Current Events in June 2019

Chrysler (FCA US LLC) is recalling 295,981 model year 2019-2020 Ram 1500 trucks.

The flash memory of the Occupant Restraint Controller (ORC) may become corrupted, disabling the vehicle's airbags and seat belt pretensioners.

Disabled airbags and seat belt pretensioners increase the risk of injury in the event of a crash.

What to do

Chrysler will notify owners, and dealers will reprogram the ORC or replace it as necessary, free of charge.

The recall is expected to begin July 20, 2019.

Owners may contact Chrysler customer service at (800) 853-1403. Chrsyler's numbers for this recall are V61 and V71.

Perdue Foods of Bridgewater, Va., is recalling approximately 31,703 pounds of ready-to-eat chicken products.

The products may be contaminated with extraneous materials -- specifically pieces of bone.

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

The following fully-cooked items, produced on March 21, 2019, are being recalled:

• 11.2 oz. plastic trays containing “PERDUE Simply Smart ORGANICS BREADED CHICKEN BREAST TENDERS – GLUTEN FREE” with a “USE BY MAY 20 2019” and UPC bar code of 072745-001437 on the label.
• 12 oz. plastic trays containing “PERDUE Simply Smart ORGANICS BREADED CHICKEN BREAST NUGGETS – WHOLE GRAIN” with a “USE BY MAY 20 2019” and UPC bar code of 072745-001642 on the label.
• 12 oz. plastic trays containing “PERDUE Simply Smart ORGANICS BREADED CHICKEN BREAST STRIPS – WHOLE GRAIN” with a “USE BY MAY 20 2019” and UPC bar code of 072745-002656 on the label.
• 10-lb. bulk boxes of “Chef Quik Breaded Chicken Tenders Boneless Tender Shaped Chicken Breast Patties with Rib Meat” with Case Code 22143 on the label.
• 10-lb. bulk boxes of “Chef Quik Chicken Breast Strips Strip Shaped Breaded Chicken Breast Patties with Rib Meat” with Case Code 77265 on the label.

The recalled products, bearing establishment number “EST. P-369” inside the USDA mark of inspection, were shipped to retail locations nationwide.

What to do

Customers who purchased the recalled products should not consume them. But discard or return them to the place of purchase.

Consumers with questions about the recall may call the Perdue consumer care line at (866) 866-3703.

Best Buy kicked the Chinese brand Huawei out of its stores; Facebook sent the company a Dear John letter; the U.S. government accused it of stealing trade secrets; and Huawei recently underwent an investigation by the U.S. Justice Department. That’s just for starters.

Last month, U.S. mobile tech companies Google, Intel, and others fell into line and also cut ties with Huawei -- mostly over the fear of spy-like software in Huawei’s phones.

After some time to think this thing out, the Financial Times reports that Google has decided to hold tight on its split with Huawei, suggesting that if Huawei is forced to build its own “hybrid” rendition of the Android operating system, it’s likely that hybrid would make Huawei smartphones more susceptible to a cyber attack.

“Huawei actually puts America’s national security at risk by forcing Huawei to produce an insecure operating system that could be exploited by bad actors, both governments and lone hackers alike,” wrote the Times.

“Google has been arguing that by stopping it from dealing with Huawei, the U.S. risks creating two kinds of Android operating system: the genuine version and a hybrid one. The hybrid one is likely to have more bugs in it than the Google one, and so could put Huawei phones more at risk of being hacked, not least by China,” a source with knowledge of the conversations between Google and the U.S. government told the Financial Times.

Facebook also says no to Huawei

Reuters reports that Facebook has also stepped up. Going forward, the social media platform will prevent Huawei from pre-installing its Facebook, WhatsApp, and Instagram apps.

For Facebook lovers who already have a Huawei in their pocket, access to its array of apps won’t be an issue. They’ll still be able to use those apps and get updates.

Whether the company is trying to gain as many brownie points in advance of its Department of Justice investigation is unclear. But every consumer-friendly move -- especially in the category of privacy -- seems like a smart one.

Huawei is not going away politely

One would think that if your company is considered by U.S. authorities to be a puppet of a Chinese Communist regime hellbent on spying on American communications, then you’d kind of get the picture that you’re not welcome here.

However, Huawei persists. The company filed a lawsuit in a Texas federal court asserting that it’s unconstitutional to punish it without giving the brand a chance to a fair trial first.

In a different case in Washington state, Huawei workers were charged with stealing a component from T-Mobile’s proprietary robotic phone testing system, nicknamed “Tappy,” after T-Mobile refused to license the system to Huawei.  

Tech observers think that Huawei’s retreat from the U.S. is simply a matter of time. “The arrest of Wanzhou has put a significant strain on Huawei’s relationship with the U.S.,” surmises Yahoo!’s Daniel Howley.

“With the company’s name in tatters in the eyes of American consumers, it’s doubtful executives will waste the effort trying to win over customers who already believe Huawei could be spying on them,” he said.

“The fact that the U.S. government has effectively banned Huawei from being able to roll out 5G wireless internet technologies in the country all but guarantees that the company will never gain a foothold in the States.”

The FDA is warning consumers that several cosmetic products marketed to teens have been found to contain traces of asbestos, a known carcinogen.

The agency has issued a safety alert and recall of the following two products: Claire’s JoJo Siwa Makeup Set (SKU #888711136337, Batch/Lot No. S180109) and Beauty Plus Global Effects Palette 2 (Batch No. S1603002/PD-C1179). Both products are made with talc.

“Consumers who have these batches/Lots of Beauty Plus or Claire's products should stop using them,” the agency said.

The Environmental Working Group (EWG) notes that the FDA’s latest safety alert is the third to be released in less than two years following the discovery of asbestos in kids’ cosmetics.

Just a few months ago, the FDA’s tests found asbestos in the following products:

• Claire’s Eye Shadows – Batch No/Lot No: 08/17;

• Claire’s Compact Powder – Batch No/Lot No: 07/15;

• Claire’s Contour Palette – Batch No/Lot No: 04/17.

Stopping asbestos contamination

To fix the persistent problem, a bipartisan group of legislators are pushing a cosmetics reform proposal. The legislation would, in part, give the FDA the authority to ensure that products do not contain dangerous ingredients like asbestos.

Currently, cosmetic companies aren’t required to share safety information with the FDA.

“Cosmetic products and ingredients, with the exception of color additives, do not have to undergo FDA review or approval before they go on the market,” the FDA says on its website. “FDA monitors for potential safety problems with cosmetic products on the market and takes action when needed to protect public health. Before we can take such action against a cosmetic, we need sound scientific data to show that it is harmful under its intended use,”

A separate bill recently introduced by Rep. Debbie Dingell (D-Mich.) would require warning labels on cosmetic products that contain asbestos and are marketed to children.

“Whether you are a construction worker or teenager, inhaling even the smallest amount of asbestos can cause cancer later in life,” Scott Faber, EWG’s senior vice president for government affairs, said in a statement. “Congress should act swiftly to ensure that cosmetics are free from dangerous chemicals and contaminants.”

Later this year, Walmart will launch a new grocery delivery service called inHome Delivery, which will take the idea of home delivery “one step further.”

After a customer places their order online and selects a delivery day, one of Walmart’s employees will deliver fresh groceries and put them directly in the customer’s refrigerator.

In a blog post, the company explained that its workers will be able to access the customer’s home through the use of smart entry technology. Additionally, employees will wear a wearable camera to give security-conscious consumers a way to see the delivery happening in real-time.

“At the time of delivery, associates will use smart entry technology and a proprietary, wearable camera to access the customer’s home – allowing customers to control access into their homes and giving them the ability to watch the deliveries remotely,” wrote Marc Lore, CEO of Walmart's U.S. e-commerce division.

Walmart workers will also receive training that will prepare them to “enter customers’ homes with the same care and respect with which they would treat a friend's or family’s home,” as well as how to select the freshest groceries and efficiently arrange the items in the refrigerator.

"Now, we can serve customers not in just the last mile, but in the last 15 feet," Lore said.

Launching in three cities

The new service will roll out to more than one million customers in Pittsburgh, Kansas City, Missouri, and Vero Beach, Florida starting this fall. Soon after that, Walmart says it will begin accepting returns for items purchased through the service.

“Customers can just leave them on the counter and their InHome Delivery associate will return the items on their behalf,” Walmart said.

Amazon has already launched a similar service, called Amazon Key. The service allows Prime members who have purchased an Amazon Key-compatible smart lock and Amazon Cloud Cam to have deliveries deposited inside their home, even when they aren’t there. However, consumers can’t have groceries delivered through Amazon’s in-home delivery service.

Although parents are somewhat divided on the issue, researchers have said for years that later school start times would benefit children’s and teens’ health and development. Now, a new study reaffirms that a later start to the school day would allow students to get more sleep and be more engaged in their schoolwork.

Researchers from Colorado working with the American Academy of Sleep Medicine analyzed how delayed school start times affected middle and high school students. After one year of pushing start times back by 50-70 minutes, the researchers found that students were getting healthier amounts of sleep and were more engaged in the classroom.

"Biological changes in the circadian rhythm, or internal clock, during puberty prevents teens from falling asleep early enough to get sufficient sleep when faced with early school start times," explains Dr. Lisa J. Meltzer, the study’s principal investigator.

"This study provides additional support that delaying middle and high school start times results in increased sleep duration for adolescents due to later wake times."

More sleep and better engagement

To come to their conclusions, the researchers surveyed over 15,000 students in grades 6-11 who were enrolled in the Cherry Creek School District in Greenwood Village, Colorado. Responses were collected in spring 2017 and spring 2018 -- before and after school start times were pushed back.

After collecting all of the responses, the number of middle school students who reported feeling too sleepy to do their homework declined from 46 percent to 35 percent after the time change. The shift was even more dramatic for high school students, dropping from 71 percent to 56 percent.

The researchers noted that scores for academic engagement also increased after school start times were pushed back. The district’s school superintendent, Scott Siegfried, says that this change can be attributed to students’ ability to get more sleep and come into school feeling rested.

"I don't know how many of our high school students have come up to me and said, 'This has changed my life for the better.' They've told me they're getting up to an hour of additional sleep before school starts," Siegfried said. "That extra sleep makes a real difference in terms of health and wellness. The input from our students and the numbers from this landmark study point to the same conclusion: The change in our start times has been a positive step and benefited our students' everyday routines.”

The full study is scheduled to be presented on June 12 at the SLEEP 2019 conference in San Antonio, and an abstract has been published in the journal Sleep.

Veteran parents are often tuned in to even the slightest changes in their child’s behavior or demeanor when it comes to spotting a potential sickness. But for those who haven’t developed this almost supernatural sense, don’t worry -- there’s an app for that.

A team of researchers from Curtin University and the The University of Queensland, Australia have developed a new smartphone app that can identify a range of potential respiratory issues just from the sound of a child’s cough. Dr. Paul Porter, one of the study’s authors, says that the technology can help parents coordinate with doctors to provide effective treatment.

"It can be difficult to differentiate between respiratory disorders in children, even for experienced doctors. This study demonstrates how new technology, mathematical concepts, machine learning and clinical medicine can be successfully combined to produce completely new diagnostic tests utilising the expertise of several disciplines,” he said.

High level of accuracy

The researchers were able to develop their app by picking out distinct characteristics of five different respiratory diseases -- asthma, croup, pneumonia, lower respiratory tract disease, and bronchiolitis -- and “teaching” the technology to listen for the differences.

After testing the app on nearly 600 young children, the researchers compared the results to the diagnoses of a panel of pediatricians who clinically evaluated the same participants. The results showed that the app was accurate up to 97 percent of the time, depending on the diagnosis. Even at the lower end, the app was still accurate 81 percent of the time.

Porter and his colleagues note that their app should not be used as a sole means of diagnosing a particular sickness or condition. Instead, they advise users and medical professionals to work together to process young patients more quickly and accurately.

"As the tool does not rely on clinical investigations, it can be used by health care providers of all levels of training and expertise. However, we would advise that where possible the tool should be used in conjunction with a clinician to maximise the clinical accuracy," Porter said.

The full study has been published in the journal Respiratory Research.

As the risks of climate change become increasingly worrisome, many of the world’s largest companies are preparing for the financial impact of the climate crisis, according to a new analysis of corporate disclosures.

More than 200 big businesses say they’re preparing to see climate-related costs amounting to nearly $1 trillion within the next five to seven years unless they take steps to prepare, the New York Times reports.

The risk assessment, conducted by the nonprofit CDP (formerly known as the Carbon Disclosure Project), revealed that extreme weather is likely to bring about risks which include having to close down facilities in threatened locations, paying more for insurance, and the impact of consumers switching to more environmentally friendly corporations.

“Changing precipitation patterns, droughts, flooding, and tropical cyclones could potentially damage our manufacturing, research and development, and warehousing/distribution facilities and those of our key suppliers, especially in flood prone areas,” Eli Lilly & Co said. “In 2017, our operations in Mexico, US and Puerto Rico were hit by a string of devastating earthquakes and hurricanes.”

Assessing risks to operations

"The numbers that we're seeing are already huge, but it's clear that this is just the tip of the iceberg," Bruno Sarda, North America president for CDP, told the Times.

But when it comes to predicting the impact of the climate crisis, many companies still underestimate the dangers that are likely to occur as a result of earth’s climate system hitting a “catastrophic tipping point” without “rapid cuts in carbon emissions,” Reuters noted.

“Most companies still have a long way to go in terms of properly assessing climate risk,” said report author Nicolette Bartlett, CDP’s director of climate change.

By having executives report the foreseeable risks of the climate crisis, advocates of greater disclosure “hope to spur enough investment in cleaner industries to cut carbon emissions in time to meet global climate goals,” according to Reuters.

The nation’s economy added 75,000 jobs in May, by far the smallest number this year. At the same time, job totals for both March and April were revised downward. The unemployment rate remains at 3.6 percent.

The government’s report basically confirms this week’s report from ADP/Moody’s which showed that private payrolls increased by only 27,000 last month.

When compared to last year, the job market appears to be cooling considerably. The monthly report from the Bureau of Labor Statistics (BLS) shows monthly job gains have averaged 164,000 so far this year. That compares to a monthly average of 223,000 new jobs in 2018.

Sectors seeing the strongest job gains were professional and business services and health care.

Job creation leaders

Professional and business services firms created 33,000 new jobs in May and have added nearly a half-million jobs since May 2018. Health care added 16,000 jobs last month and a total of 391,000 in the last 12 months.

The two sectors accounted for two-thirds of May’s job creation. There was little change in construction hiring, which grew by only 4,000. That industry has added 215,000 jobs over

a 12-month period.

There was little to no employment growth in mining, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, financial activities, leisure and hospitality, and government.   

Workers continued to earn a little more in May, as average hourly earnings gained six cents to $27.83. On an annual basis, wages have grown at a rate of 3.1 percent.

Effect on housing

The numbers could have an impact beyond the job market. Holden Lewis, NerdWallet’s housing expert, says it could improve home affordability.

“Mortgage rates have fallen a lot in the last few months, but today's weaker-than-expected jobs numbers could soon push rates down even more,” Lewis told ConsumerAffairs. “Home sales saw an unexpected slump in the spring, and feeble job creation could carry that slump through the summer homebuying season. We are still in the midst of a seller's housing market, but data like this indicates we are moving closer to a more balanced market.”

The weak jobs number could also increase pressure on the Federal Reserve to cut interest rates later this year. While not directly influencing mortgage rates, a Fed rate cut would lower the interest rate consumers pay on auto loans and credit card debt.

For consumers, the open road may beckon this summer as the price of gasoline continues to go down.

The AAA Fuel Gauge Survey shows the national average price of regular gas is $2.77 a gallon, down five cents a gallon since last Friday. It’s 16 cents a gallon cheaper than at this time last year. The average price of premium is $3.35 a gallon, four cents cheaper than a week ago. The price of diesel fuel is $3.06 a gallon, two cents less than last week.

AAA issued its summer forecast on Thursday, predicting that the average price of regular would drop to $2.70 per gallon this summer. AAA’s Fuel Price Survey found consumers don’t think that price would be excessive. The survey showed the price at the pump would have to reach $3 a gallon before it would be considered too high.

Motorists in California, Hawaii, Washington, Alaska, Nevada, Oregon, Idaho, Utah, and Arizona are already paying in excess of that amount, although California saw the average price drop by seven cents. Jeanette Casselano, a AAA spokesperson, says filling up may feel less painful because the cost is significantly lower than last year.

“There is good news for consumers this summer – the highest prices of the year could be in the rearview mirror,” she said.

On Thursday, GasBuddy’s Patrick DeHaan reported that the lowest gas price in the nation was at a Sam’s Club in La Marque, Texas -- $1.94 a gallon.

The states with the most expensive regular gas

These states currently have the highest prices for regular gas, according to the AAA Fuel Gauge Survey:

• California ($3.91)

• Hawaii ($3.64)

• Washington ($3.49)

• Alaska ($3.48)

• Nevada ($3.46)

• Oregon ($3.36)

• Idaho ($3.17)

• Utah ($3.15)

• Arizona ($3.10)

• Illinois ($2.94)

The states with the cheapest regular gas

The survey found these states currently have the lowest prices for regular gas:

• Mississippi ($2.37)

• Louisiana ($2.38)

• Alabama ($2.38)

• South Carolina ($2.40)

• Arkansas ($2.43)

• Texas ($2.45)

• Oklahoma ($2.45)

• Tennessee ($2.46)

• Missouri ($2.51)

• Virginia ($2.52)

General Motors is recalling 1,159 model year 2016-2019 Chevrolet Express and GMC Savana vehicles.

One or both of the rear-quarter windows may be tempered glass instead of laminated glass.

Tempered glass increases the risk of injury in the event of a side impact or rollover crash.

What to do

GM will notify owners, and dealers will replace the tempered glass windows with laminated glass windows as necessary free of charge.

The manufacturer has not yet provided a notification schedule.

Owners may contact GM customer service at 1-586-596-1733. GM's number for this recall is N192218960.

Polaris Industries of Medina, Minn., is recalling about 3,900 model year 2015 - 2019 Polaris RGR EV recreational off-highway vehicles (ROVs).

An incorrectly wired chassis harness can cause an incorrect throttle control signal to the electric drive motor, which can cause the vehicle to accelerate unexpectedly, posing a crash hazard.

The firm has received eight reports of the recalled ROVs accelerating unexpectedly, due to an incorrectly wired harness. There was one reported incident with two injuries outside the U.S.

This recall involves model year 2015 – 2019 Ranger EV recreational off-highway vehicles (ROVs) sold in avalanche gray and pursuit camo, which were produced between April 2014, and January 2019.

The recalled vehicles have “POLARIS” printed on the front grille and beneath the doors; and “RANGER” printed on the rear fenders.

The vehicle identification number (VIN) and model number can be found on a label affixed to the vehicle frame in the left front wheel well.

The ROVs, manufactured in the U.S. and Mexico, were sold at Polaris dealers nationwide from February 2014, through January 2019, for about $11,900.

What to do

Consumers should immediately stop using the recalled ROVs and contact a Polaris dealer to schedule a free repair. Polaris is contacting all registered owners directly.

Consumers may contact Polaris at (800) 765-2747 from 7 a.m. to 7 p.m. (CT) Monday through Friday or online at www.polaris.com and click on “Off Road Safety Recalls” at the bottom of the page for more information and to see if their vehicle is included in any recalls.

Apple has been hit with a lawsuit from two app developers who accuse the company of using its App Store monopoly to charge “profit-killing” commissions. The complaint filed on Tuesday claims Apple’s practice of imposing a 30 percent commission on all app sales is anticompetitive and “sets the stage for Apple to abuse its market power.”

Additionally, the suit contends that Apple’s rules of pricing apps at a minimum of $0.99 and charging developers an annual “developer fee” of $99 are "especially damaging to smaller and new developers."

"Between Apple's 30 percent cut of all App Store sales, the annual fee of $99 and pricing mandates, Apple blatantly abuses its market power to the detriment of developers, who are forced to use the only platform available to them to sell their iOS app," said Steve Berman, managing partner of Hagens Berman, the law firm that filed the lawsuit Tuesday in the US District Court for the Northern District of California in San Jose.

"In a competitive landscape, this simply would not happen,” Berman continued. "Today's lawsuit seeks to force Apple to end its abusive monopoly and allow competition in the distribution of iOS apps and related products, to get rid of its pricing mandates, and to reimburse developers for overcharges made through abuse of its monopoly power."

Antitrust complaints

The latest suit comes less than a month after the Supreme Court ruled that a group of iPhone owners can proceed with their class action case against Apple, which also claims the company violated antitrust rules by taking a 30 percent cut of sales in its app marketplace.

The suit says consumers have been harmed by Apple’s practice of taking a cut of sales because the company doesn’t allow users to download apps from any platform other than its official App Store.

Apple made an effort to have the case dismissed by noting that developers set the price of their own apps and that it’s merely an intermediary. Since customers technically buy their apps from developers, Apple said only consumers should be able to sue developers.

However, the court didn’t side with Apple.

“We disagree. The plaintiffs purchased apps directly from Apple and therefore are direct purchasers,” wrote Justice Brett Kavanaugh, who sided with the court’s four liberal justices in the decision. “Apple’s line-drawing does not make a lot of sense, other than as a way to gerrymander Apple out of this and similar lawsuits.”  

The latest developer suit also takes issue with Apple’s practices and seeks to mitigate its App Store monopoly.

"We think app developers should be rewarded fairly for their creations, not over-taxed by a corporate giant," Berman said. "After 11 years of monopoly conduct and profits, we think it's high time that a court examine Apple's practices on behalf of iOS app developers and take action as warranted by the law and facts."

Some marriages are called off when one partner meets the future in-laws. That may well be why Fiat Chrysler (FCA) has withdrawn its offer to merge with French automaker Renault.

The proposed merger, announced last month, would have created the world’s third largest auto company behind Volkswagen and Toyota. FCA withdrew the offer in a late-night announcement early Thursday.

CNBC quotes people close to the negotiations as saying FCA got cold feet because of “meddling” by the French government, which is a significant Renault shareholder. FCA’s brief statement lends credibility to that interpretation.

“FCA remains firmly convinced of the compelling, transformational rationale of a proposal that has been widely appreciated since it was submitted, the structure and terms of which were carefully balanced to deliver substantial benefits to all parties,” the company said. “However, it has become clear that the political conditions in France do not currently exist for such a combination to proceed successfully.”

Match made in heaven

The merger was proposed two weeks ago when FCA made an all-stock offer for the French automaker, declaring it was a match made in heaven. After all, there was very little overlap in product lines and both companies brought unique global strengths. Between them, the two companies produce about 8.7 million vehicles a year.

Perhaps just as important, FCA said the union of the two companies would create technological synergy and would give the new company a leg up in developing transforming technologies, including electric and autonomous vehicles.

FCA said the two companies had held initial discussions to identify ways they could cooperate on research and development and pinpoint specific parts of the world where that cooperation could be mutually beneficial.

What went wrong?

So what went wrong? Whatever it was, it happened very quickly. CNBC reports that just three hours earlier the companies were getting ready to sign off on a joint statement that said the merger plans were moving forward smoothly after a green light from the Renault board.

“We went in different directions very rapidly,” a source told CNBC. “It turned on a dime.”

Meanwhile, the French government is declaring it had nothing to do with the marriage being called off. French Finance Minister Bruno Le Maire said the government worked in support of the deal but had insisted on approval from Nissan, its partner in the 15 percent stake it holds in Renault.

Reuters quotes a source close to FCA as saying the company believes the deal was not politically popular in France and politicians appeared to have second thoughts about backing it.

The Securities and Exchange Commission (SEC) has voted to adopt rules for financial advisors and stock brokers, requiring them to be more transparent about fees and potential conflicts of interest.

It follows a 2016 move by the Obama Administration Labor Department to impose a “Fiduciary Rule,” requiring financial advisors to put the interests of their clients ahead of their own. The measure was universally opposed by the financial services industry and was eventually blocked by a federal court from taking effect.

The proposed SEC rule imposes some legal requirements and mandated disclosures in line with “reasonable investor expectations.” The rule includes a new Regulation Best Interest, the new Form CRS Relationship Summary, and two separate interpretations under the Investment Advisers Act of 1940.

The agency said the rules are designed to clarify the standards of conduct applicable to broker-dealers and investment advisors. The SEC said the objective is to help retail investors better understand and compare the services that are being offered and to make an informed decision. SEC Chairman Jay Clayton said the rule changes have been decades in the making.

“Our staff, working collaboratively across all of our Divisions and many of our offices, has leveraged its decades of experience and expertise in considering these issues,” Clayton said. “I believe that the exceptional work of the SEC staff, including their careful evaluation of the feedback we received, will benefit retail investors and our markets for years to come.”

Obama rule overturned in court

The Obama administration’s Fiduciary Rule might have accomplished those goals, but it was struck down by a federal court weeks before it was to take effect. The Fifth Circuit Court of Appeals ruled that the Department of Labor exceeded its authority in expanding the definition of what constituted fiduciary investment advice.

As proposed by the Labor Department, the fiduciary rule had a simple premise. It stated that financial advisors must give clients investment advice that is in their best interests, without regard to the interests of the advisor.

While that might seem like a given, the fact is that most financial advisors who don’t charge for their services -- or charge very little -- make their income on the sale of certain investments. The Fiduciary Rule was aimed at pointing out conflicts of interest in the financial services industry, preventing advisors from recommending investments that paid high commissions but might not help their clients build wealth.

Under the SEC’s version of the rule, brokers and advisors will be required to “act in the best interest of a retail customer” when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer. The rules become effective 60 days after they are published in the Federal Register.

Federal regulators are stepping up their efforts to combat the scourge of robocalls, which rose 46 percent from 2017 to 2018. On Thursday, the Federal Communications Commission (FCC) voted unanimously to allow phone carriers to automatically block robocalls.

FCC Chairman Ajit Pai proposed the order last month, saying it “could be a big benefit for consumers who are sick and tired of robocalls.” This week, he wrote in an op-ed for USA Today that unwanted calls have been a huge source of consumer frustration in recent years.

"When consumers complain to us, they don't distinguish between illegal calls, scam calls, telemarketing calls and spoofed calls," Pai said. "They simply lump them together under one category: unwanted.”

Filtering robocalls

The FCC said it expects carriers to offer robocall-blocking tools at no extra charge, but it doesn’t require them to. Democratic commissioner Jessica Rosenworcel took issue with this element of the proposal.

"We should be upfront and clear with consumers that today's decision offers no more than an expectation that phone companies installing this technology will not charge consumers the premium for its use," Rosenworcel said in a statement.

Fellow Democratic commissioner Geoffrey Starks pointed out that the agency could propose rules against charging for the service at a later time if it comes to that.

“We expect phone companies will move quickly to use this tool and help consumers block unwanted robocalls. Among other things, default call-blocking will reduce the costs of handling the robocalls that flood their networks and save them grief by limiting customer complaints,” Pai said.

Under the order, consumers have the right to opt out of the blocking and ask their phone company not to block any calls.

“This action empowers providers to protect their customers from unwanted robocalls before those calls even reach the customers’ phones,” the FCC said in a statement on its website.

“While many phone companies now offer their customers call blocking tools on an opt-in basis, the Declaratory Ruling clarifies that they can provide them as the default, thus allowing them to protect more consumers from unwanted robocalls and making it more cost-effective to implement call blocking programs.”

The FCC estimates robocalls cost consumers at least $3 billion per year.

In a regulatory filing this week, Uber disclosed that it’s being audited by the Internal Revenue Service (IRS) for its 2013 and 2014 tax returns. Uber said it is also being examined by "various state and foreign tax authorities” over its taxes.

The ride-hailing giant, which recently became a public company, said it has designated “adequate amounts” of money to cover any costs associated with the examination. Uber said it is “highly uncertain” when the audits will end or be resolved.

The company said it’s possible that the balance of gross unrecognized tax benefits could “significantly change in the next 12 months.” It added that it expects the gross amount of unrecognized tax benefits to be reduced by at least $141 million over the next year.

The company noted that its taxes for 2010 through 2019 remain subject to adjustments and that its key tax markets are the US, Brazil, the Netherlands, Mexico, Australia, Singapore, India, and the UK.

Struggling to find profits

The audit follows Uber’s disappointing stock market debut, as well its first quarter earnings report which revealed that the company posted losses of $1 billion over the previous quarter.

Uber explained earlier this year that its investments in its food delivery and freight businesses are a big reason it’s struggling to achieve profitability.

"We expect our operating expenses to increase significantly in the foreseeable future, and we may not achieve profitability," Uber said in a filing ahead of its IPO.