Current Events in December 2024

The National Highway Traffic Safety Administration (NHTSA) is notoriously slow to act. How slow? Well, it's been studying 50 million airbags in 13 kinds of cars for eight years with no decision.

Now it says it needs more time to study the situation. 

Key Points

• Background: The inflators, made by ARC Automotive and Delphi Automotive, are linked to one fatality and seven injuries. 
• Next Steps: NHTSA is gathering more technical and manufacturing information to assess the risks.
• Automakers’ Opposition: Major manufacturers like GM, Toyota, and Volkswagen oppose a recall, arguing the risk is minimal.

The affected inflators were used in vehicles made from 2000 to 2018. NHTSA first called for a voluntary recall in May 2023, but manufacturers have resisted. Further action will depend on the ongoing investigation.

Automakers resist pressure

In August, NHTSA tried to step up the pressure on an airbag inflater manufacturer to issue a recall, saying tens of millions of Americans are at risk.

“NHTSA is confirming its initial decision that certain frontal driver and passenger air bag inflators manufactured by ARC Automotive Inc. and Delphi Automotive Systems LLC, and vehicles in which those inflators were installed, contain a defect related to motor vehicle Safety,” the regulator said in a supplemental initial decision. 

“NHTSA is issuing this supplemental initial decision to address in greater detail the basis for the agency’s initial decision and to ensure that all vehicles and manufacturers that would be impacted by any recall order are included within the scope of the initial decision.”

Previously, NHTSA pushed for ARC Automotive to recall the airbags, which ARC declined to do. NHTSA then said it would reopen the case and retake comments for 30 days before deciding whether to pursue a recall. 

NHTSA says the ARC inflators use phase-stabilized ammonium nitrate as a propellant that has been known to result in explosions and send small pieces of metal into occupants.

The inflators have reportedly been used in vehicles from 2000 to 2218, in makes such as Ford, BMW, GM, Kia, Hyundai, Chrysler, Jaguar Land Rover, Toyota, Volkswagen, Mercedes-Benz and Tesla.

Email used to be pretty simple and could be again, as Elon Musk sees it. Now that he owns X, formerly Twitter, what could be more logical than an email service to go with it?

Elonmail, you think? No, Musk is thinking more along the lines of Xmail. He first mentioned it last February and has brought it up occasionally since then. Recently, he raised the subject again, hinting that Xmail would be much simpler and free from the complicated threads and formatting seen in Gmail and other programs.

It's not a new idea but more of a back-to-basics notion, which is perhaps appropriate for somebody who, like Musk, is running an organization that's supposed to make government lean and mean.

Email has been around since at least 1975 and, although it has been somewhat shoved aside by instant messaging of various kinds, it's still the most basic building block in just about everybody's line-up. 

Email is actually pretty simple already but Musk is apparently thinking of something that uses a single default font and doesn't have all the threading features included in most email clients.

Musk recently replied to an X user who posted that he'd like a simpler version of Gmail. Musk responded: "That's exactly what we are going to do."

The U.S. Food and Drug Administration has finalized a rule on what food companies can say is "healthy" to be more in line with the latest science.

For food packaging to have a "healthy" claim, it must have a certain amount of food recommended by the Dietary Guidelines and follow limits for saturated fat, sodium and added sugars, the FDA said Thursday.

"Providing informative and accessible food labeling empowers consumers and may help foster a healthier food supply for all if some manufacturers voluntarily reformulate food products to meet the updated criteria," the FDA said.

It marks the first overhaul of the FDA's definition of "healthy" since 1994 as part of efforts to fight chronic disease due to bad eating habits.

For example, the FDA said for a cereal box to have a "healthy" label it needs to have a certain amount of whole grains and limit saturated fat, sodium and added sugars.

Before, nuts and seeds, higher fat fish, such as salmon, certain oils, some peanut butters, canned fruits and vegetables and water didn't qualify for a "healthy" claim but now qualify because they are considered "foundational to a healthy eating pattern," the FDA said.

What impact will the updated 'healthy' rule have?

Food manufacturers can voluntarily choose to include a "healthy" claim if they meet requirements, the FDA said, adding that they have three years to conform but can use the new criteria sooner.

Still, the rule is expected to only "have a limited impact because it only applies to those few products bearing the voluntary 'healthy' claim," said Eva Greenthal, senior policy scientist at nonprofit Center for Science in the Public Interest.

She said "the most important step" the White House could take is publishing a new rule on mandatory front-of-package nutrition labeling, which the FDA proposed to the Biden administration in late November.

The U.S. housing market experienced a significant uptick in existing home sales in November. The National Association of Realtors reports sales increased by 4.8% from October, reaching a seasonally adjusted annual rate of 4.15 million, the fastest pace observed since March 2024. 

Sales were up 6.1% compared to November 2023, the largest year-over-year gain since June 2021. Sales rose despite mortgage rates that fluctuated between 6.5% and 7%.

As the number of sold homes rose, so did their price. The median price for existing homes increased by 4.7% from the previous year to $406,100. This marks the 17th consecutive month of year-over-year price increases, reflecting sustained demand in the housing market in spite of higher mortgage rates.

Inventory levels, however, showed a slight decline. The total inventory of unsold existing homes decreased by 2.9% from October, settling at 1.33 million units by the end of November. This represents a 3.8-month supply at the current sales pace, a decrease from the 4.2-month supply recorded in October, but an increase from the 3.5-month supply in November 2023.

"Home sales momentum is building," said Lawrence Yun, NAR's chief economist. "More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%."

Sales grew in three regions of the country

The growth in sales was observed across three major U.S. regions, with the West maintaining steady levels. Year-over-year, all four regions reported increased sales, highlighting a broad-based recovery in the housing market.

Existing homeowners are leveraging the substantial $15 trillion rise in housing equity over the past four years, seeking homes that better suit their evolving life circumstances, according to Yun.

As the market adapts to these changes, NAR says the continued rise in home prices and sales suggests a robust demand, despite the challenges posed by fluctuating mortgage rates. The housing market's resilience is a positive indicator for the broader economy, reflecting consumer confidence and economic stability.

Mortgage rates appear stuck in a range between 6% and 7%. Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.72% this week, after falling to as low as 6.09% in October. 

“This week, mortgage rates crept up to a similar average as this time in 2023,” said Sam Khater, Freddie Mac’s chief economist. 

“For the most part, mortgage rates have moved between 6 and 7 percent over the last 12 months. Homebuyers are slowly digesting these higher rates and are gradually willing to move forward with buying a home, resulting in additional purchase activity.”

Not historically high but high enough

Even though current mortgage rates are not historically high, they pose affordability challenges for would-be homebuyers. That’s because historically low mortgage rate three and four years ago inflated the value of home. And that inflation continues.

As it reports sales of existing homes rose almost 5% in November, the National Association of Realtors noted that home prices continue to rise. The median price for existing homes increased by 4.7% from the previous year to $406,100. 

This marks the 17th consecutive month of year-over-year price increases, reflecting sustained demand in the housing market in spite of higher mortgage rates.

With just a weekto go before Christmas Day, the Teamsters union has launched a strike against Amazon. The timing is no coincidence.

“If your package is delayed during the holidays, you can blame Amazon’s insatiable greed,” said Teamsters General President Sean O’Brien. “We gave Amazon a clear deadline to come to the table and do right by our members. They ignored it.”

The work stoppage began early Thursday at Amazon facilities in New York, Atlanta, Southern California, San Francisco and Skokie, Ill. The union said members at other facilities are prepared to join them.

Teamsters local unions are also putting up primary picket lines at hundreds of Amazon Fulfillment Centers nationwide. Amazon warehouse workers and drivers without collective bargaining agreements have the legal right to honor these picket lines by withholding their labor, the union said.

The company’s response

Amazon said the Teamsters union represents a small percentage of its drivers, most of whom are not employed by Amazon but by third-party partners.

“For more than a year now, the Teamsters have continued to intentionally mislead the public – claiming that they represent ‘thousands of Amazon employees and drivers’. They don’t, and this is another attempt to push a false narrative,” Amazon said in a statement.

Amazon said it does not expect the strike to affect its operations, even at one of the busiest times of the year.

With the start of the COVID-19 pandemic in 2020, shoplifting spiked. When businesses instructed employees not to interfere, it became more brazen and organized. Now, a new study reveals just how much it has increased

The National Retail Federation (NRF) has released a report showing a 93% increase in shoplifting incidents per year in 2023, compared to 2019. The study, conducted in partnership with the Loss Prevention Research Council, also shows financial losses from these crimes have risen by 90%. Some of those losses reduce profits but some get passed on to consumers.

The study highlights the significant challenges retailers face as they navigate an increasingly hostile environment marked by theft and violence. 

“Protecting store associates and customers, coupled with reducing today’s levels of violence and retail crime, requires a whole-community approach and collaboration across all stakeholders,” said David Johnston, NRF vice president for Asset Protection and Retail Operations.

Retailers in the survey experienced an average of 177 shoplifting incidents per day in 2023, with some sectors reporting numbers exceeding 1,000 incidents daily. NRF said the rise in violence associated with these crimes is particularly concerning, with 73% of retailers noting increased aggression from shoplifters compared to the previous year, and 91% observing more violence than in 2019. 

More money for training

In response, 71% of retailers have increased their budgets for employee training related to workplace violence.

Retailers have responded in different ways. While instructing employees not to interfere with thieves, some stores have placed more of their merchandise behind locked cases. Tony D’Onofrio, president of Sensormatic Solutions, said additional solutions will likely involve technology.

“Retailers and solution providers must work together to build and drive technology that goes beyond thwarting theft in the moment to predicting it,” he said.

The study also reports a rise in multi-person theft incidents, with 62% of respondents expressing increased concern over coordinated thefts involving two to three individuals. Organized Retail Crime (ORC) remains a significant threat NRF said,, with 76% of retailers more worried about ORC-related shoplifting than a year ago. Those capable of tracking ORC incidents reported a 57% increase from 2022 to 2023.

Chervon North America has issued a recall for 63,000 of its SKIL 40V 5.0Ah lithium-ion batteries for SKIL lawnmowers and outdoor tools due to a fire hazard. 

The firm has received 100 reports of thermal incidents involving the batteries including overheating, melting, smoking and fire. These included eight reports of minor burns and/or smoke inhalation and 49 reports of related property damage.

The batteries were sold at Lowe’s and other hardware and home improvement stores nationwide and online at Amazon.com, Walmart.com and Lowes.com from October 2019 through December 2024 for about $170 for batteries sold individually and about $400 for combination kits with lawnmowers.

This recall involves SKIL brand 40V 5.0Ah Lithium-Ion Batteries that were manufactured before May 1, 2021. “SKIL” and “PWRCORE 40” are printed on the batteries. 

The recalled batteries were sold individually under the model number BY8708-00 for use with all SKIL 40V tools and were also sold in a combination kit with SKIL 40V Brushless 20-in Push Mowers (Model #PM 4910-10) or SKIL 40V Brushless 20-in Self-Propelled Mowers (Model #SM4910-10). Only the battery is recalled. 

The model number BY8708-00 and manufacturing date code, which is the first three digits of the 9-digit serial number, are located on a nameplate on the top of the battery pack near the battery terminals. The following manufacturing date codes are included:

What to do

Consumers should immediately stop using the recalled lithium-ion batteries and contact Chervon for a free replacement or refund for the price of the battery. Consumers should register for the recall online at www.skil.com/recalls. Chervon will provide a battery collection kit for the consumer to return the recalled battery and will provide the requested remedy upon return of the recalled battery. 

Consumers may contact Chervon North America toll-free at 833-476-5325 from 8 a.m. to 8 p.m. ET Monday through Friday, email at BY8708-00recall@na.chervongroup.com, or online at www.skil.com/recalls or www.skil.com and click on “PRODUCT RECALLS” at the top of the page for more information.

CVS is the latest drugstore chain to face a federal lawsuit over its handling of opioid drugs.

The U.S. Department of Justice has filed a civil complaint against the nation's largest pharmacy chain for allegedly filling unlawful prescriptions in violation of federal laws. 

The complaint, unsealed in Providence, Rhode Island, accuses CVS of violating the Controlled Substances Act and the False Claims Act by dispensing prescriptions for controlled substances without legitimate medical purposes and seeking reimbursement from federal healthcare programs for these prescriptions.

The allegations span from October 17, 2013, to the present, with claims that CVS filled prescriptions for excessive quantities of opioids and dangerous drug combinations, known as "trinity" prescriptions, which include an opioid, a benzodiazepine, and a muscle relaxant. The DOJ asserts that CVS ignored warnings from pharmacists and internal data about the illegitimacy of these prescriptions, prioritizing corporate profits over patient safety.

"The practices alleged contributed to the opioid crisis and opioid-related deaths, and today’s complaint seeks to hold CVS accountable for its misconduct," said Deputy Assistant Attorney General Brian Boynton.

U.S. Attorney Zachary A. Cunha for the District of Rhode Island echoed these sentiments, highlighting the devastating impact of opioid abuse on communities.

The list of charges

The lawsuit also points to CVS's corporate policies, which allegedly pressured pharmacists to meet performance metrics at the expense of legal compliance. CVS is accused of maintaining insufficient staffing levels, preventing pharmacists from sharing critical information about prescribers, and facilitating the illegal distribution of opioids by so-called "pill mill" prescribers.

If found liable, CVS could face substantial civil penalties for each unlawful prescription and treble damages for prescriptions reimbursed by federal programs. The court may also impose injunctive relief to prevent future violations, potentially mandating changes to CVS's compliance programs.

Charmast has issued a recall for 488,000 power banks because the can overheat and pose fire and burn hazards. The company said it has received 44 reports of the recalled power banks expanding, igniting, melting, overheating or smoking, including four reports of consumers receiving burns or blisters.

The devices were sold exclusively at Amazon. This recall involves Charmast power banks, model W1056. They were sold in black, blue, green, mint, pink and white colors. The brand name “Charmast” is printed on the front and “Model: W1056” is printed on the back.

What to do

Consumers should stop using the recalled power banks immediately and contact Charmast for instructions on how to receive a full refund. 

To receive a refund, consumers will be required to provide photographs of their model W1056 power bank, their names and dates of the photograph written in indelible (permanent) marker above the label, and the severed power cord. Consumers should dispose of the power banks in accordance with local and state regulations.

Consumers may contact Charmast collect at 929-636-0293 Monday through Friday, from 10 a.m. to 3 p.m. ET, by email at rcus@charmast.com, or online at https://www.charmast.com/pages/recall-info-page or www.charmast.com and click on “Recalls” at the top of the page for more information.

The Federal Reserve cut its key interest rate today by a quarter-point — its third cut this year — but at the same time cautioned that it expects to reduce rates more slowly next year because of stuborn inflation. 

The decision to reduce the federal funds rate by 0.25 percentage points, bringing it to a target range of 4.25% to 4.5%, is expected to have several implications for the economy:

1. Borrowing Costs

• Lower Interest Rates: Consumers and businesses may benefit from reduced interest rates on loans and credit products, potentially stimulating spending and investment.

• Credit Card Debt: Financial experts advise that this rate cut could be advantageous for individuals with credit card debt, encouraging them to pay down their balances more aggressively.

2. Savings and Investments

• Savings Accounts and CDs: Returns on savings accounts, certificates of deposit (CDs), and money-market funds may decrease, though they might still attract investors compared to other struggling investment options.

• Bond Markets: The rate cut could influence bond yields, affecting long-term bond investors who have faced losses due to rising yields.

3. Stock Market Reaction

• Market Volatility: Following the announcement, the Dow Jones Industrial Average experienced a significant drop, indicating investor concerns about future economic policies and their impact on markets.

4. Future Monetary Policy

• Slower Pace of Cuts: The Federal Reserve signaled a more gradual approach to rate reductions in 2025, projecting only two quarter-point cuts instead of the previously anticipated four.

• Inflation Concerns: With inflation slightly above the 2% target, the Fed remains cautious, aiming to balance economic growth with price stability.

5. Economic Outlook

• Consumer Spending: Lower borrowing costs may boost consumer spending, contributing to economic growth.

• Business Investment: Reduced interest rates can encourage businesses to invest in expansion and development, potentially leading to job creation.

Overall, while the rate cut aims to support economic activity, its effectiveness will depend on various factors, including consumer behavior, business responses, and broader economic conditions, analysts said.

A British report by the consumer organization Which? has revealed that some air fryers and other smart devices may collect personal data, raising privacy concerns. Air fryers from Xiaomi, Tencent, and Aigostar were found to record audio on users' phones without explaining why. Some devices also sent personal data to servers in China.

Other smart devices, such as Samsung TVs and Huawei smartwatches, were flagged for requesting extensive permissions, including access to precise locations and apps.

There's no word on whether similar devices have their ears on in the U.S.

The British Information Commissioner’s Office (ICO) plans to release new guidance in 2024 to ensure manufacturers comply with data protection laws. The guidance will clarify how to request consent, provide privacy information, and protect user rights. The ICO warned it would monitor compliance and take action if necessary to safeguard consumers.

Which? said the company claimed that all of the permissions it asks for have a justified need.

An ICO spokesperson said its fresh guidance for firms next year will "outline our clear expectations for what they need to do to comply with data protection laws and, in turn, protect people using smart products."

"It will cover areas including how to ask for consent, how to provide privacy information and what tools need to be available for people to exercise their rights," the spokesperson said.

Motorists hitting the road during the Christmas and New Year’s holidays will find a nice gift when they pull up to a gas pump. The price is likely to be as cheap as it has been throughout 2024.

GasBuddy estimates the national average price of gas will be $2.95 per gallon on Christmas Day, the cheapest Christmas at the pump in four years.

There could be several reasons for this. GasBuddy notes that the Federal Reserve has slowed the economy with a series of interest rate hikes and that has helped to reduce demand.

Another reason is a weak economy in China, the world’s second-largest oil consumer. A third reason may be the passage of time. Once an economy heats up and sends prices higher, it takes several months for things to return to normal.

“This holiday season is shaping up to be a gift for American drivers, with gas prices presenting a stark contrast to the budget-breaking levels we’ve seen in recent years and a return to what feels like normal for many Americans filling their tanks,” said Patrick De Haan, head of petroleum analysis at GasBuddy. 

“After waiting an exhausting two years for imbalances brought on by Covid and Russia’s war on Ukraine to settle down, we’re finally getting back to normal.”

Cheapest and most expensive

Even though overall prices are falling, fuel prices are higher in some states than others. As we approach Christmas week, GasBuddy lists the states with the cheapest and most expensive gas.

Oklahoma ($2.46/gal) | Hawaii ($4.58/gal)

Texas ($2.53/gal) | California ($4.31/gal)

Mississippi ($2.55/gal) | Washington ($3.93/gal)

Arkansas ($2.54/gal) | Nevada ($3.60/gal)

Tennessee ($2.62/gal) | Oregon ($3.47/gal)

GasBuddy recommends holiday road trippers always check fuel prices before filling up, especially when crossing state lines where gas taxes can cause prices to fluctuate.

TikTok fans and influencers, rejoice. The Supreme Court has agreed to hear the popular site's appeal of an order that it shut down or be acquired by a non-Chinese company by Jan. 19.

The court will hear arguments starting next month, an exceptionally fast track. In another break with procedure, the court did not ask the U.S. government to respond to TikTok's petition but simply granted it and put it on the calendar.

It took the court only two days to respond to the last-minute application asking it to declare that the law requiring TikTok to shed its Chinese ownership violates the First Amendment.

Interestingly, the court did not block the law while the case moves forward, meaning that it could fast-track arguments and issue a ruling before Jan. 19, the deadline that was set by the law passed by Congress and signed by President Biden.

The law came in response to fears that ByteDance is using TikTok to gather surveillance data or, perhaps, poison the minds of American youth with the seemingly frivolous content that has seized the country's imagination.

Much of what makes TikTok so attractive is the work of the so-called influencers and content creators who assemble short bits ranging from political satire to entertainment gossip. Young people feel that TikTok is "theirs" and defend it from accusations that it is part of a Cold War Chinese scheme to subvert U.S. interests. 

The law allows the President to extend the deadline for 90 days but it's not clear whether President-elect Trump is likely to do that. 

Trump's stance on TikTok has evolved over time. In 2020, during his first term, he tried to ban the app due to national security concerns but in his recent campaign, he opposed a ban, noting TikTok's popularity among young voters. 

Trump has suggested that ByteDance could sell TikTok to a U.S. company to address the security concerns. He has also criticized other social media platforms, labeling Facebook as an "enemy of the people."

A federal appeals court recently upheld a law requiring ByteDance to divest its U.S. operations or face a nationwide ban. The court said the law does not violate free speech.

With over 170 million U.S. users, TikTok has become a vital platform for news, entertainment, and small businesses. TikTok claims a month-long shutdown could cost U.S. small businesses more than $1 billion and harm free expression on one of the country’s leading platforms.

Amazon has been elbowing its way into healthcare, selling medical devices online, running its own pharmacy and, most recently, operating a chain of clinics, called Amazon One Medical.

But an Amazon One clinic in California is being named in a wrongful-death lawsuit, according to a Washington Post report. The family of Philip Tong, a 45-year-old biotech worker, has filed suit against One Medical and an Oakland hospital, claiming negligent care led to his death.

Key Details

• Health Concerns Ignored: During a video consultation, Tong reported severe symptoms, including shortness of breath and coughing blood, but was allegedly advised to buy an inhaler. Hours later, he collapsed and died.
• Underlying Conditions: Tong had diabetes, chronic kidney disease, and sepsis at the time of his death, according to the lawsuit.
• Telehealth Questions: The case raises concerns about telemedicine’s ability to address life-threatening situations effectively.

Amazon acquired One Medical in 2023, expanding telehealth services but facing criticism for layoffs and reduced clinical staff. The Tong family’s lawsuit alleges inadequate care and understaffing contributed to the tragedy. The first court hearing is set for March.

"Careless, reckless and negligent"

In the complaint, the patient's family charges that One Medical lacked “adequately trained and qualified staff,” resulting in treatment that was “careless, reckless and negligent” and says the clinic staff failed to order appropriate testing.

One Medical said it could not comment on the specific case because of patient privacy laws but provided this statement:

“While we are prohibited by law from discussing patient records, we refute claims that a change in the duration of visits or location of a virtual visit has impacted the care provided at Amazon One Medical. We care deeply about every patient we serve, and the quality and safety of our care are our highest priorities."

A spotted history

Amazon has had mixed success with its attempts to enter healthcare. Selling prescription drugs and healthcare equipment online is fairly straightforward but caring for living patients is another matter and critics say telehealth is not always the best solution. 

Amazon bought One Medical in 2023 for nearly $4 billion and proceeded to reduce staff while moving more operations online. The company says the changes are intended to expand consumer access to medical care. 

Membership plans

Amazon One Medical offers three membership plans:

• $9 per month for Prime members, offering "On-demand care, ongoing support for healthcare needs; and
• $29 per email visit for pay-per-visit, offering "One-time virtual visit to treat a common condition.
• $49 per video visit, offering "One-time virtual visit to treat a common condition.

One Medical operates in over 25 U.S. cities, with clinics in major metropolitan areas. Its focus is on providing convenient, tech-enabled care to urban and suburban populations.