ReportWire

Tag: consumer protection

  • Something Is Making Humanoid Robot Makers Worry: The Robots Suck

    The Wall Street Journal’s Sean McLain reported Sunday on the recent Humanoids Summit in Mountain View, California held earlier this month. McLain seems to have come away with the impression that makers of robots are worried they’ve oversold a technology that, well, sucks. So far anyway.

    Sure, Elon Musk is promising a robot army, and there’s now some kind of robot butler being preordered by rich people who are expected to pay $20,000 essentially just to help train it. What the optimists perhaps haven’t considered is something the Chinese government has already spoken on: there’s a danger that if this hype produces actual retail products, the creators of those products are on the verge of creating millions of unsatisfied customers, and will have accomplished nothing other than filling landfills with mountains of human-shaped e-waste.

    One cautious robot executive Kaan Dogrusoz, CEO of Weave Robotics, told the Journal, “There’s a lot of great technological work happening, a lot of great talent working on these, but they are not yet well defined products.” Then Dogrusoz invoked a piece of consumer tech history that should have robot optimists rethinking their lives: “Full bipedal humanoids are the Newtons of our times,” Dogrusoz told the Journal.

    The Apple Newton MessagePad was a portable computer product marketed in the mid-90s at a time when Steve Jobs didn’t control the company. It was buggy, and became a huge public joke. When Steve Jobs assumed control of Apple again, he discontinued it. As Wired wrote in 2013, “The Newton wasn’t just killed, it was violently murdered, dragged into a closet by its hair and kicked to death in its youth by one of technology’s great men.”

    Releasing a bunch of worthless Newton-level bipedal robot duds into the world is a possibility that should have tech company CEOs worried. A good metaphor for such a corporate disaster might be someone teleoperating a humanoid robot such that it delivers a groin kick to its operator. If only there were a freshly viral video in my feeds that could help me illustrate this… 

    Here are some other choice quotes the Journal took down at the summit:

    Ani Kelkar, a McKinsey partner told the Journal that when a company spends $100 on robot deployment in a workplace, $20 goes to the robot, and the other $80 goes toward stopping the robot from injuring people. “We’re doing a big extrapolation from watching videos of robots doing laundry to a butler in my house that can do everything,” Kelkar warned in the Journal’s article.

    Isaac Qureshi, the CEO of a company called Gatlin Robotics, whose flagship product at the Summit was able to scrub a brick wall if it was teleoperated by a person in a VR headset said, “Slowly, we’re going to teach the Gatlin robot more things, like starting with dusting, surface cleaning, trash bins and then the toilet.”

    Pras Velagapudi, the CTO of Agility Robotics said, “We’ve been trying to figure out how do we not just make a humanoid robot, but also make a humanoid robot that does useful work.” He might be onto something.

    Robot executives have spoken. Don’t buy a humanoid robot, folks. It cannot do anything useful for you, but it can clobber your groin.

    Mike Pearl

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  • Global Losses to Scammers Exceed $1 Trillion as 1-in-4 Lose Money to Fraudsters

    Global Losses to Scammers Exceed $1 Trillion as 1-in-4 Lose Money to Fraudsters

    Global Anti-Scam Alliance and ScamAdviser warn of “international emergency” with release of annual report on the Global State of Scams

    The latest annual study by the Global Anti-Scam Alliance (GASA) and ScamAdviser paints a devastating picture of the worldwide onslaught of scams, highlighting an urgent need for vigilance and preventative action. The Global State of Scams 2023 Report, which involved 49,459 people from 43 countries, indicates that a substantial 25.5% of world citizens lost money to scams or identity theft in the last 12 months, culminating in financial losses estimated at $1.026 trillion (€974 billion).

    GASA’s 2023 report, which was supported by academics from the University of Twente, found 69% of those surveyed believe they can identify scams, 59% encountered scams monthly and a remarkable 78% faced scams annually. Phone calls and SMS messages are scammers’ primary avenues, reported by 61% and 58% of survey respondents respectively, with shopping scams, identity theft, and investment fraud topping the list.

    Attractive offers are a universal scammer strategy. Developing countries see these as the main enticement, but even in developed nations, many fail to spot the scams. Concerningly, repeat victimization is frequent, with individuals globally targeted on average 1.5 times a year. Kenya and Nigeria report even higher rates.

    Reporting hesitancy is pervasive, with 59% avoiding it due to doubts about outcomes and 24% feeling it’s pointless. Perceptions of authority effectiveness vary; while some nations commend their governments, others like Brazil and Thailand voice concerns.

    Financially, scams have siphoned off $1.026 trillion globally, equating to 1.05% of the global GDP. Countries such as Kenya, Vietnam, Brazil, and Thailand experience disproportionately high losses. However, the impact isn’t just monetary: 60% of scam victims report significant emotional distress.

    The timely release of the report coincides with the imminent Global Anti-Scam Summit (GASS) on October 18–19. This pivotal gathering sees over 250 international delegates converge on Lisbon from all corners of the globe, joined by over 1,000 online participants. The goal of GASS is to bring governments, consumer & financial authorities, law enforcement, brand protection agencies, and (cybersecurity) companies together to share knowledge and define joint actions to protect consumers from getting scammed. As deliberations define strategies and countermeasures, a crucial opportunity for collective action and the Global State of Scams will undoubtedly be at the heart of many discussions, fostering a collaborative approach to address and curb the spread.

    “The escalating crisis of deception in the digital era has transitioned scams from sporadic events to a full-blown international emergency. With entire nations on the brink of being overwhelmed, particularly developing nations, the mandate of the Global Anti-Scam Summit is clear: unite, strategize, and counteract. Should we falter in our concerted efforts, we risk leaving countries and their inhabitants tragically exposed to this menacing deluge,” warned Prof. Jorij Abraham, Managing Director, GASA.

    For further details, please refer to the full Global State of Scams 2023 report at https://www.gasa.org/resources.

    Source: Global Anti-Scam Alliance (GASA)

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  • The fate of this consumer watchdog is in the hands of the Supreme Court | CNN Business

    The fate of this consumer watchdog is in the hands of the Supreme Court | CNN Business


    New York
    CNN
     — 

    On Tuesday, the Supreme Court began hearing oral arguments in a case that will determine the fate of the Consumer Financial Protection Bureau.

    The case was brought on by the Community Financial Services Association of America, a trade group representing payday lenders.

    The group scored a victory last year in a case it brought before the US Court of Appeals for the Fifth Circuit, in New Orleans. The three-judge panel ruled the CFPB’s funding violates the Constitution’s Appropriations Clause and separation of powers. The Supreme Court will have the final say on that, however.

    The consumer watchdog agency was created after the 2008 financial crisis by way of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The agency was the brainchild of Democratic Sen. Elizabeth Warren. She began advocating for it in 2007 when she was a Harvard Law School professor.

    The broad purpose of the CFPB is to protect consumers from financial abuses and to serve as the central agency for consumer financial protection authorities.

    Prior to the CFPB’s formation, “[c]onsumer financial protection had not been the primary focus of any federal agency, and no agency had effective tools to set the rules for and oversee the whole market,” the agency said on its site.

    The CFPB is funded by the Federal Reserve in an effort to keep the agency independent from political pressure. It also means that the agency doesn’t depend on Congressional appropriations funds.

    While there are critics of the agency’s current structure and funding, it has saved consumers money, made it easier for them to seek redress and to get better clarity and more tailored responses from companies when they have a problem with their accounts, loans or credit reports.

    “Today virtually all financial transactions for residential real estate in the United States depend upon compliance with the CFPB’s rules, and consumers rely on the rights and protections provided by those rules,” the Mortgage Bankers Association, the National Association of Homebuilders and the National Association of Realtors said in an amicus brief to the Supreme Court.

    For instance, the CFPB recently ordered Bank of America to pay $100 million to customers and $90 million in penalties saying that the nation’s second-largest bank harmed consumers by double-dipping on fees, withholding credit card rewards and opening fake accounts.

    The CFPB also took action against Wells Fargo after the agency found the bank had been engaging in multiple abusive and unlawful consumer practices across several financial products between 2011 and 2022 — from auto loans to mortgage loans to bank accounts.

    The agency ordered the bank to pay a $1.7 billion civil penalty in addition to more than $2 billion to compensate consumers.

    The Supreme Court’s decision, which likely won’t be announced until the spring of 2024, has far-reaching implications.

    If the Supreme Court finds the CFPB’s funding structure unconstitutional, it could shutter the agency and invalidate all of its prior rulings.

    “Without those rules substantial uncertainty would arise as to how to undertake mortgage transactions in accordance with federal law,” the associations said in their joint brief. “The housing market could descend into chaos, to the detriment of all mortgage borrowers,” they added.

    It could also call into question the constitutionality of other government agencies like the Federal Reserve and the Federal Deposit Insurance Corporation that also aren’t funded by Congressional appropriations.

    “We are confident in the constitutionality of the statute that created the CFPB within the Federal Reserve System and provides its funding,” Sam Gilford, a spokesperson for the CFPB, told CNN in a statement. “We will continue to carry out the vital work Congress has charged us to perform.”

    There’s also a way for the Supreme Court to change the CFPB’s funding structure in a way that wouldn’t invalidate prior rulings, said Joseph Lynyak III, a partner at the law firm of Dorsey & Whitney and a regulatory reform expert.

    “This result would be far more probable rather than voiding the last decade of the CFPB’s activity,” he added.

    From listening to the case on Tuesday, though, Lynyak believes the Supreme Court will rule that the CFPB’s funding structure is constitutional.

    “As we have argued from the outset, the CFPB’s unique funding mechanism lacks any contemporary or historical precedent,” said Noel Francisco, a lawyer arguing on behalf of those challenging the constitutionality of the CFPB’s funding structure.

    He added that it “improperly shields the agency from congressional oversight and accountability, and unconstitutionally strips Congress of its power of the purse under the Appropriations Clause of the Constitution.

    But both Republican and Democratic-appointed justices told Francisco on Tuesday they could not understand the crux of his argument.

    “I’m at a total loss,” said Justice Sonia Sotomayor. Echoing her remarks, Justice Amy Coney Barrett said, “we’re all struggling to figure out what’s the standard that you would use.”

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  • Governments, Consumer Protection Organizations & Tech Giants to Convene in Lisbon to Strategize Anti-Scam Response

    Governments, Consumer Protection Organizations & Tech Giants to Convene in Lisbon to Strategize Anti-Scam Response

    The 4th Global Anti-Scam Summit (GASS) will convene in Portugal, this October 18-19, gathering the world’s leading experts to strategize against the rising tide of online scams. GASS is an established forum for government, consumer protection, law enforcement, brand protection, and cybersecurity professionals to unite their skills against scams. This year, the assembling delegates seek to advance the “10 Recommendations to Turn the Tide on Scams” formed at the 2022 summit.

    Over 250 international attendees will congregate in the Portuguese capital, with around 1,000 remote participants expected from across the globe. Keynote speakers include representatives from the United Nations and leading tech companies such as Amazon, Meta/Facebook, and Google. Officials from various law enforcement and government agencies from Asia, Australia, Europe, the United Kingdom and the Americas will also attend alongside experts from national cybersecurity hubs, academia, and the blockchain realm.

    Rallying Cry to “Fortify Consumer Safety” with “Access to the Right Resources”

    Participants at the summit, organized by the Global Anti-Scam Alliance (GASA) with co-hosts Euroconsumers and Deco Proteste, will share insights, experiences, and best practices. Ultimately, this will pave the way for the creation of actionable plans that address current and emerging scam trends. Over the two days, keynote speakers and interactive panels will share invaluable perspectives on fraud prevention, cybersecurity, regulatory advancements, and public awareness campaigns. GASA will also release the results of its annual study of scamming trends across the globe.

    “Scammers are harnessing advanced technologies like AI, making scams harder to identify,” explains Jorij Abraham, Managing Director, GASA. “With the 2023 Global State of Scams Report, we’re lifting the veil on this global crisis. While the report is a highlight, our summit’s real mission is to establish a worldwide defense against scamming. This gathering of minds has the potential to fortify consumer safety worldwide by uniting expertise from influential global organizations and ensuring those who want to enact positive change get access to the right resources.”

    Interested parties are encouraged to act quickly to secure their place at the forefront of scam prevention, by joining the GASS in Lisbon or participating online. The full event schedule and tickets are available at https://www.gasa.org/global-anti-scam-summit-2023.

    About the Global Anti-Scam Alliance (GASA)

    GASA’s driving mission is to shield consumers globally from scams. In just one year, consumers lost nearly $55 billion due to scams, with over 300 million cases reported globally; GASA endeavors to create a world free from the financial and emotional trauma of scams.

    With many cybercriminals operating freely in the digital space, GASA rallies governments, law enforcement, consumer protection, financial authorities & providers, brand protection agencies, social media, ISPs, and cybersecurity companies to share knowledge and define joint actions. It’s dedicated to fostering collaboration and driving global initiatives that curtail the proliferation of scams.

    Source: Global Anti-Scam Alliance (GASA)

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  • Major Supreme Court cases to watch in the new term | CNN Politics

    Major Supreme Court cases to watch in the new term | CNN Politics



    CNN
     — 

    Looking at an upcoming Supreme Court term from the vantage point of the first Monday in October rarely tells the full story of what lies ahead, but the docket already includes major cases concerning the intersection between the First Amendment and social media, gun rights, racial gerrymandering and the power of the executive branch when it comes to regulation.

    The court will still determine if it will hear oral arguments on issues such as medication abortion and transgender rights, not to mention the possibility of a flurry of emergency requests related to the 2024 election.

    Here are some of the key cases on which the court will hear oral arguments this term:

    After the Supreme Court issued a major decision last year expanding gun rights nationwide, lower courts began reconsidering hundreds of firearms regulations across the country under the new standard crafted by Justice Clarence Thomas that a gun law passes legal muster only if it is rooted in history and tradition.

    On the heels of that decision, a federal appeals court invalidated a federal law that bars an individual who is subject to a domestic violence restraining order from possessing a firearm. That law, the 5th US Circuit Court of Appeals ruled, “is an outlier that our ancestors would never have accepted.”

    The Biden administration has appealed, saying the ruling “threatens grave harms for victims of domestic violence.”

    In 2019, nearly two-thirds of domestic homicides in the United States were committed with a gun, according to Everytown for Gun Safety.

    Lawyers for Zackey Rahimi, a man who was prosecuted under the law in 2020 after a violent altercation with his girlfriend, have urged the justices to let the lower court opinion stand, arguing in part that there is no law from the founding era comparable to the statute at hand.

    Racial gerrymandering: South Carolina congressional maps

    Justices will consider a congressional redistricting plan drawn by South Carolina’s Republican-controlled legislature in the wake of the 2020 census. Critics say it was designed with discriminatory purpose and amounts to an illegal racial gerrymander.

    The case focuses the court’s attention once again on the issue of race and map drawing and comes after the court ordered Alabama to redraw the state’s congressional map last term to account for the fact that the state is 27% black. The decision, penned by Chief Justice John Roberts, surprised liberals who feared the court was going to make it harder for minorities to challenge maps under Section 2 of the historic Voting Rights Act.

    In the latest case, the South Carolina State Conference of the NAACP and a Black voter named Taiwan Scott, are challenging the state’s congressional District 1 that is located along the southeastern coast and is anchored in Charleston County. Although the district consistently elected Republicans from 1980 to 2016, in 2018 a Democrat was elected in a political upset, though a Republican recaptured the seat in 2020.

    The person who devised the map has testified that he was instructed to make the district “more Republican leaning,” but that he did not consider race. He did, however, acknowledge that he examined racial data after drafting each version and that the Black voting age population of the district was likely viewed during the drafting process.

    A three-judge district court panel struck down the plan in January, saying that race had been the predominant motivating factor. “To achieve a target of 17% African American population,” the court said, “Charleston County was racially gerrymandered and over 30,000 African Americans were removed from their home district.”

    Expert explains why Justice Thomas’ gifts from wealthy friends are problematic

    In the latest attack against the so-called administrative state, the justices are considering whether to overturn decades old precedent to scale back the power of federal agencies, impacting how the government tackles issues such as climate change, immigration, labor conditions and public health.

    At issue is an appeal from herring fishermen in the Atlantic who say the National Marine Fisheries Service does not have the authority to require them to pay the salaries of government monitors who ride aboard the fishing vessels.

    In agreeing to hear the case, the justices signaled they will reconsider a 1984 decision – Chevron v. Natural Resources Defense Council – that sets forward factors to determine when courts should defer to a government agency’s interpretation of the law. First, they examine a statute to see if Congress’ intent is clear. It if is – then the matter is settled. But if there is ambiguity – the court defers to the agency’s expertise.

    Solicitor General Elizabeth Prelogar told the justices that the agency was acting within the scope of its authority under the Magnuson-Stevens Fishery Conservation and Management Act and said the fishermen are not responsible for all the costs. The regulation was put in place to combat overfishing of the fisheries off the coasts of the US.

    Representing the fishermen, former Solicitor General Paul Clement argues that the government exceeded its authority and needs direct and clear congressional authorization to make such a demand. “The ‘net effect’ of Chevron,” Clement said, is that it “incentives a dynamic where Congress does far less than the Framers anticipated, and the executive branch is left to do far more by deciding controversial issues via regulatory fiat”

    For the second time in recent years, the court is taking aim at a watchdog agency created to combat unfair and deceptive practices against consumers, in a case that could deal a fatal blow to the future of the agency and send reverberations throughout the financial services industry.

    At the center of the case at hand is the Consumer Financial Protection Bureau – an independent agency set up in the wake of the 2008 financial meltdown that works to monitor the practices of lenders, debt collectors and credit rating agencies.

    Congress chose to fund the CFPB from outside the annual appropriations process to ensure its independence. As such, the agency receives its funding each year from the earnings of the Federal Reserve System. But the conservative 5th US Circuit Court of Appeals held last year that the funding scheme violates the Appropriations Clause of the Constitution, that, the court said “ensures Congress’ “exclusive power over the federal purse.”

    According to the CFPB, the agency has obtained more than $18.9 billion in ordered relief, including restitution and canceled debts, for more than 195 million consumers, and more than $4.1 billion in penalties, in actions brought by the agency against financial institutions and individuals that have broken federal consumer financial protection laws.

    A handful of other agencies have similar funding schemes including the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.

    Three years ago, the Supreme Court limited the independence of the CFPB by invalidating its leadership structure. A 5-4 court held that the structure violated the separation of powers because the president was restricted from removing the director, even if they had policy disagreements.

    Agency regulatory authority: Securities and Exchange Commission

    The justices are looking at the in-house enforcement proceedings of the US Securities and Exchange Commission in another case that invites the conservative majority to pare back the regulatory authority of federal agencies.

    The court’s decision could impact whether the SEC and other agencies can conduct enforcement proceedings in-house, using administrative courts staffed with agency employees, or whether such actions must be brought in federal court.

    On one side are critics of such agency courts who argue that they allow federal employees to serve as prosecutors, judges and jury, issuing rulings that could particularly hurt small businesses. On the other side are those who point out that several agencies, including the Social Security Administration, have such internal proceedings because the topics are often complex and the agency has more expertise than a federal judge.

    The case arose in 2013 after the SEC brought an enforcement action against George Jarkesy, who had established two hedge funds with his advisory firm, Patriot28, for securities fraud.

    The 5th Circuit ruled that the SEC’s proceedings deprive individuals of their Seventh Amendment right to a civil jury. In addition, the court said that Congress had improperly delegated legislative power to the SEC, which gave the agency unconstrained authority at times to choose the in-house administrative proceeding rather than filing suit in district court.

    In December, the court will examine the historic multibillion-dollar Purdue Pharma bankruptcy settlement with several states that would ultimately offer the Sackler family broad protection from OxyContin-related civil claims.

    Until recently, Purdue was controlled by the Sackler family, who withdrew billions of dollars from the company before it filed for bankruptcy. The family has now agreed to contribute up to $6 billion to Purdue’s reorganization fund on the condition that the Sacklers receive a release from civil liability.

    The Biden administration, representing the US Trustee, the executive branch agency that monitors the administration of bankruptcy cases, has called the plan “exceptional and unprecedented” in court papers, noting that lower courts have divided on when parties can be released from liability for actions that caused societal harm.

    “The plan’s release ‘absolutely, unconditionally, irrevocably, fully, finally, forever and permanently releases’ the Sacklers from every conceivable type of opioid-related civil claim – even claims based on fraud and other forms of willful misconduct that could not be discharged if the Sacklers filed for bankruptcy in their individual capacities,” Prelogar argued in court papers.

    For the second year running, the justices will leap into the online moderation debate and decide whether states can essentially control how social media companies operate.

    If upheld, laws from Florida and Texas could open the door to more state legislation requiring platforms such as Facebook, YouTube and TikTok to treat content in specific ways within certain jurisdictions – and potentially expose the companies to more content moderation lawsuits.

    It could also make it harder for platforms to remove what they determine is misinformation, hate speech or other offensive material.

    “These cases could completely reshape the digital public sphere. The question of what limits the First Amendment imposes on legislatures’ ability to regulate social media is immensely important – for speech, and for democracy as well,” said Jameel Jaffer, the executive director of Columbia University’s Knight First Amendment Institute, in a statement.

    “It’s difficult to think of any other recent First Amendment cases in which the stakes were so high,” Jaffer added.

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  • Dozens of states sue Instagram-parent Meta over ‘addictive’ features and youth mental health harms | CNN Business

    Dozens of states sue Instagram-parent Meta over ‘addictive’ features and youth mental health harms | CNN Business



    CNN
     — 

    Dozens of states sued Instagram-parent Meta on Tuesday, accusing the social media giant of harming young users’ mental health through allegedly addictive features such as infinite news feeds and frequent notifications that demand users’ constant attention.

    In a federal lawsuit filed in California by 33 attorneys general, the states allege that Meta’s products have harmed minors and contributed to a mental health crisis in the United States.

    “Meta has profited from children’s pain by intentionally designing its platforms with manipulative features that make children addicted to their platforms while lowering their self-esteem,” said Letitia James, the attorney general for New York, one of the states involved in the federal suit. “Social media companies, including Meta, have contributed to a national youth mental health crisis and they must be held accountable.”

    Eight additional attorneys general sued Meta on Tuesday in various state courts around the country, making similar claims as the massive multi-state federal lawsuit.

    And the state of Florida sued Meta in its own separate federal lawsuit, alleging that Meta misled users about potential health risks of its products.

    Tuesday’s multistate federal suit — filed in the US District Court for the Northern District of California — accuses Meta of violating a range of state-based consumer protection statutes, as well as a federal children’s privacy law known as COPPA that prohibits companies from collecting the personal information of children under 13 without a parent’s consent.

    “Meta’s design choices and practices take advantage of and contribute to young users’ susceptibility to addiction,” the complaint reads. “They exploit psychological vulnerabilities of young users through the false promise that meaningful social connection lies in the next story, image, or video and that ignoring the next piece of social content could lead to social isolation.”

    The federal complaint calls for court orders prohibiting Meta from violating the law and, in the case of many states, unspecified financial penalties.

    “We share the attorneys generals’ commitment to providing teens with safe, positive experiences online, and have already introduced over 30 tools to support teens and their families,” Meta said in a statement. “We’re disappointed that instead of working productively with companies across the industry to create clear, age-appropriate standards for the many apps teens use, the attorneys general have chosen this path.”

    The wave of lawsuits is the result of a bipartisan, multistate investigation dating back to 2021, Colorado Attorney General Phil Weiser said at a press conference Tuesday, after Facebook whistleblower Frances Haugen came forward with tens of thousands of internal company documents that she said showed how the company knew its products could have negative impacts on young people’s mental health.

    “We know that there were decisions made, a series of decisions to make the product more and more addictive,” Tennessee Attorney General Jonathan Skrmetti told reporters. “And what we want is for the company to undo that, to make sure that they are not exploiting these vulnerabilities in children, that they are not doing all the little, sophisticated, tricky things that we might not pick up on that drive engagement higher and higher and higher that allowed them to keep taking more and more time and data from our young people.”

    Tuesday’s multipronged legal assault also marks the newest attempt by states to rein in large tech platforms over fears that social media companies are fueling a spike in youth depression and suicidal ideation.

    “There’s a mountain of growing evidence that social media has a negative impact on our children,” said California Attorney General Rob Bonta, “evidence that more time on social media tends to be correlated with depression with anxiety, body image issues, susceptibility to addiction and interference with daily life, including learning.”

    The suits follow a raft of legislation in states ranging from Arkansas to Louisiana that clamp down on social media by establishing new requirements for online platforms that wish to serve teens and children, such as mandating that they obtain a parent’s consent before creating an account for a minor, or that they verify users’ ages.

    In some cases, the tech industry has challenged those laws in court — for example, by claiming that Arkansas’ social media law violates residents’ First Amendment rights to access information.

    New Hampshire Attorney General John Formella said the states expect Meta to mount a similar defense but that the company will not succeed because the multistate suit targets Meta’s conduct, not speech.

    Formella added that in addition to consumer protection claims, New Hampshire is also bringing negligence and product liability claims as part of the federal suit.

    The complaints filed in state courts allege violations of various state-specific laws. For example, the complaint from District of Columbia Attorney General Brian Schwalb accuses Meta of violating the district’s consumer protection statute by misleading the public about the safety of company platforms.

    Tuesday’s lawsuits come days before a federal judge in California is set to consider a slew of similar allegations against the wider tech industry. In a hearing Friday morning, District Judge Yvonne Gonzalez Rogers is expected to hear arguments by Google, Meta, Snap and TikTok urging her to dismiss nearly 200 complaints involving private plaintiffs that have accused the companies of addicting or harming their users.

    It is possible that Tuesday’s multistate suit could be merged with the consumers’ cases, said Weiser, adding that the main difference of the multistate case is that it could lead to nationwide relief.

    “The coordination that we bring across the AG community, we believe is invaluable to this,” Weiser said.

    Participating in Tuesday’s multistate federal suit are California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Virginia, Washington, West Virginia and Wisconsin.

    The additional suits filed in state courts were brought by the District of Columbia, Massachusetts, Mississippi, New Hampshire, Oklahoma, Tennessee, Utah and Vermont.

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  • Easily stolen Hyundais and Kias should be recalled, more than a dozen attorneys general say | CNN Business

    Easily stolen Hyundais and Kias should be recalled, more than a dozen attorneys general say | CNN Business



    CNN
     — 

    A coalition of attorneys general for 17 states and the District of Columbia on Thursday called for a federal recall of Hyundai and Kia vehicles that they say are unsafe and too easy to steal.

    The attorneys general called for the recall “following the companies’ continued failure to take adequate steps to address the alarming rate of theft of their vehicles,” a release from California Attorney General Rob Bonta, who is leading the coalition, said.

    In a letter to the National Highway Traffic Safety Administration, the coalition requested a recall of “unsafe” Hyundai and Kia vehicles manufactured between 2011 and 2022 “whose easily bypassed ignition switches and lack of engine immobilizers make them particularly vulnerable to theft.”

    The vehicles in question, 2015-2019 Hyundai and Kia models, such as the Hyundai Santa Fe and Tucson and the Kia Forte and Sportage, when equipped with turn-key ignitions — as opposed to cars that only require a button to be pushed to start — are roughly twice as likely to be stolen as other vehicles of a similar age. Many of these vehicles lack some of the basic auto theft prevention technology included in most other vehicles, even in those years, according to the Highway Loss Data Institute, an industry group that tracks insurance statistics.

    These models became the subject of a viral social media trend in which thieves filmed themselves and others stealing Hyundai and Kia vehicles and taking them for a drive. In some parts of the country, the problem became so bad that some insurance companies refused to write new policies on these Hyundai and Kia models in places where the thefts had become extremely common.

    The models in question don’t have electronic immobilizers, which rely on a computer chip in the car and another in the key that communicate to confirm that the key belongs with that vehicle. Without the right key, an immobilizer should do just that — stop the car from moving.

    “Hyundai and Kia announced that they will initiate voluntary service campaigns to offer software updates for certain vehicles with this starting-system vulnerability. Unfortunately, however, this is an insufficient response to the problem and does not adequately remedy the safety concerns facing vehicle owners and the public,” the letter to the NHSTA said.

    Hyundai and Kia did not immediately respond to CNN’s request comment.

    The two South Korean automakers have created a software patch to fix the problem, the automakers have said. Hyundai and Kia operate as separate companies in the United States, but Hyundai Motor Group owns a large stake in Kia, and various Hyundai and Kia models share much of their engineering.

    The patch will be installed free of charge on models that need it, with software that requires an actual key in the ignition to turn the vehicle on. The software will also block the car from being started after the doors have been locked using the key fob remote control. The vehicle will need to be unlocked before it can be started.

    The software also extends the length of the alarm sound from 30 seconds to a full minute. Hyundai dealers will also affix window stickers stating that the vehicle has anti-theft software installed.

    “The bottom line is, Kia’s and Hyundai’s failure to install standard safety features on many of their vehicles have put vehicle owners and the public at risk,” Attorney General Bonta said. “We now ask the federal government to require these companies to correct their mistake through a nationwide recall and help us in our continued efforts to protect the public from these unsafe vehicles.”

    Recalls are ordered by NHTSA or, much more commonly, undertaken by automakers to correct safety-related defects. The attorneys general’s letter asserts that the ease of theft of these Hyundai and Kia vehicles constitutes a safety hazard and the vehicles fail to meet federal standards for theft prevention.

    “Moreover, thieves have driven these vehicles recklessly, speeding and performing wild stunts and causing numerous crashes, at least eight deaths, and significant injuries,” the letter said.

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  • Tesla recalls almost 3,500 Model Y cars for loose bolts | CNN Business

    Tesla recalls almost 3,500 Model Y cars for loose bolts | CNN Business


    New York
    CNN
     — 

    Tesla is recalling 3,470 2022-2023 Model Y cars due to bolts in the second-row seat back frames not being secured properly.

    An estimated 4% of cars are affected, a recall report submitted in late February said.

    The loose bolts could cause the seat belts to not work properly in a crash, “which may increase the risk of an injury for occupants seated in affected second-row seating positions,” the National Highway Traffic Administration said.

    On Model Y vehicles, the second-row driver- and passenger-side seat back frames are secured with four bolts per seat back. But during production for certain Model Y cars, one or more of the bolts securing the seat back frames to the lower seat frame “may not have been torqued to specifications.”

    Owners can tell if their car is affected by seeing if their second-row seat back frame folds improperly or if it’s loose and rattles when driving.

    Tesla found five warranty claims regarding the bolts since last December, but is not aware of any injuries or deaths due to it.

    A driver in Fremont, California, found a faulty seat back bolt last December, triggering a Tesla investigation and risk assessment which ended February 17. A recall determination was made on the same day.

    Tesla will inspect the bolts and tighten them if necessary for free of charge, and owner notification letters will be mailed.

    The recall was filed the same month Tesla recalled all 363,000 US vehicles with the “Full Self Driving” driver assist software due to safety risks, a significantly larger recall, which was a blow to the automaker’s business model.

    The NHTSA said, based on its analysis, Tesla’s “Full Self Driving” feature “led to an unreasonable risk to motor vehicle safety based on insufficient adherence to traffic safety laws.” And it warned the feature could violate traffic laws at some intersections “before some drivers may intervene.”

    “The FSD Beta system may allow the vehicle to act unsafe around intersections, such as traveling straight through an intersection while in a turn-only lane, entering a stop sign-controlled intersection without coming to a complete stop, or proceeding into an intersection during a steady yellow traffic signal without due caution,” said the recall notice, posted on NHTSA’s website.

    Tesla will attempt to fix the feature, which costs $15,000, through an over-the-air software update, the notice added.

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  • CFPB: What it does and why its future is in question | CNN Business

    CFPB: What it does and why its future is in question | CNN Business


    New York
    CNN
     — 

    The US Supreme Court decided this week to hear a case that will consider the constitutionality of funding for the Consumer Financial Protection Bureau and, in doing so, test the constraints of US regulators’ power. The case would be heard in the fall, with a decision likely by summer 2024.

    But what is the CFPB? How does its work affect your wallet? And why is its future potentially at risk?

    The agency was created after the 2008 financial meltdown, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. That law was passed in the wake of the 2007 subprime mortgage crisis and the Great Recession that followed.

    The broad purpose of the CFPB is to protect consumers from financial abuses and to serve as the central agency for consumer financial protection authorities.

    Prior to its creation, as the agency notes on its site, “[c]onsumer financial protection had not been the primary focus of any federal agency, and no agency had effective tools to set the rules for and oversee the whole market.”

    The CFPB has regulatory authority over providers of many types of financial products and services, including credit cards, banking accounts, loan servicing, credit reporting and consumer debt collection.

    It is charged with implementing and enforcing consumer protection laws, making rules and issuing guidance for consumer financial institutions. And it is the place consumers can go to lodge complaints about financial products and services.

    Importantly, Dodd-Frank also gave the agency new authority to determine whether any given consumer financial product or service is unfair, deceptive or abusive and therefore unlawful.

    While there are critics of the agency’s current structure and funding, it has saved consumers money, made it easier for them to seek redress and to get better clarity and more tailored responses from companies when they have a problem with their accounts, loans or credit reports.

    “It has completely changed the consumer financial marketplace. Overall it has had a tremendous impact on making it more fair and transparent,” said Lauren Saunders, associate director of the National Consumer Law Center.

    For instance, the CFPB has taken action against bank overdraft policies. “Arguably, the focus on overdraft practices has led some banks to eliminate or reduce their overdraft fees,” said Christine Hines, legislative director of the National Association of Consumer Advocates.

    And it has gone after institutions for saddling consumers with pointless products, excessive fees and punitive terms.

    Both Hines and Saunders made a special note of CFPB’s actions against Wells Fargo, after the agency found the bank had been engaging in multiple abusive and unlawful consumer practices across several financial products between 2011 and 2022 — from auto loans to mortgage loans to bank accounts.

    Last month, the agency required the bank to pay more than $2 billion to customers who were harmed by such practices, plus a $1.7 billion fine that will go into a relief fund for victims.

    “More than 16 million accounts at Wells Fargo were subject to their illegal practices, including misapplied payments, wrongful foreclosures, and incorrect fees and interest charges,” the agency said in a blog post.

    In the area of mortgages, “CFPB has written rules to implement new protections so that mortgage lenders don’t make loans with tricks and traps that lead people to lose their homes,” Saunders said.

    It also has created other safeguards, including rules on how service providers should communicate with borrowers who want to find alternatives to foreclosure, Hines noted.

    Currently, the agency is in the midst of an effort to curb excessive or “junk” fees on a range of consumer financial products, such as credit card late fees.

    Critics of the CFPB have been trying for years to limit its power and independence, attacking the way the agency is structured and funded. Like federal banking regulators, its funding is not determined by lawmakers in Congress as part of the annual appropriations process. Rather, it gets its money from the Federal Reserve System’s earnings.

    “This nontraditional funding source limits congressional oversight of the agency and is the subject of legal challenges,” according to the Congressional Research Service.

    The latest challenge — arising from a federal appeals court ruling that CFPB’s funding violates the Constitution’s Appropriations Clause and separation of powers — is what the Supreme Court will take up in its October term.

    While it’s impossible to predict how the justices will rule, should they decide to uphold the appeals court ruling, that will put in doubt how the agency will be funded going forward, and whether it can continue to function effectively.

    It’s also unclear whether the agency’s actions and rule-making over the past 11 years would be invalidated, nor what impact it would have on banks and other financial institutions that have set up systems to be in compliance with CFPB rules and safe harbors.

    “The agency would be unable to do anything if the funding is invalidated. And prior rules could be challenged as the agency did not have a legal funding source that it could use to write those rules,” Cowen Washington Research Group analyst Jaret Seiberg said in a note to clients.

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  • Nissan recalling more than 700,000 SUVs that can accidentally shut off while driving | CNN Business

    Nissan recalling more than 700,000 SUVs that can accidentally shut off while driving | CNN Business


    New York
    CNN
     — 

    Nissan is recalling more than 700,000 Rogue and Rogue Sport compact SUVs because they can be shut off accidentally while driving.

    Some model year 2016 through 2020 Nissan Rogue and 2017 through 2022 Rogue Sports, have jackknife-style keys – the type in which the metal blade of the key flips out from within a plastic key fob. An internal joint in the key can weaken over time, allowing the key to accidentally fold while in use. If this happens while the key is in the ignition, then the vehicle can be accidentally turned off if they is key is touched or bumped.

    The recall only involves the base Rogue S and smaller Rogue Sport S models. Nissan hasn’t yet worked out a solution to the problem, according to documents the automaker filed with the National Highway Traffic Safety Administration. Once a solution is available, according to NHTSA, it will be provided by Nissan dealers free of charge.

    In the meantime, owners of vehicles involved in the recall are advised not to attach anything to the keys that might pull it down and, also, to insert the key into the ignition in a direction that allows the key to fold fold only upward, not down.

    Nissan will begin alerting owners about the recall later in March. Owners with questions about recall can also call NHTSA’s Vehicle Safety Hotline at 888-327-4236.

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  • More than 400 products including breakfast sandwiches and fruit cups recalled due to possible Listeria contamination | CNN

    More than 400 products including breakfast sandwiches and fruit cups recalled due to possible Listeria contamination | CNN



    CNN
     — 

    More than 400 food products sold under dozens of brand names were recalled due to possible Listeria contamination, the US Food and Drug Administration announced Friday.

    The recall by Fresh Ideation Food Group LLC includes ready-to-eat sandwiches, salads, yogurts, wraps and other products sold in nine states and Washington, DC, from January 24 through January 30.

    The Baltimore company said Friday that no illnesses have been reported so far.

    “The recall was initiated after the company’s environmental samples tested positive for Listeria monocytogenes,” Fresh Ideation Food Group said in its recall announcement.

    Eating Listeria-contaminated food can cause a serious infection that can lead to symptoms including fever, headache, diarrhea and vomiting, according to the US Centers for Disease Control and Prevention.

    It’s most likely to sicken pregnant women and their newborns, adults aged 65 or older, and people with weakened immune systems, according to the CDC. “An estimated 1,600 people get listeriosis each year, and about 260 die,” the agency says.

    The recalled foods were distributed in Connecticut, the District of Columbia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, South Carolina and Virginia, according to the FDA.

    The products – which included items like bacon, egg and cheddar muffins, breakfast croissants, tuna and chicken sandwiches, and fruit cups – were sold in stores, vending machines and by transportation providers, according to the company.

    “All recalled products have a Fresh Creative Cuisine label and/or identifier on the bottom of the label with the Fresh Creative Cuisine name and a fresh through or sell through date ranging from January 31, 2023 through February 6, 2023,” the company said.

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  • Fisher-Price reminds consumers of 2019 recall of Rock ‘n Play Sleepers after more deaths | CNN Business

    Fisher-Price reminds consumers of 2019 recall of Rock ‘n Play Sleepers after more deaths | CNN Business


    New York
    CNN
     — 

    Fisher-Price has reannounced its 2019 recall of the Rock ‘n Play Sleepers on Monday after at least eight infant deaths occurred after the initial recall, according to the Consumer Product Safety Commission.

    “On April 12, 2019, at the time the original recall was announced, over 30 fatalities were reported to have occurred in the Rock ‘n Play Sleepers after the infants rolled from their back to their stomach or side while unrestrained, or under other circumstances,” the commission said in a statement. “Since the recall, approximately 70 additional fatalities have been reported, which includes at least 8 fatalities that were reported to have occurred after the initial recall announcement.”

    “Approximately 100 deaths have reportedly occurred while infants were in the products,” the CPSC indicated. “Fisher-Price notes that in some of the reports, it has been unable to confirm the circumstances of the incidents or that the product was a Rock ‘n Play Sleeper.”

    The CPSC indicated that “consumers should stop using the Rock ‘n Play immediately and contact Fisher-Price for a refund or voucher. It is illegal to sell or distribute the recalled sleepers.”

    The initial 2019 recall affected about 4.7 million sleepers. The sleepers were sold at stores such as Walmart, Target and Amazon from September 2009 to April 2019.

    At the time of the initial recall, Chuck Scothon, general manager at Fisher-Price, said the company considered the recall the “best course of action” and would continue to stand by the safety of all its products.

    “With these actions, we want parents around the world to know that safety will always be a cornerstone of our mission, that we are committed to these values, and will continue to prioritize the health, safety and well-being of the infants and preschoolers who utilize our products,” Scothon said during the initial recall.

    – CNN’s Nicole Chavez contributed to this report

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  • Ford recalls over half a million SUVs after 20 fires break out | CNN Business

    Ford recalls over half a million SUVs after 20 fires break out | CNN Business



    CNN
     — 

    Ford has announced another SUV recall, this time impacting about 520,000 Ford Escape and Bronco Sport compacts in the United States. Potential cracks in the vehicles’ fuel line could cause fires to break out under the hood of some cars, according to Ford and the National Highway Traffic Safety Administration.

    A total of 634,000 of the SUVs are being recalled for the problem worldwide, the company said.

    Specifically, fuel injector can crack in some Escapes from model year 2022 through 2023 and 2021 through 2023 Bronco Sports that are equipped with the 3-cylinder 1.5-liter turbrocharged engine. This could allow fuel, or fuel vapor, to leak over hot parts of the vehicle and start a fire.

    Ford is not suggesting that owners stop driving their vehicle. The company said that it expects the problem to occur in only a very small percentage of vehicles. The company said it is aware of 20 fires that seem to be related to this new issue.

    Some of these same SUVs were involved in an earlier recall that also involved a possibility of fire. That recall, announced in March, involved a potential leak that could allow oil to get to places in the car where it might catch fire.

    The majority of vehicles involved in that earlier recall have had the needed work to fix that issue, according to the company. That doesn’t mean they’re protected from the issue in this latest recall, however.

    Under the new recall, Ford dealers will install a software update that will detect a possibly cracked injector. If an injector crack is detected, a warning light will show in the vehicle’s dashboard and engine power will be reduced. This will allow the driver to find a safe place to pull over, stop and call for service, Ford said.

    Ford dealers will also install a tube that will drain leaked fuel down onto the ground and away from hot surfaces in the vehicle. The needed work will be performed at no cost to the SUVs’ owners.

    Ford said it is arranging for dealers to offer free pick up and drop off of the vehicles for the needed repair work. Owners can also bring their vehicles in to dealerships themselves.

    The Ford Bronco Sport shares much of its engineering with the Ford Escape. It is unrelated to the larger Ford Bronco, a more truck-like SUV that is a competitor to the Jeep Wrangler.

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  • Parents beware: Dangerous, recalled toys are still on sale | CNN Business

    Parents beware: Dangerous, recalled toys are still on sale | CNN Business


    New York
    CNNBusiness
     — 

    Parents shopping for their kids this holiday season need to be alert and carefully examine toys before they buy them because recalled and counterfeit toys are being sold online, a consumer report said Thursday.

    The 37th annual “Trouble in Toyland” toy safety report by Washington-based US Public Interest Research Group (PIRG) warned parents to be especially mindful of this hidden danger.

    PIRG said that in October it was able to buy more than 30 recalled toys from several US-based online sellers, noting that it is illegal for retailers and online marketplaces to sell toys that have been recalled.

    The report also said counterfeit toys that don’t necessarily meet mandatory US safety standards continue to be sold in stores and online.

    The group was able to buy close to a dozen different types of toys that had been recalled — for reasons that ranged from choking hazards to laceration risk to potential poisoning — from sellers on Facebook Marketplace and eBay, as well as several online toy shops.

    The toys included stuffed animals, action figures, activity balls for infants, musical toys, bath toys and a toddler’s riding toy, and a majority of them were bought new in the original packaging or new with tags.

    “None of the other sellers flagged, stopped or sent a warning about any of our other purchases of recalled toys,” the report said.

    The recalled toys that PIRG said it was able to purchase online included:

    – DigitDots 3mm and 5mm Magnetic Balls from HD Premier: These were recalled in March 2022 for injury to the digestive system if two or more magnets are swallowed.

    – Kidoozie Play Tents and Playhouses by Epoch Everlasting Play: These were recalled in July 2022 because the fabric playhouses and play tents fail to meet industry flammability standards.

    – Forky 11” Plush Toys from Pixar’s Toy Story: The toy was recalled in July 2019 because the googly plastic eyes on the toy can detach, posing a choking hazard to young children.

    – Early Learning Centre Little Senses Lights & Sounds Shape Sorter Toys from Addo Play: The toy set was recalled in October 2022 because the red cube can come apart and release a small white ball, posing a choking hazard.

    – 6-inch Aflac plush promotional ducks from Communicorp: The plush ducks were recalled in June 2022 because components contain excessive levels of toxic phthalates, which are dangerous because they can negatively impact brain and physical development in young children. The recall covered a variety of the plush duck characters, including Accident Duck, Business Duck, Fishing Duck, Police Duck, PGA Duck, One Day Pay Duck, Heisman Duck and Lifeguard Duck.

    – Blue’s Clues Foot to Floor Ride-on Toys from Huffy Corp: The toy was recalled in August 2022 because the ride-on toy can tip forward when a young child is riding it, posing fall and injury hazards.

    When the US Consumer Product Safety Commission (CPSC) and a toy manufacturer announce a recall, that means the toy must immediately be removed from store shelves and online marketplaces. Federal law prohibits the sale of products subject to a recall ordered by the CPSC or a voluntary recall by the company in consultation by the CPSC, the report said.

    PIRG offered this advice regarding the best way to avoid counterfeit toys: If the only place to buy a popular, hard-to-find toy is a website you’ve never heard of or that looks sketchy, there may be a reason for that.

    The toys may not be genuine, the report said, and may not meet safety standards for parts that can break or levels of toxins, which are common in plastic toys.

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  • Clorox recalls 37 million bottles of Pine-Sol that could contain bacteria | CNN Business

    Clorox recalls 37 million bottles of Pine-Sol that could contain bacteria | CNN Business


    New York
    CNN Business
     — 

    Roughly 37 million bottles of Pine-Sol products have been recalled because they could contain a potentially harmful bacteria.

    Clorox said some of the affected Pine-Sol products might contain a bacteria called Pseudomonas aeruginosa, which can harm people with compromised immune systems or people with external medical devices because they pose “a risk of serious infection that may require medical treatment,” according to the Consumer Product Safety Commission.

    Eight different versions of Pine-Sol have been recalled, including Pine-Sol scented multi-surface cleaners (lavender clean, sparkling wave and lemon fresh scents), CloroxPro Pine-Sol all purpose cleaners (lavender clean, sparkling wave, lemon fresh, and orange energy scents) and Clorox Professional Pine-Sol lemon fresh cleaner.

    The CPSC says no injuries have been reported.

    The affected Pine-Sol products were made between January 2021 and September 2022. The described products were made at Clorox’s Forest Park, Georgia, factory. They were sold on Amazon and at several national retailers such as Walmart, Target, Sam’s Club, Kroger and Dollar Tree.

    Recalled bottles have date codes beginning with the prefix “A4” followed by a five-digit number less than 22249. The products are sold in bottles of varying ounces, ranging from 28- to 175-fluid ounces.

    If someone has a recalled Pine-Sol bottle, the agency says to throw it away and contact Pine-Sol for a refund. A special website has been set up for refunds.

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  • The FTC should investigate OpenAI and block GPT over ‘deceptive’ behavior, AI policy group claims | CNN Business

    The FTC should investigate OpenAI and block GPT over ‘deceptive’ behavior, AI policy group claims | CNN Business


    Washington
    CNN
     — 

    An AI policy think tank wants the US government to investigate OpenAI and its wildly popular GPT artificial intelligence product, claiming that algorithmic bias, privacy concerns and the technology’s tendency to produce sometimes inaccurate results may violate federal consumer protection law.

    The Federal Trade Commission should prohibit OpenAI from releasing future versions of GPT, the Center for AI and Digital Policy (CAIDP) said Thursday in an agency complaint, and establish new regulations for the rapidly growing AI sector.

    The complaint seeks to bring the full force of the FTC’s broad consumer protection powers to bear against what CAIDP portrayed as a Wild West of runaway experimentation in which consumers pay for the unintended consequences of AI development. And it could prove to be an early test of the US government’s appetite for directly regulating AI, as tech-skeptic officials such as FTC Chair Lina Khan have warned of the dangers of unchecked data use for commercial purposes and of novel ways that tech companies may try to entrench monopolies.

    The FTC declined to comment. OpenAI didn’t immediately respond to a request for comment.

    “We believe that the FTC should look closely at OpenAI and GPT-4,” said Marc Rotenberg, CAIDP’s president and a longtime consumer protection advocate on technology issues.

    The complaint attacks a range of risks associated with generative artificial intelligence, which has captured the world’s attention after OpenAI’s ChatGPT — powered by an earlier version of the GPT product — was first released to the public late last year. Everyday internet users have used ChatGPT to write poetry, create software and get answers to questions, all within seconds and with surprising sophistication. Microsoft and Google have both begun to integrate that same type of AI into their search products, with Microsoft’s Bing running on the GPT technology itself.

    But the race for dominance in a seemingly new field has also produced unsettling or simply flat-out incorrect results, such as confident claims that Feb. 12, 2023 came before Dec. 16, 2022. In industry parlance, these types of mistakes are known as “AI hallucinations” — and they should be considered legally enforceable violations, CAIDP argued in its complaint.

    “Many of the problems associated with GPT-4 are often described as ‘misinformation,’ ‘hallucinations,’ or ‘fabrications.’ But for the purpose of the FTC, these outputs should best be understood as ‘deception,’” the complaint said, referring to the FTC’s broad authority to prosecute unfair or deceptive business acts or practices.

    The complaint acknowledges that OpenAI has been upfront about many of the limitations of its algorithms. For example, the white paper linked to GPT’s latest release, GPT-4, explains that the model may “produce content that is nonsensical or untruthful in relation to certain sources.” OpenAI also makes similar disclosures about the possibility that tools like GPT can lead to broad-based discrimination against minorities or other vulnerable groups.

    But in addition to arguing that those outcomes themselves may be unfair or deceptive, CAIDP also alleges that OpenAI has violated the FTC’s AI guidelines by trying to offload responsibility for those risks onto its clients who use the technology.

    The complaint alleges that OpenAI’s terms require news publishers, banks, hospitals and other institutions that deploy GPT to include a disclaimer about the limitations of artificial intelligence. That does not insulate OpenAI from liability, according to the complaint.

    Citing a March FTC advisory on chatbots, CAIDP wrote: “Recently [the] FTC stated that ‘Merely warning your customers about misuse or telling them to make disclosures is hardly sufficient to deter bad actors. Your deterrence measures should be durable, built-in features and not bug corrections or optional features that third parties can undermine via modification or removal.’”

    Artificial intelligence also stands to have vast implications for consumer privacy and cybersecurity, said CAIDP, issues that sit squarely within the FTC’s jurisdiction but that the agency has not studied in connection with GPT’s inner workings.

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  • Google earned $10 million by allowing misleading anti-abortion ads from ‘fake clinics,’ report says | CNN Business

    Google earned $10 million by allowing misleading anti-abortion ads from ‘fake clinics,’ report says | CNN Business


    New York
    CNN
     — 

    Google has earned more than $10 million over the past two years by allowing misleading advertisements for “fake” abortion clinics that aim to stop women from having the procedure, according to an estimate from a report released Thursday from the non-profit Center for Countering Digital Hate.

    The estimated amount is microscopic compared to the more than $200 billion Google generates from ad sales annually. But the report’s data hints at the broad reach pro-life groups can have by placing these advertisements in Google results for common phrases searched for by abortion seekers.

    Using Semrush, an analytics tool, researchers at the CCDH identified “188 fake clinic websites” that placed ads on Google between March, 2021 and February of this year. CCDH estimates that ads for fake clinics were clicked on by users 13 million times during this period.

    Some searching for “abortion clinics near me” on Google instead found results directing them toward so-called “crisis pregnancy centers” that may try to talk abortion-seekers out of treatment and offer medically unproven abortion pill reversal techniques, according to the report.

    Other Google searches populated by crisis clinic ads included “abortion pill,” “abortion clinic” and “planned parenthood,” the report said, with clinics in states where abortion is legal spending two times as much as those in states with bans.

    In the wake of the Supreme Court overturning Roe v Wade, Google faced calls from Congressional Democrats to do more to prevent searches for abortion clinics from returning results for misleading ads – as well as calls from Republican lawmakers to do the opposite. The dueling pressure from lawmakers highlighted how central Google can be for women searching for information on the procedure.

    In a statement Thursday, Google said its approach to abortion ads follows local laws and that any advertiser targeting certain keywords or phrases related to abortions must complete a certification to confirm if it does or does not provide abortion services.

    “We require any organization that wants to advertise to people seeking information about abortion services to be certified and clearly disclose whether they do or do not offer abortions,” a Google spokesperson told CNN. “We do not allow ads promoting abortion reversal treatments and we also prohibit advertisers from misleading people about the services they offer.”

    “We remove or block ads that violate these policies,” the company added.

    Google said it does not allow for abortion reversal pill advertisements because the treatment isn’t approved by the FDA. In response to Thursday’s CCDH report, the company told CNN it took “enforcement action” on content violating this policy.

    Google has continued to face scrutiny in recent months for the steps it takes to protect abortion seekers’ location data.

    Nearly a dozen Senate Democrats wrote to Google in May with questions about how it deletes users’ location history when they have visited sensitive locations such as abortion clinics. The letter came after tests performed by The Washington Post and other privacy advocates appeared to show that Google was not quickly or consistently deleting users’ recorded visits to fertility centers of Planned Parenthood clinics.

    Google previously declined to comment on the lawmakers’ letter. Instead, it referred CNN to a company blog post that includes abortion clinics on a list of sensitive locations, but did not explain what it means when it claims the data will be deleted “soon after” a visit.

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