchez said the guard left initially but returned a few minutes later demanding to see his badge. The guard photographed Sanchez’s badge and again told him to leave the facility. A second guard asked if the flyers were for a union.

    “He said, ‘Unions are worthless — you shouldn’t join one.’ I said, ‘That’s your opinion,’” Sanchez recounted.

    The case comes as Tesla struggles to ramp up production of its latest car, the Model 3. The hearing will continue for the rest of the week and resume in late September.

    A Tesla employee testified at a National Labor Relations Board (NLRB) hearing on Monday and said that he was asked by a supervisor and company security gua...

    Millennials’ median income by state

    Massachusetts ranks number one, with an adjusted median income of over $80,000 among millennials

    A recent survey shows that millennials are a financially optimistic bunch, with 53 percent expecting to become a millionaire at some point. However, to achieve that goal, millennials may want to weigh their options carefully when it comes to deciding where to live.

    Using the most recent census data showing median household earnings for the age range that most closely aligns with the millennial generation (ages 25 to 44), CNN Money created a map that shows the median income in every state for the millennial generation along with an adjusted figure for what that money is actually worth in that state.

    The map suggests that young professionals seeking a solid income may want to head north. Eight of the bottom 10 states for millennial earning potential are situated in the southeast, with New Mexico in last place.

    The District of Columbia has the highest median income overall, at more than $87,200. Behind DC were other coastal states like Massachusetts ($86,600), Washington ($74,300), California ($71,900), and New York ($71,200).

    Accounting for the cost of living

    While these states may give millennials a decent shot at earning a solid income, many of them can be expensive to live.

    Using the Bureau of Economic Analysis’s regional price parity calculations, CNN Money factored in the cost of living in each state to come up with an adjusted median income figure.

    DC’s adjusted median dropped to just over $75,000 with its higher cost of living factored in. New York’s adjusted median clocked in at just over $61,000 and California’s median income fell to roughly $63,000 with living expenses factored in.

    “While young workers in some coastal states like Massachusetts and Virginia remain among the best off, those in places like New York and California fall far behind,” CNN Money said. “Meanwhile, young people living in places like the Dakotas and Wyoming — inexpensive areas that have been benefited from a decade-long energy job boom — seem rich by comparison.”

    A recent survey shows that millennials are a financially optimistic bunch, with 53 percent expecting to become a millionaire at some point. However, to ach...

    Consumer prices rise faster than incomes in May

    The inflation rate for the last 12 months is 2.8 percent

    In case you hadn't noticed, inflation is on the rise.

    The government reports the Consumer Price Index (CPI) for May rose 0.2 percent on the heels of a similar increase in April. Over the last 12 months, the inflation rate is 2.8 percent, with prices rising faster than incomes.

    Costs for gasoline and shelter rose fastest during the month. The gasoline index was up 1.7 percent, even as some other energy costs went down. The overall energy index gained 0.9 percent in May.

    The cost of putting a roof over your head, both through rents and purchase prices, rose 0.3 percent last month. Medical costs were also higher, rising 0.2 percent. The index tracking food prices was unchanged.

    Incomes don't keep up

    Consumers' average hourly earnings posted a small increase in May, rising 0.1 percent. This was mostly due to an increase in the real hourly earnings, combined with an unchanged average work week.

    The costs of some things went down in May, but most are not things consumers purchase every month. For example, household furnishings and used cars and trucks cost less in May. Prices for clothing, recreation, and personal care were the same as April.

    While the food index was unchanged in May, food inflation over the last 12 months is running at 2.7 percent. Consumers got some relief last month when they purchased food to prepare at home -- including, meat, poultry, fish, and eggs, which dropped 0.7 percent.

    Meanwhile, the index for nonalcoholic beverages rose 0.4 percent last month, with cereal and bakery products prices were essentially unchanged.

    The latest inflation numbers come as the Federal Reserve's Open Market Committee begins a two-day meeting in Washington, at which it will consider whether to hike the discount rate again. The consensus among economists is a June rate hike is almost a certainty, and that the May inflation numbers have done nothing to change the equation.

    In case you hadn't noticed, inflation is on the rise.The government reports the Consumer Price Index (CPI) for May rose 0.2 percent on the heels of a s...

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      Ford Explorer and Jeep Cherokee rated 'poor' in passenger side crashes

      Six of eight mid-size SUVs rated 'good' or 'acceptable'

      Six of eight mid-size SUVs earned good or acceptable ratings in the latest round of crash tests, but the Ford Explorer and Jeep Grand Cherokee were cited for “major flaws.”

      The Insurance Institute for Highway Safety's (IIHS) passenger-side small overlap test measures how well a vehicle performs when just the front corner of the vehicle strikes another vehicle or an object, such as a tree or utility pole.

      IIHS has rated vehicles in driver-side small overlap crashes since 2012 and has noted vast safety improvements in this area in the years since. The organization launched the same test for the passenger side last year.

      Risk to passengers

      "Although some vehicles in this group offer very good protection, in other models, the airbags, safety belts and structure showed serious deficiencies," said David Zuby, IIHS' chief research officer. "In those SUVs, a front-seat passenger would be at risk of injuries to the head, hip or leg in a right-side small overlap front crash."

      IIHS said the Ford Explorer earned a “poor” rating because the crash “seriously compromised” the vehicle's structure. Tests shows that intrusion reached 15 inches at the lower door hinge pillar and 13 inches at the upper door hinge pillar and the dashboard.

      Following the test, the door sill was moved in six inches toward the crash dummy. Post-crash measures showed a passenger had a high likelihood of suffering injuries to the head and right hip.

      IIHS says the Ford also showed poor structural performance on the driver side tests. It said the automaker is redesigning the Explorer and new models will have improved structural integrity on both the driver and passenger sides.

      Jeep Grand Cherokee issues

      As for the Jeep Grand Cherokee, the passenger-side test revealed a maximum intrusion of 10 inches at the lower door hinge pillar. More alarming, the group said, was the impact to the passenger dummy's head.

      The impact caused it to hit the dashboard hard through the front airbag and then, because the side curtain airbag didn’t deploy and the door opened, it moved outside the vehicle during rebound.

      “Measures from the dummy indicated that right leg injuries would be likely in a crash of this severity, and a head injury would be possible,” IIHS concluded.

      The organization expressed some concern about possible head injuries to a passenger in the Honda Pilot, but overall, the vehicle had good structural performance. The GMC Acadia, Kia Sorento, and Volkswagen Atlas all earned “good” ratings. IIHS said the Acadia had maximum intrusion of just two inches on the right side of the toepan.

      The tested vehicles were all 2018 models, except for the Sorento, which IIHS said had been redesigned for 2019 to improve safety performance in both driver and passenger impact tests.

      Six of eight mid-size SUVs earned good or acceptable ratings in the latest round of crash tests, but the Ford Explorer and Jeep Grand Cherokee were cited f...

      BMW recalls model year 2009-2013 X5 xDrive 35d diesels

      The engine idler pulley bolt may loosen over time and break

      BMW of North America is recalling 33,214 model year 2009-2013 X5 xDrive 35d diesels.

      The engine idler pulley bolt may loosen over time and break.

      As a result, the vehicle may unexpectedly lose power-assisted steering, increasing the risk of a crash.

      What to do

      The remedy for this recall is still under development.

      The recall is expected to begin July 13, 2018.

      Owners may contact BMW customer service at 1-800-525-7417.

      BMW of North America is recalling 33,214 model year 2009-2013 X5 xDrive 35d diesels.The engine idler pulley bolt may loosen over time and break.As...

      Goodman Food Products recalls fully cooked beef patties

      The product may be contaminated with hard, white plastic

      Goodman Food Products, Texas of Mansfield, Texas, is recalling approximately 34,400 pounds of fully cooked ground beef patties.

      The products may be contaminated with extraneous materials -- specifically hard, white plastic.

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

      The following frozen, fully cooked items, produced on August 2, 2017, are being recalled:

      • 40-lb. cases of “Don Lee Farms FULLY COOKED BEEF PATTY CRUMBLES” with lot code 5886A7214, case code CNG36100 and “Best if used within” date of August 2, 2018.
      • 40-lb. cases of “Don Lee Farms FULLY COOKED HOMESTYLE BEEF PATTY” with lot code 5886A7214, case code CNG38220 and “Best if used within” date of August 2, 2018.

      The recalled products, bearing establishment number “EST. 5886A” inside the USDA mark of inspection, were purchased by USDA Foods for the National School Lunch Program and shipped to institutional locations in Maine and Connecticut.

      What to do

      School nutrition professionals who purchased the recalled products should not prepare or consume them, but discard them or return them to the place of purchase.

      Consumers with questions may contact Donald Goodman at (310) 674-3180.

      Goodman Food Products, Texas of Mansfield, Texas, is recalling approximately 34,400 pounds of fully cooked ground beef patties.The products may be cont...

      Ferrari expands recall of vehicles with airbag inflator issue

      The passenger-side front airbag inflator may explode

      Ferrari Ferrari North America has expanded an earlier recall of 1,073 model year 2013 California, 458 Italia, 458 Spider, FF, and F12 Berlinetta vehicles sold, or ever registered in Alabama, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina, Texas, Puerto Rico, American Samoa, Guam, the Northern Mariana Islands (Saipan), and the U.S. Virgin Islands, to include an additional 826 of those vehicles.

      The vehicles are equipped with airbag inflators assembled as part of the passenger front air bag modules used as original or replacement equipment.

      In the event of a crash necessitating deployment of the passenger front airbag, these inflators may explode due to propellant degradation occurring after long-term exposure to absolute humidity and temperature cycling.

      An inflator explosion may result in sharp metal fragments striking the driver or other occupants resulting in serious injury or death.

      What to do

      Ferrari will notify owners, and dealers will replace the passenger front airbag assembly, free of charge.

      The recall began March 1, 2018 for the original population. The recall will begin in June 2018 for the expanded population.

      Owners may contact Ferrari customer service at 1-866-551-2828. Ferrari's number for this recall is 63.

      Ferrari Ferrari North America has expanded an earlier recall of 1,073 model year 2013 California, 458 Italia, 458 Spider, FF, and F12 Berlinetta vehicles s...

      Tyson Foods Recalls chicken tenderloins

      The product may be contaminated with pieces of blue and clear soft plastic

      Tyson Foods of North Little Rock, Ark., is recalling approximately 3,120 pounds of frozen breaded chicken tenderloins.

      The product may be contaminated with extraneous materials -- specifically pieces of blue and clear soft plastic.

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

      The the following frozen, uncooked item, produced on May 17, 2018, is being recalled:

      • 12-lb. box containing 3-lb. plastic bags of “UNCOOKED, BREADED, ORIGINAL CHICKEN TENDERLOINS,” with a lot code of 1378NLR02.

      The recalled product, bearing establishment number “P-746” on the product package, was shipped to food services establishments, nationwide, and was not available for purchase in retail stores.

      What to do

      Institutions that purchased the recalled products should not serve them, but discard them.

      Consumers with questions about the recall may contact the Tyson Foods call center at (888) 747-7611.

      Tyson Foods of North Little Rock, Ark., is recalling approximately 3,120 pounds of frozen breaded chicken tenderloins.The product may be contaminated w...

      FCC officially repeals net neutrality rules

      The regulation of the internet is about to change

      Net neutrality rules established under the Obama era were officially repealed today following a vote last month by the Republican-led Federal Communications Commission (FCC). The decision comes despite efforts by members of Congress, state officials, tech companies, and advocacy groups who have fought to reverse the agency’s decision for months.

      Net neutrality was designed to prevent internet providers from blocking, speeding up, or slowing down access to specific online services. To do away with it, the FCC’s order had to be approved by the Office of Budget and Management.

      Upon receiving the order last month, FCC Chairman Ajit Pai noted that removing net neutrality would be the end of burdensome internet regulations.

      “Now, on June 11, these unnecessary and harmful internet regulations will be repealed and the bipartisan, light-touch approach that served the online world well for nearly 20 years will be restored,” Pai said in a statement at the time.

      “June 11 is significant because it will be the first time in the over 15 year battle over net neutrality that the FCC will have essentially no role in preserving an open internet and overseeing the broadband market,” said Gigi Sohn, a counselor to former FCC chairman Tom Wheeler. “Those ‘fast lanes’ will put those who won’t or cannot pay in the slow lane, making the internet a lot like cable TV.”

      Legislators fight back

      Despite the decision on net neutrality, government officials are continuing the fight in hopes of repealing the decision.

      Last month, the Senate voted 52-47 in favor of keeping net neutrality, but the vote was mostly symbolic, as the final decision had to be passed through the Republican majority House of Representatives.

      Late last week, Senators were sending letters to House Speaker Paul Ryan in the hopes of pushing him to schedule a vote on the issue. Advocacy groups are calling for “mass online actions” to bring the issue further into the public eye and hopefully pressure Congress to act.

      “It’s an uphill fight,” said Chris Lewis, VP of Public Knowledge, a tech advocacy group that has been urging the House to take action.

      Individual states have also started taking action against the repeal of net neutrality. More than 20 states have filed lawsuits to stop the repeal, and a number of states have pushed legislation to enforce net neutrality within its borders. The California Senate announced at the end of last month that it is working to enforce stricter net neutrality laws than what federal regulations require.

      However, according to the FCC, states don’t have the power to make their own policies.

      “It’s patently illegal for the states to make their own internet policy,” said Roslyn Layton, a visiting scholar at the American Enterprise Institute who served on President Trump’s transition team for the FCC.

      What to expect moving forward

      Though today marks the end of net neutrality as consumers have known it, supporters of the repeal are adamant that the changes won’t come immediately.

      “Nothing will change the next day,” said Kevin Werbach, an associate professor of legal studies at Wharton and former FCC advisor. “Companies are not going to take any major action to change their policies until it’s resolved.”

      The fate of net neutrality is likely to last throughout the remainder of the year, if not longer based on the push for legislation.

      “We’ll see what happens after the [midterm] election,” Lewis said.

      Net neutrality rules established under the Obama era were officially repealed today following a vote last month by the Republican-led Federal Communication...

      Amazon expands Prime discount at Whole Foods to 10 more states

      Prime members will receive 10 percent off hundreds of sale items

      Starting June 13, Amazon will be expanding its Prime discount at Whole Foods to 10 more states, including: Alabama, Arizona, Georgia, Hawaii, Mississippi, North Carolina, Oregon, South Carolina, Tennessee, and Washington. Amazon previously stated that it will continue to expand these services throughout the year.

      In addition to receiving 10 percent off on hundreds of sale items, Prime members will also receive exclusive offers on many popular products.

      Some of the offers include:

      • $2/lb on organic yellow nectarines and peaches

      • $3/lb on made in-house pork sausage, no antibiotics

      • $9/lb on wild sustainably caught yellowfin tuna steaks

      • Buy one, get one free Annie’s Natural Macaroni & Cheese

      • 4/$5 Essentia Water, 1.5L bottles

      • Self-serve tea cookies by the pound, 50 percent off

      “We’re excited that Prime savings will be available at nearly half of our Whole Foods Market stores this week, giving more Prime members access to great deals just in time for summer,” said A.C. Gallo, president and CEO of Whole Foods. “Based on the positive customer feedback and successes we’ve seen over the past month, we’re accelerating our timeline to expand these savings to all of our U.S. stores.”

      Prime members can also get these savings at Whole Foods Market 365 stores across the country.

      Making the most of your Prime membership

      Prime members that frequent Whole Foods can get these deals at participating stores across the country (or at Whole Foods Market 365 locations), by looking for yellow discount stickers on eligible items. Consumers can sign into the Whole Foods app with their Prime login information and discounts will be applied to orders at checkout.

      Members who opt to have their groceries delivered through the Whole Foods Market stores on the Prime Now can also receive free two-day delivery on orders over $35. Prime member savings and Prime Now grocery delivery is currently available in Atlanta, Austin, Dallas, Denver, Los Angeles, Sacramento, San Diego, and San Francisco.

      Amazon’s new role in Whole Foods

      Last June, Amazon purchased Whole Foods in a deal valued at $13.7 billion. Many were skeptical about what Amazon’s involvement would mean for the future of Whole Foods -- and the evolving world of grocery shopping.

      “Amazon’s brutal vision for retail is one where automation replaces good jobs,” said Marc Perrone, president of the United Food and Commercial Workers (UFCW) union. “That is the reality today at Amazon, and it will no doubt become the reality at Whole Foods.”

      However, since acquiring Whole Foods, Amazon has been working diligently to make the upscale food chain more accessible -- and affordable -- to the public, and expanding its Prime discounts is one such way of doing that. Amazon also cut prices at many of Whole Foods’ locations, as they look to change the reputation of Whole Foods being too costly for consumers.

      You can see what consumers think about the changes at Whole Foods and learn more about the chain by clicking here.

      Starting June 13, Amazon will be expanding its Prime discount at Whole Foods to 10 more states, including: Alabama, Arizona, Georgia, Hawaii, Mississippi,...

      Target expands its pickup, delivery options

      The retailer is more than halfway through rolling out its same-day delivery service to all stores

      Target has announced that it is halfway through the launch of its same-day shipping service and its curbside pickup service, “Drive Up.”

      The company says it’s on track to meet its goal of rolling out the services at the majority of its stores before the holiday season.

      “We set out this year with an ambitious plan to bring Target guests nationwide more ways to shop on their terms,” said John Mulligan, Target’s chief operating officer, in a statement. “Our guests are enjoying the convenience of these new delivery and pickup services as we’re working to redefine the Target Run and make Target America’s easiest place to shop.”

      Competing with Amazon, Walmart

      Same-day shipping will be provided via Shipt, which Target acquired back in December for $550 million. Target says that by the end of June, it will be offering same-day delivery through Shipt in more than 135 markets. The service will offer consumers same-day delivery in “all major product categories” by next year.

      Drive Up will let customers order online and pick up their items right outside of Target “usually within a couple minutes.” A spokesman for Target told CNBC that the retailer sees this service as being “popular among parents of small children for ‘fill-in trips’ to pick up items like diapers.”

      Meanwhile, Target Restock is a delivery option that allows consumers to order everyday essentials -- like dog food, soap, and toilet paper -- and fill up a box with up to roughly 45 pounds of goods.

      Chicago will be the first city to have all four of Target’s expanded delivery and pick-up options -- Shipt, Drive Up, Target Restock, and the fulfillment of online orders from within stores.

      Chicago is “an important and strong market for Target, with 80-plus stores, including a host of small-format stores,” the spokesman told CNBC. “It has a dense, urban population to support ‘from-store’ delivery,” he added. “It’s also a highly competitive market.”

      The company’s expanded pickup and delivery options put the retailer a step ahead in the delivery war against Walmart and Amazon, according to CNBC.

      To utilize Target’s Shipt service, consumers will have to pay $99 each year -- less than the $119 per year cost to purchase an Amazon Prime membership and get free two-day shipping. Walmart is still working on bringing its online grocery delivery service, where shoppers pay a delivery fee of $9.95 and have to fill a basket with at least $30 worth of items, to 100 metro areas.

      Target has announced that it is halfway through the launch of its same-day shipping service and its curbside pickup service, “Drive Up.” The company sa...

      IHOP to change its name to IHOb

      The restaurant known for breakfast is entering the burger war with a temporary re-branding

      International House of Pancakes has announced it is temporarily changing its iconic IHOP brand to IHOb, choosing to emphasize burgers instead of pancakes.

      The company announced the name change last week, but it didn't explain what the “b” represented, generating speculation on social media. It now says the name change coincides with the roll-out of seven new burger items on its menu.

      “Burgers are a quintessential, American menu item so it makes perfect sense that IHOP, one of the most iconic, all-American comfort-food brands in the world, would go over the top to create a delicious line-up of quality burgers that hit the spot any time of day,” said Nevielle Panthaky, Head of Culinary at IHOb.

      Entering the burger war

      The restaurant chain was founded in 1958, specializing in breakfast. It currently offers 65 different breakfast combinations. However, it has always offered other meal options as well, including hamburgers. The new burger additions are a signal that it now plans to enter the highly competitive burger war.

      In addition to gourmet burger competitors, like Five Guys, it will compete with a newly retooled McDonald's, which recently announced it would install ordering kiosks in 1,000 U.S. restaurants per quarter. Consumers using the ordering kiosks can customize their burgers and have them delivered to their tables.

      The competition in this arena is fierce. When McDonald's announced it was switching to fresh beef in its Quarterpounders, the CEO of Wendy's pointed out that chain has been serving fresh ground beef for a half century.

      Last year, Chipotle Mexican Grill entered the fray, opening Tasty Made, a burger restaurant it hoped would spread as quickly as its Mexican food franchise. However, it soon raised the white flag, closing its only Tasty Made store in late February.

      Against this backdrop, the restaurant best known for its pancakes is rebranding itself, flipping the “p” in its initials, turning it into a “b.” The company says it's doing it to show it is serious about burgers, and that there's no turning back.

      International House of Pancakes has announced it is temporarily changing its iconic IHOP brand to IHOb, choosing to emphasize burgers instead of pancakes....

      Hack of South Korean exchange wipes out billions in cryptocurrency

      Experts say the news casts doubt on Bitcoin and other commodities

      Investors who use the cryptocurrency exchange Coinrail woke up Monday morning to some monumentally bad news. The platform announced that it suffered a data breach in which hackers stole 30 percent of its virtual currencies, forcing it to temporarily suspend trading while it works with investigators to determine what happened.

      The effect of the hack is up for debate. Some onlookers pinned cryptocurrency’s $42 billion weekend plummet on the Coinrail incursion. Still others blamed the hand-wringing over the Chinese government’s ban on crypto-related platforms.

      Another -- The Signal Expert -- tweeted "Will this impact the market price? It shouldn’t if everyone is aware of the facts. Coinrail ranks 88th in 24hr volume and has a weak reputation in Korea. The only impacts I see may be from govt. regulations and potentially using this as FUD (acronym for fear, uncertainty and doubt)."

      Justifiably, Coinrail wanted to go on the record with its interpretation of the hack.

      "The exact damage of the leaked coin / token is currently being confirmed, which may require some time to be taken with the coin," wrote Coinrail in an announcement on their website. "Also, please understand that all related matters are difficult to share all progress to exclude all possibilities that may interfere with the investigation due to investigation by police agencies."

      Coinrail was quick to point out that only three currencies were hit -- Fundus X (NPXS), Aston (ATX), and Enper (NPER): Freeze -- and that 70 percent of the company’s reserves are safe and have been moved to a cold wallet. Cold wallets are not connected to the internet, leaving them safe from an attack.

      When will the crypto madness end?

      Despite the Security and Exchange Commission’s (SEC) and other virtual currency players’ efforts, cryptocurrency seems far from finding its groove.

      In the last year alone, ConsumerAffairs has watched Bitcoin’s value soar past that of gold and suffer countless hacks, the outcries of banks, and Department of Justice (DOJ) investigations. However, the currency’s rollercoaster ride seems far from over.

      "In terms of cryptocurrencies, generally, I can say, almost with certainty, that they will come to a bad end," pontificated Warren Buffett in a CNBC interview. Charlie Munger, Buffett’s cohort at Berkshire Hathaway, was a little more blunt and compared cryptocurrencies to "turds."

      From a technology perspective, fellow billionaire club member Bill Gates softened his stance a tad. "There’s some really good technology in terms of sharing databases and verifying transactions," Gates remarked about cryptocurrency’s underlying blockchain technology.

      But, overall, he would bet against Bitcoin itself succeeding, equating it to the "greater fool theory" where the price of an object is determined by irrational beliefs and expectations of market participants rather than its intrinsic value.

      Investors who use the cryptocurrency exchange Coinrail woke up Monday morning to some monumentally bad news. The platform announced that it suffered a data...

      Multistate outbreak of salmonella linked to pre-cut melon, CDC says

      Consumers in eight affected states are urged to throw out recalled products

      Health officials are investigating a multistate salmonella outbreak linked to pre-cut melon. The outbreak has been linked to 60 illnesses and at least 31 hospitalizations in five states. No deaths have been reported.

      The Centers for Disease Control and Prevention (CDC) said on Friday that the outbreak affects eight states including Georgia, Illinois, Indiana, Kentucky, Michigan, Missouri, North Carolina, and Ohio.

      The packages of pre-cut watermelon, cantaloupe, honeydew melon, and fresh-cut mixed fruit products were produced by Caito Foods in a facility in Indianapolis, Ind. They were sold in clear, plastic containers at Costco, Jay C, Kroger, Payless, Owen’s, Sprouts, Trader Joe’s, Walgreens, Walmart, and Whole Foods/Amazon.

      Ongoing investigation

      Officials said people reported contracting salmonella after eating pre-cut melon between April 30 and May 28. Of the 60 cases reported to date, 32 were reported in Michigan.

      In a tweet posted on Sunday, FDA Commissioner Scott Gottlieb urged consumers in the eight affected states to check the “fridge and freezer for recalled pre-cut melon linked to Salmonella outbreak.”

      The FDA said it’s working with the CDC to determine if the recalled products went to additional stores or states.

      “Reports of illnesses linked to these products are under investigation, and Caito Foods is voluntarily recalling the products out of an abundance of caution,” the agency said in a statement, adding that it “has ceased producing and distributing these products as the company and FDA continue their investigation.”

      Health officials are investigating a multistate salmonella outbreak linked to pre-cut melon. The outbreak has been linked to 60 illnesses and at least 31 h...

      Yahoo Messenger shutting down in July

      The company says it plans to focus on building new communications tools that better fit consumer needs

      After 20 years in operation, Yahoo Messenger will be shutting down on July 17.

      The news -- which was announced by Oath, a Verizon subsidiary that owns both Yahoo and AOL -- comes six months after AOL Instant Messenger (AIM) was shut down.

      Competition from messaging apps built by Skype, Microsoft, Google, and Facebook has made it difficult for Yahoo Messenger to stay relevant. Going forward, Yahoo says it will be “focusing on building and introducing new, exciting communications tools that better fit consumer needs.”

      The company is redirecting users to its new group messaging application, Squirrel.

      “There currently isn’t a replacement product available for Yahoo Messenger. We’re constantly experimenting with new services and apps, one of which is an invite-only group messaging app called Yahoo Squirrel (currently in beta),” Oath said.

      Consumers can request access to the beta version of Squirrel here.

      For the next six months, users can download their chat history from Yahoo Messenger by visiting this website, signing in with their Yahoo account, choosing a verification method, and then entering an email address where the download can be sent.

      After 20 years in operation, Yahoo Messenger will be shutting down on July 17. The news -- which was announced by Oath, a Verizon subsidiary that owns...

      Chinese factory producing Amazon products charged with labor violations

      A report from China Labor Watch cites long hours, hazardous conditions

      A watchdog group, China Labor Watch, charges workers at a Chinese factory making Amazon products are subjected to working conditions that violate Chinese laws.

      The factory, in the city of Hengyang, produces Amazon's Echo speakers and Kindle e-readers. The lengthy report claims workers at the Foxconn factory are forced to work long hours, are given inadequate training, and are often exposed to hazardous conditions.

      As examples, the report said some workers were required to put in up to 100 hours of overtime per month when orders reach their peak. China's labor laws limit workers to 36 hours of overtime per month.

      The report also said workers must report to their work stations 10 minutes before their shifts begin, but the extra time is not officially part of their work day.

      Disparity in treatment

      The report also found a disparity between how regular employees are treated and so-called dispatch – or temporary – workers.

      “In addition, sick leave is unpaid for dispatch workers, and they are regularly sent on leave during the factory’s off season,” the authors write.

      “During this time, they do not receive any wages. Dispatch workers also do not receive any social insurance, nor are contributions made to their housing provident fund. According to the Interim Provisions on Labor Dispatch, dispatch workers are to be registered for social insurance and employers are to make social insurance contributions.”

      The group's investigators also cite inadequate fire safety in the dormitory area, lack of sufficient protective equipment, absence of a functioning labor union at the factory, and strict management staff who subject workers to verbal abuse.

      Previous complaints

      Foxconn has been the subject of labor complaints in the past. In November, the Financial Times reported one Foxconn plant in China was employing middle school interns, who were putting in 11-hour days.

      In a letter to China Labor Watch, Amazon said it takes reported violations of its supplier code of conduct “extremely seriously.”

      “Amazon recognizes our responsibility to ensure the well-being of factory workers manufacturing products for Amazon,” the letter said.

      In a statement to the media, Amazon said it conducts internal audits of supplier factory conditions. The company said the last audit, concluded in March, found two issues of concern, which it has asked the factory operators to address.

      A watchdog group, China Labor Watch, charges workers at a Chinese factory making Amazon products are subjected to working conditions that violate Chinese l...

      Kelley Blue Book names 10 best car deals for June

      The list includes a lease as low as $99 a month

      With new car sales beginning to slow from their recent record pace, there are some attractive deals on a wide range of vehicles.

      That diversity is reflected in Kelley Blue Book’s (KBB) list of the 10 best new car deals for June. Consumers will find attractive terms on leases, financing rates, and cash back incentives.

      “Even though we're halfway through the year, some dealers have plenty of 2017 models they're eager to move off the lot. And that's on top of the great deals on 2018 models," said Allyson Harwood, associate editor for Kelley Blue Book.

      Acura LX lease tops list

      Topping the list is the 2018 Acura LX, with a current lease offer at $199 per month for 36 months, and $2,499 down. Number two is the 2018 Ford Focus. Its KBB Fair Purchase Price is $18,725, with $4,000 cash back.

      Third on the list is the 2018 Infiniti Q50. It carries a purchase price of nearly $34,000, but this month you can lease it for $279 a month for 39 months, with $3,899 down.

      Number four is another lease – the 2018 Jeep Compass. With $3,499 down, the payments are just $99 a month for 24 months. Coming in at number 5 is the 2018 Subaru Impreza. A 36-month lease carries a payment of $135 a month, with $1,975 down.

      $4,000 cash back

      A pair of last year's models are sixth and seventh on KBB's list. The 2017 Hyundai Veloster can be purchased for $17,760 with $4,000 cash back. The 2017 Buick Encore can be purchased for around $23,000, provides $4,000 cash back, and qualified buyers can finance it at 1.9 percent.

      A lease on the 2017 Hyundai Santa Fe qualifies as the eighth best deal of June, carrying a monthly payment of $289 for 36 months, and a down payment of $1,749. Ninth on the list is the 2018 Nissan Rogue, with $2,699 down and $199 a month for 36 months.

      Rounding out the list is the 2018 Toyota Avalon, with a purchase price of around $30,000 and $5,000 cash back.

      With new car sales beginning to slow from their recent record pace, there are some attractive deals on a wide range of vehicles.That diversity is refle...

      Model year 2013 Suzuki Kizashis and SX4s recalled

      The Transmission Control Module may fail

      Suzuki Motor of America is recalling 5,786 model year 2013 Suzuki Kizashis and SX4s equipped with a Continuously Variable Transmission (CVT).

      The Transmission Control Module (TCM) may fail causing a reduction in speed or reduced vehicle acceleration, which could increase the risk of a crash.

      What to do

      Suzuki will notify owners, and dealers will replace the TCM, free of charge.

      The recall is expected to begin in June 2018.

      Owners may contact Suzuki customer service at 1-800-934-0934. Suzuki's number for this recall is 4005 to 4008.

      Suzuki Motor of America is recalling 5,786 model year 2013 Suzuki Kizashis and SX4s equipped with a Continuously Variable Transmission (CVT).The Transm...

      Volkswagen recalls various vehicles with possible regulatory issues

      The vehicles may not comply with all applicable regulatory requirement

      Volkswagen Group of America is recalling 252 model year 2012-2016 Eos vehicles, model year 2012 Passats, model year 2012-2016 CCs, model year 2015 e-Golfs, model year 2011-2015 Touaregs, model year 2012-2015 Tiguans, model year 2011-2016 Golfs and model year 2011-2013 GTIs.

      Modifications made while the vehicles were in an internal evaluation period may cause them to not comply with all of the applicable regulatory requirements. This could increase the risk of a crash, fire, or injury.

      What to do

      Volkswagen will notify owners, and dealers will repair the vehicles to make them fully compliant, or will repurchase them if necessary, free of charge.

      The recall is expected to begin July 13, 2018.

      Owners may contact Volkswagen customer service at 1-800-893-5298.

      Volkswagen Group of America is recalling 252 model year 2012-2016 Eos vehicles, model year 2012 Passats, model year 2012-2016 CCs, model year 2015 e-Golfs,...

      The Weekly Hack: Genealogy website downplays hack of 92 million users

      MyHeritage says that it found ‘no evidence’ that the stolen data was used

      Services that claim to help consumers discover their ancestry have taken off in recent years, but is it wise to trust an online service with your DNA? The genealogy website MyHeritage admitted on Monday that data from more than 92 million user accounts was accessed.

      MyHeritage is characterizing what happened as a “cyber security incident,” the term that has become the corporate world’s phrasing-of-choice to describe an apparent hack.

      The stolen information included email addresses and encrypted passwords, though MyHeritage is downplaying the impact that the hack could have on consumer privacy. “There has been no evidence that the data in the file was ever used by the perpetrators,” the company said in a statement late Monday.

      “We believe the intrusion is limited to the user email addresses...Other types of sensitive data such as family trees and DNA data are stored by MyHeritage on segregated systems, separate from those that store the email addresses, and they include added layers of security,” the company added.

      The breach took place in October 2017 but was not caught until January 4, according to the company.

      MyHeritage, much like competitors 23andme and Ancestry.com, offers a service in which users can submit a saliva sample for DNA analysis. 

      Whether such services can be trusted with saliva samples and DNA information became a concern after police in California captured the so-called Golden State Killer earlier this year. Suspect Joseph James DeAngelo Jr. was arrested in April thanks in part to the genealogy site GEDMatch, authorities said. Police submitted a DNA sample from a crime scene to the site and said that it had matched the suspect’s DNA that they had already taken.

      Ticketfly

      The online ticketing site Ticketfly announced on Thursday that hackers stole the names, addresses, email addresses, and phone numbers of 27 million customers, though Ticketfly said that users’ credit card information was safe.

      Ticketfly’s site went briefly offline after it detected the hack. But with the site up and running again, the company is requiring all users to change their passwords as a precaution.

      “Upon first learning about this incident we took swift action to secure the data of our clients and fans,” a company spokesperson told Variety.

      Canadian Banks

      Several weeks ago, Mexico’s biggest banks lost millions of dollars to cyber criminals, and now America’s neighbor north of the border is dealing with its own bank hacking woes.

      Canada’s fourth and fifth largest banks have released statements admitting that so-called “fraudsters” stole personal and financial information belonging to bank customers.

      A spokesman for the Bank of Montreal told Reuters that less than 50,000 customers had their data accessed. Simplii Financial, the other bank that was hacked, said that 40,000 clients had “certain personal and account information” accessed. The banks’ handling of the breach is now being scrutinized by lawmakers.

      “When will the Liberals take action to protect Canadian consumers with a digital bill of rights and stop letting these companies off the hook?,” Canadian Member of Parliament Brian Masse said, pointing to a similar measures that currently protects consumers in the European Union.

      The EU’s data protection laws are generally stricter and more consumer-friendly than those implemented in the rest of the world.

      Booking.com

      Travel site Booking.com wasn’t actually hacked, but hackers are telling the site’s partner properties that attempts were being made to steal hotel cash and data on guests.

      Scammers reportedly sent out emails and texts warning that Booking.com had been hacked. The emails directed recipients to change their password by clicking on a link, which actually exposed all information that customers with hotel reservations had submitted through the site.

      ”...in this case, there has been no compromise on Booking.com systems,” a Booking.com spokesman told the Daily Mail. “This property has been targeted by phishing emails sent by cyber criminals and by clicking on those emails, the property compromised its account.”

      Nevertheless, Booking.com promised to compensate affected customers and hotels.

      Cryptocurrency

      The cybersecurity firm Carbon Black has a new report detailing the full scope of cryptocurrency hacks that have become regular news stories.

      According to company’s new research, cybercriminals stole a total of $1.1 billion in cryptocurrency over the past six months. Their method of choice is the “dark web,” or sections of the internet that are untraceable and only accessible via special software and above-average tech skills.

      In an interview with CNBC, a Carbon Black strategist warns that it is “surprisingly easy” for hackers to steal cryptocurrency.  

      Services that claim to help consumers discover their ancestry have taken off in recent years, but is it wise to trust an online service with your DNA? The...