Current Events in July 2019

Back in March, the U.S. Department of Transportation (DOT) grounded all of Boeing’s 737 MAX aircraft due to an error that had caused two fatal crashes. Now, executives are saying that they may need to slow or completely stop production of the planes altogether. 

In a conference call with investors on Wednesday, CEO Dennis Muilenburg said that Boeing may make the move if the shutdown of its planes continues much longer. The company is currently trying to fix a software issue affecting the planes, and it may not meet with aviation officials until September. That could result in the 737 MAX planes not returning to service until October, according to CNN. Other estimates posit that the planes may not return until next year.

“Should our estimate of the anticipated return to service change, we might need to consider possible further rate reductions or other options, including a temporary shutdown of the Max production,” Muilenburg said. 

Boeing takes a financial a reputational hit

The grounding of its most popular line of jets hit Boeing hard during the second quarter. In addition to revealing its potential plans for the 737 MAX, the company revealed that it had its worst financial decline ever during the second quarter -- accounting for $3.38 billion in losses on $15.7 billion in revenue, according to the Washington Post.

On top of its financial losses, Muilenburg has previously stated that Boeing will need to also work hard to win back airline companies and travelers alike. 

“We know...that the public’s confidence has been hurt by these accidents and that we have work to do to earn and re-earn the trust of the flying public, and we will do that,” he said. “We are taking all actions necessary to make sure that accidents like those two...never happen again.”

The role of satellite company Dish in the proposed merger of T-Mobile and Sprint has been a key sticking point for the Justice Department, which has said it wouldn’t approve the deal unless Dish replaced Sprint as the fourth major wireless carrier.  

Now, Dish has agreed to pay $5 billion for Sprint and T-Mobile’s wireless assets, Bloomberg reported, citing sources familiar with the matter. With that condition agreed upon, the Justice Department could approve the $26.5 billion merger as early as Thursday. 

A new major carrier

Under the deal, Dish will pay $1.5 billion for Sprint's Boost prepaid mobile business and around $3.5 billion for spectrum assets, according to Bloomberg. The company won’t be able to sell the assets for three years, and it will be required to offer cell phone service and will get “a seven-year wholesale agreement allowing it to sell T-Mobile wireless service under the Dish brands.”

With Dish poised to take Sprint’s place as a fourth major wireless carrier, the Justice Department’s condition of preserving competition in the mobile industry will be met. The Wall Street Journal reports that the DOJ is more than likely to approve the deal now that Dish has agreed to step in as a competitor in the industry. The FCC has already said it supports the deal. 

The merger is still opposed by at least ten state attorneys general who argue that it will harm competition and raise prices for consumers.

The Securities and Exchange Commission (SEC) announced Wednesday that it intends to fine Facebook $100 million for making "misleading disclosures" about the risk of user data misuse. 

The agency alleges that Facebook continued to describe possible data breaches to investors in “hypothetical” terms even though it had known about the data breach for several years. 

“For more than two years, Facebook’s public disclosures presented the risk of misuse of user data as merely hypothetical when Facebook knew that a third-party developer had actually misused Facebook user data,” the SEC said in a statement. 

“Public companies must identify and consider the material risks to their business and have procedures designed to make disclosures that are accurate in all material respects, including not continuing to describe a risk as hypothetical when it has in fact happened.” 

Facebook agreed to settle the charges “without admitting or denying the SEC’s allegations,” the agency noted. 

Mishandling of user data 

The fine from the SEC is separate from the $5 billion penalty approved this week by the Federal Trade Commission (FTC) over the Cambridge Analytica data breach, which resulted in up to 87 million Facebook users having their information improperly accessed. The FTC and the SEC began investigating Facebook last July following the data-sharing scandal. 

In response to the actions taken against it, Facebook has promised greater transparency and increased efforts to protect user privacy. Facebook said the FTC agreement "will mark a sharper turn toward privacy, on a different scale than anything we've done in the past.” The company said it has already set aside money to pay the fine. 

“Going forward, our approach to privacy controls will parallel our approach to financial controls, with a rigorous design process and individual certifications intended to ensure that our controls are working — and that we find and fix them when they are not,” Facebook said in a blog post.

The U.S. Food and Drug Administration (FDA) has sent a warning letter to Curaleaf, a company that markets cannabidiol-based products using “unsubstantiated” health claims. 

Curaleaf is “illegally selling unapproved products containing cannabidiol (CBD) online with unsubstantiated claims that the products treat cancer, Alzheimer’s disease, opioid withdrawal, pain and pet anxiety, among other conditions or diseases,” the FDA wrote. 

Acting FDA commissioner Dr. Ned Sharpless said the practice of selling products with unsupported health claims is potentially dangerous since it can prevent patients with serious diseases from seeking proper medical treatment. 

"Claims that CBD products can treat serious diseases and conditions can put patients and consumers at risk by leading them to put off important medical care,” Sharpless said. “Additionally, there are many unanswered questions about the science, safety, effectiveness and quality of unapproved products containing CBD.” 

In a statement of its own, Curaleaf said it’s currently having its legal team review the letter and intends to respond within the 15 working day timeframe provided by the FDA.

“Compliance is a top priority for Curaleaf,” the company said. “We can reaffirm that nothing in the letter raises any issues concerning the safety of any Curaleaf product. Curaleaf products are all derived from hemp and meet the requirements of the Farm bill.” 

Growing consumer interest in CBD

CBD is a component of cannabis that does not contain intoxicating properties, but it is thought to have some health benefits. The FDA began loosening its stance on CBD following the legalization of hemp under the 2018 Farm Bill, but it’s still viewed as a drug. 

The agency has said it recognizes the “potential opportunities that cannabis or cannabis-derived compounds could offer and acknowledge the significant interest in these possibilities” and is currently looking into regulatory “pathways” for marketing of products containing CBD.

However, the agency has stressed that it will continue to “closely scrutinize products that could pose risks to consumers” during that process. The FDA currently bans CBD in food or dietary supplements, but it has allowed sales of topical products containing CBD under the condition that they don’t make serious health claims. 

Dr. Amy Abernethy, the FDA's principal deputy commissioner of food and drugs, said Tuesday that the agency is aware of the surge in consumer interest in products containing CBD, but it remains committed to monitoring the marketplace and protecting the public. 

"We understand this is an important national issue with public health impact and of interest to American hemp farmers and many other stakeholders,” Abernethy said. “The agency has a well-established pathway for drug development and drug approvals, and we remain committed to evaluating the agency's regulatory policies related to other types of CBD products. We plan to report our progress by early this fall as we expedite our work to address the many questions about CBD.” 

Many pet owners believe their seven-year-old dog is still frisky as a pup, but if she were a human she would be receiving her membership packet from AARP.

The maxim that a dog year is equal to seven human years is mostly a generality, although it does apply to large dogs. Smaller breeds don’t age quite as fast. But in many cases, the family pet reaches his golden years around seven or shortly after, a fact pet owners need to be aware of.

However, research from pet food manufacturer Purina suggests most consumers aren’t aware of that fact, failing to understand that a senior dog’s needs are different from one in middle age, and that in many cases it calls for a change in diet.

A survey of pet owners found that 83 percent of people with a senior dog don’t realize their best friend has reached senior status. Just 17 percent of people in the survey correctly identified seven as the age a dog becomes a senior. The largest group thought 10-years old is when a dog becomes a senior.

Regular exercise

When a dog becomes a senior, it needs regular exercise and 93 percent of consumers in the survey were aware of that fact. But only 77 percent said the think their dog gets that regular physical activity.

Concerning diet, 58 percent of people with a senior dog couldn’t say whether their veterinarian had recommended changes in their dog’s diet, including the switch to a specific type of food.

"Like many other dog owners, I was surprised to learn my dog, Wacha, is now considered a senior dog at the age of seven," said Andy Cohen, spokesperson for Purina ONE. "So we're making the 7-Year Switch to Purina ONE Smartblend Vibrant Maturity to keep Wacha sharp and keep his energy levels up for many more years to come."

Needs of older dogs

The American Veterinary Medical Association (AVMA) says senior pets require increased attention that include more frequent visits to the veterinarian, possible changes in diet, and in some cases alterations to their home environment.

Senior dogs often need foods that are more readily digested, have different calorie levels and ingredients, and anti-aging nutrients. Most pet food companies now offer products specifically for older dogs and cats. Calorie level is important since older animals -- just like humans -- are prone to excessive weight gain that can lead to health problems.

Diseases that can affect senior dogs include cancer, heart disease, diabetes, joint and bone ailments, and kidney disease.

Mercedes-Benz USA (MBUSA) is recalling 659 model year 2016-2017 AMG GTS vehicles.

The bonding between the carbon-fiber driveshaft and the engine/transmission flange may be insufficient, causing the driveshaft to separate while in motion.

Separation of the driveshaft could result in a loss of drive, increasing the risk of crash.

What to do

MBUSA will notify owners, and dealers will replace the carbon-fiber draft shaft, including the flange free of charge.

The recall is expected to begin August 13, 2019.

Owners may contact MBUSA customer service at (800) 367-6372.

US Foods of Birmingham, Ala., is recalling approximately 712 pounds of raw beef and pork products that may be adulterated due to possible product contamination.

The firm says an employee may have cut himself during production.

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

A list of the recalled fresh and frozen raw beef and pork items that were produced July 18, 2019., is available at https://www.fsis.usda.gov/wps/wcm/connect/ecc84891-82e4-4903-bd8a-5ea0440b8ff7/Recall+076-2019+Products+List.pdf?MOD=AJPERES&ContentCache=NONE

The recalled products were shipped to restaurants in Alabama, Georgia, Mississippi and Tennessee.

What to do

Restaurants that purchased the recalled should not serve them, but discard or return them to the place of purchase.

Consumers with questions may contact Sara Matheu at (847) 720-2392.

Koch Foods of Fairfield, Ohio, is recalling approximately 743 pounds of fully-cooked boneless chicken bites.

The products contain soy, milk and eggs, allergens not declared on the label.

There are no confirmed reports of adverse reactions.

The following frozen, fully-cooked breaded boneless chicken bites labeled as fully-cooked chicken strips and produced on May 31, 2019, are being recalled:.

• 40-oz. plastic bags containing fully cooked breaded boneless chicken bites that were labeled “SCHWAN’S FULLY COOKED Crispy Chicken Breast Strips” with lot code YN91518412L1; these bags may be separate or in cardboard box cases labeled “BONELESS CHICKEN BITES” with a time stamp of 20:55 to 21:50.

The recalled products, bearing establishment number “EST. P-20795” inside the USDA mark of inspection, were shipped to a distributor in Minnesota.

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 may contact James Bohlander at (513) 642-2653.

Toyota Motor Engineering & Manufacturing is recalling 464 model year 2018-2019 Prius Cs.

The DC-DC converter may fail resulting in the battery no longer receiving power from the converter, which may cause a loss of drive.

A loss of drive increases the risk of crash.

What to do

Toyota will notify owners, and dealers will replace the DC-DC converter with a new one, as necessary, free of charge.

The recall is expected to begin August 12, 2019.

Owners may contact Toyota customer service at (888) 270-9371. Toyota's number for this recall is K0K.

What’s the “real cost” of vaping? The Food and Drug Administration (FDA) hopes to make it abundantly clear with a new television ad campaign aimed at the underage use of e-cigarettes.

It’s a dramatic expansion of the agency’s ”The Real Cost” Youth E-Cigarette Prevention Campaign launched in 2018 amid alarming statistics which showed large increases in teens’ use of e-cigarettes. Federal data showed e-cigarette use among high school students rose by 77 percent that year.

The initial campaign used hard-hitting advertising on digital and social media sites, as well as posters with e-cigarette prevention messages displayed in high schools across the nation. The new TV ads are intended to drive home public health messages about the risks of e-cigarette use.

Supposed to help smokers quit

E-cigarettes were initially introduced as a substitute for tobacco cigarettes. They produce a vapor from liquid that can be inhaled much like a cigarette. Because the liquid contains nicotine, the product is supposed to give a smoker the pleasures of smoking without using tobacco.

Many public health experts charge e-cigarette marketers of expanding their target beyond smokers who are trying to quit to teens who have never smoked. Former FDA Commissioner Scott Gottlieb, who resigned in April, was a particularly harsh critic of e-cigarette marketers.

“We don’t yet fully understand why these products are so popular among youth,” Gottlieb said in April 2018. “But it’s imperative that we figure it out, and fast.”

‘Troubling epidemic’

The FDA said the ad campaign has taken on heightened importance in light of what it says is an “emerging science” which suggests that teens who vape are more likely to start smoking cigarettes. The concern is that teens who get hooked on nicotine by using e-cigarettes will eventually graduate to tobacco in order to get a stronger dose.

“The troubling epidemic of youth vaping threatens to erase the years of progress we’ve made combating tobacco use among kids, and it’s imperative that our work to tackle this immensely concerning trend continues to include efforts to educate our nation’s youth about the dangers of these products,”  said Acting FDA Commissioner Ned Sharpless.

The new ads feature street magician Julius Dein, a YouTube star with 113 videos and nearly 800,000 subscribers. In the ads, the social media personality takes a young person’s e-cigarette  and transforms it into a cigarette in front of their eyes. The illusion is supposed to drive home the idea that teens who vape are more likely to start smoking cigarettes. 

The FDA says the new ads will run on TeenNick, CW, ESPN, and MTV, as well as on music streaming sites, social media networks, and other teen-focused media channels.

While many physicians will warn consumers about potentially dangerous side effects that could come from taking medication, the Food and Drug Administration (FDA) is putting out its own warning to consumers to ensure safety on the roads. 

The agency is urging consumers to carefully check their medication before getting behind the wheel, as some drugs can stay in the system longer than anticipated, or come with some unexpected side effects. 

“To manage or minimize side effects while driving, your healthcare provider may be able to adjust your dose, adjust the timing of when you take the medicine, or change the medicine to one that causes fewer side effects for you,” the agency wrote. 

Things to look out for

Though the agency has listed several types of prescription medications that could interfere with consumers’ driving ability, something more common and available over the counter could also impact consumers on the road. 

Allergy pills can lead to drowsiness and sometimes affect reaction time, so it’s imperative that consumers avoid mixing alcohol with these drugs; consumers should read the back of the box for these products to ensure that driving is safe. 

The FDA pays particular attention to sleeping pills in their report, as the drugs are designed to help consumers sleep peacefully through the night; however, the effects of the pills could linger in the body well past morning. The FDA not only wants to highlight this concern to those who take sleeping pills, but it also encourages healthcare practitioners to work with their patients to find the lowest possible dosage to mitigate any potential risk. 

Ultimately, the FDA doesn’t want consumers to think they should avoid their cars, boats, motorcycles, or any other types of heavy machinery while taking medication. However, it does want to call attention to the potential dangers of doing so, and it encourages consumers to do everything in their power to stay safe behind the wheel. 

Doctors and pharmacists are great resources for consumers who have questions about their medications, and patients can always ask their doctors about possibly lowering their dose to reduce any potential side effects. 

Additionally, consumers should always be upfront with medical personnel about any and all drugs they’re taking and never stop taking prescription medications without first consulting their doctors. 

To see the full list of tips from the FDA, click here. 

It could be a big week for Facebook. The social media giant reports second quarter earnings Wednesday, and every indication suggests its settlement with the Federal Trade Commission (FTC) will be formally announced before the weekend.

Facebook has already told investors it expects to pay between $3 billion and $5 billion to settle privacy-related charges stemming from the Cambridge Analytica incident. The revelation last year that a political marketing group made unauthorized use of Facebook user data was the beginning of the company’s troubles.

A number of sources have recently reported that Facebook and the FTC will agree to a $5 billion settlement to put the matter to rest. Facebook critics have pushed for a harsher penalty, even though $5 billion is far and away the largest penalty the FTC has ever assessed.

Sigh of relief

A settlement would no doubt produce a huge sigh of relief in Silicon Valley, but the firm may still face some regulatory headaches. For one, there is growing consensus among Democrats in Congress that the government needs to take steps to rein in Facebook’s size and power.

Second, the company’s privacy issues continue to pop up. On Monday, the company disclosed that a flaw in Kids Messenger allowed children to chat with persons not approved by their parents. Facebook said it turned off the “small number” of affected chats when it learned of the glitch.

The recent announcement that the company plans to launch its own cryptocurrency sometime next year has also produced angst on both sides of the aisle in Washington. Policymakers say they are concerned that the digital currency, Libra, could be used to make money laundering easier.

Prepared for the penalty

In April, when Facebook reported first quarter earnings,  it told investors it was setting aside $3 billion to $5 billion for a potential settlement with the FTC.

“We estimate that the range of loss in this matter is $3 billion to $5 billion,” Facebook said in its news release. “The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome.”

The company now hopes that the matter will be formally and officially resolved this week.

Amazon has expanded its in-car delivery option, dubbed Amazon Key. The e-commerce giant is now offering Honda owners the option of having a package delivered to the trunk of their vehicle. 

Those who want to use the service will need to be a Prime member located in one of the 50 cities and surrounding areas eligible for Key by Amazon delivery. Customers will also need to have a compatible Honda vehicle. Honda models eligible to participate in the service include Accord, Accord Hybrid, Insight, Passport, Pilot, and Odyssey trims. 

Prime members who meet those criteria can download the Amazon Key app, select the year, make, and model of their vehicle, and then enter their HondaLink credentials. 

In-car delivery

When making a purchase on Amazon, select the “in-car” option and enter a delivery address.  Customers can park within two blocks of the specified delivery address and Amazon will still be able to find the car using GPS data.

Amazon will send a notification when the delivery is close to give customers time to remotely unlock their vehicle using the HondaLink app. After the package has been dropped off, customers can lock the vehicle using the same app. 

Amazon’s HondaLink Remote subscription package costs $110 per year after a three-month trial. 

Amazon launched its Key service in 2017 as a way of increasing customer convenience and preventing package theft. At launch, the company offered the option of in-home delivery for customers who have installed a compatible smart lock on their front door. 

Amazon later made its Key option available to customers who own Chevrolet, Buick, GMC, Cadillac, and Volvo vehicles.

A bill introduced Tuesday would make it illegal for cell phone and app companies to sell the location data of users in New York City, the New York Times reports. 

Companies that break the law would be subject to a steep fine. Additionally, users within city limits would be legally allowed to sue companies that share their data without permission. 

The Times notes that the bill is likely to face resistance from telecommunications companies because selling location data generates billions of dollars annually. But proponents of the bill say its passage would represent a small step toward mitigating the privacy concerns that stem from the practice of location data sharing.

Reining in data sharing

Currently, no law prohibits U.S. companies from selling location data. Earlier this year, FCC Commissioner Geoffrey Starks called for federal action to put an end to the practice. In an op-ed for the New York Times, Starks expressed frustration over the fact that the FCC has yet to use its authority to crack down on the practice of data sharing. 

If passed, the bill proposed Tuesday would make New York City the first to establish its own set of location data rules. 

Calling the behavior of selling location data a “dangerous breach of privacy,” Democratic City Council member Justin Brannan said New York City can “lead the way” in banning the practice.

“Big telecom companies are making millions $$ by selling our location data without our knowledge -- forget about even asking our permission,” he said on Twitter. “It's time to put an end to Big Brother Big Business. And if the federal gov won't do it, NYC will.” 

On Monday, Microsoft and Elon Musk-founded OpenAI announced a deal in which Microsoft will invest $1 billion in the latter company with the hope that the individual synergies will bring advances in artificial intelligence (AI), primarily to Microsoft Azure. Azure is Microsoft’s cloud computing service for building, testing, deploying, and managing applications and services via data centers it manages. 

Microsoft is a big believer in AI, and as you can see by this and other related investments, it’s putting its money where its mouth is. The company’s other AI stakes include Invoke, an Amazon Dot competitor, and a liaison with Kroger to build connected grocery stores.

“One of the many remarkable things about artificial intelligence is that while we tend to think of it as something that will have a big effect in the not-too-distant future, it is already transforming people’s lives in profound and powerful ways today,” Microsoft’s EVP of Global Sales, Jean-Philippe Courtois said recently.

What is OpenAI?

OpenAI is built around the concept of “friendly AI,” a version of artificial intelligence with the aim of “benefit[ing] humanity as a whole, unconstrained by a need to generate financial return," the OpenAI team wrote when it revealed its $1 billion initiative back in 2015.

“Benefiting humanity as a whole” may sound like a fishy claim given how some in Big Tech have used AI to improve their own lot and not others. But, to OpenAI’s defense, the company has already started making good on that promise.

Engadget recently reported that OpenAI has developed artificial intelligence that can beat human gamers, shown that it can write believable “fake news,” and improved the nimbleness of robotic hands. The company also went as far as saying artificial general intelligence (AGI) could address issues like climate change, healthcare, and personalized education.

“While Musk has since left the company -- he founded it partly because he was concerned about the dangers AI could pose -- the partnership could help advance some of his most outlandish ideas, like stitching sensors into human brains,” Engadget’s Christine Fisher wrote.

Having a partner like Microsoft and its reputation for keeping things moving in the right direction will certainly help the project. 

“By bringing together OpenAI’s breakthrough technology with new Azure AI supercomputing technologies, our ambition is to democratize AI -- while always keeping AI safety front and center -- so everyone can benefit,” Satya Nadella, CEO, Microsoft, said in an announcement about the new partnership.