Business

Disinformation Researchers Fret About Fallout From Judge’s Order

Published

2 years ago

July 5, 2023

Disinformation Researchers Fret About Fallout From Judge’s Order

A federal judge’s decision this week to restrict the government’s communication with social media platforms could have broad side effects, according to researchers and groups that combat hate speech, online abuse and disinformation: It could further hamper efforts to curb harmful content.

Alice E. Marwick, a researcher at the University of North Carolina at Chapel Hill, was one of several disinformation experts who said on Wednesday that the ruling could impede work meant to keep false claims about vaccines and voter fraud from spreading.

The order, she said, followed other efforts, largely from Republicans, that are “part of an organized campaign pushing back on the idea of disinformation as a whole.”

Judge Terry A. Doughty granted a preliminary injunction on Tuesday, saying the Department of Health and Human Services and the Federal Bureau of Investigation, along with other parts of the government, must stop corresponding with social media companies for “the purpose of urging, encouraging, pressuring or inducing in any manner the removal, deletion, suppression or reduction of content containing protected free speech.”

The ruling stemmed from a lawsuit by the attorneys general of Louisiana and Missouri, who accused Facebook, Twitter and other social media sites of censoring right-leaning content, sometimes in league with the government. They and other Republicans cheered the judge’s move, in U.S. District Court for the Western District of Louisiana, as a win for the First Amendment.

Several researchers, however, said the government’s work with social media companies was not an issue as long as it didn’t coerce them to remove content. Instead, they said, the government has historically notified companies about potentially dangerous messages, like lies about election fraud or misleading information about Covid-19. Most misinformation or disinformation that violates social platforms’ policies is flagged by researchers, nonprofits, or people and software at the platforms themselves.

“That’s the really important distinction here: The government should be able to inform social media companies about things that they feel are harmful to the public,” said Miriam Metzger, a communication professor at the University of California, Santa Barbara, and an affiliate of its Center for Information Technology and Society.

A larger concern, researchers said, is a potential chilling effect. The judge’s decision blocked certain government agencies from communicating with some research organizations, such as the Stanford Internet Observatory and the Election Integrity Partnership, about removing social media content. Some of those groups have already been targeted in a Republican-led legal campaign against universities and think tanks.

Their peers said such stipulations could dissuade younger scholars from pursuing disinformation research and intimidate donors who fund crucial grants.

Bond Benton, an associate communication professor at Montclair State University who studies disinformation, described the ruling as “a bit of a potential Trojan horse.” It is limited on paper to the government’s relationship with social media platforms, he said, but carried a message that misinformation qualifies as speech and its removal as the suppression of speech.

“Previously, platforms could simply say we don’t want to host it: ‘No shirt, no shoes, no service,’” Dr. Benton said. “This ruling will now probably make platforms a little bit more cautious about that.”

In recent years, platforms have relied more heavily on automated tools and algorithms to spot harmful content, limiting the effectiveness of complaints from people outside the companies. Academics and anti-disinformation organizations often complained that platforms were unresponsive to their concerns, said Viktorya Vilk, the director for digital safety and free expression at PEN America, a nonprofit that supports free expression.

“Platforms are very good at ignoring civil society organizations and our requests for help or requests for information or escalation of individual cases,” she said. “They are less comfortable ignoring the government.”

Several disinformation researchers worried that the ruling could give cover for social media platforms, some of which have already scaled back their efforts to curb misinformation, to be even less vigilant before the 2024 election. They said it was unclear how relatively new government initiatives that had fielded researchers’ concerns and suggestions, such as the White House Task Force to Address Online Harassment and Abuse, would fare.

For Imran Ahmed, the chief executive of the Center for Countering Digital Hate, the decision on Tuesday underscored other issues: the United States’ “particularly fangless” approach to dangerous content compared with places like Australia and the European Union, and the need to update rules governing social media platforms’ liability. The ruling on Tuesday cited the center as having delivered a presentation to the surgeon general’s office about its 2021 report on online anti-vaccine activists, “The Disinformation Dozen.”

“It’s bananas that you can’t show a nipple on the Super Bowl but Facebook can still broadcast Nazi propaganda, empower stalkers and harassers, undermine public health and facilitate extremism in the United States,” Mr. Ahmed said. “This court decision further exacerbates that feeling of impunity social media companies operate under, despite the fact that they are the primary vector for hate and disinformation in society.”

Business

Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns

Published

5 hours ago

January 16, 2025

Press Room

Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns

The government of Albania has given preliminary approval to a plan proposed by Jared Kushner, Donald J. Trump’s son-in-law, to build a $1.4 billion luxury hotel complex on a small abandoned military base off the coast of Albania.

The project is one of several involving Mr. Trump and his extended family that directly involve foreign government entities that will be moving ahead even while Mr. Trump will be in charge of foreign policy related to these same nations.

The approval by Albania’s Strategic Investment Committee — which is led by Prime Minister Edi Rama — gives Mr. Kushner and his business partners the right to move ahead with accelerated negotiations to build the luxury resort on a 111-acre section of the 2.2-square-mile island of Sazan that will be connected by ferry to the mainland.

Mr. Kushner and the Albanian government did not respond Wednesday to requests for comment. But when previously asked about this project, both have said that the evaluation is not being influenced by Mr. Kushner’s ties to Mr. Trump or any effort to try to seek favors from the U.S. government.

“The fact that such a renowned American entrepreneur shows his interest on investing in Albania makes us very proud and happy,” a spokesman for Mr. Rama said last year in a statement to The New York Times when asked about the projects.

Mr. Kushner’s Affinity Partners, a private equity company backed with about $4.6 billion in money mostly from Saudi Arabia and other Middle East sovereign wealth funds, is pursuing the Albania project along with Asher Abehsera, a real-estate executive that Mr. Kushner has previously teamed up with to build projects in Brooklyn, N.Y.

The Albanian government, according to an official document recently posted online, will now work with their American partners to clear the proposed hotel site of any potential buried munitions and to examine any other environmental or legal concerns that need to be resolved before the project can move ahead.

The document, dated Dec. 30, notes that the government “has the right to revoke the decision,” depending on the final project negotiations.

Mr. Kushner’s firm has said the plan is to build a five-star “eco-resort community” on the island by turning a “former military base into a vibrant international destination for hospitality and wellness.”

Ivanka Trump, Mr. Trump’s daughter, has said she is helping with the project as well. “We will execute on it,” she said about the project, during a podcast last year.

This project is just one of two major real-estate deals that Mr. Kushner is pursuing along with Mr. Abehsera that involve foreign governments.

Separately, the partnership received preliminary approval last year to build a luxury hotel complex in Belgrade, Serbia, in the former ministry of defense building, which has sat empty for decades after it was bombed by NATO in 1999 during a war there.

Serbia and Albania have foreign policy matters pending with the United States, as both countries seek continued U.S. support for their long-stalled efforts to join the European Union, and officials in Washington are trying to convince Serbia to tighten ties with the United States, instead of Russia.

Virginia Canter, who served as White House ethics lawyer during the Obama and Clinton administrations and also an ethics adviser to the International Monetary Fund, said even if there was no attempt to gain influence with Mr. Trump, any government deal involving his family creates that impression.

“It all looks like favoritism, like they are providing access to Kushner because they want to be on the good side of Trump,” Ms. Canter said, now with State Democracy Defenders Fund, a group that tracks federal government corruption and ethics issues.

Business

Craft supplies retailer Joann declares bankruptcy for the second time in a year

Published

5 hours ago

January 16, 2025

Press Room

Craft supplies retailer Joann declares bankruptcy for the second time in a year

The craft supplies and fabric retailer Joann filed for bankruptcy for the second time in less than a year, as the chain wrestles with declining sales and inventory shortages, the company said Wednesday.

The retailer emerged from a previous Chapter 11 bankruptcy process last April after eliminating $505 million in debt. Now, with $615 million in liabilities, the company will begin a court-supervised sale of its assets to repay creditors. The company owes an additional $133 million to its suppliers.

“We hope that this process enables us to find a path that would allow Joann to continue operating,” said interim Chief Executive Michael Prendergast in a statement. “The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”

Joann’s more than 800 stores and websites will remain open throughout the bankruptcy process, the company said, and employees will continue to receive pay and benefits. The Hudson, Ohio-based company was founded in 1943 and has stores in 49 states, including several in Southern California.

According to court documents, Joann began receiving unpredictable and inconsistent deliveries of yarn and sewing items from its suppliers, making it difficult to keep its shelves stocked. Joann’s suppliers also discontinued certain items the retailer relied on.

Along with the “unanticipated inventory challenges,” Joann and other retailers face pressure from inflation-wary consumers and interest rates that were for a time the highest in decades. The crafts supplier has also been hindered by competition from others in the space, including Michael’s, Etsy and Hobby Lobby, said Retail Wire Chief Executive Dominick Miserandino.

“It did not necessarily learn to evolve like its nearby competitors,” Miserandino said of Joann. “Not many people have heard of Joann in the way they’ve heard of Michael’s.”

Joann is not the first retailer to continue to struggle after going through bankruptcy. The party supply chain Party City announced last month it would be shutting down operations, after filing for and emerging from Chapter 11 bankruptcy in 2023.

Over the last two years, more than 60 companies have filed for bankruptcy for a second or third time, Bloomberg reported, based on information from BankruptcyData. That’s the most over a comparable period since 2020, when the COVID-19 pandemic kept shoppers home.

Discount chain Big Lots filed for bankruptcy last September, and the Container Store, a retailer offering storage and organization products, declared bankruptcy last month. Companies that rely heavily on brick-and-mortar locations are scrambling to keep up with online retailers and big-box chains. Fast-casual restaurants such as Red Lobster and Rubio’s Coastal Grill have also struggled.

High prices have prompted consumers to pull back on discretionary spending, while rising operating and labor costs put additional pressure on businesses, experts said. The U.S. annual inflation rate for 2024 was 2.9%, down from 3.4% in 2023. But inflation has been on the rise since September and remains above the Federal Reserve’s goal of 2%.

If a sale process for Joann is approved, Gordon Brothers Retail Partners would serve as the stalking-horse bidder and set the floor for the auction.

Business

U.S. Sues Southwest Airlines Over Chronic Delays

Published

13 hours ago

January 15, 2025

Press Room

U.S. Sues Southwest Airlines Over Chronic Delays

The federal government sued Southwest Airlines on Wednesday, accusing the airline of harming passengers who flew on two routes that were plagued by consistent delays in 2022.

In a lawsuit, the Transportation Department said it was seeking more than $2.1 million in civil penalties over the flights between airports in Chicago and Oakland, Calif., as well as Baltimore and Cleveland, that were chronically delayed over five months that year.

“Airlines have a legal obligation to ensure that their flight schedules provide travelers with realistic departure and arrival times,” the transportation secretary, Pete Buttigieg, said in a statement. “Today’s action sends a message to all airlines that the department is prepared to go to court in order to enforce passenger protections.”

Carriers are barred from operating unrealistic flight schedules, which the Transportation Department considers an unfair, deceptive and anticompetitive practice. A “chronically delayed” flight is defined as one that operates at least 10 times a month and is late by at least 30 minutes more than half the time.

In a statement, Southwest said it was “disappointed” that the department chose to sue over the flights that took place more than two years ago. The airline said it had operated 20 million flights since the Transportation Department enacted its policy against chronically delayed flights more than a decade ago, with no other violations.

“Any claim that these two flights represent an unrealistic schedule is simply not credible when compared with our performance over the past 15 years,” Southwest said.

Last year, Southwest canceled fewer than 1 percent of its flights, but more than 22 percent arrived at least 15 minutes later than scheduled, according to Cirium, an aviation data provider. Delta Air Lines, United Airlines, Alaska Airlines and American Airlines all had fewer such delays.

The lawsuit was filed in the United States District Court for the Northern District of California. In it, the government said that a Southwest flight from Chicago to Oakland arrived late 19 out of 25 trips in April 2022, with delays averaging more than an hour. The consistent delays continued through August of that year, averaging an hour or more. On another flight, between Baltimore and Cleveland, average delay times reached as high as 96 minutes per month during the same period. In a statement, the department said that Southwest, rather than poor weather or air traffic control, was responsible for more than 90 percent of the delays.

“Holding out these chronically delayed flights disregarded consumers’ need to have reliable information about the real arrival time of a flight and harmed thousands of passengers traveling on these Southwest flights by causing disruptions to travel plans or other plans,” the department said in the lawsuit.

The government said Southwest had violated federal rules 58 times in August 2022 after four months of consistent delays. Each violation faces a civil penalty of up to $37,377, or more than $2.1 million in total, according to the lawsuit.

The Transportation Department on Wednesday also said that it had penalized Frontier Airlines for chronically delayed flights, fining the airline $650,000. Half that amount was paid to the Treasury and the rest is slated to be forgiven if the airline has no more chronically delayed flights over the next three years.

This month, the department ordered JetBlue Airways to pay a $2 million fine for failing to address similarly delayed flights over a span of more than a year ending in November 2023, with half the money going to passengers affected by the delays.