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Column: Businesses have been ripping off consumers for 50 years. Here’s how we can strike back

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Elevate your hand if one thing like this has occurred to you:

— You booked a lodge room, and found if you checked in — or checked out — that the lodge added an undisclosed every day “resort price” to your invoice, for companies you by no means would or did use.

— You spent hours on the cellphone to resolve a billing dispute or complain a few broken product, and at last gave up.

Individuals know that the civil justice system is damaged. Of their every day pocketbook struggles they’re utterly weak.

Client advocate Harvey Rosenfield

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— You had been a part of a class-action settlement over a faulty product or crooked enterprise scheme, solely to find that you simply had been entitled to just a few bucks and needed to file a kind to obtain even that a lot.

— Your private info was stolen by hackers from a enterprise the place you’re a buyer, or perhaps a enterprise you didn’t have direct dealings with, exposing you to identification theft.

— You got a bag of potato chips or field of cereal, and found that two-thirds of it was air.

— You had been so badly mistreated by a financial institution or retailer that you simply needed to sue, however found in superb print which you could solely go to arbitration.

So many fingers! Is there anybody within the U.S. who hasn’t skilled a number of of those indignities?

And that’s a brief listing of the myriad methods shoppers are mistreated and abused by companies within the U.S., with just about no authorized recourse.

“Individuals know that the civil justice system is damaged,” says Harvey Rosenfield. “Of their every day pocketbook struggles they’re utterly weak. Most Individuals don’t have any rights or treatments.”

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Rosenfield is one in every of our best client advocates. A former Nader’s Raider, he’s the founding father of the advocacy group Client Watchdog and was the creator of the California’s landmark Proposition 103 of 1988.

That poll measure rolled again auto, property and casualty insurance coverage charges by 20%, created the place of an elected insurance coverage commissioner, and gave the commissioner prior approval authority over these charges.

In collaboration with client advocate Laura Antonini, Rosenfield has simply issued a complete report on how client rights have shrunk over the past 50 years or so, principally on account of stress on legislators from massive companies.

The report, titled “Reboot Required,” chronicles the proliferation of authorized limitations on company legal responsibility and company assaults on client courtroom rights, together with entry to class actions and the rise of pressured arbitration.

Because the report precisely observes, companies’ clout in Washington has solely intensified for the reason that infamous Residents United resolution by the Supreme Court docket in 2010 opened the floodgates to company political contributions.

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Rosenfield and Antonini suggest a mannequin state client regulation, the Symbolize Act, which might roll again these developments.

What the report’s readers will most readily acknowledge are its catalog of client ripoffs — some acquainted, and a few so novel that they could be invisible to most shoppers.

Along with these talked about above, they embody mendacity about listing costs and overstating reductions; bogus claims that meals are “all-natural”; and automated renewals of subscriptions companies and obstacles to cancelations.

“These are precise points that individuals take care of in on a regular basis life,” Rosenfield instructed me. Deteriorating customer support is a universally skilled burden.

“The one factor that’s invaluable is your time,” he says. “Firms acknowledge that individuals don’t have the time to have interaction in protracted battles with somebody to resolve a billing dispute. It’s so exhausting to rectify an issue that on the finish of the day it’s important to capitulate. Firms have transferred the fee in money and time from themselves to the patron.”

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Additionally on the listing are burdensome paperwork necessities for promised rebates; hidden costs on pay as you go playing cards that drain their worth over time; nugatory product warranties; predatory financial institution charges on loans and accounts.

Airways have developed a world-class experience in hitting clients with charges for companies that used to come back bundled into the value of a ticket. Within the U.S., charges for checked baggage are the most important class — industrywide, these rose to almost $5.8 billion in 2019 from $3.5 billion in 2014, a 65% enhance. (They fell sharply within the pandemic-strained years 2020 and 2021.)

However vacationers now routinely face costs for in-flight meals, for selecting seats earlier than a flight, or for utilizing the overhead baggage bin.

One deep low cost service, Europe-based RyanAir, even contemplated charging passengers to make use of the toilet in-flight, however dropped the plan after an uproar. You possibly can make certain that if RyanAir was in a position to make the plan stick, it might have began to proliferate throughout the business.

The authors are significantly involved about what they name “surveillance scoring.” That is using secret, computerized algorithms that make assumptions about shoppers that may have an effect on their capacity to land jobs, make product returns or get a mortgage.

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These actions and insurance policies aren’t solely these of little fly-by-night operators that may’t be trusted, however of main client manufacturers with premium reputations. Sometimes they get caught within the act, and should make amends (nearly all the time a minuscule proportion of revenues or earnings).

Amazon, as an illustration, was fined $1.1 million by Canadian regulators in 2017 for inflating supposed buyer financial savings by displaying inaccurate listing costs, a follow uncovered by Client Watchdog. Within the U.S., clients sued, however Amazon was in a position to power them into arbitration and the lawsuits had been dismissed.

In 2015, Volkswagen was discovered to have programmed its diesel autos to provide deceptively clear emission take a look at outcomes, and ordered to pay fines and penalties of $25 billion.

AT&T was found in 2018 to be “throttling” smartphone knowledge speeds, slowing efficiency even for purchasers paying for limitless knowledge. AT&T’s settlements of a class-action lawsuit and a Federal Commerce Fee grievance returned a median of $22 to shoppers, despite the fact that they’d been paying $30 a month for his or her service.

Knowledge breaches are legion, some involving the private info of scores or tons of of tens of millions of shoppers, as a result of so many corporations fail to make vital investments to guard folks’s knowledge from hackers.

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The negligent corporations typically supply victims free identification theft protections, if just for restricted intervals, although the effectiveness of those affords is questionable.

The trendy American client motion started with initiatives by Presidents Kennedy and Johnson and the rise to prominence of Ralph Nader within the Nineteen Sixties.

Company America quickly pushed again. Its name to arms was the so-called Powell Memorandum, written for the U.S. Chamber of Commerce by company lawyer Lewis Powell (who could be appointed to the Supreme Court docket by Richard Nixon later that 12 months).

“The American financial system is underneath broad assault,” Powell wrote. He recognized Nader as “the only best antagonist of American enterprise, and advocated an aggressive stance by the chamber in politics, courtroom circumstances, and campus talking excursions to counter critics that included “the Communists, New Leftists, and different revolutionaries who would destroy your entire system, each political and financial.”

As Rosenfield and Antonini doc, the chamber efficiently pressed for limitations on client safety legal guidelines and entry to the courts for shoppers. Deregulation, which tended to favor business over shoppers, proceeded underneath Reagan and even Clinton.

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Below Biden, shoppers could also be notching some victories. In an government order final July, Biden took goal at a mess of enterprise practices that make life troublesome for Individuals, together with excessive drug costs and proliferating airline charges.

The order directs federal companies to take a better take a look at proposed mergers that would drive up client costs and scale back client alternative; that will be a radical and overdue reshaping of presidency antitrust coverage.

Lina Khan, Biden’s appointee as chair of the FTC, has a strongly pro-consumer file — a lot in order that Amazon and Meta Platforms (previously Fb) have sought to have her thrown off circumstances the FTC has introduced in opposition to them.

Below its new director, Rohit Chopra, the Client Monetary Safety Bureau has begun to assemble a case in opposition to monetary “junk charges” akin to “late charges, overdraft charges, non-sufficient funds (NSF) charges, comfort charges for processing funds, minimal steadiness charges, return merchandise charges, cease cost charges, test picture charges, charges for paper statements, charges to interchange a card” and so forth.

In its request for feedback, the CFPB expressed considerations that monetary companies corporations have change into hooked on an exploitative “price financial system” that prices shoppers dearly.

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Apple final 12 months capitulated (up to some extent) to the rising “proper to restore” motion preventing product designs and company insurance policies that intervene with shoppers’ capacity to carry out repairs themselves or via their very own chosen restore outlets.

That brings us again to the Symbolize Act. If enacted by a state, the measure would require companies akin to inns and airways to reveal obligatory costs within the marketed worth. It will ban rebates in favor of upfront worth reductions.

It will ban obligatory arbitration (although if the Supreme Court docket guidelines that arbitration can’t be banned, it imposes stringent disclosure guidelines on corporations that topic shoppers to the requirement).

The regulation would require corporations to attach callers with a human customer support consultant inside 10 minutes of the beginning of a name throughout regular enterprise hours. It bans bogus low cost claims and different misrepresentations of worth or high quality.

It will mandate that subscriptions might be canceled in the identical method because the sign-up — no necessities that clients make a name or communicate to a consultant, as an illustration.

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And it might give shoppers and impartial restore outlets the fitting to components, documentation or instruments wanted to restore any product.

The act’s provisions won’t cowl the complete spectrum of business-consumer relationships; the inventiveness of American companies of their quest to maintain the higher hand has been nearly limitless.

But it surely’s a begin, and would put enamel into that outdated slogan, so incessantly disregarded, that “the shopper is all the time proper.”

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Column: Anthony Fauci's memoir strikes a crucial blow against the disinformation agents who imperil our health

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Column: Anthony Fauci's memoir strikes a crucial blow against the disinformation agents who imperil our health

Just after Thanksgiving 2021, Dr. Anthony Fauci visited a high school in the Anacostia neighborhood of Washington, D.C. His goal was to promote the safety of COVID-19 vaccines in a primarily Black community, where vaccine rates were lower than in the rest of the capital.

Fauci was joined by Barack Obama — the fifth of the seven presidents he would serve during his more than half-century career as a public health official. Together they made the rounds of vaccination booths in the school gym, posing for photos. As they were getting into their cars after the visit, Obama turned to him with a word of encouragement.

Fauci had been accused by congressional crackpots such as Sens. Rand Paul (R-Ky.) and Jim Jordan (R-Ohio) of having helped to create the COVID virus, unleashing the pandemic, and by Rep. Marjorie Taylor Greene (R-Ga.) of having masterminded nationwide pandemic shutdowns. Credible death threats against him had prompted the government to provide him with 24-hour security protection.

AIDS had made me a target, but that was largely before social media…. Now my family and I were barraged by emails, texts, and phone calls … with foul language and sexually explicit messages and threatened with violence and even death.

— Anthony S. Fauci

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Obama’s advice carried so much weight that Fauci, 83, has used it, in its original Latin, as the title of a chapter of his newly published memoir, “On Call: A Doctor’s Journey in Public Service.” That chapter, concerning the maelstrom of abuse he sustained as a right-wing whipping boy during the pandemic, is called “Illegitimi Non Carborundum.”

Published in mid-June, “On Call” is an indispensable addition to the growing shelf of books by medical and scientific professionals fighting back against the tide of disinformation undermining public health in the U.S.

Over the last few months I’ve reported on others, including “The Deadly Rise of Anti-Science” by pediatrician and immunologist Peter Hotez and “We Want Them Infected” by neurologist Jonathan Howard, which demolishes the claims of anti-vaccine ideologues such as Stanford’s Jay Bhattacharya.

This year has brought us not only Fauci’s book but “Tell Me When It’s Over” by vaccine expert Paul Offit, which takes aim at the “COVID myths,” which anti-vaxxers have wholesaled to encourage vaccination resistance in the general public.

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Fauci’s book stands out because its author has chosen to place the abusive, ignorant treatment he received from disinformation grifters in and outside of government beginning with the Trump years in the context of his long career as a public servant.

His work started with his joining the National Institutes of Health as a fellow in 1968, at the age of 27. He stayed there, as a staff member and ultimately as director of the National Institute of Allergy and Infectious Diseases, until his retirement in 2022.

Over that time, Fauci became the nation’s most respected and influential immunologist. His public role first emerged with the appearance of AIDS in 1981. Within a few months, he decided to leave the routine research he had been doing on human immune response and focus instead on “this mysterious new disease seemingly restricted at this point to gay men.”

It was a soul-crushing experience. The cause of AIDS was not understood until 1983, when the human immunodeficiency virus, or HIV, was identified as the culprit. There were no effective treatments, much less a cure. Fauci describes himself watching powerlessly as NIAID wards filled with patients facing a death sentence.

“None of my training or temperament,” he writes, “provided a bulwark against that horrible, inevitable outcome…. All of us who worked on the ward with those patients had to stuff away our feelings of loss, day after day, just to be able to carry on.”

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A youthful Anthony Fauci opens an AIDS conference in Lausanne, Switzerland, in 2004.

(LAURENT GILLIERON/AP)

Fauci also became a target of AIDS activists, who blamed him for failing to persuade his bureaucratic superiors to pull out all the stops on AIDS research — among them the playwright Larry Kramer, who in 1988 wrote an op-ed in the San Francisco Examiner headlined “I Call You Murderers, an Open Letter to an Incompetent Idiot, Dr. Anthony Fauci.”

Yet Fauci’s efforts to bring Kramer and other activists into the official meetings, and his championing of a full-scale government program to battle the disease, ultimately brought them together by the time Kramer succumbed to AIDS in 2020. “A complex relationship, indeed,” Fauci writes.

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But the experience with AIDS didn’t prepare Fauci for the abuse he received as “the de facto public face of the country’s battle” with COVID. “AIDS had made me a target, but that was largely before social media,” he writes. “Now my family and I were barraged by emails, texts, and phone calls… with foul language and sexually explicit messages and threatened with violence and even death.” Right-wingers and GOP politicians even called for Fauci’s prosecution.

The problem began with Trump, who was courteous with Fauci in private and even seemed to accept his truth-telling about the seriousness of the developing crisis — but at public rallies dismissed COVID as a Democratic “hoax.”

Fauci is judicious about many of the administration officials he worked with as a member of Trump’s COVID task force, including Vice President Mike Pence, who Fauci says seemed sincerely to face up to the crisis but was hamstrung by his sedulous fealty to Trump. But he’s contemptuous about those who exploited the public’s unfamiliarity with the scientific method to cast doubt on necessary pandemic countermeasures and hype useless nostrums.

“People associate science with absolutes,” he writes. But science is a process in which new information is absorbed and evaluated, leading to new conclusions.

That was the case with the government’s advice against masking, issued when the pandemic was new, its means of transmission unknown, and hospitals were suffering a severe shortage of surgical masks and other protective equipment.

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When the shortages eased and it became clear that masks would help stem the spread of COVID, the advice changed — but was portrayed on the right as an example of deliberate deceit by government experts.

Those who earned Fauci’s contempt include Peter Navarro, a Trump economic advisor who marched into a White House meeting after Fauci had dismissed hydroxychloroquine, an antimalarial drug Trump was touting as a COVID treatment, dumped a pile of papers on the table and barked at Fauci: “I have all the evidence in the world that hydroxychloroquine works. And by preventing people from getting it, you have blood on your hands!”

Navarro is currently serving a prison sentence for ignoring a subpoena from a House committee investigating the Jan. 6, 2021, insurrection.

Fauci’s inclination to be candid about the perils of COVID and the value of social counter-methods eventually led to his being muzzled by the White House, barred from appearing on cable news shows even as the COVID toll increased inexorably. Nearly 1.2 million Americans have succumbed to the disease, the U.S. toll from which is by far the worst in the developed world.

“Attacks on me came daily,” Fauci relates. Right-wing organizations and Republicans in Congress kept “digging for something that would discredit me. When nothing was found, they just made up stories with no evidence whatsoever to back them up.”

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Paul advanced the baseless charge that Fauci’s institute, via a grant to the research organization EcoHealth Alliance, had caused the pandemic, even though the research EcoHealth had funded at China’s Wuhan Institute of Virology could not conceivably have produced the SARS-CoV-2 that causes COVID.

In his book, Offit, director of the Vaccine Education Center at Children’s Hospital of Philadelphia and a member of the Food and Drug Administration panel that rules on the safety and efficacy of vaccines, traces his own experience with the anti-vaccine movement.

Offit ably traces the origin of the modern anti-vaccine movement to a fact-free campaign in 1982 blaming the whooping cough vaccine for childhood injuries, which was taken up by the mass media but had no basis in fact. It was augmented by a fraudulent 1998 paper tying the MMR (measles/mumps/rubella) vaccine to autism.

The paper was eventually retracted by its publisher, the British journal the Lancet, and its main author, Andrew Wakefield, was stripped of his British medical license. But the paper’s infliuence is still shown by resistance to the MMR vaccine in Britain and pockets in the U.S., where Wakefield is lauded by anti-vaccine agitators as a hero.

Offit shows how the messaging of anti-vaxxers has evolved from claims about the purported health hazard of vaccines into a movement for “medical freedom” — the right of individuals to decide for themselves “what we can or can’t put into our bodies or the bodies of our children.”

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That turns the very concept of public health on its head. “Public health had morphed into private decisions, the public be damned,” Offit writes.

He ties the anti-vaccine movement to other health-related conspiracy-mongering, such as the notion that COVID originated in that Chinese lab, despite overwhelming scientific evidence that it reached humans the way other viruses have throughout history — as a spillover from wildlife in contacts with humans.

Even before that, the drumbeat of campaigns against vaccines resulted in a dangerous skepticism about science just when sober scientific judgments were most needed.

“The outside impact of these conspiracy theories on the American public meant that the war against Covid would soon become a war against ourselves,” Offit writes. “Much of the suffering and deaths from Covid could have been prevented had people chosen to be vaccinated. But they believed the myths. As a result, hundreds of thousands of people died needlessly.”

Doctors and scientists have been pondering with ever-increasing urgency how to combat the tide of science denialism that infects public health policymaking and public discourse. They’re facing a tough enemy, because the underlying driver of conspiracy movements is grift — the purveying of disinformation for profit and fame — witness the rise of anti-vaxxer Robert F. Kennedy Jr. to political prominence.

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Fauci, Offit, Hotez, Howard and other responsible scientists are placing their livelihoods, reputations and even their safety on the line to bring the facts to the American public. They’re heroes, and we must heed their efforts to protect science from charlatans and frauds, for our own good.

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Saks owner said to be nearing deal to buy Neiman Marcus for $2.65 billion

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Saks owner said to be nearing deal to buy Neiman Marcus for $2.65 billion

Two of the biggest luxury department store chains in the country are joining forces, with a boost from Amazon.

The owner of Saks Fifth Avenue has agreed to buy rival Neiman Marcus Group for $2.65 billion, according to a Wall Street Journal report, which cited people familiar with the matter.

Amazon.com Inc. and Salesforce Inc. will help facilitate the deal by Saks owner Hudson’s Bay Co. The tech firms will take minority stakes in a new company, called Saks Global, according to the people. Hudson’s Bay will also finance the deal with $2 billion raised from investors, the people said.

The deal, which comes after years of talks between the two privately held chains, will unite the high-end retailers amid a recent slowdown in luxury sales.

The goal is to cut costs and boost profitability by giving the combined company bargaining power with vendors and reducing supply chain costs and other costs that can be shared.

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Neiman’s bankruptcy in 2020 allowed the Dallas-based department store company to shed billions of dollars in debt, making it a more attractive target.

Saks, Neiman Marcus and Amazon didn’t immediately respond to requests for comment.

The new company will bring together 39 Saks Fifth Avenue stores and 36 Neiman Marcus stores as well as two Bergdorf Goodman stores in Manhattan. Both chains also have outlets.

In Southern California, Saks and Neiman Marcus each operate four department stores, including Beverly Hills locations down the street from each other on Wilshire Boulevard.

The deal comes during a tough period for the department store industry. In February, Macy’s announced plans to close about 150 stores over the next three years, including its iconic Union Square store in San Francisco, after posting a fourth-quarter loss of $71 million.

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Although department stores catering to middle-class shoppers have struggled the most, retailers specializing in luxury brands have also been squeezed by inflation and other factors that have weakened demand for expensive discretionary purchases. Lord & Taylor, previously owned by HBC, shut its retail locations in 2021.

Bloomberg was used in compiling this report.

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Sierra Club strike averted after deal with union to reinstate some laid-off workers

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Sierra Club strike averted after deal with union to reinstate some laid-off workers

A strike by workers of the Sierra Club, the prominent environmental organization founded in California, was narrowly averted Tuesday after an overnight 18-hour-long marathon bargaining session.

As part of a deal reached between the Sierra Club and the Progressive Workers Union, which represents workers employed by the organization’s national chapter, 12 workers, including several union leaders, will be reinstated — out of some 70 workers who were recently laid off.

In exchange, the union agreed to forgo a 7% raise for workers the organization had previously agreed to in negotiations. It also agreed to withdraw several unfair labor practice charges it had filed with the National Labor Relations Board alleging the organization had deliberately delayed bargaining and retaliated against union leaders.

The deal was struck mere hours before picket lines were scheduled to be held at 8 a.m. Tuesday at the organization’s offices in Los Angeles, Oakland and Washington, D.C. The deal appears to have, at least for the moment, put to rest internal turmoil at the environmental group over allegations of retaliatory layoffs and financial mismanagement.

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Walter Keady, newly elected president of the Progressive Workers Union, said in a statement that the vote to strike “showed that Sierra Club’s unions are committed to protecting one another in the face of financial trouble at the organization.”

“No deal is perfect, but we are excited that this agreement meets our strike platform and avoids unnecessary harm to the Sierra Club community that could have occurred during a strike,” Keady said.

The Sierra Club agreed that if fundraising stays on track, it will not carry out additional layoffs for at least the next 10 months. Those who will not get their jobs back will receive additional severance and layoff benefits under the agreement.

The deal also settles issues raised in contract talks that have dragged on for the last several months. It covers issues related to overtime hours, pay raises for added job responsibilities, and use of generative AI, among others.

Final negotiations are scheduled over the next week, and a contract agreement is expected to be ratified by the end of the month.

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Sierra Club Executive Director Ben Jealous announced the deal in an email to Sierra Club staff midday on Tuesday.

In the email, he thanked the union’s leadership “for their commitment and willingness to work together to reach an agreement” and he emphasized the organization’s “mission critical work” to protect clean air and water.

“We all share a deep love and commitment to the Sierra Club and the dedicated staff and volunteers who are the lifeblood of our organization,” Jealous wrote.

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