Current Events in July 2018

Flowers Foods is recalling Swiss Rolls sold under the brand names Mrs. Freshley’s, Food Lion, H-E-B, Baker’s Treat, Market Square & Great Value, and Captain John Derst’s Old Fashioned Bread.

A product ingredient, whey powder, may be contaminated with Salmonella.

No illnesses have been reported in connection with the recalled items.

The following products are being recalled:

Captain John Derst’s Old Fashioned Bread was distributed in Alabama, Florida, Georgia, North Carolina and South Carolina. The other products were distributed nationwide.

What to do

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

Consumers with questions may call Flowers’ consumer relations center at (866) 245-8921 Monday through Friday from 8:00 a.m. – 5:00 p.m. (ET) or by e-mail at www.flowersfoods.com/contact/consumers.

Ross Procurement of Dublin, Calif., is recalling about 2,300 bistro chairs.

The chair’s frame can break, posing a fall hazard.

The company has received two reports of the chair frames breaking, with two reports of minor injuries.

This recall involves Bronze Hammered bistro chairs measuring 37 inches tall with a round seat and a heart-shaped backrest.

SKU number 400167187741 can be found on a tag attached to the chair or on a sticker on the underside of the seat.

The chairs, manufactured in China, were sold exclusively at Ross stores nationwide between March 2018, and May 2018, for about $25.

What to do

Consumers should immediately stop using the recalled chairs and return them to any Ross store for a full refund.

Consumers may contact Ross toll-free at (877) 455-7677 anytime or online at www.rossstores.com and click on “Recalled Products & Legal Notices” on the bottom of the page for more information.

Volkswagen Group of America is recalling 6,633 model year 2013-2015 Audi S8s and A8s.

The fuel supply line for the high pressure fuel pump may become porous over time, resulting in a fuel leak.

A fuel leak in the presence of an ignition source can increase the risk of a fire.

What to do

Audi will notify owners, and dealers will replace the fuel line free of charge.

The recall is expected to begin August 21, 2018.

Owners may contact Audi customer service at 1-800-253-2834. Volkswagen's number for this recall is 20AV.

Crackers, cereal, fresh melon – no food, it seems, is safe from Salmonella, a foodborne pathogen that is making people sick and forcing companies to recall millions of dollars worth of products.

Pepperidge Farm is the latest to warn consumers that some of its products could be contaminated with Salmonella. As a result, it's recalling four varieties of its Goldfish crackers. The company said one of its suppliers reported that whey powder used in the crackers may be contaminated

A day earlier, Mondelēz Global said it was recalling Ritz Cracker Sandwiches and Ritz Bits sold in the U.S., including Puerto Rico and the U.S. Virgin Islands. Again, whey powder is the suspected contaminant.

You can find the affected Ritz Cracker lot numbers here. Affected Goldfish lot numbers can be found here.

Centralized food chain

Salmonella is showing up in the U.S. food supply more and more, in part because of how centralized the food chain has become. Multiple food conglomerates increasingly obtain ingredients from the same source. When that source has a problem, it quickly spreads.

Salmonella has even found its way into pills. A Salmonella outbreak in February was linked to kratom. Some of the people who got sick took dietary supplements containing the tainted ingredient. Others were exposed to the product in powder and herbal form.

Earlier this month, Dr. Scott Gottlieb, Food and Drug Administration (FDA) Commissioner, reported that as of the end of May, a total of 199 cases of Salmonella in 41 states had been linked to kratom consumption; 38 percent of those illnesses led to hospitalizations, he said.

Gottlieb also noted that most of the kratom imported into the U.S. comes from Southeast Asia, where he said “the plant is being grown, harvested, and processed in problematic conditions that readily create the circumstance for widespread contamination with foodborne pathogens.”

Hardy bacteria

While it might seem surprising that Salmonella shows up in processed foods like Kellogg's Honey Smacks, recalled last month, scientists say the bacteria is especially hardy and can thrive in a dry food.

But it's also a persistent threat in fresh food. Just last week, the Centers for Disease Control and Prevention (CDC) said it was investigating a multistate Salmonella outbreak linked to live poultry raised in residential backyards.

Between June 8 and July 20, 88 additional people had become sick, bringing the CDC's total to 212 in 44 states.

To limit exposure to the bacteria, always wash your hands thoroughly after handling animals and animal food. If you or someone in your family gets sick after consuming fresh or processed food, report it immediately to your local health department.

The car rental landscape has completely changed from the old pick-it-up-at-the-airport days. Slowly over the last five years, the game has shifted toward ridesharing with companies like Uber, Lyft, and Turo (an Authorized Partner) leading the way.

The car rental barons wanted part of that action, too, so Enterprise and Avis jumped into the rideshare fray with their respective acquisitions  of Zimride and Zipcar.

Earlier this month, BMW announced it has a new ridesharing app called “Reach Now.” And, on Tuesday, General Motors (GM) announced it has its eye on stretching the rideshare model.

In GM’s twist, it’s hoping it can convince Chevrolet, Buick, GMC, Cadillac, and truck owners to monetize their vehicles through Maven, an on-demand mobility sharing service accessible via an app.

For those who are looking for an escape from the cost of owning and maintaining a car, the company says a service like Maven provides all the benefits of a car without the costs of ownership. Maven allows owners to call the shots and rent out their cars by the hour, the day, the week, or the month.

“Your car is one of the most expensive things you own. Sitting idle, it is a wasted asset,” said Julia Steyn, vice president of General Motors Urban Mobility and Maven. “It’s time to put your car to work. Maven’s peer-to-peer offering is a smart way for owners to offset their vehicle investment.”

GM has dubbed the service “Peer Cars” and is giving it a trial run in Chicago, Detroit, and Ann Arbor. Steyn says that the plan is to expand to more markets in the fall if the program passes the beta test.

Isn’t Maven an old concept?

There are consumers who have no doubt seen the Maven name before. GM originally launched Maven in 2016 after it bought select assets and employees from SideCar; at the same time it invested $500 million in the ridesharing service Lyft.

Originally, the business relied on a fleet of GM vehicles that were able to be rented by consumers. In 2017, GM went on a tear of Maven-related products including Maven City, Maven Gig, Maven Home, and Maven Reserve, which were designed to fit any niche that needed transportation.

For example, Maven Gig was directed at “gig economy” types like people who delivered food or groceries through gigs like UberEATS, but didn’t have cars of their own.

How will GM make this idea secure for the consumer?

As many readers may know, rideshare companies have had a difficult time staying out of trouble. The king of all ridesharing companies, Uber, has been pegged with everything from sexual assault claims to a class action lawsuit alleging that it denied some drivers employment based on illegal background checks.

So, is GM’s scrutiny any better? The company feels that given the 300 million miles driven and 180,000 reservations made through Maven’s earlier offerings, it understands full well that trust is a key component in sharing.

“During reservations, all vehicles are insured through GM’s $1,000,000 insurance policy and every driving member is thoroughly vetted before they are approved to use the service. Owner support is available 24 hours a day, 7 days a week from trained Maven and OnStar advisors,” GM wrote in its announcement about Maven.

The American Academy of Pediatrics (AAP) has published a new policy statement warning that chemicals commonly added to food can harm children's health.

The group, which represents more than 60,000 pediatricians nationwide, recommends that parents steer clear of certain chemicals used to preserve, package, and enhance food.

Citing an accumulating body of science showing that they can harm children’s health, the AAP says parents and caregivers should avoid exposing children to chemicals used in food processing (such as flavoring and coloring), as well as certain substances that indirectly affect food through packaging and manufacturing.

Kids have a higher level of exposure

The group’s recent report highlights “some striking and surprising concerns about the lack of attention that these chemicals have received by regulatory agencies,” said Dr. Leonardo Trasande, lead author of the policy statement.

“Pound for pound, children eat more food and therefore have a higher level of exposure compared to us adults,” Trasande said.

“In addition, their developing organ systems are uniquely vulnerable. …There can be fundamental disruptions in various endocrine functions that can manifest not only in early childhood but potentially in later life as a result of prenatal or infant exposure.”

Chemicals with known health risks

The AAP said the following chemicals can have a potentially harmful effect on children:

• Bisphenols like BPA. Often used in aluminum can linings, these can act like estrogen in the body, affecting the onset of puberty, decreasing fertility, increasing body fat, and affecting the nervous and immune systems.

• Phthalates. These are used to make plastics soft and can affect male genital development, increase childhood obesity, and contribute to heart disease.

• Perfluoroalkyl chemicals (PFCs). Used in grease-proof paper food packaging. They might reduce immunity, birth weight and fertility, and can affect the thyroid system.

• Perchlorate. Often used in dry food packaging and known to disrupt thyroid function and can affect early brain development.

• Artificial food colors. These have been associated with worsened attention deficit hyperactivity disorder (ADHD) symptoms.

• Nitrates and nitrites. Preservatives and color enhancers may interfere with thyroid hormone production. They have also been linked with gastrointestinal and nervous system cancers.

What parents can do

In its report, the AAP calls on the government to adjust its method of designating chemicals as “generally recognized to be safe” in light of new scientific evidence.

"There is now a compelling body of evidence that the environmental chemicals that go into food processing and food containers may have significant effects on human health, including fertility, thyroid disease, certain cancers and much more," said Dr. Michael Grosso, chair of pediatrics and chief medical officer at Huntington Hospital in Huntington, New York. "Of concern is that some of these remain in the body for years."

Parents can limit their children's exposure to the chemicals named in the report by choosing fresh or frozen fruits and vegetables over canned products, avoiding processed meats (especially when pregnant), and not microwaving plastic containers of food or placing plastics in the dishwasher, according to the AAP.

Additionally, consumers can use glass or stainless steel instead of plastic when possible and avoid plastic packaging with recycling codes 3 (phthalates), 6 (styrene), and 7 (bisphenols).

The AAP’s new policy statement has been published online in the journal Pediatrics.

Tesla reportedly asked some automotive suppliers to refund money the company has already spent in its effort to achieve profitability.

According to The Wall Street Journal, a memo sent to one of Tesla’s suppliers last week requested a “meaningful amount of money of its payments since 2016.” The memo, which was written by one of Tesla’s global supply managers, said that the money was “essential” to Tesla’s ability to continue operating.

Tesla has said previously that sales of its Model 3 sedan are critical to it becoming profitable. In recent weeks, it has appeared as though Tesla may achieve profitability after all. Tesla reached its 5,000 unit per week target during the last week of June, and a recent teardown of the Model 3 suggests that the vehicle might be more profitable than originally thought.

Asking for supplier refunds

In a statement, Tesla said that negotiation is a routine practice of working with suppliers. The company said that it asked fewer than 10 suppliers for a reduction in total capex project spend for long-term projects that began in 2016 but aren't completed yet. It said it continues to discuss future parts costs with suppliers.

“Negotiation is a standard part of the procurement process,” Tesla said in a statement. “And now that we’re in a stronger position with Model 3 production ramping, it is a good time to improve our competitive advantage in this area.”

However, some analysts have doubts.

“It’s simply ludicrous, and it just shows that Tesla is desperate right now,” manufacturing consultant Dennis Virag told The WSJ. “They’re worried about their profitability, but they don’t care about their suppliers’ profitability.”

Earlier this summer, Tesla laid off 9 percent of its staff as part of a broader reorganization effort aimed at achieving profitability. At the time, Chief Executive Elon Musk noted that Tesla has never made a profit in its 15-year history.

Tesla is currently trying to ramp up production of its Model 3 electric vehicle. Although the company slightly exceeded its production goal in the second quarter, experts say it remains to be seen whether the company can consistently produce 5,000 units per week.

Tesla shares fell 3 percent on Monday following reports that the electric car maker had asked some suppliers for money back.

Sales of existing homes fell for a third straight month in June, and Realtors say there is one overriding reason: there aren't enough homes to meet demand.

Completed sales in June fell 0.6 percent to a seasonally adjusted annual rate of 5.38 million units. Over the last 12 months, sales are down 2.2 percent, according to the latest report from the National Association of Realtors (NAR).

"There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining," said Lawrence Yun, NAR's chief economist. "The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation's housing market.”

It might be easy to look at the declining sales numbers and conclude the housing market is in serious trouble. But Yun says homes coming on the market are going under contract very fast and in many cases, are drawing multiple offers.

Elevated home prices

“This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales," he said.

The problem facing the housing market is one of supply and demand. There are more buyers than sellers, and as a result, the price of available homes is going up much faster than incomes.

That means many people who would like to buy a home, have jobs and stable income, are getting priced out of the market, or can't afford the home of their choice.

The median existing-home price for all houses, including condos and townhomes, was $276,900, surpassing May as the new all-time high. It's up 5.2 percent from June 2017. The year-over-year median prices has now increased for 76 consecutive months.

Modest increase in inventory

There was one bit of good news in the June sales report. Total housing inventory increased 4.3 percent over May and posted the first year-over-year increase since 2015. But Yun said the modest increase isn't nearly enough to help buyers.

"Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up," he said.

The takeaway for prospective homebuyers is to be prepared to move quickly. In June the average home stayed on the market only 26 days before going under contract. Fifty-eight percent of homes sold in June were on the market for less than a month.

Chick-fil-A consistently tops customer satisfaction surveys, with consumers praising both its service and its food.

Soon, customers can leave with some of that food to prepare at home. Chick-fil-A will be the first fast food chain to sell branded meal kits featuring some of its recipes.

Starting August 27, Chick-fil-A will offer Mealtime Kits at 150 Atlanta-area locations. Customers can purchase the fresh, per-measured ingredients in the drive-through or at the counter, or order the kits using the company's app.

Chick-fil-A says its chef, Stuart Tracy, helped develop five different kit recipes, which include the Chick-fil-A chicken used in the brand’s products. The company says customer feedback will help determine whether the Mealtime Kits are rolled out to a nationwide market.

Next step in fast food

Michael Patrick, an innovation program lead at Chick-fil-A, who is leading the Mealtime Kits effort, says meal kits and fast food should go hand-in-hand.

“We know our guests are busier than ever and need a variety of convenient dinner options,” Patrick said. “We designed our offering so our guests don’t have to order ahead, subscribe to a service, or make an extra stop at the grocery store.”

During the test period, which will run through Nov. 17, Chick-fil-A will rotate five meal kit recipes: chicken parmesan, chicken enchiladas, dijon chicken, pan roasted chicken and chicken flatbread, offering two recipes at a time.

Each kit will make enough to serve two people and cost $15.89. Kits will have a “use-by” date and can be refrigerated at home for several days, depending on when they are purchased.

Popular concept

While Chick-fil-A is the first fast food chain to offer meal kits, it may not be the last. The concept has proved popular with consumers, and supermarkets have already jumped on the bandwagon. So far in 2018, both Walmart and Kroger have launched in-store meal kit offerings.

In March Walmart announced it will roll out its meal kit service to as many as 2,000 stores nationwide this year, following an initial test in some markets.

The meal kits feed two people and range in price from $8 to $15. Consumers can either buy kits in stores or order them online and pick them up later that day. Three different kinds of kits are available to choose from, depending on how much cooking shoppers want to do.

In May, Kroger announced the acquisition of meal kit delivery company Home Chef, which delivers its kits directly to homes. While the Home Chef kits will continue to be sold online, they will also be available in Kroger stores.

At the same time, Kroger said it would continue to offer its Prep+Pared meals that are currently sold in more than 525 stores.

Volkswagen Group of America is recalling 237,947 model year 2005-2008 Audi A4 Sedans, A4 Avants, S4 Avants & S4 Sedans, model year 2007-2008 RS4 Sedans, model year 2004 RS4 Cabriolets, model year 2007-2009 A4 Cabriolets & S4 Cabriolets, model year 2005-2011 A6 Sedans, model year 2006-2011 A6 Avants, and model year 2007-2011 S6 Sedans.

The vehicles have certain airbag inflators assembled as part of the passenger front airbag modules used as original equipment 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

Audi has notified owners, and dealers will replace the passenger front airbag with an alternate remedy part, free of charge.

The recall began June 29, 2018.

Owners may contact Audi customer service at 1-800-253-2834. Volkswagen's number for this recall is 69R7.

Achieva Rubber is recalling 284 Innova Ultra Runner tires sizes 5.30-12-in., 6-ply & 4.80-12-in 4-ply with the date code rage of 0114 through 3917.

The tires fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 119, "New Pneumatic Tires - Other Than Passenger Cars."

Tires that fail to meet the strength test requirements may fail, increasing the risk of a crash.

What to do

Achieva will notify owners, and dealers will replace the affected tires with new tires, free of charge.

The recall is expected to begin August 6, 2018.

Owners may contact Achieva customer service at 1-310-328-8868.

Mondelēz Global is recalling Ritz Cracker Sandwiches and Ritz Bits sold in the U.S., including Puerto Rico and the U.S. Virgin Islands.

These products contain whey powder as an ingredient, which the supplier has recalled due to the potential presence of Salmonella.

The company says it has received no complaints of illness to date in connection with these products.

The following products, sold in retail stores nationwide, are being recalled:

What to do

Customers purchased the recalled products should not eat them, but discard them.

Consumers with questions may contact the company at 1-844-366 -1171 Monday – Friday, 9am – 6pm (EST).

Ford Motor Company is recalling 504,182 model year 2013-2014 Ford Escapes and model year 2013-2016 Ford Fusions equipped with six-speed automatic transmissions.

The bushing that attaches the transmission shifter cable to the transmission may degrade over time and cause the bushing to detach from the transmission.

The condition could allow the driver to move the shift lever to Park and remove the ignition key, while the transmission may not be in Park, with no warning message or audible chime.

If the vehicle is exited without the transmission being in Park and without the parking brake applied it may move unexpectedly, increasing the risk of a crash.

Owners should use the parking brake until the recall remedy repairs can be made.

What to do

Ford will notify owners, and dealers will replace the shifter cable bushing, free of charge.

The recall is expected to begin July 30, 2018.

Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 18S20.

The Federal Trade Commission (FTC) is lowering the boom on any charity that maliciously asserts that it’s raising money on behalf of servicemen and veterans.

Law enforcement and charity regulators from every state in the Union are partnering in the FTC’s crackdown. So far, those combined forces have taken more than 100 actions and established an online education resource called “Operation Donate with Honor” to help consumers understand how charity scams work.

“Americans are grateful for the sacrifices made by those who serve in the U.S. armed forces,” said FTC Chairman Joe Simons. “Sadly, some con artists prey on that gratitude, using lies and deception to line their own pockets. In the process, they harm not only well-meaning donors, but also the many legitimate charities that actually do great work on behalf of veterans and servicemembers.”

Preying on veterans and servicemembers

As an example, the Center for Public Integrity reported that retired Army Maj. Brian Arthur Hampton headed up three such organizations, one of which included the Center for American Homeless Veterans.

One of the telemarketers that Hampton allegedly used -- Outreach Calling -- kept a whopping $7.9 million of the $8.7 million it raised for Hampton’s “Circle of Friends for American Veterans” between 2011 and 2015.

In Florida, the state’s attorney general Pam Bondi was able to get a judgement against the sham veterans charity Help the Vets, Inc. and its founder, Neil Paulson, Sr. Help the Vets raised approximately $20 million between 2014 and 2017 with the promise that donations would assist vets with everything from medical care to suicide prevention. Bondi found that the money went to Paulson instead.

Paulson’s game ended when he signed a Stipulated Final Judgment and Permanent Injunction, in which Help the Vets relinquished its remaining assets and Paulson was banned for life from any kind of charity management. He also was required to fork over $1.75 million, nearly twice the amount Paulson personally received from Help the Vets.

“July is Military Consumer Protection Month and one way to protect our veterans and service members is to stop scammers who exploit military members in an effort to steal charitable donations,” said Bondi.

“It is reprehensible that anyone would prey on the good intentions of people trying to help our heroes and I will not let the immoral actions of a few bad actors taint the good work of our legitimate charities.”

Donor beware

The desire to support those who have fought for the U.S. can turn many consumers into easy targets. The FTC and state attorneys general can’t emphasize the importance of taking some time to check out any and all fundraising pitches.

Whether it’s online, telemarketing, direct mail, or someone that just shows up at your door, consumers are cautioned to tell the marketer that they’ll take it under consideration and get back to them.

Charity scams can run the gamut -- from misleading prize promotion solicitations to tax deductions. When disasters hit, scams are prone to rearing their ugly heads in hopes of turning sympathizers into suckers.

The FTC publishes updates on scams and warns consumers to not to let anyone rush them into making a donation. It also posts reminders to beware of scammers who try to trick consumers into paying them by thanking the consumer for a donation they never made.

Perhaps the most prevalent types of charity scams are carried out through an ever-increasing number of robocalls. In particular, the FTC warns consumers to be cautious about answering calls that look like they’re from a local area code, a new wrinkle scammers have started using. The agency continues to emphasize that all consumers should make sure they’re on the government's national Do Not Call registry.

How to validate a charity

In the case of the veterans and servicemembers scam, the FTC has produced a video that gives consumers some basic information on what to look out for.

The FTC also has a handy checklist that consumers can use to gauge the integrity of a charity before they write a check.

Other resources include Charity Watch where consumers can sniff out the validity of a charity and how much it actually gives to the intended programs it says it supports. Plus, almost every state has its own check-a-charity interface or, at minimum, updates on scams its attorney generals have uncovered.

"I'm glad that government regulators are shutting down some scam charities that have been ripping off donors for years. But we must remain vigilant; there are still far too many unethical or poorly performing charities still actively soliciting our dollars. This is particularly true with veterans and military charities," said CharityWatch President Daniel Borochoff in a statement to ConsumerAffairs. 

Questions continue to be raised about the safety of amphibious duck boats, even as federal and state investigations begin into the sinking of one of the crafts in Missouri, claiming 17 lives.

The horrific accident occurred Thursday afternoon, when a severe thunderstorm swept across Table Rock Lake, near Branson, Mo. The boat, which has tires and can be driven on land like a truck, was unstable in the rough waves and high winds, taking on water and then capsizing.

An investigation team from the National Transportation Safety Board (NTSB) arrived on the scene Friday afternoon. On Twitter, the agency asked for help from the public.

"If you have video or photos of the July 19, amphibious vehicle accident on Table Rock Lake near Branson, MO, or if you witnessed the accident, please contact the NTSB via email at witness@ntsb.gov," the agency said.

In fact, videos of the horrifying scene surfaced immediately after the accident, such as the one below.

Questions facing the investigation

Besides the NTSB, the U.S. Coast Guard will conduct an investigation into the accident, and whether the boats should have even been on the lake with a storm approaching.

In an interview with CBS News, Jim Patterson Jr., President of Ripley Entertainment, owner of the duck boats, said the storm that sank the boat was moving faster than expected.

But when pressed on whether the boat should have been in the water with a severe storm approaching, Patterson agreed "it shouldn't have been in the water, if what happened, happened."

Ripley Entertainment issued a statement saying it would do all it could to assist the families and is cooperating fully with the investigation.

Over the weekend a St. Louis-based private vehicle inspector told the Associated Press that he warned the company there were design flaws in the amphibious vehicles that increased their danger of sinking.

In a 2017 report, Steve Paul of Test Drive Technologies warned the craft's engines and pumps could be prone to failure in rough seas. Normally, the duck boats are operated on calm lakes.

Other accidents

Former NTSB chairman Jim Hall says duck boats should be banned. He told USA Today the vehicles aren't quite boats and aren't quite automobiles, so they escape regulation.

Attorney Robert J. Mongeluzzi of Philadelphia says this is not the first time passengers have died aboard duck boats in operation around the country. He said he brought a case where he successfully demonstrated flaws in the craft's engineering.

"There have now been more than 40 deaths associated with these inherently unsafe, novelty tourist rides," Mongeluzzi said. "Why would those boats, which ride very low in the water on a calm day, even be operating given the severe weather conditions and posted small craft advisories? It was unconscionable."

Mongeluzzi's partner, attorney Andrew Duffy, said a 2010 duck boat accident in Philadelphia that claimed two lives resulted in recommendations to make water craft safer.

He said the firm presented engineering experts who showed how the vehicles were actually engineered to fail in a water emergency, their canopies trapping passengers in their life jackets rather than allowing their escape.

"This danger was known as early as 1999 and the NTSB's direction to remove the canopies was, tragically, ignored," Duffy said.

Facebook has suspended the Boston-based analytics firm Crimson Hexagon after reports indicated that the company’s contracts with other countries -- including the United States and Russia -- violated Facebook’s surveillance rules.

“We don’t allow developers to build surveillance tools using information from Twitter or Facebook or Instagram,” a Facebook spokesperson said. “We take these allegations seriously, and we have suspended these apps while we investigate.”

Though no evidence has been found thus far indicating that any user data has been obtained, Facebook plans to investigate “whether the analytic firm’s contracts with the U.S. government and a Russian nonprofit tied to the Kremlin violate the platform’s policies.” Crimson Hexagon has also completed work for the Turkish government.

Though it isn’t against Facebook policy to use data from users for general insights, according to BBC,  “where Crimson would fall foul of Facebook’s rules is if the data was used to create tools for surveillance, though Facebook has never clarified how its policy works in practice.”

According to Crimson Hexagon’s Chief Technology Officer Chris Bingham, the company “only collects publicly available social media data that anyone can access” and “does not collect private social media data.”

Trying to right the ship

Facebook received a ton of backlash following news of the Cambridge Analytica scandal in March. The company is now being investigated by the Securities and Exchange Commission (SEC), the Justice Department, and the FBI for its treatment of the scandal.

Questioning in the investigation is focused primarily on how much Facebook knew in 2015 -- when it initially learned that Cambridge Analytica had improperly accessed the data of tens of millions of users. At the time, Facebook did not alert any shareholders or any of its users.

In an effort to prove to users that their privacy and security is of the utmost importance, Facebook then launched a series of privacy updates. The company has not only audited thousands of apps that had access to users’ data, but it also suspended 200 apps in the process. Facebook also drastically upgraded users’ privacy settings, putting control back in the hands of social media users.  

Snapchat users who used the platform’s Snapcash feature to send and receive money from other users will have to find a new way to do so by the end of the next month.

The company recently confirmed to TechCrunch that it will be shutting down Snapcash on August 30. The news originally broke when code was discovered inside of Snapchat’s Android app that displayed a “Snapcash will no longer be available after %s [date]” message.

“Yes, we’re discontinuing the Snapcash feature as of August 30, 2018,” said a Snapchat spokesman when questioned about the code. “Snapcash was our first product created in partnership with another company -- Square. We’re thankful for all the Snapchatters who used Snapcash for the last four years and for Square’s partnership!”

Not taking off

Although Snapchat declined to comment on why it was shutting down Snapcash, TechCrunch notes that the service had been previously associated with payments made for erotic content. The publication notes that some Twitter users had taken to using the service to collect payments in exchange for sexually explicit online photos.

Perhaps more poignant, though, is that Snapcash has struggled to take off while competitors like Venmo and PayPal have continued to gain prominence amongst users. Although Snapchat itself has made several changes in the past year to add to the user experience, it seems that a peer-to-peer money transfer service is not in the company’s plans for the immediate future.

Consumers aren't the only ones affected by massive data breaches. Businesses get hurt as well, and in many cases suffer significant damage.

A case in point is the auto industry, which spends billions on research and development to make its production lines as efficient as possible. These trade secrets are closely guarded. At least, they should be.

But the New York Times reports a security researcher came across reams of confidential auto industry documents this month, in plain view on the internet. The documents covered a Who's Who of the auto industry – every major manufacturer, and even some minor ones.

So how did the documents get there? The Times reports the exposed car companies all had one thing in common – they had all had some kind of fairly recent contact with a small Canadian firm called Level One Robotics and Controls.

In an interview with the newspaper, researcher Chris Vickery said the exposed documents included everything from detailed blueprints and factory schematics to contracts, invoices, and work plans. In short, just about any information a competitor would like to get its hands on.

Data breaches affecting consumers often begin with a small company that a much larger company is doing business with. If you recall the Target payment card data breach in 2013, it had its roots in a security flaw in one of Target's heating and air conditioner vendors, whose system was breached, giving the attackers access to the retailer's payment terminals.

Overconfidence?

A recent survey by FICO does not provide a lot of comfort, since it suggests a majority of businesses are confident their systems are secure against attack. It could be a case of overconfidence.

Sixty-eight percent of American companies in the survey said they are better prepared for data breaches than their competitors — up from 60 percent last year. According to FICO, utility companies are the most confident, and least realistic, about their security.

"Firms have a lot to lose when it comes to their privacy and security risk and must have an accurate picture of how protected they really are," said Doug Clare, vice president for cybersecurity solutions at FICO. "These figures point to the fact that many firms don't know how they compare against to their competitors, which could lead to an under-investment in cybersecurity protection.”

It may be some comfort that the survey suggests your bank is among the least confident about its network security. FICO says companies in the financial industry are the most realistic about the threats they face, and as a result, may be better prepared to meet them.

Members of the U.S. Senate have dropped their attempt to block President Trump from lifting trade restrictions on the Chinese telecommunications company ZTE.

Despite bipartisan concerns about national security, the U.S. lifted its trade ban on the company earlier this month. Under a new deal reached last month, ZTE has been allowed to resume doing business with private U.S. companies.

The deal required that the company pay a $1 billion fine and put $400 million in escrow to ensure it does not violate U.S. sanctions in the future. Additionally, the company agreed to replace its management team and will be monitored by a U.S.-chosen compliance team.

“The ZTE settlement represents the toughest penalty and strictest compliance regime the Department has ever imposed in such a case,” the Commerce Department said. “It will deter future bad actors and ensure the Department is able to protect the United States from those that would do us harm.”

National security concerns

ZTE was first hit with the ban in April after it violated the terms of 2017 agreement stipulating that it was not allowed to sell sensitive American technology to Iran and North Korea. In addition to violating the terms of the settlement, the company lied to the U.S. about reprimanding employees involved in the illegal actions.

In May, President Trump announced his intent to revive the embattled company. He said ZTE buys parts from U.S. companies and that the Commerce Department’s deal with the firm was “also reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi.”

A bipartisan group of senators introduced legislation that was meant to reinstate some of the penalties on ZTE. Last month, the Senate voted to approve those measures, citing national security concerns.

However, Senate Republicans have now decided to back off on the ZTE sanctions in exchange for more oversight for the Committee on Foreign Investment in the US (CFIUS).

Senators say the deal puts the country at risk

In exchange for abandoning ZTE restrictions, lawmakers agreed to give CFIUS -- an interagency committee that reviews deals between foreign investors and U.S. businesses for potential threats to national security -- more authority over deals between foreign investors and U.S. businesses.

Senator Marco Rubio (R-Fla.), who was in favor of ZTE sanctions, tweeted that the deal was a “bad trade-off.”

“This deal on #CFIUS is good news. The bad news? They had to cave on #ZTE in order to get it. So chances that a #China controlled telecomm will not just stay in business, but do so here inside the U.S. sadly just went up. #BadTradeoff,” he said.

Senator Minority Leader Chuck Schumer (D-NY) said lifting the penalties on ZTE is another example of the president "being weak in the face of another nation's leader while the GOP just follows along."

“By stripping the Senate’s tough ZTE sanctions provision from the defense bill, President Trump — and the congressional Republicans who acted at his behest — have once again made President Xi and the Chinese government the big winners and the American worker and our national security the big losers,” Schumer said in a statement.