(NEW YORK) — In the shadow of mounting controversies for his beleaguered tech firm, CEO Mark Zuckerberg laid out his vision for the future of the internet at a company conference Thursday, which he sees as evolving on the so-called “metaverse.”
Zuckerberg also announced that the name of his tech giant will be changed to “Meta” to reflect the shifting interests, though critics have accused the company of attempting to use its high-profile name change announcement to shift focus from the renewed scrutiny it has faced from lawmakers and beyond in recent weeks.
The metaverse, a three-dimensional digital world created by augmented and virtual reality products and services, will be “the successor to the mobile internet,” Zuckerberg said during his keynote speech to kick off Facebook’s Connect conference on Thursday. The chief executive demonstrated some of the experiences he said will soon be available in the digital realm — including connecting with friends and family, gaming, working out and even working remotely via a digital avatar and VR hardware.
“We’re now looking at and reporting on our business as two different segments, one for our family of apps and one for work on future platforms, and as part of this, it is time for us to adopt a new company brand to encompass everything that we do to reflect who we are and what we hope to build,” he said.
“I am proud to announce that starting today, our company is now meta,” Zuckerberg added.
The Facebook chief said the word comes from the Greek term for “beyond,” and is meant to symbolize that “there is always more to build, there is always a next chapter to the story.”
“Our mission remains the same still about bringing people together, our apps and their brands, they’re not changing either,” the CEO added. “We’re still the company that designs technology around people, now we have a new North Star to help bring the metaverse to life, and we have a new name that reflects the full breadth of what we do and the future that we want to help build.”
Finally, Zuckerberg said, “From now on, we’re going to be metaverse-first, not Facebook-first.”
The name change announcement comes just weeks after a company whistleblower, Frances Haugen, testified before lawmakers, alleging blatant disregard from Facebook executives when they learned their platform could have harmful effects on democracy and the mental health of young people.
Haugen, a former Facebook product manager, accused Facebook of “choosing to prioritize its profits over people” in her opening statement before lawmakers on the Senate Commerce subcommittee.
“You can declare moral bankruptcy and we can figure out a fix [to] these things together because we solve problems together,” Haugen said.
Zuckerberg did not directly address Haugen’s claims during his remarks Thursday, saying only, “the last few years have been humbling for me and our company in a lot of ways.” During his remarks, which lasted over an hour, he mostly demonstrated how he sees people could use the metaverse and virtual or augmented reality tools in the near and far-off future.
(NEW YORK) — A woman from New York is suing The Kellogg Company for $5 million because she says the company’s Frosted Strawberry Pop-Tarts product doesn’t have enough strawberries in its filling.
Elizabeth Russett filed a class-action lawsuit on Oct. 19 with lawyer Spencer Sheehan against Kellogg’s for falsely advertising the contents of its pastry.
“The strawberry representations are misleading because the Product has less strawberries than consumers expect based on the labeling,” the lawsuit says.
“The amount of strawberry ingredients is insufficient not merely to provide the nutrient benefits of strawberries but to provide a strawberry taste.”
The lawsuit asks for $5 million in damages under the Class Action Fairness Act and a jury trial, claiming that customers wouldn’t have purchased the treats repeatedly had they known it had fewer strawberries than expected. Russett is joined by three other plaintiffs — Illinois’ Stacy Chiappetta and Anita Harris and New York’s Kelvin Brown — who are also represented by Sheehan.
Despite its name, the Whole Grain Frosted Strawberry Pop-Tarts’ box states the pastries have less than 2% of pears, apples and strawberries with dried pears and dried apples listed before dried strawberries. The product is described on the company’s website as having “sweet frosting decorated with rainbow sprinkles and filled with strawberry-flavored goodness.”
“The Product’s common or usual name of ‘ Whole Grain Frosted Strawberry Toaster Pastries,’ is false, deceptive, and misleading, because it contains mostly non-strawberry fruit ingredients,” Russett’s lawsuit says.
The plaintiff also takes issue with the absence of information regarding artificial flavoring and added coloring on the front label and marketing materials.
Kellogg’s said in a statement to ABC News: “While we don’t comment on pending litigation, we can tell you the ingredients in and labeling of all of our Pop-Tart products fully comply with all legal requirements.”
(WASHINGTON) — A proposal to levy a new tax code on America’s ultra-wealthy has sent shockwaves through the nation’s capital and beyond on Wednesday, as lawmakers struggle to reach an agreement over how to pay for President Joe Biden’s trillion-dollar Build Back Better initiative.
Senate Finance Committee Chairman Ron Wyden, D-Ore., on Wednesday morning unveiled a scheme dubbed the “Billionaires Income Tax,” which would tax capital gains on the unsold assets of billionaires — such as stocks — and significantly impact some of the nation’s wealthiest people, such as Amazon founder Jeff Bezos and Tesla CEO Elon Musk. Musk, whose net worth is currently $287 billion per Bloomberg’s real-time data on billionaires, signaled on Twitter that he opposes the proposal.
“Eventually, they run out of other people’s money and then they come for you,” Musk wrote in response to a tweet featuring a templated letter opponents can send to their congressperson. The letter says that although holdings in 401(k) plans are excluded, the proposal takes tax hikes “a step closer to imposing unrealized capital gains tax on the average investor.”
As the wealthiest man in the world, however, Musk is far from the average investor, and has seen his net worth increase by some $117 billion in 2021 alone, per Bloomberg’s count.
While the proposal has garnered backing from the White House, it has already divided Washington, with some critics calling it unconstitutional, convoluted or unfairly targeting a specific group of people who have contributed to America’s economic growth.
Wyden and proponents, meanwhile, say it will help ensure the billionaires pay their fair share of taxes after reports that some of the richest 1% of Americans have legally avoided paying taxes on their wealth gains despite their net worths increasing dramatically — and at a time of massive wealth inequality in the U.S. that experts have said is exacerbated by America’s tax codes being tilted in favor of the wealthy.
Though it currently faces an uphill battle in implementation, here is what to know about the proposed billionaires’ income tax.
Who would be hit with the new tax?
The new tax would apply to roughly 700 taxpayers, according to a statement from Wyden’s office, or those with more than $100 million in annual income or more than $1 billion in assets for three consecutive years. With a population of 328 million, this means the new tax would impact less than 0.001% of Americans.
The wealth of billionaires tends to be more tied up in stocks compared to working-class Americans. The wealthiest 1% of households in the U.S. own more than half of all the publicly traded stock in the market, according to Federal Reserve data, and the bottom 50% own less than 1%.
Recent investigative reports, including a bombshell leak of tax documents to the nonprofit news organization ProPublica earlier this year, have found that the ultra-wealthy use legal loopholes to avoid paying taxes on their wealth gains — such as keeping their reported income, and thus income taxes, to just a fraction of what their net worth actually is. Musk, for example, earned a base salary of $0 at Tesla in 2020, according to SEC filings.
The ProPublica report found that while the median American household paid 14% of their income in federal taxes, the wealthiest 25 Americans had an average so-called “true tax rate” of 3.4% of the amount their wealth grew each year between 2014 and 2018.
Wyden alluded to this divide, saying that the Billionaires Income Tax would ensure “billionaires pay tax every year, just like working Americans.”
“There are two tax codes in America,” Wyden said in a statement accompanying his proposal on Wednesday. “The first is mandatory for workers who pay taxes out of every pay check. The second is voluntary for billionaires who defer paying taxes for years, if not indefinitely.”
How does it work?
Under current tax codes, if the value of stocks rises it can lead to swift, multimillion dollar gains in the net worth of the nation’s wealthiest individuals — but they don’t have to pay taxes on these wealth gains unless they sell the stocks.
Wyden’s proposal would ask billionaires to pay an annual tax on gains or take deductions for losses whether they sell the stocks or not.
“The way the system works today is that if you make a profit on assets that you hold, they’re worth more at the end of the year than the beginning. You don’t pay tax unless you sell those assets,” Howard Gleckman, a senior fellow in the Urban-Brookings Tax Policy Center, told ABC News on Wednesday.
“There are trillions of dollars in increased value of assets that simply go untaxed,” Gleckman added. “And that is one big reason for the income inequality, and the fact that the rich have gotten so much richer.”
Non-tradable assets like real estate or business interests would not be taxed annually, but when billionaires sell or transfer these non-tradable assets, they would pay a capital gains tax in addition to an interest charge that Wyden’s office labels as akin to interest charged on deferred tax.
The interest charge — or “deferral recapture amount,” as Wyden is calling it, would be the amount of interest that would be due on tax owed if the asset had been marked to market each year and the tax had been deferred until sale. The interest rate applied would be 1.22%, per Wyden’s office, or the applicable federal short term rate (currently 0.22%) plus one percentage point.
The proposal contains rules to help smooth the transition, such as being able to treat up to $1 billion of tradable stock in a single corporation as a non-tradable asset. It would also let billionaires elect to pay tax over five years the first time the billionaires’ tradable assets are marked to market.
The full, 107-page text of the tax proposal can be found here.
Gleckman said he sees potential issues arising if a major asset goes down in value and are calculated as losses by billionaires, and because of the potential for confusion over the valuation of privately held, non-tradable assets.
“The bottom line, the 30,000-foot level, this is a very interesting idea but it is very hard to administer,” Gleckman said. “This is not a wealth tax, but it has some of the common administrative problems of a wealth tax — the biggest being it’s hard to value the assets of rich people.”
Is it constitutional?
A legal challenge likely looms if the proposal is enacted, and critics have already questioned the constitutionality of taxing unrealized or unsold capital gains.
Under current law, the government has the power to tax “income” due to the 16th Amendment, but new wealth gains are only classified as income when they are realized or sold, not simply held. The Supreme Court in 1920 ruled that stock dividends did not become taxable as income until they were sold or converted.
This definition of income has benefits to working- and middle-class Americans, as they do not have to pay taxes on retirement savings such as their 401(k)s when they increase in value until they cash out.
White House press secretary Jen Psaki, however, signaled that they believe the new tax has legal footing.
When asked about the questionable constitutionality of the tax, Psaki said, “We’re not going to support anything we don’t think is legal.”
“The president supports the billionaire tax,” she added. “He looks forward to working with Congress and Chairman Wyden to make sure the highest income Americans pay their fair share.”
In a statement to ABC News, Wyden defended his proposal from critics, saying, “Entire sections of the tax code are unconstitutional if this is unconstitutional.”
“I can’t imagine the Supreme Court wants to give the wealthiest people on earth billions in tax cuts, particularly at a time when so many Americans are losing faith in the Supreme Court,” he added.
(NEW YORK) — Sara Blakely is probably going down as one of 2021’s best bosses ever.
The Spanx founder recently announced that she is giving the company’s employees two first-class Delta plane tickets to travel anywhere in the world.
She also gave $10,000 for them each to spend on the trip.
“I really want every employee to celebrate this moment in their own way and create a memory that will last them a lifetime,” Blakely captioned a video celebrating the moment.
Ahead of sharing the exciting news with her staff, Blakely choked up on the video as she reflected on initially writing down that Spanx, an underwear company focused on shapewear, would one day become a $20 million-dollar business.
“Everybody laughed at me, but I really believed that,” she continued.
Fast forward, a little over 20 years later and Spanx is valued at $1.2B, according to Business Wire. Global investment firm Blackstone also recently bought a majority stake in the company.
Since posting the special occasion on Instagram, it’s been viewed a million times with many comments.
“So inspired by you and what you created and the women you’ve impacted along the way Sara,” said former professional football player Lewis Howes.
Cat Oshman chimed in saying, “This had me in tears of joy. Love this so much and I admire the accomplishments + all the encouragement Sara brings to women today. Here’s to building our dreams and bringing others along the way!”
When asked where they are going to go, Spanx employees responded with destinations such as Croatia, South Africa and Antarctica.
One employee said she’d be taking her gifts to go on her honeymoon to Bora Bora while another said he would fly to Sweden and elope with his girlfriend.
“GMA” reached out to Spanx for comment.
In a previous post, Blakely opened up about the brand’s milestone in selling to Blackstone saying how proud she is.
“I’ve bootstrapped this for 21 years and I can’t wait to see what we can do for our customers with Blackstone’s full global resources behind us,” she said. “I’m eternally grateful to the customers, employees (past and present), vendors, retailers, friends and family who stood by me while I took the leap. Let today inspire all the dreamers out there who care the most.”
She continued: ” After meeting with the all-female deal team, I knew they were the right partners to grow our mission and scale our purpose. Now together with Blackstone, we will have even more opportunity to further our mission of making the world a better place… one butt at a time!”
In 2012, Blakely was named Forbes Magazines’ youngest self-made billionaire.
Today, the company offers leggings, clothing, activewear, maternity wear and more.
(MILAN, Ill.) — A John Deere worker who was taking part in the ongoing strike was killed in a traffic accident while walking to the picket line on Wednesday morning, the United Auto Workers Union said.
The tragedy took place at approximately 6 a.m. local time in Milan, Illinois, according to a statement from Milan Police Department Chief Shawn Johnson. The victim’s name is being withheld pending family notification.
“Initial investigation showed the pedestrian was crossing the Rock Island Milan Parkway at the intersection with Deere Drive,” Johnson said. “The pedestrian was pronounced deceased from injuries sustained in the accident.”
The 56-year-old employee was a member of the UAW’s Local 79 and had been an employee at the Milan John Deere Parts Distribution Plant for 15 years, according to a UAW statement.
“It is a somber time to lose a member who made the ultimate sacrifice in reporting to picket for a better life for his family and coworkers,” UAW President Ray Curry said in the statement.
Ron McInroy, director of UAW Region 4, added: “Our brother was fighting for what is right and we all mourn for his family and co-workers.”
“Through our tears, we continue to picket and honor the solidarity of our fallen brother,” McInroy said. “But we do this with heavy hearts today.”
Curry said the UAW flag will fly at half-staff Wednesday.
More than 10,000 John Deere workers have been on strike for approximately two weeks, after the union rejected a contract offer Oct. 14. The workers are seeking higher wages, better retirement benefits and more after working through the COVID-19 pandemic. It’s the first strike at the agricultural machinery giant in more than three decades, and it comes amid a spate of strikes in recent weeks that’s left several major companies scrambling for staff.
“We are saddened by the tragic accident and death of one of our employees who was struck by a vehicle before dawn this morning,” Jennifer Hartmann, director of public relations at John Deere, told ABC News in a statement Wednesday. “All of us at John Deere express our deepest condolences to their family and friends.”
(NEW YORK) — The travel industry is gearing up for what could be its busiest season since the coronavirus pandemic began, and at least one U.S. airline is aiming to make things quicker and easier — one face at a time.
Delta Air Lines is just days away from launching a first-of-its-kind pilot program that will implement facial recognition technology at two of America’s largest airports — in Atlanta and Detroit.
The Atlanta-based company partnered with the Transportation Security Administration (TSA) to create a completely touchless experience, from bag drop to security to boarding.
“So is this the future of flying?” asked ABC News transportation correspondent Gio Benitez.
“This is the future in so many ways,” replied Ranjan Goswami, Delta’s senior vice president of customer experience. “Basically, we want to make the airport experience as effortless as possible. What does that mean? Getting out of lines, not having to stop discombobulated.”
To participate in the voluntary pilot program, passengers must have TSA pre-check and be a member of Delta’s loyalty program.
When participating passengers arrive at the airport’s bag drop, TSA checkpoint or boarding gate, they will just need to lower their face mask to utilize the new technology. Their face will be recognized within seconds, and there will be no need to pull out a boarding pass or record locator.
Delta has previously used similar facial recognition technology for passengers to board some international flights.
And it’s not just Delta.
American Airlines started testing its own biometric screening for boarding in March, and that system is still being tested in Dallas.
“A lot of people may be wondering: ‘Wait a minute, what’s going to happen to my photo?'” Benitez asked. “‘Is Delta going to keep my information?'”
“It’s a very valid concern,” Goswami said. “First, we are not storing any photographic imagery at all. All we do is take your photo. And because you’ve uploaded your passport number as part of your Delta profile… we take that passport number and that picture. We just check it against the customs database from your passport photo.”
With Delta expecting more than 5.5 million travelers over the upcoming Thanksgiving holiday, the pilot program will come at the perfect time.
“It’s actually a good congruence of circumstances that we have this technology ready,” said Byron Merritt, Delta’s vice president of experience design. “We’re going to be able to bring it to life before the holidays and hopefully make a better experience for our customers as they come back.”
(WASHINGTON) — Jessica Rosenworcel is in line to make history as the first woman to head the Federal Communications Commission, after President Joe Biden announced on Tuesday his intent to officially nominate her as a commissioner and designate her as chair of the agency tasked with regulating telecommunications technology.
Rosenworcel has served as acting chair of the FCC since January, but would need to be confirmed by the Senate to assume her new role as chair in an official capacity. She has been a commissioner since 2012.
Her nomination could also mean the end to Trump-era clampdowns on net neutrality, as Rosenworcel has been a fierce advocate for an internet that is “open and available for all.”
“The internet should be open and available for all. That’s what net neutrality is about,” Rosenworcel said in an October 2020 statement. “It’s why people from across this country rose up to voice their frustration and anger with the Federal Communications Commission when it decided to ignore their wishes and roll back net neutrality.”
She added that she views the rollbacks to net neutrality as a way to “make it easier for broadband companies to block websites, slow speeds, and dictate what we can do and where we can go online.”
During her brief stint as acting chair, Rosenworcel has focused on closing the digital divide at a time when the COVID-19 pandemic resulted in an abrupt dependence on internet access for millions of Americans in order to go to school or do their jobs.
Rosenworcel’s policy approach and the historic nature of her nomination has also been lauded for representing the needs of women in a sector where they remain underrepresented in leadership positions.
“Every issue is a gender issue, even broadband access,” Rosenworcel wrote in a July op-ed she co-authored with Valerie Jarrett, a former senior adviser to President Barack Obama.
The op-ed cited how 31% of women have worried about paying their broadband bill during the pandemic, and delved into the issues working mothers especially faced when schools shuttered for in-person learning. The piece promoted the Emergency Connectivity Fund, which aims to support students who need internet access at home in order to participate in virtual schooling during the health crisis.
The White House also recognized her inclusive approach to telecommunications policy, especially for low-income communities, in a statement Tuesday.
“During her time at the agency, she has worked to promote greater opportunity, accessibility, and affordability in our communications services in order to ensure that all Americans get a fair shot at 21st century success,” a statement from the White House announcing her nomination Tuesday said. “From fighting to protect an open internet, to ensuring broadband access for students caught in the Homework Gap through the FCC’s Emergency Connectivity Fund, to making sure that households struggling to afford internet service stay connected through the Emergency Broadband Benefit program, she has been a champion for connectivity for all.”
She has also led a fight against illegal robocalls, the statement added, and worked to enhance consumer protections.
Rosenworcel previously worked as a senior communications counsel for the Senate Committee on Commerce, Science, and Transportation, and before that practiced communications law after graduating from the New York University School of Law.
The mother of two is originally from Hartford, Connecticut, but currently lives in Washington, D.C., with her husband.
In addition to announcing Rosenworcel’s nomination, the Biden administration said Tuesday that it plans to nominate fellow net neutrality advocate Gigi Sohn as an FCC commissioner. If both the new nominees are confirmed, it would give the FCC a Democratic majority. If their confirmations are delayed until Rosenworcel’s term expires at the end of the year, Republicans would hold a majority on the commission — setting up a potential political showdown over their confirmations.
(WASHINGTON) — A Senate panel on Tuesday grilled executives from YouTube, TikTok and Snapchat on what the social media companies are doing to ensure young users’ safety in the wake of revelations about Facebook’s practices and allegations the platforms need to do more to prevent potentially harmful effects on kids.
“They have deepened America’s concern and outrage and have led to increasing calls for accountability, and there will be accountability,” Senate Commerce subcommittee Chair Richard Blumenthal, D-Conn., said in his opening remarks regarding the newly exposed details on the inner workings of social media giants.
“We’re hearing the same stories of harm” caused by YouTube, TikTok and Snapchat, Blumenthal said, calling this, “for Big Tech, a Big Tobacco moment.”
“This time is different,” he said.
The subcommittee is seeking information from executives at TikTok, Snap Inc. and YouTube on how critics say algorithms can magnify harm to children, with the goal of passing legislation aimed to protect kids.
“You’re parents,” said Ranking Member Sen. Marsha Blackburn, R-Tenn., to the witnesses in her opening statement. “What would you do to protect your child?”
Tuesday’s hearing comes as the subcommittee expands its scope after hearing from Facebook whistleblower Frances Haugen earlier this month. She alleged that executives blatant disregarded concerns when they learned their platforms could have harmful effects on foreign democracies and the mental health of children.
The hearing also marked the first time TikTok and Snapchat have testified before lawmakers, while Facebook has been called to more than 30 congressional hearings through the years and YouTube executives have already appeared in front this Congress earlier in the year.
The social media executives on Tuesday vigorously defended how their platforms protect children from inappropriate content.
Here are some key takeaways:
Tech companies blasted for alleged lack of transparency
Different from a normally polarized Washington, senators on both sides of the aisle came together to drill the social media executives on transparency and focused on whether they’d allow access to independent researchers to study their algorithms, which some allege have exposed kids to harmful behavior and fueled eating disorders in young girls.
All three platforms said they have studied the potential negative impacts on children’s mental health.
Blumenthal asked, “If an academic researcher comes to you on child psychology and wants to determine whether one of your products causes teen mental health issues or addiction, they get access to raw data from you without interference?”
Jennifer Stout, vice president for global public policy of Snapchat parent Snap Inc., said her company’s algorithms “operate very differently” from those of the other platforms under scrutiny, but ultimately signaled a willingness to support outside researchers, as did TikTok’s executive.
“Yes, senator, we believe transparency for the average is incredibly important. We’re one of the first companies to publish publicly, a deep dive in how our algorithm works,” said Michael Beckerman, a TikTok vice president and head of public policy for the Americas.
Leslie Miller, vice president for government affairs and public policy of YouTube’s owner Google, skirted the question and said that outside research “would depend on the details” — an answer that frustrated Blumenthal.
“I’m going to cite the difference between your response between Mister Beckerman’s and Ms. Stout’s, which indicates certainly a strong hesitancy if not resistance,” Blumenthal said to Miller.
Overall, the executives defended what senators deemed was a lack of transparency.
Stout said in her closing statement that the protection of children is the “highest priority,” and Miller also said at YouTube there “no more important thing than the safety of kids online.”
But Tiktok appeared to be most willing for congressional oversight with Beckerman saying squarely in his closing statement, “We support stronger privacy rules to be put in place.”
Push for privacy legislation
While millions of young users log into the platforms every day, the bipartisan panel of senators appeared to agree that not enough is being done to protect them from harmful content.
Sen. Ed Markey, D-Mass., used the moment to push the companies to say whether they support his proposed privacy laws banning the use of targeted ads on kids and other potentially harmful features.
One piece of legislation he’s introduced, the Children’s Online Privacy Protection Act, or COPPA, would prohibit internet companies from collecting personal information from anyone under the age of 13 without parental consent.
“Do you support it or not?” he asked the Snap executive.
“I think, senator, we’d love to talk to you a bit more about this,” Stout said.
“This is just what drives us crazy,” a heated Markey responded. “We want to talk, we want to talk, we want to talk. This bill’s been out there for years, and you still don’t have a view on it?”
“We like your approach,” Beckerman, from TikTok, said. “However, I think a piece that should be included is a better way to verify age across the Internet across apps rather than the system that is in place now. And I think with that improvement, it would be something that we’d be happy to support.”
Miller said wouldn’t commit on the record but said executives at YouTube have had “constructive” conversations internally.
He also pressed them on the Kids Internet Design and Safety Act, or KIDS Act, another piece of legislation he’s introduced to stop online practices such as manipulative marketing, noting the impact of social media influencers on children.
“They’re inherently manipulative to young kids who often cannot tell that they’re really paid advertisements that their heroes pushing that the hero is getting a monetary kickback,” Markey said. “Should we make it illegal?”
Miller said they would “need to stare at the details of such a bill” to which Markey, again, noted,” It’s been around for a while.”
The TikTok executive said they agree that there should be additional transparency and additional privacy laws, which Snap mirrored, but added the caveat, “We would be happy to look at them.”
After Miller said YouTube executives “support the goals of comprehensive privacy legislation,” when Blumenthal raised the Eliminating Abusive and Rampant Neglect of Interactive Technologies, or EARN IT, Act, which has bipartisan Senate support, he said back, “This is the topic that we’ve seen again and again and again, and again. ‘We support the goals, but that’s meaningless unless you support the legislation.”
Focus on potential real-world harm on kids
With the momentum of the findings from the Facebook hearing, the panel argued that social media platforms have been allowed to promote and glorify dangerous content, and it especially harms the nation’s most vulnerable: children.
While executives defended their platforms and listed actions that they’ve taken internally, senators on the committee highlighted several examples of inappropriate content slipping past those safeguards and getting in front of children.
Sen. Mike Lee, R-Utah, said his staff opened an account saying it was for a teenage girl, and when they opened the “Discover” page with its default settings, found concerning videos.
“They were immediately bombarded with content that I can most politely describe as wildly inappropriate for a child, including recommendations for among other things an invite to play an online sexualized video game, tips on why you shouldn’t go to bars alone,” he said, waving his hands with concern.
The Snap executive said guidelines prevent sexual content to 18 and above, “so I’m unclear as to why that content would’ve shown up for an account that was for a 14-year-old.”
Senators reminded the witnesses that Snapchat’s speed filter allowed users to add their speeds and it took eight years for the company to remove the filter following catastrophic car crashes associated with the app.
Sen. Amy Klobuchar, D-Minn., pressed Snapchat over the use of illegal drugs being used on its platform in an argument for greater liability on tech companies, citing the case of Devin Norring, who authorities said died in Minnesota after taking Percocet laced with Fentanyl from a drug dealer on Snapchat.
“They can get on your platform and just find a way to buy it, and that is the problem,” she said. “Are you going to get drugs off Snapchat?”
Stout said it was a “top priority” and that it’s happening on other platforms, too.
“I think there are other ways to do this too as creating liability when this happened, so maybe that’ll make you work even faster, so we don’t lose another kid,” Klobuchar replied.
Citing a recent investigation by the Wall Street Journal which found that Tik Tok algorithm can put young users into content glorifying eating disorders, drug violence, Klobuchar asked blankly, “Have you stopped that?”
Beckerman said it’s something they’ve taken action on are “constantly working on” and repeated their support for the Children and Media Research Advancement Act or CAMRA Act.
Blumenthal pressed TikTok on its effects on teens, saying his staff created TikTok accounts intended for dance videos and within a week those accounts were flooded with content of suicidal ideation, self-injury, sex and eating disorders.
Beckerman suggested some of those challenged are overblown by the press and said that’s “not the typical TikTok experience.”
“We found pass-out videos,” Blumenthal said, pausing for dramatic effect. “We found them, so I have a lot of trouble crediting your response on that score.”
“This is stuff occurring in the real world,” he added later.
(NEW YORK) — Rental car giant Hertz announced it was buying 100,000 Tesla electric vehicles that will be available to customers starting next month.
Tesla stock soared on news of the massive order, and its market cap hit the $1 trillion milestone during intraday trading Monday, a feat very few U.S. companies have attained.
The announcement also comes just months after Hertz emerged from bankruptcy, after the COVID-19 pandemic gutted the travel and rental car industry in 2020.
In addition to the initial order of 100,000 Teslas by the end of 2022, Hertz also announced it was adding new electric vehicle charging infrastructure at outposts across its global operations.
Starting in early November, the company said customers will be able to rent a Tesla Model 3 at Hertz airport and neighborhood locations in major U.S. markets and select cities in Europe. It will offer digitized guidance to educate customers about the electric vehicles, and soon hopes to offer an expedited electric vehicle rental booking process through its app.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Hertz interim CEO Mark Fields said in a statement Monday.
“The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world,” Fields added.
The company said it was the first U.S. car rental company to introduce electric vehicles to its rental fleet in 2011 and that with the current order, electric vehicles will comprise more than 20% of Hertz global fleet.
Hertz is teaming up with seven-time Super Bowl champion Tom Brady on an ad campaign about its new electric vehicle fleet.
“Although the company has been around for over 100 years, their constant evolution, especially now, is something that is amazing to be a part of,” Brady said in a statement. “I’ve been driving an EV for years and knowing Hertz is leading the way with their electric fleet speaks to how the world is changing and the way companies are approaching being environmentally and socially conscious. I’ve always loved how easy and convenient Hertz makes it for me when I’m traveling to my favorite places like New York, LA and Tampa and can’t wait to see what they continue to have in store.”
The move comes amid mounting pressure on the private sector and beyond to take action on climate change. The transportation sector generated the largest share of greenhouse gas emissions in 2019, per the U.S. Environmental Protection Agency, primarily from burning fossil fuels for cars, trucks, ships, trains and planes.
(NEW YORK) — A coalition of Amazon warehouse workers in New York City have officially filed a petition for a union election with the National Labor Relations Board on Monday.
Kayla Blado, the press secretary for the National Labor Relations Board, confirmed to ABC News on Monday that the union petition was filed in the NLRB’s Region 29. The petition must now go through the NLRB’s formal representation election process before a vote will be held.
The group of workers, which calls themselves the Amazon Labor Union, are being led by a former fulfillment center employee of the e-commerce giant, Chris Smalls. He became the face of the labor movement at Amazon when he was fired under contentious circumstances at the beginning of the pandemic after organizing a demonstration over working conditions amid the health crisis.
The milestone comes some six months after a high-profile union bid by Amazon workers in Bessemer, Alabama, who sought to be represented by the Retail, Wholesale and Department Store Union. The unionization efforts garnered support from lawmakers and even President Joe Biden. Ultimately, however, the election resulted in the Alabama workers overwhelmingly voting not to form a union — though the RWDSU has accused Amazon of union-busting techniques — Amazon denies this — and has filed objections over the election with the NLRB.
“We’re completely independent, worker-led through and through, grassroots,” Smalls told ABC News Friday of the New York-based group, adding that they felt there were “missed opportunities” with the failed effort in Alabama.
“We’re just trying to navigate our way — we think we know the ins-and-outs of the company better than a third party or an established union,” Smalls said in describing why they’re seeking to create an independent union. He said he’d worked at Amazon for almost five years before his termination and that his fellow lead-organizers have similar experiences.
Smalls said organizers are seeking to obtain better job security, pay and working conditions through collective bargaining.
“Amazon has a high turnover rate — they hire and fire all the time,” he said. “We want to protect workers with their job.”
“We also want a decent living wage,” he added. “I know Amazon’s going to claim that they pay better than competitors, but with the cost of living in the New York state area, it’s still not sustainable.”
He said Amazon can afford to pay workers better, pointing to the wealth of founder Jeff Bezos, who was only recently unseated by Elon Musk as the richest man in the world, per Bloomberg’s real-time data on billionaires.
Smalls told ABC News on Friday that they have more than 2,000 workers who have signed union cards, and they plan to deliver these to the NLRB’s office on Monday to file for the union election for four facilities in Staten Island. There are approximately 7,000 workers at the facilities, according to Smalls, and organizers need signatures from at least 30% of the workers. He said they’re confident they’ll secure the remaining portion before Monday.
A statement from the newly formed coalition of workers said that they built trust among colleagues through months of organizing efforts that included hosting barbecues, handing out food and cold water and holding rallies.
“This is truly a remarkable historical moment for all Amazon workers all over the country,” the Amazon Labor Union stated. “Workers under the banner of the ALU have already broken barriers, and we will continue to do so. We’re not getting complacent, and we now need the support of the communities more than ever as our fight is just getting started.”
The move comes amid a spate of strikes and new employee activism in the workplace as the pandemic wanes in the U.S.
“The timing is, like, perfect, everybody’s been paying attention to the strikes, especially Amazon workers as well,” Smalls said. “So it’s kind of like we all stand in solidarity, even though we’re in different industries.”
“I think what we’re doing here is historical, and I think the Amazon workers are happy to be a part of it,” he added.
Kelly Nantel, an Amazon spokesperson, told ABC News in a statement Friday that they don’t feel unions “are the best answer for our employees.”
“Our employees have the choice of whether or not to join a union. They always have,” Nantel said. “Every day we empower people to find ways to improve their jobs, and when they do that we want to make those changes — quickly. That type of continuous improvement is harder to do quickly and nimbly with unions in the middle.”
