Current Events in July 2024

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2024

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      Taco Bell plans to introduce AI to the drive-thru lane

      Yum Brands appears undeterred by McDonald’s experience

      Fast-food restaurants are struggling to hire and retain staff, even as they are raising wages. So Taco Bell is bringing on artificial intelligence (AI) to lend a hand. The chain, owned by Yum Brands, said it plans to employ AI voice technology in drive-thrus at hundreds of U.S. locations.

      In the months ahead, it’s possible customers will interact with a computer and not a human being when they place their order. Will it work?

      If you will recall, McDonald’s tried using AI in the ordering process with mixed results. In June, the company informed franchises that it was ending its AI experiment at about 100 locations. 

      The partnership with AI produced correct orders about 85% of the time, according to company executives. The other 15% of orders went viral on social media after the computer made up hilarious food combinations.

      One video on TikTok showed a customer who ordered ice cream and some water, but was baffled when the order also included four packets of ketchup and three patties of butter.

      Worth the risk?

      Taco Bell may be willing to risk unproven technology in a bid to ease staffing crunches and save money, especially at California locations, where the minimum wage recently rose to $20 an hour.

      According to a survey of California restaurant operators, conducted by the Employment Policies Institute, the minimum wage increase is already having a big impact. The survey found that 67% believe the wage increase will cost their restaurant at least $100,000 per location. One in four said it would cost more than $200,000 per location.

      Nearly all of those surveyed – 99% – said prices will increase to cover the added cost, with 73% saying prices will “significantly increase.”

      Fast-food restaurants are struggling to hire and retain staff, even as they are raising wages. So Taco Bell is bringing on artificial intelligence (AI) to...

      Feds say Amazon must warn shoppers about dangerous products sold on its website

      Amazon vows to appeal the decision

      Amazon is responsible for handling the recall of defective or dangerous products that were sold by other businesses on its website, a U.S. product safety regulator said Tuesday, marking the latest move by the government to hold the e-commerce giant accoutable.

      In a unanimous vote, the Consumer Product Safety Commission ruled that Amazon was a "distributor" of more than 400,000 products that were defective or failed to meet federal safety standards. The ruling means Amazon is legally responsible for the recalls of these products, including providing means to return or replace the purchases.

      The products in question are faulty carbon monoxide detectors, hairdryers without electrocution protection and children’s pajamas violating federal flammability rules. They sold on Amazon.com and were part of the company's Fulfilled by Amazon program, in which outside businesses partner up to deliver their goods and offer two-day shipping.

      In court, Amazon argued it wasn't a distributor of the products and bore no responsibility for their safety through its shipping partnership with outside businesses. The CPSC decided otherwise.

      Amazon responds

      Amazon will appeal the decision, a spokesperson told ConsumerAffairs, adding the company already alerts shoppers about dangerous goods. 

      “In the event of a product recall in our store, we remove impacted products promptly after receiving actionable information from recalling agencies," the spokesperson said. "Our recalls alerts service also ensures our customers are notified of important product safety information fast, and the recalls process is effective and efficient.

      “We stand behind the safety of every product in our store through our A-to-z Guarantee, regardless of whether it is sold by Amazon or by one of our selling partners. We have proactive measures in place to prevent unsafe products, and we continuously monitor the listings in our store. If we discover an unsafe product available for sale, we address the issue immediately, and refine our processes,” the spokesperson added.

      In 2021, the CPSC sued Amazon to force the recall of the hazardous products sold on its website, including 24,000 faulty carbon monoxide detectors that failed to alarm.

      "When we were initially notified by the CPSC three years ago about potential safety issues with a small number of third-party products at the center of this lawsuit, we swiftly notified customers, instructed them to stop using the products, and refunded them," the Amazon spokesperson said.

      The lawsuit led to the CPSC's ruling, which consumer advocacy groups applauded as a step forward for product safety.

      'Necessary step'

      “The only way to ensure the safety of consumers from dangerous or defective products is to hold every party involved responsible, from manufacturers to distributors and retailers," said Michelle Barry, president of nonprofit Safe Infant Sleep, in a statement. "This decision represents a significant and necessary step towards achieving that goal, reinforcing the principle that public safety must come before profit."

      The CPSC said Amazon must now provide plans on how it will notify the public about the hazardous products and how shoppers can get refunds or replacements.

      "The Commission will consider these plans and then issue a second order on notification and remedies," the CPSC said.

      Amazon must handle the recall of more than 400,000 dangerous products sold on its website, a U.S. product safety regulator said....