Current Events in July 2019

If your credit card balance grows to the point that you are unable to pay it in full at the end of the month, perhaps the prudent thing to do is to reduce spending. But a new survey of consumers has found that, by and large, that isn’t what people with large credit card balances do. They keep on spending.

The survey by CreditCards.com found consumers who carry balances on one or more credit cards are outspending debt-free households in seven of nine discretionary spending categories. What’s more, they say they don’t have plans to cut back on big-ticket luxury purchases. 

Nearly one in five aren’t willing to reduce spending in nine categories, including dining out, leisure travel, and clothing. Instead, they keep adding to the balance and pay double-digit interest on their growing debt.

“The average U.S. household spends thousands of dollars a year on nonessentials,” said Ted Rossman, industry analyst at CreditCards.com. “If you’re charging these luxuries and carrying a balance, you’re spending an average of about 18 percent more for the privilege.”  

Expensive travel

The survey also focused on what consumers are willing to give up and what they aren’t, and the results are enough to keep most financial advisors up at night. The average household with credit card debt spends $2,211 per year on leisure travel. Only 30 percent of those consumers say they would be willing to cut their travel spending in half.

Other areas where consumers who are deep in credit card debt draw the line are personal care and beauty, cell phone plans, and car loans and leases. Sixty-one percent say there’s no way they’re giving up subscriptions to Nextflix, Spotify, and Xbox.

Financial advice

Nick Holeman, a certified financial planner at Betterment, an online financial advisor, says consumers with credit card debt need to stop spending and start saving. Holeman suggests consumers set up an auto-deposit at their bank so they can transfer money from a checking to a savings account on a regular basis

“It can be easy to get excited about a raise and quickly up how much we are spending each month,” Holeman told ConsumerAffairs.” Instead, decide ahead of time that if you get a raise this year, you will save half of it. If you find yourself with a $500-a-month raise, it’s okay to spend $250, as long as you save the other $250. The same goes for your bonus.” 

To get spending under control, personal finance experts suggest making tough choices and sticking to them. For starters, cut out leisure travel until you have the money on hand to pay for it.

The Federal Trade Commission (FTC) is ready to settle Facebook’s privacy issues with a fine of $5 billion. That’s billion with a “B.”

Needless to say, it would be a record settlement. The previous record was a $22.5 million fine levied against Google.

The reported deal with Facebook would settle a number of alleged privacy violations, including the unauthorized use of Facebook data by Cambridge Analytica, to target political ads to Facebook users.

Complicating matters for Facebook is the fact that it previously settled privacy charges with the FTC and has been accused of being in breach of that consent decree, a charge it has denied.

Too lenient?

But there is criticism of the settlement from some quarters for being too lenient. Several months ago, Facebook told investors it had set aside $3 billion to $5 billion to settle the government’s privacy case, evidence seen by some that the social media giant isn’t really being hurt. 

Nilay Patel, editor-in-chief of the tech site The Verge, has called the record settlement “an embarrassing joke.” In an interview with NPR, Patel said Facebook settled a similar charge in 2011, paid the fine, but went about doing pretty much the same thing.

“If you look at the press release the FTC put out then, the first line is, Facebook said it was going to keep user information private and then repeatedly broke that promise,” Patel said in the interview. “So Facebook already had broken this rule, had already paid a fine to the FTC, had already promised it was going to do a better job and get user consent before sharing data. And here we are again. It's been a year and a half of scandals. And Facebook is going to pay this fine.”

‘Not that significant’

While it’s true that $5 billion is a record fine, Patel argues that it’s not that significant in Facebook’s case because the company can easily afford it. He claims Facebook pulls in that amount in a month or less. But in terms of profit, the fine is about 25 percent of Facebook’s earnings.

He also points to Facebook’s stock price action. When the story broke late Friday afternoon, about an hour before the market closed, Facebook surged on the New York Stock Exchange, with investors expressing relief that the case had been settled.

“I think it is pretty embarrassing for the United States government to levy a fine - the biggest fine by two orders of magnitude the FTC has ever levied - and for Mark Zuckerberg's net worth to go up,” Patel said. “And that is, ultimately, what happened.”

Neither Facebook nor the FTC has issued a comment.

During an interview with CNBC’s Carl Quintanilla, Juul CEO Kevin Burns said he would apologize to parents whose children are addicted to Juul e-cigarettes. 

“First of all, I’d tell them that I’m sorry that their child’s using the product,” Burns said in a documentary called “Vaporized: America’s E-cigarette Addiction,” which is set to premiere Monday at 10 p.m. ET.

“It’s not intended for them,” he added. “I hope there was nothing that we did that made it appealing to them. As a parent of a 16-year-old, I’m sorry for them, and I have empathy for them, in terms of what the challenges they’re going through.”

Campaign for Tobacco-Free Kids President Matthew Myers called the apology “a deceptive, self-serving gesture by Juul given their complete refusal to take responsibility for creating the youth e-cigarette epidemic.”

“It is a blatant attempt to deflect attention from the company’s wrongdoing while it opposes meaningful government regulation to prevent it from continuing to addict kids,” Myers said in a statement on Monday, according to CNBC.

Juul’s role in the teen vaping ‘epidemic’

From 2017 to 2018, the number of youth e-cigarette users grew by 1.5 million, according to a survey conducted earlier this year by the Centers for Disease Control and Prevention (CDC).

In April, former FDA Commissioner Scott Gottlieb called out Juul -- a dominating force in the e-cigarette industry -- for fueling what they have called a teen vaping epidemic. Vaping products manufactured by Juul have been shown to be especially popular among teen users since they come in fruity flavors like fruit, creme, and mango. 

“I hope they recognize the problem that’s been created has been created largely by their product,” Gottlieb told Vox.

Juul has maintained that its intent was never to pull in youth users. To address the issue, the company has taken several actions to curb teen use of its products, including shuttering its social media accounts and eliminating its flavored products.

Controversial marketing campaign

Federal regulators have set out to reduce youth use of e-cigarettes in recent years, but critics say the damage caused by Juul may already have been done. Gottlieb noted that Juul’s early marketing campaigns appeared to speak directly to young people. 

“If you go back and look at their marketing campaigns from 2015 and 16, it’s hard not to look at that marketing and conclude that it's not going to be appealing to a youth, to a teenager,” Gottlieb said earlier this year. “It certainly in my view had some impact on creating the problem we have now.”

In the upcoming documentary, Burns refutes the claim that Juul’s initial marketing marketing campaign had any significant impact on sales. 

“When we launched Juul, we had a campaign that was arguably too kind of lifestyle-oriented, too flashy,” Burns said. “It lasted less than six months. It was in the early days of the product introduction. We think it had no impact on sales.”

Health impact in question

E-cigarette manufacturers have stressed that their products are intended to help adult smokers quit. However, teens have gravitated toward them at a rate that has sparked concern among health officials, who aren’t yet sure of the adverse health effects the products could cause down the line.

“Frankly, we don’t know [the impact of chronic vaping] today,” Burns said. “We have not done the long-term, longitudinal, clinical testing that we need to do.”

Additionally, regulators have expressed concern that the rise in e-cigarette could undo progress in reducing rates of tobacco use among minors.

"The skyrocketing growth of young people's e-cigarette use over the past year threatens to erase progress made in reducing youth tobacco use. It's putting a new generation at risk for nicotine addiction," CDC Director Robert Redfield said in a statement published in February.

Juul has said it supports the initiative to raise the minimum smoking age to 21 to prevent minors from buying its products.

eBay has launched a Crash Sale to compete with Amazon, which kicked off its fifth annual Prime Day sale at midnight PT. 

Last year, Amazon crashed during the first few hours of Prime Day due to overwhelming site traffic. This year, eBay has promised to roll out even more incredible deals if the same thing happens again.

"If Amazon crashes (again), eBay will drop even more can't miss deals on things shoppers actually want, including gaming consoles, smart home tech, backpacks, name brand sunglasses, and more," the company said.

Crash Sale deals

eBay has already launched major discounts on a number of items, including $2,000 off an LG OLED 65-inch 4K Smart TV. Other tech deals include: 

• 54 percent off a Google Home Hub 

• 28 percent off an Xbox One S 1TB All-Digital Edition Gaming Console & Dell 23.6" LCD Gaming Monitor 

• 40 percent off Bose QuietComfort 35 Series Wireless Headphones

• 35 percent off Samsung Galaxy S10 128GB 

In the home category, a few notable deals include: 

• 55 percent off a Milwaukee M18 Li-Ion 5-Tool Combo Kit

• 42 percent off a DeWalt 20V Li-Ion Drill Driver and Impact Driver Kit

• 46 percent off a Hoover Dual Power Path Max Advanced Pet Carpet Cleaner

eBay says it has also launched the following “Site-Wide Events”: 

• Samsung products - up to 50 percent off

• Apple products - up to 50 percent off

• Laptops - under $399

• TV & Audio - up to 50 percent off

• Gaming consoles - $39.99 and under

• Top-rated vacuums - under $100

• Adidas - up to 60 percent off

• Diamonds - up to 70 percent off

eBay isn’t the first competitor to try to take the wind out of Amazon’s sails. Target has also announced deals of its own to compete with the online retailer. For its part, Amazon has said it’s “worked super hard throughout the year” to ensure site outages don’t occur again this year. 

While Amazon shoppers need to be Prime members to participate in this year’s 48-hour Prime Day sale, eBay has noted that deal-seekers don’t need a membership to shop its site. 

Cities like Seattle and Philadelphia have implemented taxes on sugary drinks in recent years with the hope of limiting consumers’ intake and improve health outcomes.

Now, researchers have discovered that avoiding sugary drinks could have some serious health benefits, as doing so could significantly reduce the number of cancer cases across the country. 

“These data support the relevance of existing nutritional recommendations to limit sugary drink consumption, including 100 percent fruit juice, as well as policy actions, such as taxation and marketing restrictions targeting sugary drinks, which might potentially contribute to the reduction of cancer incidence,” the authors wrote. 

Practicing better health

The researchers studied over 101,000 adults’ dietary habits over the course of nine years from 2009 through 2018. Participants had their weight recorded every six months during the study, and at the beginning they answered five questionnaires, detailing their height and weight, physical activity, lifestyle characteristics (age, sex, smoking status, number of children, education level), dietary intakes, and health history. 

Participants also had to report everything they consumed -- both food and drinks -- in at least two 24-hour periods every six months of the study. After collecting all of the data, the researchers determined that sugary drinks increased the likelihood of participants developing cancer. 

The study revealed that when participants increased their sugary drink intake, they also increased their risk of developing cancer; even small increases of sugary beverages -- 100 mL per day -- increased the overall risk of cancer by nearly 20 percent. 

Though an observational study, the researchers explained that this was a large sample size, and the results stayed the same across further tests, meaning that consumers’ dietary habits could greatly affect their health. 

“If these results are replicated in further large-scale prospective studies and supported by mechanistic experimental data, and given the large consumption of sugary drinks in Western countries, these beverages would represent a modifiable risk factor for cancer prevention, beyond their well-established impact on cardiometabolic health,” the authors wrote.

Taxes are doing their job

While cities across the country are trying to limit consumers’ sugary drink intake by implementing taxes, a recent study showed that these taxes are doing exactly what they were designed to. 

In some regions, consumers swapped sugary drinks for healthier options. In others, public health officials were adamant about fighting obesity, but the outcome was still the same: sugary drink consumption decreased in places where taxes were implemented. 

“It shows taxes on sugary drinks are an effective tool to reduce consumption, and we know from other research that high consumption of sugary drinks increases the risk of obesity, diabetes, and dental caries,” said researcher Dr. Andrea Teng.

The return-to-service date of Boeing 737 MAX jets could be pushed into 2020 amid safety concerns from regulators and Federal Aviation Administration (FAA) officials. 

On Friday, United Airlines canceled flights through November 2. Just a few days later, American Airlines followed suit and canceled flights through the same date. American Airlines cited the need for a fix to be developed for an issue discovered last month. 

"American Airlines remains confident that impending software updates to the Boeing 737 MAX, along with the new training elements Boeing is developing in coordination with our union partners, will lead to recertification of the aircraft this year," the airline said in a statement on Sunday.

Could extend into next year

But some airline industry officials believe January 2020 is more likely to be the month the jets are cleared to return to the skies, according to the Wall Street Journal. 

Last month, Boeing CEO Dennis Muilenburg expressed optimism that the 737 MAX would be back in service by the end of the year. He said Boeing was conducting simulated flights with air-safety regulators and would soon operate test flights with the FAA. However, airlines have been more cautious with their predictions on when the aircraft will be deemed safe to return to daily flight schedules. 

“By proactively removing the MAX from scheduled service, we can reduce last-minute flight cancellations and unexpected disruptions to our customers' travel plans,” Southwest Airlines said in a recent statement.

All Boeing 737 MAX jets have been grounded since mid-March following two fatal crashes which killed a total of 356 people. In recent months, Boeing has said it’s aware that it will have to work to regain customers’ trust even after it retrains pilots and upgrades its software. 

On Amazon’s Prime Day, it may be fitting to report that the closing of brick and mortar stores in the U.S. is picking up momentum in 2019.

While not completely attributable to a growing shift in consumer preferences to online shopping, there is no doubt that the decline of physical stores has coincided with that trend. 

At the halfway point in the year, store closings -- including announcements -- are up 20 percent over all of last year. The latest report from Coresight Research estimates that at least 7,000 stores will close their doors this year, with thousands of others already dark and deserted.

The numbers are likely weighted by one retailer -- Payless ShoeSource -- which makes up nearly 40 percent of the store closings. The bankrupt retailer closed the last of its stores in early July.

“So far this year, US retailers have announced 7,062 store closures and 3,017 store openings,” the research company wrote in its report. “This compares to 5,864 closures and 3,258openings for the full year 2018.”

12,000 gone by the end of 2019

Coresight Research said it expects the total number of U.S. store closings to exceed 12,000 by the end of this year.

Much of that business continues to go to Amazon, which launched a mid-July shopping day of deals in 2015 to celebrate its 20th anniversary. The deals are only available to members of Amazon Prime, and the promotion is aimed at increasing Prime memberships as much as moving merchandise.

Rivals Walmart and Target have launched their own online promotional events offering deals that don’t require a membership. But it has all combined to encourage consumers to spend money online instead of in stores.

As we reported in April, UBS analysts predict 75,000 more stores will likely close their doors over the next seven years if online shopping continues at an aggressive pace.

In a note to clients, UBS noted that online channels such as Amazon are expected to grow their share of the retail sales pie from its current 16 percent to 25 percent by 2026. If that happens, as expected, it would force the closing of 75,000 retail stores.

To date, specific brands have borne the brunt of the retail apocalypse. In addition to Payless, Sears has closed hundreds of stores. It plans to reboot under Eddie Lampert’s ownership with about 400 locations.

Ford Motor Company is recalling 7,600 model year 2019 Ranger SuperCabs.

The right-front seat belt may improperly assembled improperly and may not adequately restrain occupants in a crash, increasing the risk of injury.

The automaker says it is not aware of any reports of accidents or injuries.

What to do

Dealers will inspect and, if necessary, replace the right-front seat belt assembly.

Owners may contact Ford Customer service at (866) 436-7332. Ford's reference number for this recall is 19S23.

The average transaction price (ATP) on both new and used vehicles is near an all-time high, so it’s not surprising perhaps that a new survey found most consumers buy cars and trucks they can’t really afford.

The survey by a car insurance website, CarInsuranceComparison.com, found consumers overspend by an average of $57 on monthly car expenses.

Part of the problem may be due to a lack of knowledge about affordability. Personal finance experts recommend the so-called 20/4/10 rule when purchasing and financing a car or truck.

It’s prudent to always put 20 percent of the car’s price up as a down payment and finance the vehicle for no more than four years. Total costs, including insurance and maintenance, should be no more than 10 percent of gross monthly income.

Longer loan terms

Unfortunately, almost no one who finances a vehicle follows that advice. As the ATP has exceeded $37,000, some buyers must finance their purchase for up to seven years to get a payment they can make each month. But those longer loan terms mean consumers pay down the principal more slowly, and at some point they may owe more for the car than it is worth.

Among respondents to the survey, the average annual income was $45,205 and the average ATP was $17,491 -- less than half the national average. Using those numbers, the average purchaser should be paying no more than $377 a month in total vehicle expenses.

In actuality, the average consumer in the survey was spending $434 a month, $57 more than the recommended amount. On an annual income of $45,000, an extra $57 is likely to create a burden.

“As our results make clear, few car owners actually adhere to the smart car buying guide line,” the authors write. “Overall, 69 percent of respondents did not meet that rigorous standard, suggesting those who do possess either high incomes or admirable spending discipline. More than a quarter of baby boomers met the rule’s criteria, however, surpassing Gen Xers and millennials.”

Large monthly bills

The authors did uncover at least one bright spot. On average, the respondents put down more than the minimum 20 percent for a down payment. But even after making sizable down payments, the survey found that consumers often end up with hefty monthly bills.

The authors note that a strong economy may make consumers feel like they can afford an expensive car or truck, but when all the monthly expenses are measured against income, it’s often the case that consumers are paying too much for transportation.

Bitcoin lost significant ground in Thursday’s trading, but it’s still up 250 percent in 2019, and the bulls show no signs of running for cover.

The digital currency sold off during Federal Reserve Board Chairman Jerome’s second day of Congressional testimony, in which he told lawmakers that Facebook's launch of a digital currency, Libra, raises serious concerns about all cryptocurrencies.

Bitcoin fell more than 10 percent on Powell’s comments, but few are dismissing the bullish case. Bitcoin climbed above $13,000 on Wednesday, and several analysts have suggested a breakout above $14,000 could send the currency soaring still higher.

While Powell said the emergence of digital currencies “raise serious concerns,” he made no suggestions about what should be done to address those concerns. But the issue appears to be Facebook, not Bitcoin.

Facebook’s announcement that it plans to launch its own digital currency next year, along with a digital wallet, has suddenly made cryptocurrencies appear to be more mainstream. Some analysts have called Facebook’s digital wallet, Calibra, an “on-ramp” for digital currencies since it will be much easier for consumers to purchase and use them.

In the meantime, Powell wasn’t the only one raising concerns about cryptocurrencies. President Trump took to Twitter to insist the dollar is the only real currency in the U.S.

Growing appeal

Digital currencies may appear more appealing to average consumers if global economic issues begin to weaken government currencies around the world. Citizens will suddenly have other options to preserve the value of their money, further weakening government fiat currencies.

In Wednesday’s testimony before the House Financial Services Committee, Powell seemed to share the committee’s concern about Facebook’s digital currency venture.

“While the project’s sponsors hold out the possibility of public benefits, including improved financial access for consumers, Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability,” he said. "These are concerns that should be thoroughly and publicly addressed before proceeding.”

For its part, Facebook isn’t arguing with Powell and others who are skeptical of its new venture. Facebook spokesman Andy Stone said the company is very much aligned with the view that governments, regulators, central banks, non-profits, and others “need to be able to ask questions, share concerns and provide feedback on this project." 

Bitcoin, meanwhile, continues to be the beneficiary. Despite Thursday’s steep decline, mainstream institutional interest in the blockchain and cryptocurrency industry appears to be on an upswing, with some investors perhaps seeing Thursday’s selloff as a buying opportunity.

Most consumers think of pesticides or cleaning products when it comes to household items that emit chemicals, and now a new study could have them looking at their mattresses differently. 

After a study that evaluated various household products that emit volatile organic compounds (VOCs), researchers from the American Chemical Society found that mattresses could contain chemicals that pose serious health risks, particularly for children. 

Knowing what you’re sleeping with 

To determine how VOCs are emitted from mattresses, the researchers analyzed eight different types that ranged in size to fit infants, toddlers, and children. 

The researchers determined that the gases emitted from mattresses affect the body differently because when sleeping, our faces are much closer to the material of the mattress, and we can breathe in more of the compounds. 

All of the mattresses used in the study were polyurethane, and the researchers put pieces of the test subjects into a flow chamber to measure the exact VOC levels being emitted during the night. 

The study revealed that when body heat increases, which is typical during sleep, higher levels of VOCs were emitted. However, of the eight mattresses tested, no one stood out as emitting any more than the others. 

Higher risk for children

VOCs are a risk to consumers because breathing them in can cause headaches, irritation of the skin, eyes, or throat, and sometimes cancer. 

After testing each of the mattresses, the researchers determined that consumers shouldn’t be concerned about their mattresses increasing their risk of developing cancer, as the VOC levels weren’t that high. However, the levels of the chemicals were high enough for parents to be concerned about their young children, as children can be affected by the emissions differently than adults. 

Though not an immediate hazard, the researchers hope to expand their research in this area to determine the long-lasting effects of inhaling VOCs. 

Steering clear of VOC emissions

Researchers recently determined that consumer products contribute nearly as much to air pollution as cars, with household cleaners, soaps, and cosmetics emitting high fume levels. 

Breathing in high amounts of VOCs can cause cancer, which is why nail salon workers -- who are frequently inhaling chemicals like formaldehyde, benzene, xylene, toluene, and ethylbenzene -- are at an increased risk of developing the disease.

“The study provides some of the first hard evidence that these environments are dangerous for workers and that better policies need to be enacted to protect them,” said researcher Lupita Montoya.

In a sneak preview released Friday, Amazon revealed what will be on sale during its 48-hour Prime Day sales extravaganza. The e-commerce giant said it will be slashing prices on many of its own devices and in-house brands during the event, which is set to kick off Monday. 

An Amazon Echo will cost $49.99, which is half off its normal price of $99.99. Consumers who don’t want to wait until Monday to purchase an Echo will find that the device is already selling for $69.99 ahead of Prime Day.

A Fire TV Stick 4K will cost $25 starting Monday, and the Fire TV Cube will drop to $69.99 -- $50 less than its current price of $119.99. Amazon is also cutting the price of its Fire tablets. The Fire HD 10 will cost $99.99, which is $50 less than its current price of $149.99. 

Prime members will also be able to save on Amazon’s Fire and Kindle tablets. Fire tablets will start at $30, the new Kindle Paperwhite will be listed for up to $50 off, and the latest Kindle will go for $50 -- $30 less than its normal price of $80.

Big savings on electronics

In addition to reducing prices on its own gadgets, Amazon is rolling out deals on electronics from other companies. In a press release, Amazon said consumers can save on the following electronics during Prime Day: 

• Save up to 50% on Select Sony LED Smart TVs.

• Save big on Samsung QLED 65-inch TV. 

• Save up to 50% on select PC gaming laptops, desktops, monitors, components, and accessories. 

• Save $120 on Portal from Facebook with Alexa Built-in, just $79. 

• Save on select productivity monitors, accessories and networking products. 

• Save on select Chromebooks. 

• Save up to 50% on select PC streaming equipment. 

• Save $50 on the all-new ecobee Smart Thermostat with Alexa built-in, just $199. 

• Save 30% on connected home devices. 

• Save big on select SanDisk and WD storage and memory products. 

• Save 30% on select Phone Cases and Accessories. 

• Save up to 40% on headphones from top brands.

Amazon announced last week that Prime members who spend $10 at Whole Foods will get a $10 Amazon credit that can be used during Prime Day. Beginning Saturday, those with an Alexa-equipped device can ask “What are my deals” to find top deals and get early discounts on “select” deals.  

Amazon says prices on more than a million items will be reduced during its fifth annual Prime Day event.

Apple has allowed OurPact, one of the parental control apps pulled from its App Store earlier this year, back on its app marketplace. 

The New York Times reported in February that Apple pulled or limited the reach of 11 of the 17 most popular screen time monitoring and parental control apps from its App Store without warning developers. 

The apps that were kicked off relied on Mobile Device Management (MDM) technology to track and manage users’ screen time. They were also similar to Apple’s “ScreenTime” tool, which gives parents control over an iPhone’s usage. 

OurPact allowed back 

Affected developers accused the company of engaging in anticompetitive practices by clearing out rival screen time management apps, but Apple defended its move by saying privacy concerns were at the heart of the matter.  

“Contrary to what The New York Times reported over the weekend, this isn’t a matter of competition. It’s a matter of security,” Apple said in a statement.

“These apps were using an enterprise technology that provided them access to kids’ highly sensitive personal data,” an Apple spokeswoman told the Times. “We do not think it is O.K. for any apps to help data companies track or optimize advertising of kids.”

In response to Apple’s decision, OurPact published a statement in which it noted that MDM only allows it to collect “very limited but standard anonymized” data for crash reports. 

"They yanked us out of the blue with no warning," OurPact CEO Amir Moussavian told the Times in February. "They are systematically killing the industry."

Several months later, OurPact has been reinstated to Apple’s App Store and given approval to use MDM. The former is thanks to Apple’s recent introduction of less stringent App Store restrictions related to the use of MDM and Virtual Private Network tools. 

"We take this as a positive sign that Apple is working in cooperation with us,” an OurPact spokesperson said. “They realize device management solutions belong not only in the business world and in the classroom but in a family environment."

It remains to be seen whether other parental control apps that were pulled will be allowed to return to the App Store in the wake of Apple’s revision to its review guidelines. 

Ford and Volkswagen announced Friday that they will be expanding their collaboration on autonomous and electric vehicles. 

Under the deal, Volkswagen will invest $2.6 billion in Argo AI, a Pittsburgh-based startup specializing in autonomous vehicle development that Ford invested $1 billion in back in 2017. After Ford sells some of its Argo shares to VW, both automakers will be minority stakeholders in the firm. 

"Argo AI was set up to be agile — to be able to quickly iterate software and hardware," Argo CEO and Founder Bryan Salesky said in a statement. "That agility, bolstered by the scale and capability of Ford and Volkswagen, is a powerful combination."

The deal will also give Ford access to VW’s electric vehicle platform (dubbed its MEB platform), which will help it achieve its goal of developing “at least one high-volume fully electric vehicle” for Europe in 2023. 

Staying competitive

While the automakers will remain separate entities under the deal, the partnership will set the stage for a crucial pooling of resources and innovative capabilities. 

"While Ford and Volkswagen remain independent and fiercely competitive in the marketplace, teaming up and working with Argo AI on this important technology allows us to deliver unmatched capability, scale and geographic reach," Ford CEO Jim Hackett said in a statement. "Unlocking the synergies across a range of areas allows us to showcase the power of our global alliance in this era of smart vehicles for a smart world."

The joint venture comes as key players in the auto industry consider ways to expedite the development of autonomous and electric vehicles. Alphabet’s Waymo and General Motor’s Cruise Unit are currently a step ahead of VW and Ford in terms of self-driving car development. 

At the Detroit auto show in January, Ford CEO Jim Hackett and VW CEO Herbert Diess said teaming up will allow the automakers to remain competitive in the race to develop and launch self-driving and electric vehicle technology. 

Ford and Volkswagen initially started working together seven months ago. At the time, the companies said they would start building pickup trucks and commercial vans together and would be “exploring potential collaboration on EVs, autonomous vehicles and mobility services.” 

The recent rise in gasoline prices, sparked in part by an explosion and fire that shut down a Pennsylvania oil refinery last month, appears to have paused, at least for now.

The AAA Fuel Gauge Survey shows the national average price of regular gas is $2.77 a gallon, up two cents from a week ago. It’s still 11 cents a gallon cheaper than one year ago.

The average price of premium gas is $3.32 a gallon, also the same as last week. The price of diesel fuel is also holding steady at last week’s price of $3 a gallon.

The respite from rising fuel prices may not last. The Energy Information Administration (EIA) reports that demand is increasing while supplies are shrinking. Last week, total domestic stocks fell by 1.4 million barrels to 229.2 million barrels, below the supply level at this time last year.

“If stocks continue to decrease as demand remains robust, pump prices will likely remain higher,” AAA said in its latest market update. 

Another factor that could affect the short term price of gasoline is a sharp rise in crude oil prices. Oil futures hit a seven-week high of over $60 a barrel Thursday as a tropical storm threatened rigs in the Gulf of Mexico. At the same time, tensions between Iran and Britain put upward pressure on Brent crude prices.

While gasoline prices have remained mostly stable over the last seven days, the average price in California, the most expensive state, has declined two cents a gallon. The average price in Mississippi, the cheapest state, is a penny higher than last Friday.

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 ($3.75)

• Hawaii ($3.65)

• Washington ($3.34)

• Nevada ($3.29)

• Alaska ($3.22)

• Oregon ($3.20)

• Illinois ($3.05)

• Idaho ($2.95)

• Utah ($2.91)

• Pennsylvania ($2.90)

The states with the cheapest regular gas

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

• Mississippi ($2.36)

• Alabama ($2.39)

• Louisiana ($2.39)

• Arkansas ($2.39)

• South Carolina ($2.42)

• Oklahoma ($2.45)

• Missouri ($2.46)

• Tennessee ($2.47)

• Texas ($2.47)

• Virginia ($2.47)

Custom Molded Products of Newnan, Ga., is recalling about 16,000 diverter valve caps sold with Master Spas (an Authorized Partner) hot tubs and swim spas.

The valve cap can become loose, pop off and strike a bystander, posing an impact hazard.

The firm has received 112 reports of the valve caps popping off including four reports of consumers being struck by the cap. No injuries have been reported.

This recall involves 2-inch diverter valve caps sold with certain Master Spas (an Authorized Partner) “Twilight Series,” “H2X Swim Spa,” and “MP Signature Deep Swim Spa” hot tubs/swim spas.

The model names are printed on the control panel covers.

The clear valve caps are included as a component part and are located under the diverter handle on the upper deck of the hot tub/spa above the water line.

The valve caps, manufactured in China, were sold at Master Spas (an Authorized Partner) hot tub/spa distributors from December 2017, through May 2019, for between about $5000 and $45,000 and about $2 for the valve caps.

What to do

Consumers should immediately stop using the hot tubs and swim spas with the recalled valve cap and contact Custom Molded Products to arrange for a free replacement cap from their hot tub/swim spa manufacturer.

Consumers may contact Custom Molded Products at (800) 733-9060 from 8 a.m. to 5 p.m. (ET) daily or online at www.c-m-p.com and click on “Valve Cap Recall” at the bottom of the page for more information.

Master Spas (an Authorized Partner) customers may enter their spa serial number on the Master Spas (an Authorized Partner) website at http://wsr.masterspasportal.com/divreplacement.asp to determine if their spa is covered by the recall and order replacement parts.