Current Events in September 2019

If you use Venmo to make payments to friends and family members, there are scams you need to be aware of that attempt to exploit the platform and law enforcement officials recently reported a new one.

Scammers have been sending text messages to Venmo users, mimicking the app’s appearance, telling them their accounts will soon be charged. If they don’t recognize the payment, they are told, they should log into their accounts to dispute it.

The text reportedly allows users to easily access their accounts but asks for personal information to identify the user. If that information is provided it is stolen and then sold on the dark web.

Law enforcement officials warn Venmo users not to use any information provided in a text to enter their account. Instead, they are advised to use either the Venmo app or the webpage.

A year ago, Venmo parent company PayPal reached a settlement with the Federal Trade Commission (FTC) after the agency charged it with failing to protect users’ privacy and misleading them about the money in their accounts.

The FTC claimed that Venmo did not adequately explain how money is transferred from a Venmo account to a bank account and did not employ proper security safeguards. The agency said it has been too easy for scammers to take advantage of these features and take users’ money.

Scammers target apps that move money

Scammers often target apps used to move money, and Venmo has been no exception. In one scam, the FTC says a seller might send off a purchased item after being informed that funds had been transferred to their Venmo account.

But in some cases, the agency says the scammer, posing as a buyer, could ask Venmo to reverse the charge and obtain the item without having to pay for it.

The FTC says there are ways to protect yourself. When using an online platform to buy or sell, check to see what kind of insurance policy it offers. Some platforms have excellent coverage, waiving charges if there is a problem.

Authorities say consumers using an online platform to buy or sell should exercise caution, especially when dealing with a stranger. If something doesn’t seem quite right, they say, don’t go through with the transaction.

Walmart has teamed with Capital One to launch a co-branded credit card and a store charge card just for Walmart purchases. Both cards will be available September 24. Customers may apply for the card at Walmart.com, by using the Walmart app, or at CapitalOne.com.  

If new cardholders sign up for Walmart Pay or already have an account, they can add their card to the Walmart app to use for in-store purchases and on Walmart.com so they won’t have to wait to receive the actual card. 

The credit card provides unlimited 5 percent cash back on purchases at Walmart.com, inclusive of grocery pickup and delivery. It provides 5 percent back on in-store purchases when using Walmart Pay for the first 12 months after approval as a special introductory offer. 

The card also provides 2 percent back on Walmart store purchases after the introductory offer, as well as 2 percent on restaurant and travel expenses. It pays 1 percent back on all other purchases and carries no annual fee and no foreign transaction fee. Rewards can be redeemed at any time for travel, gift cards, and for purchases on Walmart.com.

"Walmart's mission has always been to help customers save money so that they can live better, and our new credit card program—which both helps customers earn more when paying for things in and outside of Walmart, and offers many other incredible benefits—is squarely aligned with that mission," said Daniel Eckert, senior vice president, Walmart services and digital acceleration.

Growing competition among rewards cards

The introduction of the credit card marks yet another escalation in the growing competition to sign up credit card customers. In August, J.D. Power and Associates reported that the competition is almost overwhelming for consumers, who have to constantly scan the marketplace for the best value.

"The average credit card customer today has roughly 16 different benefits available, yet only about one-third of customers say they completely understand all of the benefits available to them," said John Cabell, director, Wealth and Lending Intelligence at J.D. Power. 

As credit card companies have ramped up the rewards to win over customers, consumers have reported increased customer satisfaction, enjoying cash back on purchases and increased rewards for travel. But J.D. Power reports that consumers are now having a hard time processing it all.

The report concluded that credit card issuers need to do a better job of helping consumers understand the benefits that the cards provide. 

Daniel Mouadeb, senior vice president and head of Walmart partnership at Capital One, said the bank is harnessing technology to help the card’s users to get the most out of the rewards it offers. He says the card offers simple, intuitive digital tools that help people get more from their money.

The Insurance Institute for Highway Safety (IIHS) has named the Tesla Model 3 as one of its TOP SAFETY PICK+ choices for 2019, the brand’s first such recognition.

The Model 3 is the least expensive of Tesla’s three models. Its price starts at $35,000, while the Model X starts at around $81,000 and the Model S starts at around $75,000.

IIHS made a point of reviewing and testing vehicles with alternative power sources, including the Audi e-tron, the only other plug-in to earn a TOP SAFETY PICK+ designation. The electric Chevrolet Bolt missed the cut because the glare from its headlights subtracted too many points.

"Vehicles with alternative powertrains have come into their own," IIHS Chief Research Officer David Zuby says. "There's no need to trade away safety for a lower carbon footprint when choosing a vehicle."

Vehicles are put through a series of tests that judge their safety. To earn a TOP SAFETY PICK  designation, a car or truck must get at least a good rating in the driver-side small overlap front, moderate overlap front, side, roof strength, and head restraint tests, as well as a good or acceptable rating in the passenger-side small overlap test.

It must also feature an available front crash prevention system with an advanced or superior rating and good- or acceptable-rated headlights.

Top safety designation

The TOP SAFETY PICK+ award is the top available classification. To earn it, vehicles must get  good ratings in the passenger-side small overlap test and the headlight evaluation.

IIHS says the Model 3 got good ratings across the board for crashworthiness. The standard front crash prevention system was rated superior, avoiding collisions in both the 12 mph and 25 mph IIHS track tests. The headlights earned a good rating.

IIHS says the vehicle’s structure was impressive in the organization’s driver-side small overlap front test, which proves a challenge for many vehicles that are subjected to it.

The Chevy Bolt did well in IIHS’ crashworthiness tests. It picked up mostly good ratings, but it emerged from the passenger-side small overlap test with only an acceptable rating. The acceptable rating would not have prevented the Bolt from getting the top safety designation, but its headlights were judged to put off too much glare in the face of oncoming traffic.

The Hyundai Nexo has the distinction of being the first hydrogen fuel cell vehicle to earn an award from IIHS over the summer. Like the Model 3 and the e-tron, the Nexo, a midsize luxury SUV, qualified for TOP SAFETY PICK+ based on standard equipment.

BMW of North America is recalling 12 model year 2020 X5 sDrive40i, X5 xDrive40i, X5 M50i, X7 xDrive40i and X7 M50i vehicles.

The steering rack pinion teeth may break under load, resulting in a loss of steering control, increasing the risk of a crash.

What to do

BMW will notify owners, and dealers will replace the steering rack free of charge.

The recall is expected to begin October 16, 2019. Owners may contact BMW customer service at (800) 525-7417.

General Motors is recalling 177,276 model year 2018 Chevrolet Malibus equipped with 1.5L turbo engines.

An error in the Engine Control Module (ECM) software may result in the fuel injectors being disabled.

Disabled fuel injectors would prevent the engine from starting and may cause a stall, increasing the risk of a crash.

What to do

GM will notify owners, and dealers will reprogram the ECM software free of charge.

The manufacturer has not yet provided a notification schedule.

Owners may contact GM customer service at (800) 630-2438. GM's number for this recall is N192221960.

A new report on consumer debt is the latest evidence to show that credit card debt continues to outpace all other financial obligations, except for mortgages.

The Northwestern Mutual 2019 Planning & Progress Study shows adults 18 and older are carrying personal debt, exclusive of mortgages, of $29,800. On average, consumers are spending one-third of their monthly income on debt service.

Even though student loan debt receives a lot of attention, the study finds that credit card debt is as prevalent as mortgage debt, though there is a world of difference between the two types of loans.

When it comes to millennials, this generation cites credit cards as its main source of debt. Meanwhile, older Gen Xers say student loans make up their biggest source of debt.

Expensive debt

Credit card debt is extremely expensive and almost always carries double-digit interest rates. The average credit card interest rate is around 16 percent but can be 25 percent or higher for consumers with less-than-perfect credit.

Thirty-one percent of consumers in the survey, all of whom pay credit card interest rates that are higher than 12 percent, say they only pay the minimum payment on their credit card, which is mostly made up of interest charges.

Even though the study shows that personal debt levels have fallen in the last year, Emily Holbrook, senior director of planning at Northwestern Mutual, says the findings are still cause for worry.

"The road to financial security is long, even in the best of circumstances," Holbrook said. "By carrying high levels of personal debt that road gets even longer, often requiring all kinds of detours and other twists and turns. The fact that there's been some year-over-year improvement in debt levels is good, but the numbers still remain worryingly high.”

Credit card debt rivals student loan debt

As we reported in July, credit card debt is only now being seen as an equal threat with student loans to young consumers who are trying to get ahead. A survey found 67 percent of millennials owe money to their credit card company, but only 36 percent are saddled with student loan debt. Student loan debt totals more than $1.5 trillion in the U.S., while credit card debt is closing in on the $1 trillion mark.

Holbrook says the study highlights the struggle that consumers are having when it comes to finding the right balance between spending and saving.

"But it's important to understand the impact that spiraling debt can have on a financial plan,” she said.” There are steps people can take to get control of their debt. It might start with loan consolidation and a budget, then move to a longer-term plan that includes guardrails to help people stay on track. The most important part is to take action. It's often those first few steps that can be the hardest and most important."

The Equal Employment Opportunity Commission (EEOC) believes Walmart discriminated against nearly 200 female workers in 30 states by paying them less or denying them promotions, according to a report by the Wall Street Journal. 

Documents shared with the Journal by a law firm representing the women claim there is “reasonable cause to believe” that some of Walmart’s female employees were discriminated against because of their gender. 

In a statement published to its website, the law firm said its evidence of “decades of sex discrimination” at Walmart stores is based on “over one hundred depositions, review of tens of thousands of documents, and multiple expert analyses of Walmart’s personnel data.” 

Walmart responds

Walmart spokesman Randy Hargrove said the reasonable cause findings are “vague and non-specific.” However, the company has told the EEOC that its “willing to engage in the conciliatory process with all the cases.” 

“In the vast majority of them, the EEOC’s reasonable cause findings are vague and non-specific even though we have asked the EEOC to provide detail on their findings,” Hargrove said in statements to the media. “We have urged the commission to move forward on them for years.” 

Hargrove noted that the allegations are more than 15 years old and are “not representative of the positive experiences millions of women have had working at Walmart.” At least 1,700 similar complaints of discrimination against female workers at Walmart are pending, according to attorneys handling the case. 

There is currently no deadline for the parties to reach a settlement, but the law firm notes that the EEOC will eventually be able to file a lawsuit of its own if it decides Walmart’s resolution efforts have fallen short. 

Amazon has announced that it’s giving customers the ability to pay for online purchases with cash. 

Amazon PayCode will let online shoppers pay for purchases on Amazon’s digital marketplace at one of 15,000 Western Union locations. 

“Customers have told us they love the convenience of paying in cash,” Ben Volk, Director, Payments at Amazon, said in a statement. “Together with Western Union, we’re able to offer customers more shopping choices, enabling them to pay for their online purchases in a way that is convenient for them.”

At checkout, customers who want to use the cash payment option can simply select “pay with Amazon PayCode.” Customers will then receive a QR code, which they can take to a participating Western Union location within the next 24 hours to pay for their purchase.

“We ship your order directly to your delivery address,” Amazon explained on its website. 

Adding cash payment options

The e-commerce giant has also announced that its Amazon Cash option, a separate service that enables customers to load cash into an Amazon account, is now offered at over 100,000 cash-loading locations across the U.S.

Earlier this year, Amazon was criticized for not allowing customers to pay with cash at its autonomous grab-and-go convenience stores. Lawmakers pointed out that not offering a cash payment at Amazon Go stores alienated a subset of potential customers, including those in low-income brackets. 

"For many City residents (for example, those who are denied access to credit, or who are unable to obtain bank accounts), the ability to purchase goods and services depends on the ability to pay for those goods and services in cash," San Francisco District Five Supervisor Vallie Brown explained in an April memo. "This is especially true of the very poor."

Amazon later announced that a cash payment option would soon be added to the stores, starting at a location in New York.  

What destination tops your travel wish list? Something hot culturally or hot temperature-wise? Something scenic perhaps? Or maybe somewhere that seems to have something in store for everyone in the family?

With the U.S. having almost anything a traveler’s heart can imagine, deciding where to go next can be a dilemma.

On Thursday, UpgradedPoints revealed a new study -- using Department of Transportation (DOT) data -- which shows that U.S. destinations are growing in popularity based on the origin airport. “Essentially,” as an UpgradedPoints spokesperson explained it to ConsumerAffairs, “ [the data shows] where your neighbors are traveling to more often and showing more interest in as destinations.” 

California nabs the brass ring for being the hottest destination. Out of the 20 origin airports studied, nine include at least one California airport as a Top 5 destination. As an example, the number of fliers going from Chicago (ORD) to Burbank (BUR) grew an astonishing 1,164 percent year-over-year. There was also a 94 percent spike in travelers coming out of Dallas-Fort Worth (DFW) on their way to Oakland (OAK).

So, where are your neighbors flying off to? Believe it or not, it’s Richmond, VA (RIC) and Jacksonville, FL (JAC). Nipping at those destinations’ heels are:

• San Antonio, TX (SAT) -- the fastest-growing destination for Fort Lauderdale (FTL) and Philadelphia, PA (PHL) and in the top 5 for Newark (EWR).

• Milwaukee, WI (MKE)-- the top growing destination for both Houston (HOU) and Seattle (SEA).

• Sacramento, CA (SMF) -- the fastest-growing destination for both Boston (BOS) and Orlando. 

Top vacation destinations

Upgraded Points founder Alex Miller explains that destination popularity can be a great indicator for consumers who want to know about the latest and greatest vacation spots.

"Not only does it show us the most exciting vacation locations chosen for any given season or year, it also reveals that a traveler's origin greatly influences where they like to visit,” Miller said. “For instance: seeking a beach to flee the winter, or moving from the plains to the mountains. One thing is certain -- travel preferences are not constant. Americans like variation when it comes to their travel habits." 

To Miller’s point about “variation,” the company offered an intriguing perspective from the flip-side of the study. 

“Maybe [the consumer] is not near one of the 20 busiest origin airports. It may be interesting to them to look from the other perspective of maybe their airport is one of the fastest-growing destinations,” the spokesperson told ConsumerAffairs. 

“For example, Grand Rapids Michigan (GRR) is a fairly small airport, but it’s the fourth fastest-growing destination for those coming out of Orlando.” Denver (DEN) would also fit in that column with its 714 percent increase in travelers heading up to Cody, Wyoming (COD).

The medical records of millions of consumers who visited private medical clinics in the U.S. are sitting in servers unprotected by passwords, according to a new investigation by ProPublica. 

The vulnerable data includes names, birthdates, physicians and procedures, and even Social Security numbers in some instances. All told, medical records belonging to five million patients in the U.S. were being housed on 187 servers that were found to be lacking sufficient security protections. 

ProPublica, which conducted its investigation along with German broadcaster Bayerischer Rundfunk, said “anyone with basic computer expertise” could access the information online. 

"It's not even hacking. It's walking into an open door," cybersecurity researcher Jackie Singh told ProPublica.

No evidence of exploits

The publication, which describes itself as a “nonprofit newsroom that investigates abuses of power,” said it found no evidence that insecure patient data had been taken and published elsewhere -- but if it were to be accessed by cybercriminals, the consequences could be “devastating.” 

“Medical records are one of the most important areas for privacy because they’re so sensitive. Medical knowledge can be used against you in malicious ways: to shame people, to blackmail people,” Cooper Quintin, a security researcher and senior staff technologist with the Electronic Frontier Foundation, a digital-rights group, said to ProPublica.

That said, many of the companies investigated ramped up their security measures after being alerted to the findings.

Need for better security 

The researchers found that many of the servers were running outdated software, leaving them vulnerable to exploits. 

“Experts say it's hard to pinpoint who's to blame for the failure to protect the privacy of medical images,” ProPublica wrote. “Under US law, health care providers and their business associates are legally accountable for securing the privacy of patient data. Several experts said such exposure of patient data could violate the Health Insurance Portability and Accountability Act, or HIPAA, the 1996 law that requires health care providers to keep Americans' health data confidential and secure.” 

Rehan Bashir, managing security consultant at Synopsis, told SCMagazine that many medical offices don’t use secure virtual private networks (VPNs) for remote access. In instances where office staff members use easy-to-guess passwords, the security of patient data is put at risk. 

Bashir added that large healthcare facilities often have the money to pay for “dedicated IT staff to manage their systems and to implement security controls.” However, “smaller providers generally don’t and thus are more vulnerable to healthcare data breaches.” 

Just last month, hundreds of dentist offices across the U.S. were hit by a malware attack that exposed patient records. The affected offices had been using free, third-party software that “unfortunately was vulnerable, and that created the cascading effect that basically encrypted the data for over 400 clinics," Alex Zlatin, CEO of Maxim Software Systems, told KMOX.

A new study conducted by researchers from UT Southwestern Medical Center suggests that exercise could help those who are at an increased risk of Alzheimer’s. 

The researchers found that engaging in regular physical activity for one year slowed brain degeneration for patients with amyloid beta build-up in their brains. Amyloid beta is an amino acid that’s closely linked with Alzheimer’s. 

“What are you supposed to do if you have amyloid clumping together in the brain?” said researcher Dr. Rong Zhang. “Right now doctors can’t prescribe anything. If these findings can be replicated in a larger trial, then maybe one day doctors will be telling high-risk patients to start an exercise plan. In fact, there’s no harm in doing so now.” 

Brain benefits of exercise

The researchers had 70 participants involved in the study, all over the age of 55. None of the participants exercised regularly when the study began, and they all were at a similar risk of developing Alzheimer’s. 

The participants were divided into two groups: those who practiced flexibility training four times per week and those who engaged in aerobic exercise four times per week. Participants exercised for 30 minutes per day over the course of one year. 

When the study was over, the researchers didn’t see any significant changes in the participants’ memory function, meaning that the exercise -- or lack thereof -- had no impact on their ability to remember things. However, the study did reveal one major difference between the two exercise groups. 

As dementia and Alzheimer’s progress, physicians typically see the hippocampus -- a part of the brain known for holding memories -- degenerate over time. However, the researchers found that degeneration was reduced for those who engaged in aerobic exercise throughout the course of the study. 

“Although the interventions didn’t stop the hippocampus from getting smaller, even slowing down the rate of atrophy through exercise could be an exciting revelation,” said Dr. Zhang, who plans to expand on these results to see if effective courses of treatment can be created for patients with Alzheimer’s and dementia. 

On the eve of the Federal Reserve’s Open Market Committee (OMC) meeting, the central bank has been forced to make unusual injections of capital into the credit markets to meet funding needs.

The New York Federal Reserve Bank announced its intention to put another $75 billion into the financial system Wednesday, its second such move in as many days. The bank acted after interest rates on overnight repurchasing agreements, known as “repos,” surged by as much as 10 percent on Tuesday.

What it means is fairly simple: all of a sudden demand for loans has outstripped available capital in banks to make loans. Oddly, it occurred against a backdrop of low interest rates when the concern until recently had been that rates on long-term bonds were lower than those on short-term notes.

“This repo operation will be conducted with Primary Dealers for up to an aggregate amount of $75 billion,” the New York Fed said in a statement. “Securities eligible as collateral in the repo include Treasury, agency debt, and agency mortgage-backed securities.”

Keeping a key interest rate in check

Ironically, the New York Fed acted in an effort to keep the Fed’s key interest rate -- the federal funds rate -- from going higher. It’s currently floating in a range of 2 percent to 2.25 percent and the New York Fed said its action is designed to keep the rate stable.

But when the OMC meets today, Fed policymakers are fully expected to announce a quarter-point cut in the federal funds rate, perhaps making the New York Fed’s job even harder. The OMC is under intense pressure from the financial markets -- and the White House -- to lower interest rates.

The Financial Times reports that the New York Fed appears to have been successful in calming the financial markets, noting that the repo rate had settled back into its middle range by late Tuesday. A bigger question, however, is whether the sudden spike is a one-off event or a sign of bigger trouble down the road.

Mark Cabana, a rates strategist at Bank of America, told Fox Business that continued pressure on the Fed’s main interest rate would likely raise questions about the Fed’s control of the money markets. Fox reports the spike was an unusual event caused by corporations withdrawing funds to pay their third-quarter taxes on Monday.

Consumers aren’t affected - yet

It doesn’t appear that consumers are in the line of fire from this event, at least not yet. The repo purchase was designed to help major banks meet their capital needs. But left unchecked, consumers as well as businesses could have faced higher interest rates. 

Assuming it does not dissuade the Fed from its expected rate cut Wednesday then consumers should suffer no immediate negative effects.

If the Fed cuts the federal funds rate as expected, then consumers with credit card balances will see some relief. Credit card interest rates are closely tied to the Fed’s key interest rate and a reduction will likely be reflected on credit card bills.

Banks’ prime lending rates are also influenced by the federal funds rate so a reduction would make car loans and home equity lines of credit less expensive. 

A new report from REMAX Realtors underscores the imbalances in the housing market that are making it harder for first-time buyers to find a home.

The REMAX National Housing Report shows sales of existing homes dipped 1.6 percent year-over-year in August and were down 4.2 percent from July. But the report’s authors note that the decline wasn’t because consumers weren’t interested in buying a house. Instead, they found fewer homes to buy.

In fact, the report shows the demand for homes was greater than the number of listings, causing what REMAX calls the largest inventory decline in 13 months. 

Influx of buyers reduced inventory

The REMAX analysis covers 53 major metro areas in the U.S. In those markets, it found that the inventory of available homes shrank 5.5 percent from a year ago, the largest decline since July 2018. Inventory levels were down 1.5 percent, snapping a streak of monthly inventory increases. The new trend could be troubling for the housing market.

"The modest inventory growth that started last fall has been swallowed up by demand as buyers have returned to the market, likely spurred on by attractive interest rates," said RE/MAX CEO Adam Contos. "Home sales dipping at the same time inventory falls suggests there may have been some reluctance on the part of sellers to list their homes.”

There is also the issue of fewer new homes being built, particularly those in the entry-level price range, though there is finally some good news on that front. Housing starts rose 7.7 percent in August; building permits rose even more quickly, at 12.3 percent.

“These are the best numbers in more than a decade and show a great jobs situation combined with good raises, high consumer optimism and low mortgage rates for the foreseeable future have spurred the home building industry,” said Robert Frick, corporate economist at Navy Federal Credit Union. 

Fewer homes under $300,000

But Frick concedes that the available stock of new homes priced under $300,000 continues to be low. That’s significant because the $300,000 price point is what half of new home buyers can afford.

Contos says that sellers continue to hold an advantage over buyers in this market because demand is outpacing supply.

While there were fewer sales in August, homes that did sell went for more money. The median price was up 5.7 percent year-over-year, which REMAX says is evidence of strong demand from buyers. Homes stayed on the market an average of 44 days last month, the second-fastest pace of August home sales in the report’s history.

The median home price, based on recorded sales, rose to $263,000. It was the eighth straight month of year-over-year price increases, though the price was lower compared to July.

Ford Motor Company is recalling about 329,000 model year 2017 Explorers sold in the U.S., Canada and Mexico.

The vehicles are equipped with power seats and may have seat frames with sharp edges, presenting the risk of injury.

Ford has received 31 reports of hand injuries.

What to do

Owners will be notified, and dealers will install flocked tape to the exposed edge and tab on the inboard side of the power seat frames free of charge

Consumers should use caution and avoid contact with the seat frame edge until the repair is completed.

Owners may contact Ford customer service at (866) 436-7332. Ford's number for this recall is19S29.

General Motors is recalling 3,420 model year 2020 Buick Enclave and Chevrolet Traverse vehicles.

The right-hand frame rail in the engine compartment may be cracked, which may reduce crash performance and increase the risk of an injury.

What to do

GM will notify owners, and dealers will inspect and, as necessary, replace the vehicle free of charge.

The manufacturer has not yet provided a notification schedule.

Owners may contact Chevrolet customer service at (800) 630-2438 or Buick customer service at (800) 521-7300. GM's number for this recall is N192268310.

An international panel of aviation authorities and experts is reportedly planning to criticize the Federal Aviation Administration (FAA) for the process it used to certify the Boeing 737 MAX aircraft.

The panel was formed after the aircraft was grounded in March following two fatal crashes within five months. In both accidents, investigations cited issues with the plane’s sophisticated flight control system.

The 737 MAX flew for the first time on January 29, 2016 and the FAA certified it in March 2017. The international task force formed to review the certification process is completing its work, and The Wall Street Journal reports that it plans to harshly criticize the FAA for giving Boeing too much input into the process.

In particular, The Journal reports the panel found fault with how the agency allowed the aircraft’s manufacturer to judge the safety of the plane’s flight control system.

Flight control system

After the March crash of an Ethiopian Airlines 737 MAX 8, attention turned to the flight control system and how it takes over control of the aircraft when it perceives it is rising at too steep of an angle.

Investigators believe that it can be difficult for pilots to exert manual control if the sophisticated computer system receives faulty data from sensors located on the outside of the plane. In both the Ethiopian Airlines crash and the loss of a Ryan Air 737 MAX 8 five months earlier, the planes went into dives and lost altitude as they were in the process of taking off.

The Journal says the final report will also fault the FAA for a lack of transparency and not sharing enough information with other nations’ aviation authorities.

Changes suggested

In August, there were reports indicating that the international aviation panel would recommend changes in the way the FAA goes about certifying the safety of commercial aircraft. The Journal now reports the aviation experts will go beyond suggesting changes by assigning blame.

The FAA has a new administrator, Steve Dickson, who has been on the job for about a month. Dickson said this week that there is no firm timetable for returning the 737 MAX to the air. Dickson, a former pilot, also said he plans to personally test Boeing’s updated 737 MAX flight control software in a flight simulator.

Health officials in California have confirmed a seventh death connected to a vaping-related lung illness. 

The first death linked to vaping was confirmed in August in California and others were gradually reported in Kansas, Illinois, Indiana, Minnesota, and Oregon. Close to 400 cases of vaping-related lung illnesses have now been reported in 36 states. 

The man in California was reportedly sick for several weeks before dying of "severe pulmonary injury associated with vaping," said Karen Haught, the Tulare County public health officer, in a statement.

"Long-term effects of vaping on health are unknown. Anyone considering vaping should be aware of the serious potential risk associated with vaping,” Haught said. 

In the wake of the most recent death, the Centers for Disease Control and Prevention (CDC) activated its emergency operations center to help it respond to the health threat more effectively.

“CDC has made it a priority to find out what is causing this outbreak of e-cigarette or vaping-related injuries and deaths,” said CDC Director Robert Redfield, M.D. in a statement. “Activation of CDC’s Emergency Operations Center allows us to enhance operations and provide additional support to CDC staff working to protect our Nation from this serious health threat.”

Health effects in question

Lawmakers are currently lobbying to have flavored e-cigarettes banned, at least while investigations into the health effects of the products are ongoing. Last week, the Trump administration announced that it’s moving toward a federal ban on flavored vaping products amid persistent concerns over the “epidemic” of youth e-cigarette use.

Earlier this week, Governor Andrew Cuomo announced an emergency order to ban flavored e-cigarette products in New York. Sen. Richard Blumenthal (D-CT) also said this week that he wants flavored e-cigarettes to be banned in his state. Additionally, Blumenthal is pushing for a bill that would invest $500 million over the next 10 years to address e-cigarette use among teens.

"They should know these products are not harmless, they are not hip and cool, they can be severely damaging because of these compounds found in them," Blumenthal said on Monday.

The CDC recently recommended that young adults, pregnant women, and non-smokers avoid using e-cigarettes and vaping products while the agency investigates the outbreak of illnesses. 

"It is time to stop vaping," Kansas Department of Health and Environment Secretary Dr. Lee Norman said. "If you or a loved one is vaping, please stop. The recent deaths across our country, combined with hundreds of reported lung injury cases continue to intensify."

A new lawsuit has been filed against AT&T that accuses the company of boosting its AT&T TV Now (formerly known as DirectTV Now) subscriber numbers. The allegations suggest that the company used fake users in order to give the illusion of sustained customer growth, Bloomberg reported.

The suit, which is seeking class action status, alleges “wide-ranging fraud, abusive sales tactics, and misleading statements to the market concerning its internet streaming service.” It claims AT&T’s management carried out these tactics to impress investors and hide certain technical problems with the product. 

Investor law firms Pomerantz LLP and Labaton Sucharow LLP contend that “AT&T management conceived and ordered a scheme to create bogus DirecTV Now accounts in order to mask the dire reality of its new and unproven service – and then lied to investors about the success of the flagship product.” 

Illusion of growth

Employees were allegedly “encouraged” by managers to tack on DirecTV Now subscription fees to subscribers' accounts without their knowledge or consent, as well as to create multiple accounts.

"Employees were taught and actively encouraged to convert activation fees that customers traditionally had to pay to upgrade their phones into DirecTV Now subscriptions by waiving the fee, but charging the customer anyway," the lawsuit alleges. 

Recently fired employees said as many as five accounts would be created when a customer signed up for DirecTV Now. Those accounts would be canceled after the sale was made so that the staff member could get a bonus commission. 

“Another former employee in Hawaii stated that ‘at least half’ of the DirecTV Now accounts were ‘bogus,’ based on what he was seeing internally,” the suit noted. “Another former employee who fielded online customer complaints from across the country estimated that he was seeing between 20-40 complaints per week from customers being billed for DirecTV Now despite not signing up for an account.” 

The scheme was carried out ahead of the company’s merger with Time Warner. AT&T said in a statement that it plans "to fight these baseless claims in court."