Current Events in September 2019

Nissan North America is recalling 1,228,830 model year 2018-2019 Nissan Altimas, Frontiers, Kicks, Leafs, Maximas, Muranos, NVs, NV200s, Pathfinders, Rogues, Rogue Sports, Sentras, Titans, Versa Notes, Versa Sedans, Infiniti Q50s, Q60s, QX30s and QX80s.

Also being recalled are model year 2019 Nissan GT-Rs& Taxis and Infiniti QX50s, QX60s, Q70s and Q70Ls.

The back-up camera and display settings can be adjusted such that the rear view image is no longer visible and the system will retain that setting the next time the vehicle is placed in reverse.

The lack of an image in the back-up camera display increases the risk of a crash.

What to do

Nissan will notify owners in phases, and have dealers update the back-up camera settings software free of charge.

The recall is expected to begin October 21, 2019, and all affected VINs should be activated by November 11, 2019.

Owners may contact Nissan customer service at (800) 867-7669 or Infiniti customer service at (800)662-6200.

Boeing announced that it will compensate the families of the 346 victims of two fatal 737 MAX crashes, paying out approximately $144,500 each. That amount comes from a financial assistance fund of $50 million the company set up in July.

As reported by Reuters, Boeing’s CEO Dennis Muilenburg called the endeavor “an important step in our efforts to help affected families.”

“The recent 737 MAX tragedies weigh heavily on all of us at Boeing, and we continue to extend our deepest sympathies to the families and loved ones of all those on board,” the executive said.

In addition to the $50 million in immediate assistance to the victims’ families, Boeing is also setting up a separate $50 million endowment to be used toward education and economic empowerment for communities and families impacted by the crashes.

Recommitment to safety

Boeing’s return to normalcy is far from complete. The Federal Aviation Administration (FAA) says there’s still work the aircraft manufacturer needs to do regarding the software that was apparently at the heart of the crashes.

Nonetheless, Boeing publicly reaffirmed its “longstanding commitment to aerospace safety and the safety of its products and services” on Wednesday. In a news release, Muilenburg introduced the creation of a permanent Aerospace Safety Committee as part of Boeing’s Board of Directors. The committee will be tasked with guaranteeing design safety, as well as monitoring other production processes.

Adding to the company’s recommitment to safety, the board also established other measures to minimize the possibility of future mishaps. These include:

• A change in Boeing’s governance principles that will require safety-related experience as one of the factors it will utilize in choosing future board members. Until this change, the company’s governing principles had no references to safety at all.

• The creation of a Product and Services Safety organization that will oversee all aspects of product safety, “including investigating cases of undue pressure and anonymous product and service safety concerns raised by employees.”

• Amplifying the role and extending the reach of the Safety Promotion Center to include all of the company’s employees, offices, and factories in an effort to “reinforce Boeing's … safety culture and remind employees and the flying public of the company's unyielding commitment to safety, quality and integrity.”

“The safety of the global aviation industry is rooted in its dedication to continuous improvement and learning," said Adm. Edmund Giambastiani, Jr., former chairman of the Committee of Airplane Policies and Processes and newly appointed chairman of the Aerospace Safety Committee. "The independent committee review was extensive, rigorous and focused on delivering specific recommendations to ensure the highest levels of safety in Boeing airplanes and aerospace products and services and for all who fly on Boeing airplanes.” 

"The committee and the board believe these recommendations, along with actions already taken by the board, will strengthen engineering at the company, bolster the safety policies and procedures for the design, development and production of Boeing products and services, and further improve board and management oversight and accountability for safety not only at Boeing, but throughout the global aerospace industry.”

Amid escalating concern over the health risks of e-cigarettes, Juul has announced that it will suspend all TV, print, and digital product advertising in the U.S. 

The e-cigarette maker also said it would stop fighting the Trump administration on its plan to remove flavored e-cigarettes from the market until they have received approval from federal regulators. Juul said it would fully support and comply with any new federal policy related to vaping policy when effective. 

The Trump Administration is currently finalizing a ban on all flavored e-cigarette products, including mint and menthol flavors. 

Juul CEO resigns

Wednesday’s announcement also included news that Juul’s CEO Kevin Burns is stepping down immediately and will be replaced by K. C. Crosthwaite. Crosthwaite previously held the title of Chief Growth Officer at tobacco giant Altria, which owns a 35 percent stake in Juul. 

“I have long believed in a future where adult smokers overwhelmingly choose alternative products like JUUL,” Crosthwaite said in the announcement. “That has been this company’s mission since it was founded, and it has taken great strides in that direction.” 

“Unfortunately, today that future is at risk due to unacceptable levels of youth usage and eroding public confidence in our industry,” he continued. “Against that backdrop, we must strive to work with regulators, policymakers and other stakeholders, and earn the trust of the societies in which we operate. That includes inviting an open dialogue, listening to others and being responsive to their concerns.”

Talks of a merger of Philip Morris and Altria have been called off. Both companies said Wednesday that they will remain separate entities. 

Health concerns under investigation

Last week, health officials said the number of illnesses associated with vaping has now climbed to 530. Since August, at least nine people in the U.S. have died following e-cigarette use. The CDC has not identified any one company or vaping product as responsible for all of the illnesses and fatalities.

Juul has been singled out for its role in the youth e-cigarette epidemic, as its flavored products have been shown to be particularly appealing to teens. Juul currently faces numerous lawsuits accusing it of deliberately targeting young consumers with its flavored nicotine products.

The FDA is considering banning all flavored e-cigarettes in an effort to curb use by teens while the health effects of the products are still being investigated.

The Federal Trade Commission (FTC) has filed a lawsuit against the Match Group, which owns the dating sites Match.com, Tinder, OkCupid, and PlentyOfFish. 

The agency claims the company created phony ads expressing romantic interest on Match.com as a way to push consumers to purchase paid subscriptions on the site. It also charges Match of unfairly exposing consumers to the risk of fraud and engaging in other allegedly deceptive and unfair practices.

“We believe that Match.com conned people into paying for subscriptions via messages the company knew were from scammers,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “Online dating services obviously shouldn’t be using romance scammers as a way to fatten their bottom line.”

Not good for business

Match Group called the FTC’s charges “outrageous” and said it plans to vigorously defend against them in court. It also suggests the FTC filed the suit only after the Justice Department declined to take action.

“Fraud isn't good for business. That's why we fight it,” the company said in a statement. We catch and neutralize 85 percent of potentially improper accounts in the first four hours, typically before they are even active on the site, and 96 percent of improper accounts within a day.”

Consumers can create profiles on Match.com without subscribing, but a paid subscription is required if you want to respond to a message from someone who has viewed your profile. The FTC claims Match emailed non-subscribers to say someone had expressed interest in contacting them.

The government’s complaint contends that “millions” of these contacts came from accounts that had already been identified as fraudulent, such as from criminals who were running romance scams. At the same time, the FTC charges that Match blocked these kinds of suspect communications when they were directed at paid subscribers.

Allegations

The suit accuses Match of violating federal consumer protection laws, including the FTC act. It asks for monetary damages without specifying an amount.

According to Match, the FTC offered to resolve the complaint last November if it agreed to change its business practices and pay a $60 million settlement.

“Discussions between Match Group and the FTC ensued but no resolution was reached,” the company said.

As part of CEO Dara Khosrowshahi’s mission to put safety “at the core of everything we do,” Uber has announced that it’s giving riders the ability to text 911 from within the app. 

The ride-hailing giant said Thursday that it will soon launch a feature that lets riders send a text message to 911 with information such as the car’s license plate, their exact location, and where they’re going already filled in. 

“We know that in an emergency, every second counts,” Uber Senior Director of Product Management Sachin Kansal said at an Uber event in San Francisco. “The combination of being able to text 911 through the app and being able to send the exact location through the Uber app is an absolute game changer, and law enforcement professionals tell us that this can potentially save lives.”

Additional security features

The addition of the feature comes more than a year after Uber added the ability to call 911 through its app under a partnership with RapidSOS. The new 911 text feature will deploy next month to users in Los Angeles. Uber said it’s aiming for a wider U.S. rollout following the initial launch.

Uber also announced on Thursday that its app will soon include an optional security feature that sends passengers a four-digit code which should match the driver’s. The feature will help riders confirm that they are getting into the vehicle that was sent for them. 

“The driver will only be able to start your trip in the app once the correct PIN has been entered,” Uber said in an announcement. “We’re also developing new technology that uses ultrasound waves to automatically verify you’re in the right car, no PIN needed.” 

Two weeks after unveiling three new iPhone models, Apple is advising iPhone 11 users not to go to third-party technicians for display repairs. 

The company said iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max users need to ensure their device gets fixed using genuine parts. Failure to go to a service provider or technician that hasn’t been vetted by Apple could result in incorrect color calibration, multi-touch issues, ambient light sensor problems, or other issues. 

“Additionally, repairs that don't properly replace screws or cowlings might leave behind loose parts that could damage the battery, cause overheating, or result in injury,” Apple said in a statement on its website.

Apple said iPhone 11 users who replace their screens with an aftermarket component will see a message that reads, "Unable to verify this iPhone has a genuine Apple display." The message will remain on the lock screen for four days. After that, it can be found under the “About” section in “Settings.” The warning will not affect the ability to use the iPhone or its display.

“If you need to replace your iPhone display, it's important for certified technicians who use genuine Apple display parts to repair it,” the company said. “Only technicians who have completed Apple service training and who use Apple genuine parts and tools should replace iPhone displays.” 

While it’s no secret that air pollution has an enormous effect on consumers’ physical health, a new study conducted by researchers at Cincinnati Children’s Hospital Medical Center found that the toxins could also have an effect on children’s mental health. 

The study revealed that regular exposure to air pollution increased children’s risk of developing mental health issues. 

“The study is the first to show the association between daily outdoor air pollution levels and increased symptoms of psychiatric disorders, like anxiety and suicidality, in children,” said researcher Cole Brokamp, PhD. “More research is needed to confirm these findings, but it could lead to new prevention strategies for children experiencing symptoms related to a psychiatric disorder. 

How air pollution plays a role

The researchers evaluated data from the psychiatry unit at Cincinnati Children’s Hospital Medical Center to determine how air pollution played a role in children’s mental health. 

Studying psychiatric emergency room data from 2011 through 2015, the researchers were able to track fine particulate matter (PM2.5), humidity, and temperature to understand how shifts in any of these variables affected the likelihood that children would seek treatment for mental health issues. 

Overall, children were more likely to be in the psychiatric emergency department during periods of particularly high air pollution, whereas these instances weren’t as common when PM2.5 levels were lower. 

The researchers also learned that children in lower-income areas were affected more than children from wealthier neighborhoods, emphasizing the need for proper care and treatment options for children -- particularly those who may not have the resources to seek out that kind of care. 

“The fact that children living in high poverty neighborhoods experienced greater health effects of air pollution could mean that pollutant and neighborhood stressors can have synergistic effects on psychiatric symptoms and frequency,” Dr. Brokamp said. 

The findings from this study are consistent with two other recent studies that were conducted by researchers at Cincinnati Children’s Hospital, both of which found that traffic related air pollution (TRAP) was linked with higher incidences of anxiety and depression in children, further highlighting how pervasive this issue is. 

“Collectively, these studies contribute to the growing body of evidence that exposure to air pollution during early life and childhood may contribute to depression, anxiety, and other mental health problems in adolescence,” said researcher Patrick Ryan, PhD. “More research is needed to replicate these findings and uncover underlying mechanisms for these associations.” 

Ford has expanded the list of U.S. cities where it will deploy its self-driving cars to include Austin, Texas. Austin joins Washington, DC, and Miami as places where Ford’s autonomous vehicles will roam the streets.

Ford previously announced that it would use a fleet of autonomous vehicles to provide commercial transportation services. That service is still set to launch in 2021. The service will compete with Uber and Lyft but will also move cargo using driverless vehicles.

A year ago, Ford announced it would begin testing its driverless cars on public streets in the nation’s capital. At the time, Ford sold that partnership with the DC government as a way to create jobs, along with an additional way to move people around in a city where traffic congestion seems to get worse by the week.

Ford’s self-driving cars are built around Fusion Hybrid sedans and are being jointly developed with Argo AI, a company in which it and Volkswagen hold majority interest. Ford's cargo transportation service will use specially-built utility vehicles.

Ford said adding Austin to its list of cities was a logical choice since it is growing quickly, presenting the company with needed challenges to overcome.

Ideal test market

“In each of the last eight years, Austin has been the fastest-growing metro region in America, according to the U.S. Census Bureau,” Ford said in its announcement. “That growth has been felt by residents, as it provides new jobs as well as a diverse food and entertainment scene, but it has also affected how Austinites travel throughout the city.”

Ford says the Capital Area Metropolitan Planning Organization predicts vehicle use in the Austin region could double by 2040, while highway capacity will only grow 15 percent.

As a first step, a Ford team will begin manually driving the Fusion test vehicles throughout Austin to map city streets and build a database of driver and pedestrian behaviors. The company says it sees no obstacle to launching the service as planned in 2021.

Waymo, owned by Google’s parent company Alphabet, has already launched a self-driving ride service, but with human attendants, in Phoenix.

After dipping earlier in the year, home prices are moving higher again -- and that may be prompting some potential buyers to get off the sidelines.

The monthly S&P Dow Jones Indices for July show home prices rose 3.2 percent on a year-over-year basis. Phoenix, Las Vegas, and Charlotte showed the biggest gains in the 20-City Composite Index.

In July, the median home in Phoenix increased in value by 5.8 percent year-over-year, followed by Las Vegas with a 4.7 percent increase. Charlotte was close behind with a 4.6 percent increase in the median home price.

"Year-over-year home prices continued to gain, but at ever more modest rates," said Philip Murphy, managing director and global head of Index Governance at S&P Dow Jones Indices. "Charlotte surpassed Tampa to join the top three cities, and Seattle may be turning around from its recent negative streak of YOY price changes, improving from -1.3 percent in June to -0.06 percent in July.

Still affordable

Despite the uptick in home values, affordability may be slightly improved because mortgage interest rates have trended lower recently. Mortgage News Daily reported this week that the most prevalent rate for a 30-year fixed-rate mortgage this week is 3.75 percent.

The Mortgage Bankers Association reports that applications for new home purchases surged 33 percent in August

Rising prices and still-low mortgage rates may be sending more buyers into the market, according to a new survey from the National Association of Realtors (NAR). The group reports that more than half of the consumers it surveyed said now is a good time to buy a home.

“Mortgage rates are at historically low levels, so I see no sign of the optimism about home buying fading,” said NAR’s chief economist Lawrence Yun. “However, the fact that slightly fewer are expressing strong intensity compared to recent prior quarters is implying some would-be buyers have concerns about the direction of the economy.”

Broken down demographically older consumers -- those born between 1925 and 1945 -- were most likely to believe it’s a good time to buy. Boomers were almost as bullish on the housing market.

Sales have slowed in recent months, and a major reason, housing economists say, is current homeowners have been reluctant to move and therefore have hesitated to put their homes on the market.

TDBBS is recalling two pig ear pet treat products that may be contaminated with Salmonella.

No illnesses have been reported.

The following products, sold through Amazon.com and shipped to customers between April 22, 2019, and August 13, 2019, are being recalled:  

All UPCs, Best By Dates and Lot Codes are located on the package back.

What to do

Customers who purchased the recalled products should dispose of them.

Consumers with questions may contact customer service at (877) 483-5853, Monday through Friday 9 – 5pm or by email at customerservice@tdbbsllc.com.

Chrysler (FCA US LLC) is recalling 26 Mopar replacement passenger airbag modules, part number 68335088AA.

The airbag modules did not complete developmental testing.

A passenger airbag module that has not completed developmental testing may not perform as designed when deployed in a vehicle crash, increasing the risk of an injury.

What to do

Chrysler will notify owners, and dealers will replace the suspect passenger airbag modules with passenger airbag modules that have completed validation testing free of charge.

The recall is expected to begin November 1, 2019.

Owners may contact Chrysler customer service at (800) 853-1403.Chrysler's number for this recall is VA4.

General Motors is recalling 93,693 model year 2015-2018 Chevrolet Trax vehicles.

A joint in one or both of the front lower-control arms may have been improperly welded, resulting in the partial separation of the lower-control arm from the vehicle.

This could cause the attached front wheel to toe outward, affecting the vehicle's handling and steering and increasing the risk of crash.

What to do

GM will notify owners, and dealers will inspect the left and right front lower-control arms, replacing them as necessary free of charge.

The manufacturer has not yet provided a notification schedule.

Owners may contact Chevrolet customer service at (800) 222-1020. GM's number for this recall is A192261870.

At an emergency hearing regarding the recent surge in vaping-related lung illnesses, a CDC official said that Juul -- the manufacturer of an e-cigarette product that is especially popular among teens -- uses potentially dangerous salts in its vaping devices. 

“Juul products use nicotine salts, which can lead to much more available nicotine,” CDC Principal Deputy Director Dr. Anne Schuchat told the House Oversight and Reform Committee’s panel on consumer products on Tuesday.

She added that doctors believe the salts allow nicotine to “cross the blood brain barrier and lead to potentially more effect on the developing brain in adolescents.” 

High nicotine delivery

Last week, health officials said the number of illnesses associated with vaping has now climbed to 530. Since August, at least nine people in the U.S. have died following e-cigarette use. 

Amid escalating concern over the health impacts of the products, Juul has maintained that its sole mission is to serve as an “off-ramp” from smoking combustible cigarettes. 

Juul claims its nicotine salt formulation increases the rate and amount of nicotine delivered into the blood compared with other formulations. The formulation is intended to give users an experience similar to traditional cigarettes, which may help them quit. 

However, Schuchat said the nicotine salts could lead to higher quantities of nicotine being delivered. When used by teens, Juul’s devices could give way to a unique set of problems.

“The devices are very easy to conceal, between the high levels of nicotine and discreet use, we think that the use among teens is particularly concerning,” Schuchat said. She added that flavored e-cigarettes have been shown to appeal to youth users, which health officials and lawmakers have expressed concern about. 

“We really want to avoid another generation being addicted to nicotine so addressing flavors directly is a good idea,” she said. 

Avoiding e-cigarette use recommended

Schuchat echoed the CDC’s recent recommendation that consumers “consider not using e-cigarette products” while the investigation into the illnesses is ongoing. 

“We do not yet know the specific cause of these lung injuries,” the CDC said in a recent advisory. “The investigation has not identified any specific e-cigarette or vaping product (devices, liquids, refill pods, and/or cartridges) or substance that is linked to all cases.” 

Separately, the FDA is conducting an analysis of more than 150 vaping product samples in an effort to find a common thread behind the illnesses. 

“We are in desperate need of facts," Mitch Zeller, the agency’s tobacco director said in a statement. Zeller said the focus of the investigation is to “identify what is making people sick, as well as a focus on the supply chain.”

On Tuesday, the Department of Labor finalized a rule that will make roughly 1.3 million more American workers eligible for overtime pay. 

Starting January 1, the minimum salary threshold will be raised to $35,568 per year. Previously, only workers who earned less than $23,000 a year could receive overtime pay under federal law. 

"This rule brings a commonsense approach that offers consistency and certainty for employers as well as clarity and prosperity for American workers,” acting U.S. Secretary of Labor Patrick Pizzella said in a statement. 

However, an earlier rule proposed by the Obama administration would have made 2.8 million other workers eligible to receive overtime pay. 

Critics say the rules don’t go far enough

Critics of the Labor Department’s new rule take issue with the fact that fewer workers will be eligible for overtime than they would have under an Obama-era rule, which proposed raising the threshold to more than $47,000. 

That rule would have made close to 3 million more workers eligible for either more pay or a shorter workweek, but it was challenged by states and business groups and ultimately never implemented 

"It's a missed opportunity in the sense that millions more could have been helped," Heidi Shierholz, a former Labor Department chief economist under Obama, told NPR. 

The Labor Department says the modified overtime rule will transfer about $400 million per year from U.S. employers to their workers over the next decade.

"Today's rule is a thoughtful product informed by public comment, listening sessions, and long-standing calculations," the Labor Department's wage and hour division administrator Cheryl Stanton said in a statement.

The Federal Trade Commission (FTC) was in full force on Capitol Hill on Tuesday. 

In one hearing, the Commission testified before the U.S. Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights about how U.S. antitrust laws apply to acquisitions of emerging competitors by digital platforms. 

While that hearing was going on, the agency was also addressing its efforts to protect consumers and adapt to marketplace shifts before the House Appropriations Subcommittee on Financial Services and General Government.

As its investigation into Big Tech continues to swirl, Congress seems to be picking up the pace of getting the answers it’s looking for. It was only a week ago that Congress decided to press Department of Justice and FTC officials about their handling of Big Tech, wanting those regulators to get to consumer protection issues earlier than it has in the past.

Disruption from technology

Appearing before the Antitrust, Competition Policy and Consumer Rights subcommittee, the centerpiece of FTC Bureau of Competition Director Bruce Hoffman’s testimony was how many sectors of the economy have experienced significant turmoil as technology burrowed its way into various aspects of consumers’ lives.

“Many sectors of the economy have experienced significant disruption -- disruption brought about by the widespread use of technology to support new and evolving business models,” Hoffman said.

“Consumers have come to expect that ‘there’s an app for that,’ and many technology-enabled businesses, particularly digital platforms, have thrived in the new digital economy. Digital platforms have played a large role in this change,” the regulator continued. “But change of this magnitude makes it all the more critical for the Commission to pay close attention to this space and vigorously enforce the antitrust laws. Otherwise, our country will fail to reap the full panoply of benefits that could be made possible by digital platforms and other technological innovations.”

But will the FTC put pro-consumer action where its mouth is? On the surface, it appears so. In his testimony, Hoffman did everything he could to champion the consumer’s cause.

“As demonstrated by FTC actions in technology and other dynamic markets, current law provides the Commission with several potential avenues to counter anticompetitive conduct by large technology firms to thwart nascent and potential threats by acquisition or other means,” Hoffman said in his closing statement.

“Given the importance of these markets to consumers and to the economy, the Commission is committed to vigorous enforcement of the antitrust laws to promote current and future competition in critical technology markets.”

Protecting consumers through competition

In separate testimony before the House Appropriations Subcommittee on Financial Services and General Government, the FTC repledged its commitment to protecting consumer interests while promoting healthy competition through “vigorous” enforcement, education, and policy adjustments. 

Speaking on behalf of the Commission were Chairman Joseph Simons and Commissioner Rohit Chopra. The pair flashed their pro-consumer badges at the get-go and didn’t let up -- referring to consumers 142 times.

“The FTC is the only federal agency with a broad mission to both protect consumers and maintain competition in most sectors of the economy,” Simon said.

“Its jurisdiction includes privacy and data security, consumer fraud, mergers and acquisitions, and anti-competitive tactics by pharmaceutical and other companies. We enforce the law across a range of sectors, including health care, high technology, and emerging industries. The FTC has a long history of bipartisanship and cooperation, and we work hard to maintain it.”

What does “working hard to maintain it” mean? In Simon’s view, it looks like this:

• Over $789 million returned to consumers through the third quarter of 2019.

• More than $459 million in restitution distributed to consumers.

• More than $317 million paid by FTC defendants through self-administered consumer refund programs.

• The agency saving consumers an average of $38.90 for every $1 of resources devoted to its consumer protection program; $50.16 for every $1 of resources devoted to the merger enforcement program; and $40.12 for every $1 of resources devoted to the non-merger antitrust enforcement program.

• A record-breaking $5 billion civil penalty against Facebook -- a judgment many thought let Facebook off too easily -- and a $170 million penalty against Google and YouTube over purported violations of children’s privacy law.

• The FTC’s fight against robocalls that’s led to 147 enforcement actions against 490 corporations and 393 individuals to date.

• Giving the agency’s IdentityTheft website a much needed update to “make sure consumers are aware of their new rights”.

• A free credit monitoring given to active military.

Simon did raise one important point of caution when it came to consumers. He noted that the U.S. SAFE WEB Act -- an act that allows the FTC to work with other countries on privacy and data security issues involving spam, spyware, misleading health and safety claims, privacy violations, data security breaches, and telemarketing fraud -- will “sunset” in 2020. Simon appealed to the subcommittee to reauthorize the commission’s authority and eliminate the sunset provision so that it can continue to protect consumers.

The Federal Communications Commission (FCC) announced on Tuesday that it has opened an investigation into Sprint after finding that it improperly collected millions of dollars in federal subsidies. 

The funds were taken in through the FCC’s Lifeline program, which helps low-income consumers with a $9.25 monthly subsidy on phone and broadband services. Sprint argues that the money in question was collected due to confusion about a rule change that occurred in 2016. 

FCC Chairman Ajit Pai called it “outrageous” that the funds were taken from roughly 885,000 consumers who weren’t active subscribers of Sprint’s service. The FCC said Sprint disregarded its “non-usage rule,” which requires Lifeline providers to de-enroll subscribers who don’t use their phones. 

“Lifeline is an important component of our efforts to bring digital opportunity to low-income Americans, and stopping waste, fraud, and abuse in the program has been a top priority of mine since I’ve been at the Commission,” Pai said in a statement. 

“It’s outrageous that a company would claim millions of taxpayer dollars for doing nothing. This shows a careless disregard for program rules and American taxpayers,” he said. “I have asked our Enforcement Bureau to investigate this matter to determine the full extent of the problem and to propose an appropriate remedy.” 

Collected in “error”

In statements to the media, Sprint claimed the subsidy payments were collected in error after a rule change regarding how usage and eligibility for Lifeline subscribers must be calculated went into effect.

“While immaterial to Sprint’s financial results, we are committed to reimbursing federal and state governments for any subsidy payments that were collected as a result of the error,” a company spokesperson said. 

Sprint noted that it immediately reported the error to the FCC and state regulators. 

“When the error was discovered, we immediately investigated and proactively raised this issue with the FCC and appropriate state regulators. We also engaged an independent third party to review the results of our review and the effectiveness of our operational changes,” the spokesperson added. 

Possible impact on merger with T-Mobile

The FCC had previously expressed its support of Sprint’s plan to merge with T-Mobile, but FCC Commissioner Geoffrey Starks said Sprint’s mistake “directly impacts” the agency’s views on the matter. 

In a statement, Starks said the alleged misconduct “amounts to corporate malfeasance” if found to be true. 

“There is no credible way that the merger before us can proceed until this Lifeline investigation is resolved and responsible parties are held accountable,” he said. “Without the benefit of the findings of this investigation into what appears to be the worst case of Lifeline violations in FCC history, it is impossible for us to trust in the integrity and completeness of the record, evaluate the character and fitness of the applicants, and exercise our statutorily defined obligation to grant only license transfers that serve the public interest.” 

Marshalls, the popular apparel retailer with over 1,100 brick and mortar locations, has apparently decided the internet is here to stay. It’s launched its first e-commerce site, Marshalls.com.

By moving online, the company said it is now offering a wider selection of merchandise, including “high-quality pieces.” 

"We are thrilled to introduce Marshalls.com, which allows customers to shop Marshalls anytime," said Mark DeOliveira, executive vice president, TJX Digital US. "This site will feature a unique assortment of the brands and values that Marshalls is known for, and also offer customers the ability to shop through fun, interactive features and curations. We are excited for customers to experience the brand in this new way."

Marshalls has carved a fairly secure niche for itself in the retail marketplace, offering bargain prices on a wide range of apparel and beauty products. Its stores are fixtures in high-traffic shopping centers and boast a loyal customer base.

The retailer says shoppers who migrate from the brick and mortar locations to the website will enjoy easy returns since any item ordered online can be returned through the mail or at an existing store.

Mobile features

The company says the shopping portal is designed for mobile shopping and includes a “swipe to shop” feature that allows consumers to quickly view and sort products by swiping left or right to favorite items and buy or save for later.

The Influencer + Shopper Finds feature will link shippers to categories and similar products.

While both Marshalls and T.J. Maxx have long been popular with mature shoppers, the stores have recently become cult favorites of some millennials, which may explain the decision to move online. Industry publication Footwear News recently reported that both brands have gained enthusiastic followers among younger consumers.

A senior executive told the publication that the majority of new customers coming to the stores during the second quarter of 2018 were between the ages of 18 and 34, and that trend is expected to continue.

Cybersecurity continues to be at the forefront of consumers’ minds, especially when their personal information is involved. Now, a new study conducted by researchers from Michigan State revealed what it is that hackers are looking for when they steal data from hospitals. 

The study found that hackers gain access to personal information like email addresses and social security numbers, payment information, and medical treatments or diagnoses. 

“The major story we heard from victims was how compromised, sensitive information caused financial or reputation loss,” said researcher John (Xuefeng) Jiang. “A criminal might file a fraudulent tax return or apply for a credit card using the social security number and birth dates leaked from a hospital data breach.” 

What hackers are looking for

The researchers analyzed nearly 1,500 data breaches that spanned a decade and that ultimately affected 169 million people. The goal was to get a better understanding of what it is hackers are looking for when pulling off data breaches in a hospital setting. 

“Without understanding what the enemy wants, we cannot win the battle,” said researcher Ge Bai. “By knowing the specific information hackers are after, we can ramp up efforts to protect patient information.” 

The largest majority of information was what the researchers termed demographic information, such as age, sex, and location. Combined with financial data, that information comprised 70 percent of all data that was compromised in the analyzed breaches. In these instances, hackers obtained anything that could personally identify someone, including a driver’s license number, social security number, or birth date, as well as what credit card or bank account a patient used to pay. 

Hackers also stole medical information on roughly two million patient records, which could include sensitive information like cancer treatments, STD diagnoses, or information related to mental health treatments. 

The researchers encourage both large- and small-scale efforts to help ensure that consumers’ personal data stays personal, as there are resources available that can keep information secure. 

Healthcare providers could be to blame

Late last year, Jiang and Bai conducted a study that revealed the majority of data breaches aren’t due to hackers, but rather because of healthcare providers. 

While just 12 percent of all medical-related data breaches between 2009 and 2017 were at the hands of a hacker, 50 percent in that same timeframe came from medical personnel -- hospitals, doctors’ offices, pharmacies, or insurance companies. 

“There’s no perfect way to store information, but more than half of the cases we reviewed were not triggered by external factors -- but rather by internal negligence,” said Jiang.