Current Events in July 2018

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    Disabled travellers are finally getting some long-awaited attention

    Airlines, hotels, and other tourism-related companies are all making upgrades to accommodate this previously underserved community

    The landscape for the disabled traveler is changing quickly and proactively. With an estimated 100 million disabled travelers a year accounting for more than $34 billion in tourist-related revenue, the travel world is more alert and motivated than it’s ever been.

    According to a research study by the Open Doors Organization, of the people with disabilities who took more than 73 million trips for business and/or pleasure, 72 percent said they encountered major obstacles with airlines and 65 percent experienced problems at airports.

    However, airlines seem to be getting the message and making improvements. The recent changes in how service animals are regarded adds a level of respect for those in need of that type of assistance, but also draws a line in the sand to make sure that passengers don’t abuse the airlines’ allowances.

    The changes don’t stop with service animals, though. In 2017, United Airlines started making its airport self-service kiosks more accessible to travelers with sensory or mobility impairments. Other airlines have followed suit, replacing the old kiosks with ones that have the new technology.

    Disabled travellers are also beginning to see adaptations once they get on board.

    “We want all customers to feel comfortable on board, which is why earlier this year we began offering a new main menu category on our seatback entertainment that is labeled ‘Accessible Entertainment’”, wrote United Airlines’ Andrea Hiller to ConsumerAffairs.

    “This new section makes it easier for customers with hearing and vision challenges to find accessible entertainment options, grouping all of the titles that are either audio descriptive or closed captioned in one main menu category.”

    Other airlines have also joined United in making modifications for the disabled tourist. Southwest has implemented an option which allows travelers to purchase an adjoining seat and have it refunded after flying and JetBlue has launched its Blue Horizons for Autism program.

    Tell one, tell all

    The domino effect when a disabled traveller has a bad experience is substantial. Everyone up and down the travel food chain is affected, from the airport to the airline to the traveler’s destination plans.

    A recent example of the disabled community taking up arms is through a Change.org petition in which close to 200,000 have voiced concern over Britain’s Govia Thameslink Railway. The service reportedly told staff to refrain from helping people with disabilities in accessing their train if there is a possibility that offering assistance will make the service late.  

    The social media community for disabled travellers is vast, with groups focused on everything from wheelchair-adapted transfers to deaf travellers who create videos about their experiences.

    The disabled community is also quick to update its peers when destinations like the Vatican modify its accessibility upgrades. It also often raises pertinent questions on changes like the recent environmental move away from plastic straws.

    “Could disabled persons travel with a metal straw (like how people now carry metal water bottles to avoid plastic ones?) Or if its dangerous, a personal reusable plastic one?,” Tweeted one observer.

    Changing the perception changes the outcome

    According to the American Institutes for Research (AIR) -- a behavioral and social science research organization -- the sermon to businesses, including the travel industry, is simple: improving customer service for people with disabilities will yield loyalty and reduce risk.

    And, as any consumer knows, the experience starts with the employees they encounter. That notion isn’t lost on travel providers like United, which scored 100 percent in the disability quality index.

    “Since announcing our partnership with Special Olympics in March, nearly 25,000 employees at our hubs have received new training, part of which is dedicated to issues people with Intellectual Disability face when they travel. By the end of this year, more than 60,000 United frontline employees will have participated,” said United’s Hiller.

    On top of the consumer market upside, AIR’s authors take it one step further.

    “Businesses benefit from hiring people with disabilities by increasing the diversity of their labor force, inspiring innovation, and improving productivity; they benefit from an increase in favorable public perception.”

    Marriott Hotels, as an example, took the needs of the disabled to heart at its Orlando World Center. In a revamp of ADA-related (Americans with Disabilities Act) features at the resort, accessible room features now include roll-in showers and bathtubs with grab bars. Some rooms even offer accessibility features for the hard of hearing.

    Do you know a disabled traveller?

    The Transportation Security Administration (TSA) wants the disabled traveler to know it’s on their side as well.

    The agency has stepped up its efforts to make sure its role in the travel experience makes things as disabled-friendly as possible. Interested travellers can do everything from requesting an interpreter or special accomodations at the agency’s resource center for disabled travellers. It has also produced a video that outlines what to expect when traveling with a mobility aid.

    For more information on travel accommodations for the disabled, readers can visit Department of State’s website here.

    The landscape for the disabled traveler is changing quickly and proactively. With an estimated 100 million disabled travelers a year accounting for more th...

    Trump administration publishes list of tariffs on $200 billion in Chinese goods

    The proposed tariffs will undergo a public comment period before taking effect

    The Trump administration has published a list of Chinese goods that may be subjected to 10 percent tariffs. The list includes over 6,000 goods, including fish, electronics, propane, toilet paper, and more. The goods have an annual trade value of about $200 billion.

    “The $200 billion figure we're looking at is roughly equal to their exports to us,” a senior administration official said.

    The suggested new tariffs will not be implemented until after a public comment period, which runs through August. A hearing is slated for Aug. 20-23.

    The preliminary list of new tariffs comes days after the U.S. initiated 25 percent tariffs on $34 billion in Chinese goods. China immediately retaliated with tariffs on its own list of $34 billion worth of American goods.

    The tariffs could lead to higher prices and job losses in a range of industries. Chinese tariffs have already impacted U.S. exports such as soybeans.

    "They are a vital trading partner, and we need to continue to do business with China without the sting of these tariffs,” said American Soybean Association President John Heisdorffer in a news release. “It is imperative that we maintain the robust market we have worked so hard for decades to establish with China.”

    Escalating trade war

    Trump has said the tariffs are intended to punish China for using unfair trade practices. On Friday, China accused Trump of trade bullying and setting off a chain of possible adverse effects for U.S. consumers, as well as those abroad.

    “This act is typical trade bullying,” a spokesperson for China’s Ministry of Commerce said in a statement. “It seriously jeopardizes the global industrial chain, … hinders the pace of global economic recovery, triggers global market turmoil and will affect more innocent multinational companies, general companies and consumers.”

    The President’s latest maneuver in the escalating trade war between the world’s two largest economies prompted Republican leaders to rescind their support of the Trump administration’s trade policy.

    "Although I have supported the administration's targeted efforts to combat China's technology transfer regime, tonight's announcement appears reckless and is not a targeted approach," said Sen. Orrin Hatch, R-Utah, chair of the Senate Finance committee.

    "We cannot turn a blind eye to China's mercantilist trade practices, but this action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy," Hatch said in a statement.

    The Trump administration has published a list of Chinese goods that may be subjected to 10 percent tariffs. The list includes over 6,000 goods, including f...

    Former Apple engineer charged with corporate espionage

    The company claims he stole data from its autonomous car project

    The FBI has arrested a former engineer at Apple on charges of stealing company secrets on behalf of a Chinese start up.

    A complaint, filed in federal district court in California, says Xiaolang Zhang, who worked on Apple's autonomous car project for two and a half years, was taken into custody over the weekend as he attempted to board a plane for China.

    The complaint charges that Zhang downloaded proprietary data before resigning in May, telling Apple he was returning to China to care for a family member. At the same time, he disclosed to his former employer that he planned to take a job with Xiaopeng Motors, a new electric car company affiliated with Alibaba, China's counterpart to Amazon.

    “Apple takes confidentiality and the protection of our intellectual property very seriously,” the company said in a statement.

    Downloading sensitive information

    Apple said it is cooperating with federal prosecutors and will do all it can to make sure anyone found guilty of stealing trade secrets is held accountable for their actions. The company said Zhang's job at the company involved designing and testing circuit boards for Apple's autonomous car project.

    The complaint notes that Apple became suspicious after Zhang told his superiors about his plans. When he appeared evasive during questioning, the complaint says, he was asked to turn over his work-related electronic devices.

    The company says a forensic examination revealed that Zhang's network activity surged in the days before his resignation, including “bulk searches and targeted downloading copious pages of information.”

    Surprise revelation

    While the incident may play into the current hot topic of the trade war, and the Trump administration's charge that China routinely steals intellectual property from U.S. firms, CNBC said it found an even more significant take away.

    The business news network said that buried deep within the complaint is the fact that more than 5,000 Apple employees are currently working on the company's autonomous vehicle project, many more than previously thought.

    The complaint reveals that about 3.7 percent of Apple's 135,000 employees are working on the top secret project. That suggests Apple's autonomous car project is much larger than first thought.

    Earlier this year, when tech site ZDNet ranked the top autonomous car projects, it placed General Motors at the top of the list, followed by Waymo. Apple did not crack the top 10.

    The FBI has arrested a former engineer at Apple on charges of stealing company secrets on behalf of a Chinese start up.A complaint, filed in federal di...

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      7-Eleven giving out free Slurpees today

      The chain is offering free Slurpees in celebration its 91st anniversary

      Today, 7-Eleven stores are offering consumers a free small Slurpee between the hours of 11 a.m. and 7 p.m. in celebration of being in business for 91 years. The company said it’s “inviting millions to the party” with the giveaway.

      Seven Eleven anticipates giving away an estimated 9 million Slurpees through the one-day promotion, which it first introduced in 2002.

      “Free Slurpee day may be the most anticipated day of the year for millions of 7‑Eleven customers and new customers alike,” said Raj Kapoor, 7‑Eleven senior vice president, in a press release.

      “7‑Eleven Day is a celebration, not only of our birthday, but more importantly, of our customers.”

      A week of deals

      Consumers can stop in and pick up a free small Slurpee in any flavor from 11 a.m. to 7 p.m. local time on Wednesday, July 11.

      The chain is also offering several other freebies this week, including:

      • July 12: Free 7-Select Pure Water with the purchase of any Bodyarmor sports drink.

      • July 13: Free Big Gulp with the purchase of a share-size Snickers.

      • July 14: Free popcorn with the purchase of a 20-ounce Smartwater.

      • July 15: Free Reese's with the purchase of a share-size bag of 7-Select gummies.

      • July 16: Free 20-ounce Coke with the purchase of any package of Cheez-Its.

      Today, 7-Eleven stores are offering consumers a free small Slurpee between the hours of 11 a.m. and 7 p.m. in celebration of being in business for 91 years...

      Walmart's Jet.com to bring same-day grocery delivery to New York

      The retail giant is finally making its entrance into the Big Apple

      Walmart, the country’s largest retailer, has long been absent from the country’s largest city -- New York. The chain has not had one retail location within the city’s five boroughs -- but that’s all about to change.

      The company’s Jet.com subsidiary will be moving to the Bronx this fall in an effort to start a grocery delivery service in the Big Apple.

      “We are excited to bring hundreds of jobs to the greater New York City area through the opening of the Bronx Fulfillment Center this fall,” said Simon Belsham, president of Jet.com. “This is a key building block that is part of Jet’s strategy focused on urban centers.”

      With Jet.com’s headquarters across the river in Hoboken, New Jersey, this is the company’s first big push to make its way to New York City. Set to open later this year, the facility will be designed to deliver fresh grocery items, consumable goods (toothpaste and paper towels), and other merchandise to NYC addresses with either same-day or next-day delivery. The warehouse will only stock items sold on Jet.

      Walmart’s quest to compete

      Walmart acquired Jet.com in 2016 for $3.3 billion, as the company sought to reach a younger demographic. Since then, the retailer has expanded its digital sales, with an increase of 33 percent last quarter. Additionally, the company has been able to reach shoppers in bigger, wealthier cities -- a market base where Walmart has statistically had a limited presence.

      To deliver groceries under this new service, Jet will use Parcel -- a last-mile delivery service that Walmart bought last year at an undisclosed price. Acquiring Parcel allowed Walmart to compete with the likes of Amazon Prime and Amazon Prime Now -- services that offer customers same-day and next-day delivery.

      According to Business Insider, the “last-mile” problem -- figuring out how to deliver packages to consumers who don’t have porches or doormen -- is a recurring problem for online retailers -- particularly in cities like New York. However, Parcel’s vans read: “No doorman? No Problem,” a sign to consumers that it’s addressing this issue.

      As grocery shopping continues to evolve, consumers are flocking to services that deliver their orders straight to their doors -- and all but instantaneously. This move by Walmart signals an effort to compete in this new arena with fellow retailers like Amazon (which acquired Whole Foods and offers competitive delivery options), InstaCart, MaxDelivery, FreshDirect, and most recently, Target.

      Walmart, the country’s largest retailer, has long been absent from the country’s largest city -- New York. The chain has not had one retail location within...

      Could rising gas prices bring on a recession?

      Economists are beginning to express concern

      As any motorist will tell you, gasoline prices have hit their highest point in years, cutting into many consumers' budgets.

      Because of that, some economists have begun to worry that the economic expansion, which began at the end of the Great Recession in June 2009, may be close to an end.

      The Wall Street Journal reports that, at this point at least, consumers have been able to weather the price rise without too much difficulty. But should prices climb even more in the months ahead, all bets may be off.

      Airlines have already adapted to higher fuel costs by raising ticket prices. Over time, other industries might be affected, and respond by slowing hiring. According to the Journal report, 3M and Whirlpool have cited higher costs affecting corporate profits.

      Gas prices just one factor

      Economist Joel Naroff, of Naroff Economic Advisers, doesn't think higher gasoline prices alone will be enough to throw the economy into recession. But there is no question that they can add to inflation and raise interest rates, both of which increase consumer costs.

      “Worse, they come as the impacts of the tariffs are starting to hit, also raising both business and consumer costs,” Naroff told ConsumerAffairs. “While tax cuts have added to household income, the rising expenses are offsetting those positive effects.”

      As gasoline costs rise, they may also negate the benefits lower and middle income consumers received from what Naroff sees as fairly modest tax cuts.

      “Put simply, the rise in gasoline prices and the impacts of tariffs are negating the tax cuts for many households, slowing growth,” he said.

      It's happened before

      Those with long memories may recall that oil speculators bid up the price of oil in 2008 to well over $100 a barrel, causing gasoline prices to exceed $4 a gallon. The explanation was that worldwide economic growth was fueling the price rise, not speculation.

      However, the world was actually in a recession at the time, culminating with the financial crisis in September 2008. Almost immediately afterward, the price of gasoline plunged to below $2 a gallon.

      Today, the national average price of regular gasoline, according to AAA, is $2.87 a gallon, 61 cents a gallon more than at this time last year. Consumers purchasing 25 gallons in a typical fill-up are paying $15 more per fill up than they did last year.

      But some consumers are paying a lot more than that, since $2.87 is just the national average. Drivers in western states are paying a lot more.

      In California, the statewide average is $3.66 a gallon. It's $3.43 a gallon in Washington.

      As any motorist will tell you, gasoline prices have hit their highest point in years, cutting into many consumers' budgets.Because of that, some econom...

      Americans are quitting their jobs at fastest rate since 2001

      Here’s what the trend means for job searchers

      In May, Americans quit their jobs at the fastest rate in almost two decades. According to MarketWatch, the shift shows a growing confidence in the economy, as many people are choosing to leave one company for another.

      Based on government statistics, 2.7 percent of employees in the private sector willingly left their jobs -- up from 2.5 percent -- while the quit rate is up to 2.4 percent -- up from 2.3 percent. Both of these numbers are the highest they’ve been since 2001.

      Despite job openings dropping from 6.84 million to 6.64 million, the boom in the economy is most likely to be the driving force behind many Americans feeling comfortable enough to leave their jobs. Additionally, many people who leave their jobs by choice end up with better pay and better benefits in their new positions.

      It’s also important to note that hirings were up in May, peaking at 5.75 million hires. That figure is up by 170,000 people from April and is also the highest it’s been in 17 months.

      A look to the future

      According to the Department of Labor’s report, nearly 5.5 million people lost their jobs in May. However, the majority of the decline was seen in the Northeast, where the population tends to be higher than in other areas. Additionally, job openings dropped in areas like arts and entertainment, media, and public relations.

      However, because of the incredibly low unemployment rate, companies are hiring new employees to try and keep up with the demands of the surging economy.

      The rising quit rate shows employees’ general confidence in acquiring new jobs with higher wages. According to MarketWatch, this could lead companies to raise wages faster in hopes of holding onto their best employees -- and attracting new ones.

      While this trend appears to be heading in the right direction for the general public, it could raise some eyebrows at the Federal Reserve, which is keeping a close eye on inflation.

      “The rise in the job quits rate points to wage growth accelerating to three percent by the end of the year,” said Michael Pearce, senior U.S. economist at Capital Economics.

      In May, Americans quit their jobs at the fastest rate in almost two decades. According to MarketWatch, the shift shows a growing confidence in the economy,...

      Producer prices jump in June

      Last month's increase was the largest in seven years

      The government's Producer Price Index (PPI), a measure of inflation for goods and services at the wholesale level, rose 0.3 percent in June after rising 0.5 percent in May.

      On a year-over-year basis, costs at the production level are up 3.5 percent, the highest since 2011. Price increases at the production level are usually passed on to consumers in the form of higher retail prices.

      The Bureau of Labor Statistics reports most of the June increase came in the form of higher costs for services.

      Prices for services rose 0.4 percent in June, the largest gain since a 0.5 percent rise in January. In June, half of the broad-based increase in the index for services took the form of trade services, where acute labor shortages have recently been reported.

      Higher oil costs a main driver

      Not surprisingly, more than 40 percent of the price increase in services can be traced to a 21.8 percent jump in fuels and lubricants. With the steady rise in oil prices over the last couple of months, refiners have faced higher costs in producing gasoline and diesel fuel.

      But inflation wasn't limited to energy. The June Index shows rising prices for hospital outpatient care; health, beauty, and optical goods retailing; truck transportation of freight; automobiles and automobile parts retailing; and food retailing.

      However, there were some notable price declines last month at the production level for apparel, footwear, and accessories retailing. The indexes for inpatient care and airline passenger services also decreased last month.

      The producer prices for actual goods barely moved higher last month. The biggest increase came in the wholesale price of motor fuels. But that was largely offset by a large drop in the cost of food products, which fell 1.1 percent.

      Costs at the production level usually get passed on to consumers, but not always. In competitive areas, like food and apparel, some wholesalers absorb small price increases if they think consumers will be unwilling or unable to pay them.

      The government's Producer Price Index (PPI), a measure of inflation for goods and services at the wholesale level, rose 0.3 percent in June after rising 0....

      Ford Edge and Lincoln MKZ vehicles recalled

      The vehicles may lose the ability to move, increasing the risk of a crash

      Ford Motor Company is recalling 25 model year 2017-2018 Ford Edges and model year 2017 Lincoln MKZs.

      On vehicles with 2.0L gas engines and six-speed automatic transmissions, the torque converter weld studs may have been inadequately welded.

      If the torque converter weld studs fail, the torque converter will not be connected to the engine flexplate and the vehicle will lose the ability to move, increasing the risk of a crash.

      What to do

      Ford will notify owners, and dealers will replace the torque converters, free of charge.

      The recall is expected to begin in July 2018. Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 17S16 (S2).

      Ford Motor Company is recalling 25 model year 2017-2018 Ford Edges and model year 2017 Lincoln MKZs.On vehicles with 2.0L gas engines and six-speed aut...

      Researchers find a flaw in Apple’s new security feature

      The new restrictions can be tricked with a $39 device that Apple sells in its own store

      On the day of its official release, technology security gurus are raising a red flag over Apple’s new security feature, USB Restricted Mode.

      The feature was designed to shield iPhone users against passcode-cracking devices used by law enforcement, essentially immobilizing any attempts at accessing the device after it’s been in locked mode for an hour.

      Computer security forensics firm ElcomSoft has found a $39 device -- one Apple sells on its on website -- that runs contrary to Apple’s instructions, fooling the restricted mode and giving access to anyone using the device.

      “What we discovered is that iOS will reset the USB Restrictive Mode countdown timer even if one connects the iPhone to an untrusted USB accessory, one that has never been paired to the iPhone before (well, in fact the accessories do not require pairing at all),” wrote ElcomSoft’s Oleg Afonin in a blog post.

      “In other words, once the police officer seizes an iPhone, he or she would need to immediately connect that iPhone to a compatible USB accessory to prevent USB Restricted Mode lock after one hour. Importantly, this only helps if the iPhone has still not entered USB Restricted Mode,” Afonin commented.

      Making sure its research is as inclusive and objective as possible, ElcomSoft says it plans to test as many USB adapters as possible and found that one, the Apple Lightning to 3.5mm jack adapter ($9), does not work to defeat USB restrictions.

      The reaction

      The Twittersphere was bristling with news of the workaround with tech watchers like Mashable agreeing that Apple’s new security feature was “painfully easy to hack.” Another site tweeted a step-by-step on how to trick the feature.

      Needless to say, the issue raises a number of questions.

      Why is Apple’s USB Restricted so easily fooled? Can Apple patch its own security hole? The answers are uncertain, but critics are making it clear that Apple has an issue with its Lightning communication protocol.

      “The ability to postpone USB Restricted Mode by connecting the iPhone to an untrusted USB accessory is probably nothing more than an oversight,” summed up Afonin.

      “We don’t know if this behavior is here to stay, or if Apple will change it in near future. According to our tests, both iOS 11.4.1 and iOS 12 beta 2 exhibit similar behavior; however, this can change in subsequent versions of iOS.”

      In a statement to ConsumerAffairs, Vladimir Katalov -- CEO, co-owner, and co-founder of ElcomSoft -- added that a small adjustment on Apple's part could go a long way towards making some consumers more comfortable.

      "What we want to see is more granular control over what can and what cannot trigger the USB Restricted Mode. There are people who'd prefer unlocking their phones every time someone connects an accessory to the Lightning port instead of being subjected to the flawed restrictions. Apple already took care of the people who don’t want the new feature, so we’d like to see some love for those of us who just can’t have too much security," he said.

      On the day of its official release, technology security gurus are raising a red flag over Apple’s new security feature, USB Restricted Mode.The feature...

      Whole Foods announces Prime Day deal

      Prime members will get extra savings leading up to one of the biggest sales days of the year

      Whole Foods, the Amazon-owned grocery store, announced today that it will be offering customers a $10 credit to use during Prime Day. Customers will receive the credit after spending $10 or more at Whole Foods from July 11 through July 17.

      Whole Foods will also be offering additional deals to customers. From July 14 through July 17, Amazon Prime Rewards Visa cardholders will see their cash back bonus double from five percent to 10 percent. First-time Amazon Prime Now delivery customers will not only receive $10 off their first orders, but an additional $10 off for a future order.

      Prime members will also see discounts on frequently purchased grocery items leading up to Prime Day. From July 11 through July 17, boneless chicken and self-serve cookies are 40 percent off and Honey Nut Cheerios and Allegro bagged coffee will be buy-one get-one free.

      Customer benefits

      Since Amazon’s acquisition of Whole Foods last June, customers have been reaping the benefits of the merger. What started as a slow progression has now led to a nationwide rollout of Amazon Prime members receiving Whole Foods discounts in stores.

      Since the merger, Amazon has been looking for ways to attract loyal Whole Foods customers to its Prime membership. Incorporating these deals in advance of Prime Day is one such way of doing that. Amazon is hoping the discounts and special offers on delivery will entice Whole Foods customers to purchase the $119/year Prime membership.

      “Amazon has a relationship with [about 60 million households] in the U.S., and [these people] are definitely big consumers,” said Michael Pachter, an analyst at Wedbush. “Why not drive that traffic into Whole Foods?”

      Prime Day 2018

      Amazon accidentally leaked the date of this year’s Prime Day in late June after a banner was found on Amazon’s U.K. site.

      Amazon started Prime Day back in 2015, and the event offers customers the biggest selection of discounted items -- going above and beyond what’s offered on Black Friday.

      This year, Prime Day 2018 will start midday on July 16th and run through midnight on July 17th. This will be the first Prime Day that Amazon incorporates Whole Foods into its day of discounts.

      Whole Foods, the Amazon-owned grocery store, announced today that it will be offering customers a $10 credit to use during Prime Day. Customers will receiv...

      Trump targets Pfizer in latest criticism of drug prices

      The pharmaceutical firm reportedly raised prices on 100 drugs

      President Trump has renewed his on-again, off-again criticism of prescription drug prices.

      The president took to Twitter to call out Pfizer and others after the Financial Times reported last week that the company had increased the prices of more than 100 medications, including Viagra. It was the second round of price hikes on at least eight drugs so far this year.

      "Pfizer & others should be ashamed that they have raised drug prices for no reason," Trump tweeted. "They are merely taking advantage of the poor & others unable to defend themselves, while at the same time giving bargain basement prices to other countries in Europe & elsewhere. We will respond!"

      As a candidate, Donald Trump slammed drug makers for what he called excessive prices, echoing similar criticisms voiced by Democrats Hillary Clinton and Bernie Sanders.

      As president, Trump introduced a plan in May to roll back some prescription drug prices. The policy, heavily reliant on voluntary actions, drew mostly scorn from health-focused consumer groups, which predicted the policy would have little effect.

      Not hurt by criticism

      So far, most drug makers appear unharmed by the presidential criticism. In May, the Kaiser Health Foundation noted that despite being called out by the administration for allegedly stalling generic competition, major pharmaceutical firms have hiked their prices by double-digit percentages in the last six years.

      The Food and Drug Administration (FDA) has taken some small steps, however. The agency has compiled a list of drug companies that, according to generic producers, don't let them purchase samples needed to develop low-cost, generic versions.

      A Kaiser Health Foundation analysis shows that major pharmaceutical firms, many of which may have engaged in what FDA Commissioner Scott Gottlieb called “shenanigans” to delay the entrance of cheaper competitors onto the market, have raised drug prices and cost consumers and taxpayers more money over time.

      President Trump has renewed his on-again, off-again criticism of prescription drug prices.The president took to Twitter to call out Pfizer and others a...

      Fast food franchises under investigation for limiting workers to a single store

      Non-poach agreements can prevent longtime workers from getting promotions, labor groups say

      Attorney generals from 11 states are investigating the fast food industry’s practice of barring employees from switching jobs within a franchise.

      So-called “non-poach” clauses have been used by the fast food industry for years, preventing a worker at one McDonald’s in Florida, for instance, from even being considered for a better-paying job at a different McDonald’s.

      While employers have claimed that non-poach or no-hire policies are necessary to retain the investment that they made in training and hiring new people, workers’ groups and attorneys say that workers typically aren’t even told of such policies until they try to apply for a better job within the same company.

      Workers say that they instead find themselves trapped in the original store where they were hired, unable to move-up within the company or change locations.

      ‘‘Non-poach agreements unfairly limit the freedom of fast-food and other low-wage workers to seek promotions and earn a better living,’ Massachusetts Attorney General Maura Healey, who is leading the probe, said in a statement.

      Barring promotions and upward mobility

      The attorney generals announced on Monday that they would be investigating eight fast-food chains -- Arby’s, Burger King, Dunkin’ Donuts, Five Guys Burgers and Fries, Little Caesars, Panera Bread, Popeyes Louisiana Kitchen, and Wendy’s. The states are demanding to see the companies’ non-poaching provisions and other paperwork by August 6.

      The use of non-poach agreements is extremely common, with more than half of major franchises now requiring them of workers. Looking strictly at the fast food industry, that figure reaches 80 percent, according to Illinois Attorney General Lisa Madigan.

      While such agreements may prevent upward mobility within a single company, some industries have tried to take the practice a step further.

      Several years ago, Jimmy John’s was forced to eliminate a contract provision that banned former workers from taking jobs from any business considered to be a competitor of the chain. But the company ditched the non-compete agreement for departing workers after New York’s then-Attorney General publicly warned that he considered the practice to be illegal.

      It’s not just fast food or retail workers that may find themselves limited by anti-competitive agreements. One survey conducted by economic researchers in 2014 found that one in five employees in the entire country was bound by non-compete clauses. And employment lawyers say that lawsuits related to workers who didn’t honor their non-compete clauses have tripled since 2000.

      “Companies of all sorts use them for people at all levels,” an employment attorney told the New York Times last year.

      Attorney generals from 11 states are investigating the fast food industry’s practice of barring employees from switching jobs within a franchise.So-cal...

      Southwest Airlines will stop serving free peanuts Aug. 1

      The airline says it's acting out of consideration for passengers with allergies

      Once upon a time, airline passengers almost always got a free meal with their flight. Then came cost-cutting, and food options were literally reduced to peanuts.

      But starting August 1, you won't get peanuts on Southwest Airlines flights. The carrier announced on Twitter that it will stop handing out packets of peanuts, out of consideration for passengers who might have severe peanut allergies.

      While other airlines added peanuts to their snack packs when they phased out meals, peanuts have a long history with Southwest. In its earlier days as an airline that only flew between Texas cities, Southwest had associated itself with peanuts, advertising its low “peanuts fares.”

      Pretzels still available

      Southwest says its passengers won't go hungry while in the air. The airline will continue to hand out free packages of pretzels. On longer flights, the carrier says passengers will have a few more snack options, including cookies.

      Southwest is not the first airline to discontinue peanuts. Some other carriers took that step to avoid a situation in which a passenger suffers a life-threatening allergic reaction at 30-thousand feet. Potential allergens remain a hot-button topic for many.

      Last year, the nonprofit advocacy group Food Allergy Research and Education filed a lawsuit against American Airlines to obtain pre-boarding privileges for fliers with food allergies. The suit said it is important that these travelers board early to ensure that their seating area is clean and free of allergens.

      At the time, Dr. James Baker, CEO and chief medical officer of the group, stressed that the suit did not seek to stop American from serving peanuts; it simply wanted to remove the pre-boarding restriction for people with food allergies.

      Other airlines' policies

      According to TravelSort.com, some airlines are better about dealing with food allergies than others. It says Delta will not serve any peanut products on your flight if you notify the airline beforehand of your food allergy.

      Air Canada and JetBlue do not serve peanuts but, as of 2017, JetBlue did serve snacks containing tree nuts. JetBlue says it does not include any kinds of nuts in its free snacks.

      It says if passengers with allergies notify the airline in advance, they will be seated two rows away from any passenger who is consuming nuts.

      Once upon a time, airline passengers almost always got a free meal with their flight. Then came cost-cutting, and food options were literally reduced to pe...

      IHOP has officially changed its name back from IHOb

      And the popular restaurant chain is slashing prices on pancakes

      Last month, the International House of Pancakes (IHOP) made news when it announced a name change to promote its new burger menu -- IHOb.

      After less than a month as IHOb, the popular pancake joint announced that it will be going back to its roots to once again be known to the masses as IHOP.

      In addition to reclaiming its pancake roots, IHOP will also be offering customers a discount on its signature meal in honor of the company’s 60th birthday.

      “We’re giving away 60¢ short stacks on July 17th from 7am-7pm for IHOP’s 60th birthday,” the company wrote on Facebook. “That’s right, IHOP! We’d never turn our back on pancakes (except for that time we faked it to promote our new burgers).”

      The initial change

      IHOP first announced the change early last month, informing customers that the infamous P would soon be flipping to a B. The company left customers without answers for about a week before revealing the emphasis on the restaurant’s new burger 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 IHOP.

      According to IHOP President Darren Rebelez, the chain famous for its pancakes spent over a year trying to enhance its burger menu as it worked to boost sales outside of breakfast.

      “We had to make a bold move to get people to be willing to talk about us for something other than breakfast soon,” Rebelez said.

      Response to IHOb  

      All but instantly, the change from IHOP to IHOb lit up social media. Both customers of the restaurant and other food chains took to Twitter to question IHOP’s decision to change its name.

      Wendy’s certainly wasn’t intimidated by IHOP’s decision to focus on burgers, tweeting, “Not really afraid of the burgers from a place that decided pancakes were too hard.” Then, when IHOP announced the change as a marketing decision, a customer asked Wendy’s to weigh in, touting IHOb as a joke. Wendy’s response? “Of course it was.”

      Despite some backlash, IHOP’s name change certainly sparked a conversation among consumers.

      According to YouGov BrandIndex data, IHOP’s “word of mouth” score skyrocketed following the switch to IHOb. Before the switch, 19 percent of adults said they had talked about the restaurant chain in the past two weeks. After, that number jumped to 30 percent -- the highest score since 2012.

      Rebelez wants customers to remember that the name change was never meant to be permanent, and the company wasn’t trying to eliminate its signature dish.

      “The pancakes haven’t gone anywhere… They’re still there,” he said. “They’re on the cover of the menu. Just because we have pancakes doesn’t mean we can’t do anything but pancakes. That’s what we’re after: giving more people more reasons to come to IHOP more often.”

      Last month, the International House of Pancakes (IHOP) made news when it announced a name change to promote its new burger menu -- IHOb.After less than...

      Uber to offer electric scooter rentals

      A new partnership will help the ride-hailing giant further expand its transportation offerings

      Uber is investing in an electric scooter company called Lime as part of a $335 million financing round led by Alphabet’s venture arm, GV (formerly Google Ventures), Bloomberg reports.

      San Mateo, California-based Lime is part of the burgeoning scooter business, which is valued at $1.1 billion. The new partnership will make Lime’s lightweight electric scooters available to rent on Uber’s mobile application. Uber also plans to put its logo on some of the company’s e-scooters.

      “Uber will work with us as a strategic partner in the electric scooter space to offer people a greater variety of transportation modes at their fingertips and make it increasingly easy to live without a car,” Lime said in a blog post about the investment.

      “As electric scooters grow in popularity and become a more beloved way to travel short distances, the partnership adds to Uber’s vision of becoming a transportation platform for people around the globe.”

      Lime’s scooters can be easily rented and left on the sidewalk for the next person to pick up. The service is already available in more than 70 markets across the U.S. and Europe. Cash from the new deal will enable the company to grow its fleet of e-scooters by tens of thousands.

      News of the partnership comes just a few months after Uber acquired dockless bike-share company Jump Bikes for more than $100 million. It also follows news that Lyft acquired Motivate, the largest bike-share operator in the country.

      Expanding transportation options

      Uber has said it wants to become a “one-stop shop” for consumers’ transportation needs.

      “Our investment and partnership in Lime is another step towards our vision of becoming a one stop shop for all your transportation needs,” said Rachel Holt, the former head of Uber’s North America ride-hailing business, in an interview with Bloomberg.

      “Lime already has an expansive footprint, and we’re excited to incorporate their scooters into the Uber app so consumers have another fast, affordable option to get around their city, especially to and from public transit.”

      Uber is investing in an electric scooter company called Lime as part of a $335 million financing round led by Alphabet’s venture arm, GV (formerly Google V...

      Multivitamins don’t lower heart disease risk, study finds

      Researchers say consumers shouldn’t use multivitamins and supplements as a substitute for a healthy lifestyle

      Many consumers take multivitamins or supplements as a quick and easy way to improve their health. However, a growing body of research suggests that popular supplements do little to improve health.

      A new study, which analyzed information from 18 previously published studies examining the link between multivitamins and mineral supplements and the risk of certain cardiovascular problems, suggests that vitamin and mineral supplements do nothing to prevent heart disease.

      After tracking more than two million people in five countries for an average of 12 years, the researchers concluded that multivitamins did not prevent heart attacks, strokes, or death from heart disease.

      Do not promote heart health

      Findings from the new study are in line with guidelines from the American Heart Association, which doesn’t recommend using multivitamins or mineral supplements as a way to stave off cardiovascular disease.

      Despite these recommendations, up to 30 percent of U.S. consumers take these products. Some people reportedly use them to prevent heart disease, the researchers noted.

      "It has been exceptionally difficult to convince people… to acknowledge that multivitamin and mineral supplements don't prevent cardiovascular diseases," study lead author Dr. Joonseok Kim, an assistant professor of cardiology at the University of Alabama at Birmingham, said in a statement.

      "I hope our study findings help decrease the hype around multivitamin and mineral supplements and encourage people to use proven methods to reduce their risk of cardiovascular diseases — such as eating more fruits and vegetables, exercising and avoiding tobacco," Kim said.

      Healthy diet can lower risk

      The new findings come on the heels of prior studies which showed that supplements have few, if any, health benefits. In May, a separate study concluded that three popular supplements provide no consistent health benefits.

      Kim and his team stressed that consumers shouldn’t rely on pills to boost their overall health. Engaging in daily physical activity, not smoking, and following a healthy diet are still among the best ways to lower heart disease risk, the researchers said.

      "We know that fruit and vegetable intake improves cardiovascular health," Kim said.

      "Although multivitamin and mineral supplements taken in moderation rarely cause direct harm, we urge people to protect their heart health by understanding their individual risk for heart disease and stroke, and working with a healthcare provider to create a plan that uses proven measures to reduce risk," Kim said.

      The new research has been published in the journal Circulation.

      Many consumers take multivitamins or supplements as a quick and easy way to improve their health. However, a growing body of research suggests that popular...

      Tesla opens up Model 3 online design studio to everyone

      The company has put an end to its original reservation system

      Tesla has opened up its Model 3 Online Design Studio to everyone in the US and Canada, including those who haven’t plunked down a $1,000 deposit for a reservation, Elektrek reports.

      Last month, the electric car maker updated its Model 3 online configurator with new options and pricing.

      Tesla was able to trim the cost of the Model 3 Performance by making many of its features optional instead of standard. Now, a base Model 3 Performance will start at $64,000 (down from $78,000). Features such as a white interior or premium paint are now optional add-ons.

      At the same time it announced the changes to its design studio, Tesla also invited all reservation holders to place an order for all versions except for the standard battery pack, which is still not in production.

      Dropping the reservation process

      Now that reservation holders have been able to access the design studio, Tesla will open up the configurator to consumers without a reservation. However, the company still plans to prioritize the orders from reservation holders.

      “For example, reservation holders hanging on for the standard battery pack, which is not planned to enter production until the end of the year, are still going to be able to order based on when they placed their reservation, which could have been over 2 years ago at this point,” Electrek noted, citing sources.

      Tesla stores are also expected to get Performance Model 3 vehicles by the end of the month.

      News of Tesla’s updated design studio and expanded accessibility follows a struggle by the company to achieve its goal of producing 5,000 Model 3 vehicles a week by the end of the second quarter.

      The company ended up meeting its production target, albeit a few hours late. Tesla sent the 5,000th Model 3 car out of the Fremont, Calif. factory just five hours after midnight. Prior to achieving its goal, Tesla had encountered many delays and setbacks, including bottlenecks on the assembly line and battery issues.

      Tesla has now opened up its online design configurator to everyone, including those without a reservation. Anyone in North America can now pay a $2,500 deposit to place an order for a custom-designed Model 3 vehicle.

      If dropping the reservation process results in more orders, the company will face even greater pressure to ramp up its production output. Although Tesla recently hit its production target, experts say it remains to be seen whether the company can consistently produce 5,000 Model 3 vehicles per week.

      Tesla has opened up its Model 3 Online Design Studio to everyone in the US and Canada, including those who haven’t plunked down a $1,000 deposit for a rese...

      AT&T plans big changes for HBO

      The cable network is being told it needs to produce more content

      If you subscribe to HBO, get ready for some changes. AT&T, the new owner, has served notice that the premium content provider, acquired in the Time Warner merger, is going to have to contribute more to the bottom line.

      The New York Times, which obtained a recording of a town hall meeting with HBO employees, reports John Stankey, now heading AT&T's new Warner Media division, is setting an ambitious goal of producing more content and attracting more viewers.

      “It’s going to be a tough year,” Stankey said. “It’s going to be a lot of work to alter and change direction a little bit.”

      Lately, HBO has been known for producing a limited amount of quality programming, like Game of Thrones and Westworld. HBO is most often marketed to cable and satellite TV customers as a premium tier.

      Fighting for smartphone viewers

      Going forward, Stankey told employees the network will have to change, producing more content to compete with providers that distribute through smartphone apps.

      The AT&T executive set out the twin goals of expanding HBO's subscriber base and increasing the number of hours consumers watch HBO content.

      “We need hours a day,” Stankey said during the presentation. “It’s not hours a week, and it’s not hours a month. We need hours a day. You are competing with devices that sit in people’s hands that capture their attention every 15 minutes.”

      HBO currently spends about $2 billion a year on content, much of it critically acclaimed. Since there has yet to be any discussion of increasing HBO's budget – AT&T went significantly into debt to purchase Time Warner – the assumption is the network must do more with its current budget.

      Could lead to a dip in quality

      Both Stankey and HBO CEO Richard Plepler, who hosted the session, admitted that increasing the amount of content the network produces could lead to a dip in quality. But Stankey said producing more content is a key strategy in attracting more subscribers and convincing them to watch longer.

      Stankey said HBO needs to change from being a boutique network, with an emphasis on its Sunday night line up, to “something bigger, broader.” He didn't say “like Netflix,” but there is little doubt that's what he meant.

      Netflix has become the dominant streaming service with a massive increase in original content, not all of it award-winning. However, it spends more to produce it than other content providers.

      In the session, Stankey signaled AT&T's willingness to invest more in HBO to help it compete in the ever-shifting media landscape.

      If you subscribe to HBO, get ready for some changes. AT&T;, the new owner, has served notice that the premium content provider, acquired in the Time Warner...