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The federal consumer bureau sued TransUnion and a former executive over deceptive sales tactics.

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The federal consumer bureau sued TransUnion and a former executive over deceptive sales tactics.

The Client Monetary Safety Bureau sued the credit-reporting agency TransUnion and a former senior government — John Danaher, who led the corporate’s shopper gross sales unit — for violating a 2017 order to cease utilizing misleading techniques to lure prospects into recurring subscription funds.

“TransUnion is an out-of-control repeat offender that believes it’s above the legislation,” mentioned Rohit Chopra, the bureau’s director.

After the 2017 order, TransUnion used hard-to-spot positive print on its web site and enrollment kinds to lure prospects into recurring fees for its merchandise, the bureau mentioned. For instance, TransUnion ran advertisements on annualcreditreport.com — the official website the place shoppers can get hold of one free credit score report a 12 months from every of the three main bureaus — that, when clicked, diverted folks to a sign-up type for paid credit score monitoring, in accordance with the bureau.

A whole lot of individuals complained that that they had tried to get their free annual report and as a substitute ended up enrolled in a paid month-to-month subscription, the bureau mentioned in a lawsuit filed on Tuesday in federal court docket in Chicago, the place TransUnion relies.

TransUnion mentioned in a written assertion that the bureau’s claims towards each it and Mr. Danaher “are meritless and under no circumstances replicate the consumer-first method we take to managing all our companies.”

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Mr. Danaher who for a few years led TransUnion Interactive, the corporate’s shopper gross sales subsidiary, moved into an “advisory position” final April in preparation for his deliberate retirement in February, the corporate mentioned in a regulatory report filed final 12 months.

Mr. Danaher’s legal professionals, Jeff Knox and Brooke Cucinella of Simpson Thacher & Bartlett, mentioned in a written assertion: “These claims are with out benefit, and this lawsuit demonstrates that the C.F.P.B. is concentrated extra on politically expedient headlines than the information or the legislation. Mr. Danaher very a lot seems to be ahead to his day in court docket.”

Mr. Chopra, who has referred to as for harsher punishments for corporations that repeatedly violated shopper safety legal guidelines, mentioned the bureau had taken the uncommon step of charging an organization official personally as a result of Mr. Danaher’s actions have been “egregious.”

Mr. Danaher “knew that following the legislation would scale back company income” and “concocted a plan to dodge it and work round it,” Mr. Chopra mentioned.

The bureau is asking the court docket for monetary restitution for shoppers from the defendants, different penalty funds and an order barring the corporate from violating federal shopper safety legal guidelines.

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TransUnion is among the three main credit score bureaus, together with Equifax and Experian. They make most of their cash promoting credit score experiences to retailers and lenders but additionally promote credit score monitoring merchandise on to shoppers. On its web site, TransUnion advertises that it has “200 million information profiling practically each credit-active shopper in america.”

Within the 2017 case, TransUnion paid practically $14 million to shoppers and a $3 million civil penalty to resolve claims that it had lured shoppers into recurring funds and made false statements in regards to the credit score scores it offered to shoppers. With out admitting to any previous wrongdoing, TransUnion additionally agreed to 5 years of heightened monitoring by the bureau to verify its compliance with federal shopper legal guidelines.

The buyer bureau mentioned in its newest go well with that it had informed TransUnion a number of occasions, beginning in 2019 and persevering with by means of 2021, that the corporate had violated the 2017 order. However the firm didn’t alter its habits, Mr. Chopra mentioned at a information convention.

“TransUnion’s management is both unwilling or incapable of working its companies lawfully,” Mr. Chopra mentioned.

The bureau mentioned in its grievance that Mr. Danaher had taken quite a lot of steps to skirt the order. That included halting the rollout of an affirmative “opt-in” checkbox supposed to cease unintended subscription enrollments.

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“I don’t take the choice to cost people evenly, however based mostly on the proof uncovered within the investigation, I imagine it was applicable,” Mr. Chopra mentioned. He added that if the bureau’s investigation uncovered different proof of wrongdoing by senior leaders, the bureau would amend its grievance to personally cost them as properly.

TransUnion mentioned in its ready assertion that it had tried to abide by the phrases of the settlement however was met with silence when it sought steering from the bureau.

“Regardless of TransUnion’s months-long, good religion efforts to resolve this matter, C.F.P.B.’s present management refused to fulfill with us,” the corporate mentioned. It added that the bureau’s “unrealistic and unworkable calls for have left us with no various however to defend ourselves totally.”

TransUnion disclosed in a regulatory submitting in February that it was in discussions with the buyer bureau about its compliance with the 2017 consent order, and anticipated the company to sue if the corporate didn’t settle the case. TransUnion put aside $27 million and mentioned it foresaw a “affordable risk” of additional bills.

Mr. Chopra, who labored on the buyer bureau’s creation in 2010 and 2011 and rejoined the company final 12 months as its director, is named an aggressive regulator and has brazenly spoken of his frustration with how some firms break the legislation repeatedly. He needs regulators to transcend fines and impose penalties — like license revocations or development caps — that actually harm, he has mentioned.

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“We should forcefully tackle repeat lawbreakers to change firm habits and guarantee firms understand it’s cheaper, and higher for his or her backside line, to obey the legislation than to interrupt it,” Mr. Chopra mentioned in a speech final month.

Ed Mills, a coverage analyst at Raymond James, a monetary companies agency, mentioned the go well with was a warning shot to the monetary trade — and a reversal from the company’s meekness through the Trump administration.

“It’s virtually like a foul film title: ‘The C.F.P.B. Is Again’ — and This Time, It’s Private,’” Mr. Mills mentioned. “Chopra was very clear in that speech that he didn’t imagine that paying fines or coming into consent decrees modifications habits. One of many solely methods he was going to alter habits is by going after people for private legal responsibility.”

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In Los Angeles, Hotels Become a Refuge for Fire Evacuees

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In Los Angeles, Hotels Become a Refuge for Fire Evacuees

The lobby of Shutters on the Beach, the luxury oceanfront hotel in Santa Monica that is usually abuzz with tourists and entertainment professionals, had by Thursday transformed into a refuge for Los Angeles residents displaced by the raging wildfires that have ripped through thousands of acres and leveled entire neighborhoods to ash.

In the middle of one table sat something that has probably never been in the lobby of Shutters before: a portable plastic goldfish tank. “It’s my daughter’s,” said Kevin Fossee, 48. Mr. Fossee and his wife, Olivia Barth, 45, had evacuated to the hotel on Tuesday evening shortly after the fire in the Los Angeles Pacific Palisades area flared up near their home in Malibu.

Suddenly, an evacuation alert came in. Every phone in the lobby wailed at once, scaring young children who began to cry inconsolably. People put away their phones a second later when they realized it was a false alarm.

Similar scenes have been unfolding across other Los Angeles hotels as the fires spread and the number of people under evacuation orders soars above 100,000. IHG, which includes the Intercontinental, Regent and Holiday Inn chains, said 19 of its hotels across the Los Angeles and Pasadena areas were accommodating evacuees.

The Palisades fire, which has been raging since Tuesday and has become the most destructive in the history of Los Angeles, struck neighborhoods filled with mansions owned by the wealthy, as well as the homes of middle-class families who have owned them for generations. Now they all need places to stay.

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Many evacuees turned to a Palisades WhatsApp group that in just a few days has grown from a few hundred to over 1,000 members. Photos, news, tips on where to evacuate, hotel discount codes and pet policies were being posted with increasing rapidity as the fires spread.

At the midcentury modern Beverly Hilton hotel, which looms over the lawns and gardens of Beverly Hills, seven miles and a world away from the ash-strewed Pacific Palisades, parking ran out on Wednesday as evacuees piled in. Guests had to park in another lot a mile south and take a shuttle back.

In the lobby of the hotel, which regularly hosts glamorous events like the recent Golden Globe Awards, guests in workout clothes wrestled with children, pets and hastily packed roll-aboards.

Many of the guests were already familiar with each other from their neighborhoods, and there was a resigned intimacy as they traded stories. “You can tell right away if someone is a fire evacuee by whether they are wearing sweats or have a dog with them,” said Sasha Young, 34, a photographer. “Everyone I’ve spoken with says the same thing: We didn’t take enough.”

The Hotel June, a boutique hotel with a 1950s hipster vibe a mile north of Los Angeles International Airport, was offering evacuees rooms for $125 per night.

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“We were heading home to the Palisades from the airport when we found out about the evacuations,” said Julia Morandi, 73, a retired science educator who lives in the Palisades Highlands neighborhood. “When we checked in, they could see we were stressed, so the manager gave us drinks tickets and told us, ‘We take care of our neighbors.’”

Hotels are also assisting tourists caught up in the chaos, helping them make arrangements to fly home (as of Friday, the airport was operating normally) and waiving cancellation fees. A spokeswoman for Shutters said its guests included domestic and international tourists, but on Thursday, few could be spotted among the displaced Angelenos. The heated outdoor pool that overlooks the ocean and is usually surrounded by sunbathers was completely deserted because of the dangerous air quality.

“I think I’m one of the only tourists here,” said Pavel Francouz, 34, a hockey scout who came to Los Angeles from the Czech Republic for a meeting on Tuesday before the fires ignited.

“It’s weird to be a tourist,” he said, describing the eerily empty beaches and the hotel lobby packed with crying children, families, dogs and suitcases. “I can’t imagine what it would feel like to be these people,” he said, adding, “I’m ready to go home.”


Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2025.

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Downtown Los Angeles Macy's is among 150 locations to close

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Downtown Los Angeles Macy's is among 150 locations to close

The downtown Los Angeles Macy’s department store, situated on 7th Street and a cornerstone of retail in the area, will shut down as the company prepares to close 150 underperforming locations in an effort to revamp and modernize its business.

The iconic retail center announced this week the first 66 closures, including nine in California spanning from Sacramento to San Diego. Stores will also close in Florida, New York and Georgia, among other states. The closures are part of a broader company strategy to bolster sustainability and profitability.

Macy’s is not alone in its plan to slim down and rejuvenate sales. The retailer Kohl’s announced on Friday that it would close 27 poor performing stores by April, including 10 in California and one in the Los Angeles neighborhood of Westchester. Kohl’s will also shut down its San Bernardino e-commerce distribution center in May.

“Kohl’s continues to believe in the health and strength of its profitable store base” and will have more than 1,100 stores remaining after the closures, the company said in a statement.

Macy’s announced its plan last February to end operations at roughly 30% of its stores by 2027, following disappointing quarterly results that included a $71-million loss and nearly 2% decline in sales. The company will invest in its remaining 350 stores, which have the potential to “generate more meaningful value,” according to a release.

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“We are closing underproductive Macy’s stores to allow us to focus our resources and prioritize investments in our go-forward stores, where customers are already responding positively to better product offerings and elevated service,” Chief Executive Tony Spring said in a statement. “Closing any store is never easy.”

Macy’s brick-and-mortar locations also faced a setback in January 2024, when the company announced the closures of five stores, including the location at Simi Valley Town Center. At the same time, Macy’s said it would layoff 3.5% of its workforce, equal to about 2,350 jobs.

Farther north, Walgreens announced this week that it would shutter 12 stores across San Francisco due to “increased regulatory and reimbursement pressures,” CBS News reported.

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The justices are expected to rule quickly in the case.

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The justices are expected to rule quickly in the case.

When the Supreme Court hears arguments on Friday over whether protecting national security requires TikTok to be sold or closed, the justices will be working in the shadow of three First Amendment precedents, all influenced by the climate of their times and by how much the justices trusted the government.

During the Cold War and in the Vietnam era, the court refused to credit the government’s assertions that national security required limiting what newspapers could publish and what Americans could read. More recently, though, the court deferred to Congress’s judgment that combating terrorism justified making some kinds of speech a crime.

The court will most likely act quickly, as TikTok faces a Jan. 19 deadline under a law enacted in April by bipartisan majorities. The law’s sponsors said the app’s parent company, ByteDance, is controlled by China and could use it to harvest Americans’ private data and to spread covert disinformation.

The court’s decision will determine the fate of a powerful and pervasive cultural phenomenon that uses a sophisticated algorithm to feed a personalized array of short videos to its 170 million users in the United States. For many of them, and particularly younger ones, TikTok has become a leading source of information and entertainment.

As in earlier cases pitting national security against free speech, the core question for the justices is whether the government’s judgments about the threat TikTok is said to pose are sufficient to overcome the nation’s commitment to free speech.

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Senator Mitch McConnell, Republican of Kentucky, told the justices that he “is second to none in his appreciation and protection of the First Amendment’s right to free speech.” But he urged them to uphold the law.

“The right to free speech enshrined in the First Amendment does not apply to a corporate agent of the Chinese Communist Party,” Mr. McConnell wrote.

Jameel Jaffer, the executive director of the Knight First Amendment Institute at Columbia University, said that stance reflected a fundamental misunderstanding.

“It is not the government’s role to tell us which ideas are worth listening to,” he said. “It’s not the government’s role to cleanse the marketplace of ideas or information that the government disagrees with.”

The Supreme Court’s last major decision in a clash between national security and free speech was in 2010, in Holder v. Humanitarian Law Project. It concerned a law that made it a crime to provide even benign assistance in the form of speech to groups said to engage in terrorism.

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One plaintiff, for instance, said he wanted to help the Kurdistan Workers’ Party find peaceful ways to protect the rights of Kurds in Turkey and to bring their claims to the attention of international bodies.

When the case was argued, Elena Kagan, then the U.S. solicitor general, said courts should defer to the government’s assessments of national security threats.

“The ability of Congress and of the executive branch to regulate the relationships between Americans and foreign governments or foreign organizations has long been acknowledged by this court,” she said. (She joined the court six months later.)

The court ruled for the government by a 6-to-3 vote, accepting its expertise even after ruling that the law was subject to strict scrutiny, the most demanding form of judicial review.

“The government, when seeking to prevent imminent harms in the context of international affairs and national security, is not required to conclusively link all the pieces in the puzzle before we grant weight to its empirical conclusions,” Chief Justice John G. Roberts Jr. wrote for the majority.

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Elena Kagan was the U.S. solicitor general the last time a major decision in a clash between national security and free speech came up in a Supreme Court case, in 2010.Credit…Luke Sharrett/The New York Times

In its Supreme Court briefs defending the law banning TikTok, the Biden administration repeatedly cited the 2010 decision.

“Congress and the executive branch determined that ByteDance’s ownership and control of TikTok pose an unacceptable threat to national security because that relationship could permit a foreign adversary government to collect intelligence on and manipulate the content received by TikTok’s American users,” Elizabeth B. Prelogar, the U.S. solicitor general, wrote, “even if those harms had not yet materialized.”

Many federal laws, she added, limit foreign ownership of companies in sensitive fields, including broadcasting, banking, nuclear facilities, undersea cables, air carriers, dams and reservoirs.

While the court led by Chief Justice Roberts was willing to defer to the government, earlier courts were more skeptical. In 1965, during the Cold War, the court struck down a law requiring people who wanted to receive foreign mail that the government said was “communist political propaganda” to say so in writing.

That decision, Lamont v. Postmaster General, had several distinctive features. It was unanimous. It was the first time the court had ever held a federal law unconstitutional under the First Amendment’s free expression clauses.

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It was the first Supreme Court opinion to feature the phrase “the marketplace of ideas.” And it was the first Supreme Court decision to recognize a constitutional right to receive information.

That last idea figures in the TikTok case. “When controversies have arisen,” a brief for users of the app said, “the court has protected Americans’ right to hear foreign-influenced ideas, allowing Congress at most to require labeling of the ideas’ origin.”

Indeed, a supporting brief from the Knight First Amendment Institute said, the law banning TikTok is far more aggressive than the one limiting access to communist propaganda. “While the law in Lamont burdened Americans’ access to specific speech from abroad,” the brief said, “the act prohibits it entirely.”

Zephyr Teachout, a law professor at Fordham, said that was the wrong analysis. “Imposing foreign ownership restrictions on communications platforms is several steps removed from free speech concerns,” she wrote in a brief supporting the government, “because the regulations are wholly concerned with the firms’ ownership, not the firms’ conduct, technology or content.”

Six years after the case on mailed propaganda, the Supreme Court again rejected the invocation of national security to justify limiting speech, ruling that the Nixon administration could not stop The New York Times and The Washington Post from publishing the Pentagon Papers, a secret history of the Vietnam War. The court did so in the face of government warnings that publishing would imperil intelligence agents and peace talks.

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“The word ‘security’ is a broad, vague generality whose contours should not be invoked to abrogate the fundamental law embodied in the First Amendment,” Justice Hugo Black wrote in a concurring opinion.

The American Civil Liberties Union told the justices that the law banning TikTok “is even more sweeping” than the prior restraint sought by the government in the Pentagon Papers case.

“The government has not merely forbidden particular communications or speakers on TikTok based on their content; it has banned an entire platform,” the brief said. “It is as though, in Pentagon Papers, the lower court had shut down The New York Times entirely.”

Mr. Jaffer of the Knight Institute said the key precedents point in differing directions.

“People say, well, the court routinely defers to the government in national security cases, and there is obviously some truth to that,” he said. “But in the sphere of First Amendment rights, the record is a lot more complicated.”

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