(NEW YORK) — The Federal Bureau of Investigation has issued an alert about the rise in technical support scams spreading across the country.
FBI field offices in Pittsburgh, Las Vegas, Boston and Chicago continue to warn the public of heightened fraud and cyber security risks.
According to the FBI bulletin, the technical support scam involves a cybercriminal posing as technical support offering to resolve issues such as compromised email or bank accounts, computer viruses, or software renewals.
“You may be on your computer, and you may get a pop-up,” said Ashley Johnson, the acting special agent in charge of the Chicago division. “And this pop-up will tell them, ‘Hey, your accounts have been hacked. Call this number.’ And [the scammers] will represent themselves as a reputable software company.”
Recent FBI statistics reported that Americans lost nearly a quarter billion dollars last year from this scam alone — an increase of over 137% compared to last year.
YouTube star Pierogi, who runs a YouTube channel called “Scammer Payback,” which posts videos of phone calls with scammers, told ABC News he first noticed an uptick in this type of scam earlier this year.
He shared a screenshot of a “pop-up alert” scam he received on his computer that claimed to be from Microsoft and directed him to call a phone number for support.
A spokesperson from Microsoft told ABC News that Microsoft will never send unsolicited messages or make unsolicited phone calls to request personal or financial information, or to provide support to fix your computer.
They added that the real Microsoft warning messages never include a phone number. If a consumer does receive a pop-up, the spokesperson recommended closing the message or using the key combination CTRL+ALT+DEL to quit the program they’re currently using and run a security scan on the computer.
For Bert Smith, 85, and his wife Ann, a month-long tech support scam ended up costing them $3 million.
Smith, who used a pseudonym for this report, said he logged on to his computer to play solitaire, like he does most days. Almost immediately, he experienced a frozen computer followed by a pop-up advising the computer was hacked and to call a phone number claiming to be a well-known computer software company.
According to Smith, when he called the phone number, he was transferred to another person claiming to be a federal agent, who told him he needed remote access to his computer to scan it. Smith said the scammer told him that his Social Security numbers, bank and investment account information were all compromised, and that their money was at risk.
He said he was told the solution was to transfer the money out of their current accounts and invest it in cryptocurrency for safekeeping.
“They had told me that if anybody asks why we are doing this, well, the stock market was down,” said Smith. “And Bitcoins were going down too, so this would be a good time to invest.”
According to Smith’s daughter Kerry, the scammers even gave her parents Bitcoin wallet numbers to try to convince them their money was safe.
Smith said he was instructed not to tell anyone, including bank employees or members of their family, and was given a script to recite at the bank if questioned by employees about the nature of his money transfers.
Their daughter Kerry said she only learned about the scam after the $3 million was gone.
“It was devastating to hear because of how hard my parents worked for their money,” said Kerry. “This shows just how manipulative these scammers are … for them not to share something like this with us.”
Over the course of a month, Smith said he made a dozen wire transfers in amounts as high as $750,000 until a bank employee became suspicious and notified the local police, who have since referred the case to the FBI. Smith told ABC that their case is still currently under investigation.
While they still hope they can recover some of their money, Bert and Ann said it was more important for them to share their story so that others are aware of what these scammers can do. “As I look back on it, I [think], ‘How gullible could you be?’ But on the other hand, they had a good story,” said Smith. “We wanted to share our story, so that seniors can learn from this … and for them not to feel that it’s something they did.”
Johnson urged victims of scams to contact the FBI through ic3.gov or report suspected scams to their local law enforcement agency and their banking institution.
According to Johnson, the FBI’s Recovery Asset Team has recovered over $300 million of fraudulently obtained funds. “We have an 82% recovery rate,” she said, but encouraged victims to report as early as possible, making it more likely to recover money.
FBI field offices nationwide also work directly with banking institutions to combat criminal activity, said Johnson. Through FBI investigations and intelligence, the agency provides education on emerging phishing and scamming trends for banks.
“We do see [companies] being vigilant in trying to make sure their customers are protected,” Johnson added.
Additionally, the FBI provided a list of tips to avoid being scammed:
Avoid installing apps or programs that allow strangers remote access to your computer.
Never call the number in a pop-up window.
Always disconnect your device from the internet immediately if you see a scam-related pop-up screen. Do not turn your computer off or reboot.
Always be skeptical if someone tells you not to talk to your family about a money transfer.
Always be skeptical if a “government agency” asks you to conduct business in Bitcoin.
Always call companies, banks, or government agencies directly with numbers you have independently verified.
Always contact the FBI at ic3.gov to make a report.
(WASHINGTON) — The House on Wednesday voted to block a strike by the nation’s railway workers, intervening in a labor dispute with wide-ranging economic and political implications.
The House voted 290-137 to adopt the tentative deal between the rail companies and employees reached in September and brokered by the White House.
A second, separate vote — aimed at addressing progressive Democrats’ concerns over protecting workers — was set on a measure to add seven days of paid sick leave to the agreement, which now allows for only one.
Unless an agreement is imposed by Congress by a Dec. 9 deadline, much of the nation’s economy that depends on freight transportation would be disrupted — some estimates say up to $2 billion a day.
“The House will take up urgent and necessary legislation to that end: adopting the Tentative Agreement reached after months of hard-fought negotiations,” Pelosi said in a memo to colleagues on Tuesday.
“After hearing from our Members, we are in agreement that a nationwide rail strike must be prevented — and that more must be done to secure the paid sick leave that hard-working railroaders deserve.”
Rep. Pramila Jayapal, D-Wash., chair of the Congressional Progressive Caucus, said any House legislation to codify the existing tentative agreement will be accompanied by legislation that addresses the workers’ long standing demand for fair paid leave.
In a statement, Jayapal said that Pelosi announced a deal that allows the House to pass legislation for railway workers that includes paid sick leave after “productive conversations” between Congressional Progressive Caucus members, Transportation and Infrastructure Chair Peter DeFazio, D-Ore., and House Leadership.
“The Progressive Caucus will continue to fight to ensure that all workers have paid sick leave guaranteed and that labor rights are upheld. I thank Speaker Pelosi and Leadership for their cooperation, and my Progressive Caucus colleagues for their indefatigable advocacy and commitment to workers’ rights,” Jayapal said in a statement.
The two-vote series also allows the Senate to act on the two bills separately. Sen. Bernie Sanders, I-Vt, has been urging his Senate colleagues to consider boosting paid leave provisions.
The House votes come as President Joe Biden on Monday asked Congress to intervene and avert a potential strike, although he warned against making any changes to the negotiated agreement.
Both Biden, a self-professed pro-union president, and Pelosi noted their hesitation to step into the dispute.
“I am reluctant to override the ratification procedures and the views of those who voted against the agreement,” Biden said on Monday. “But in this case — where the economic impact of a shutdown would hurt millions of other working people and families — I believe Congress must use its powers to adopt this deal.”
Pelosi echoed Biden’s call to prioritize avert the wide-ranging economic consequences from a strike.
“It is with great reluctance that we must now move to bypass the standard ratification process for the Tentative Agreement. However, we must act to prevent a catastrophic strike that would touch the lives of nearly every family: erasing hundreds of thousands of jobs, including union jobs; keeping food and medicine off the shelves; and stopping small businesses from getting their goods to market,” she said.
(WASHINGTON) — The House on Wednesday is set to vote on legislation aimed at averting a strike by the nation’s railway workers, Speaker Nancy Pelosi has announced, reluctantly intervening in a labor dispute with wide-ranging economic and political implications.
First, the House will consider legislation to adopt the tentative deal between the rail companies and employees reached in September and brokered by the White House.
A second, separate vote — aimed at addressing progressive Democrats’ concerns over protecting workers — is set on a measure to add seven days of paid sick leave to the agreement, which now allows for only one.
Unless an agreement is imposed by Congress by a Dec. 9 deadline, much of the nation’s economy that depends on freight transportation would be disrupted — some estimates say up to $2 billion a day.
“The House will take up urgent and necessary legislation to that end: adopting the Tentative Agreement reached after months of hard-fought negotiations,” Pelosi said in a memo to colleagues on Tuesday.
“After hearing from our Members, we are in agreement that a nationwide rail strike must be prevented — and that more must be done to secure the paid sick leave that hard-working railroaders deserve.”
Rep. Pramila Jayapal, D-Wash., chair of the Congressional Progressive Caucus, said any House legislation to codify the existing tentative agreement will be accompanied by legislation that addresses the workers’ long standing demand for fair paid leave.
In a statement, Jayapal said that Pelosi announced a deal that allows the House to pass legislation for railway workers that includes paid sick leave after “productive conversations” between Congressional Progressive Caucus members, Transportation and Infrastructure Chair Peter DeFazio, D-Ore., and House Leadership.
“The Progressive Caucus will continue to fight to ensure that all workers have paid sick leave guaranteed and that labor rights are upheld. I thank Speaker Pelosi and Leadership for their cooperation, and my Progressive Caucus colleagues for their indefatigable advocacy and commitment to workers’ rights,” Jayapal said in a statement.
The two-vote series also allows the Senate to act on the two bills separately. Sen. Bernie Sanders, I-Vt, has been urging his Senate colleagues to consider boosting paid leave provisions.
The House votes come as President Joe Biden on Monday asked Congress to intervene and avert a potential strike, although he warned against making any changes to the negotiated agreement.
Both Biden, a self-professed pro-union president, and Pelosi noted their hesitation to step into the dispute.
“I am reluctant to override the ratification procedures and the views of those who voted against the agreement,” Biden said on Monday. “But in this case — where the economic impact of a shutdown would hurt millions of other working people and families — I believe Congress must use its powers to adopt this deal.”
Pelosi echoed Biden’s call to prioritize avert the wide-ranging economic consequences from a strike..
“It is with great reluctance that we must now move to bypass the standard ratification process for the Tentative Agreement. However, we must act to prevent a catastrophic strike that would touch the lives of nearly every family: erasing hundreds of thousands of jobs, including union jobs; keeping food and medicine off the shelves; and stopping small businesses from getting their goods to market,” she said.
(NEW YORK) — We’ve been taught to expect the unexpected, and when it comes to finances, the best way to do that is with an emergency fund.
An emergency fund contains cash for unforeseen moments “that throw your life into financial uncertainty and disarray,” said Rebecca Jarvis, ABC News’ chief business and economics correspondent. These could include a death in the family, a debilitating illness, a divorce or a job loss.
“Life is full of surprises and sometimes they have a giant price tag,” Jarvis said.
How much should you save in your emergency fund?
Jarvis points out that emergency funds should be for “hurricanes” as opposed to “rainy day” inconveniences such as car repairs or broken appliances or phones.
“You want to look at your weekly budget — how much are you spending on food and groceries? What is the cost of electricity and utilities? How much do you have to pay for rent or your mortgage? These are all necessities, things that you would have to make payments on in order to keep the status quo,” Jarvis said.
She recommends building up six months’ worth of these expenses for your emergency fund.
“But if you can’t get there right away, at least [try to] have three months worth of savings to cover all the necessities,” Jarvis said, noting that if you have children or job instability, you may eventually wish to save a larger padding.
If that total is a challenge, “it can be helpful to start with a smaller number, like $500, which can still be crucial in getting you through a difficult time,” said Kimberly Palmer, a personal finance expert at NerdWallet, who shared a calculator that can help determine an amount you can strive to reach.
“The goal here is to give yourself that cushion so that you’re not shouldering the financial burden, along with the emotional burden, of these major lifestyle changes,” Jarvis said.
“Knowing that the money is there if you need it creates a peace of mind and a freedom to live in the present and not be thinking constantly about what happens in the future if you don’t have this safety net,” she said.
Where to put your money and how to save
Even though your emergency fund is a last resort, that money should be ready to deploy at a moment’s notice, Jarvis said.
A savings account or a money market fund are options to contain your emergency fund, as are CDs, 401(k)s or even IRAs, but some of these can have fees associated with them for early withdrawals.
As far as contributing toward your emergency fund, Jarvis suggests making it a part of your budget.
“Give a little to that emergency fund every week, every month, until you get to the point where you have those six months of savings on hand,” she said, further suggesting tracking and celebrating your progress along the way.
And if you’re carrying a lot of debt, Jarvis recommends building your emergency savings, even if you have to scale back on debt payments.
“You should be building out that emergency fund before you build out anything else, because it is going to be the underpinnings of having some degree of security and knowing that if the unforeseen crops up, you have the ability to take care of yourself and your family,” she said.
“Having that emergency savings fund can help prevent you from accruing even more debt if you face an unexpected emergency,” Palmer added.
“If you don’t have an emergency savings fund or you’ve depleted your emergency savings fund, create that line item, that small amount in your budget where you are consistently setting a little bit of money aside so that when and if you need it again in the future, you have it,” Jarvis said.
Additionally, Palmer suggests taking a look at your spending on “wants” each month, which can include eating out, subscriptions, clothing, etc.
“If you can cut back on those categories and redirect the money into savings instead, it can be a great way to build up your emergency fund,” she said, noting the 50/30/20 budget plan to assess and reallocate your funds.
Protect your hard work
“In general, you should keep your emergency fund for true emergencies and have other [long-term and short-term] savings accounts for other goals, such as vacations or big purchases,” Palmer said. “Keeping it in a savings account designated for emergencies instead of your daily checking account can be one way to help keep it separate.”
And also make sure you’re assessing “emergencies” with a clear head.
“Here’s a good barometer: Consider whether you actually need something to survive. If you don’t, it’s not an emergency,” Jarvis said.
“Building an emergency savings takes work and the last thing you want is to undo all of that hard work with a decision on the fly,” Jarvis added. “Going on a cruise is not an emergency.”
(NEW YORK) — As the holiday season gets underway, confectioners are busily unveiling new festive sweets.
Hershey’s recently shared a peek at some brand new holiday candy, including its first-ever hot chocolate bombs, which are available with marshmallows or cinnamon chips. The chocolate balls will be available for a limited time and melt into a cup of hot cocoa with the addition of warm milk poured directly over top.
“These hot chocolate bombs are the perfect cozy companion to sip on as you wrap holiday gifts and a great stocking stuffer to boot,” The Hershey Company stated in a press release.
Another new confection this year is a Hershey’s Milk Chocolate Holiday bar, which is dressed up for the holidays from the inside out with 24 varieties of seasonal imprinted images such as stars, wreaths, trees, stockings and more.
Dr. Seuss’s The Grinch and The Hershey Company have also partnered once again to make Grinch-themed Hershey’s Kisses. In addition to the 9.5-ounce and 7.4-ounce bags, there is a new tree-shaped decorative gift box filled with the assorted Grinch foil wrapped Kisses.
“The holidays are a special time where we can take a moment to relish in the traditions and enjoy seasonal treats that make the season so cherished,” Katie Behrman, associate brand manager of seasons at The Hershey Company, said in a statement.
For fans of candy coated chocolate M&Ms, the company released a new array of personalized gift jars and dispensers that are perfect for Christmas, Hanukkah or Kwanzaa, priced from $29.99 to $49.99.
The limited time holiday boxes are an easy, ready-to-go gift, and are filled with the iconic candy.
Another item hitting shelves in time for seasonal celebrations are the new espresso and dark chocolate M&M’s, the latest flavor innovation with a bold burst of coffee flavor.
The new candy bowl must-have ranges from $3.75 to $4.49 per pack.
(WASHINGTON) — President Joe Biden on Monday asked Congress to intervene and avert a potential strike of the nation’s railway workers — which could upend huge parts of the economy that depend on freight to move goods — by forcing the workers’ unions to accept a deal negotiated earlier this year.
In a statement, Biden described himself as a “proud pro-labor” president and said his decision was a difficult one.
But he said the larger economic considerations outweighed those concerns.
As at least one of the unions involved express dismay at the move, trade groups applauded Biden’s request of Congress.
“I am reluctant to override the ratification procedures and the views of those who voted against the agreement. But in this case — where the economic impact of a shutdown would hurt millions of other working people and families — I believe Congress must use its powers to adopt this deal,” he said.
He asked Congress to quickly pass legislation to adopt the tentative deal between the rail companies and employees that was reached in September and brokered by the White House.
If a deal is not reached — or forced by Congress — then a strike could begin after the Dec. 9 deadline. Outgoing Speaker Nancy Pelosi said in a statement Monday night that the House will soon take up such legislation and won’t modify the agreed-upon terms from September.
Like Biden, she said, “We are reluctant to bypass the standard ratification process for the Tentative Agreement — but we must act to prevent a catastrophic nationwide rail strike, which would grind our economy to a halt.”
The tentative contract included a 24% compounded wage increase and $5,000 total in lump-sum payments.
Pelosi praised certain elements of that deal but said, “Democrats are continuing to fight for more of railroad workers’ priorities, including paid sick leave.” Sen. Bernie Sanders, I-Vt., a member of the Democratic caucus, has said his colleagues should do more for workers.
The two largest unions had initially highlighted how the tentative agreement included “wage increases, bonuses, with no increases to insurance copays and deductibles” and improved time-off policies, which had become a sticking point.
While eight of the 12 rail unions then went on to formally ratify the agreement, four rejected it — including the largest in the nation, with 50.8% of its workers voting against the deal.
Some of the workers’ groups who rejected the agreement cited frustration with compensation and working conditions, particularly a lack of paid sick days.
Because all of the rail workers have vowed not to cross the picket line in the event of a stoppage, the objections of four of the 12 unions ensures a strike unless there is a last-minute change in negotiations or congressional intervention.
Biden said Monday he was calling for Congress to act on advice of his secretaries of labor, agriculture transportation, who “believe that there is no path to resolve the dispute at the bargaining table and have recommended that we seek Congressional action,” according to his statement.
In urging Congress to ratify the deal between the rail companies and workers, however, Biden also warned lawmakers not to try and change the terms on their own. “Some in Congress want to modify the deal to either improve it for labor or for management. However well-intentioned, any changes would risk delay and a debilitating shutdown. The agreement was reached in good faith by both sides,” he said.
A strike would “devastate our economy,” he said, noting that “the holiday season” was no time for that outcome.
Why rail workers rejected the deal
Unions have said rail employees are seeking improvements to working conditions, since workers do not receive paid sick days. The unions have accused rail companies of penalizing workers for taking time off for medical reasons and holding the nation’s economy hostage to ensure a favorable deal.
The National Carriers’ Conference Committee, or NCCC, which represents the nation’s freight railroads in national collective bargaining, has said rail employees are provided “significant” time off and the companies have offered a fair contract that includes a considerable wage increase.
After the SMART Transportation Division, or SMART-TD, the nation’s largest rail union, rejected the contract in a record turnout vote last week, the group’s president urged further negotiations.
“SMART-TD members with their votes have spoken, it’s now back to the bargaining table for our operating craft members,” SMART-TD President Jeremy Ferguson said in a statement then.
“This can all be settled through negotiations and without a strike. A settlement would be in the best interests of the workers, the railroads, shippers and the American people,” he added.
Immediate reactions on Congress intervening
One of the unions whose membership turned down the new freight rail contract said it was “disappointed by and disagrees with” Biden’s call for Congress to pass legislation to end the labor dispute.
The Brotherhood of Maintenance of Way Employes Division of the International Brotherhood of Teamsters (BMWED) said in a news release Tuesday that congressional intervention “both denies Railroad Workers their right to strike while also denying them of the benefit they would likely otherwise obtain if they were not denied their right to strike.”
The union reiterated workers’ calls for better paid sick leave policies in a new contract, saying the president and Congress should “act swiftly by passing any sort of reforms and regulations that will provide paid sick leave for all Railroad Workers.”
The tentative deal, if enforced, would give rail workers an additional personal leave day.
Pelosi said on Tuesday that the House would take up legislation to avert a rail strike as soon as Wednesday morning.
“Tomorrow morning, we will have a bill on the floor,” she said outside the White House after meeting with Biden and the other top four congressional leaders: Democratic Sen. Chuck Schumer, Republican Sen. Mitch McConnell and Republican Rep. Kevin McCarthy.
“It’s not everything I would like to see,” Pelosi said, adding that she would’ve liked to see the rail workers get more paid sick leave.
Schumer confirmed that the Senate, too, would get the bill on the floor soon — and he said he had agreement from McConnell.
“Leader McConnell I agreed we’d try to get it done ASAP,” Schumer said.
Neither he nor Pelosi answered questions or said whether they thought they had the votes to pass the legislation. At least one senator, Florida Republican Marco Rubio, wrote on Twitter that he opposed it because it “doesn’t have the support of the rail workers.”
McCarthy said outside the White House that thought legislation would pass.
He didn’t miss an opportunity to blame Biden for the deal falling apart, though. He called it another example of the White House going back on its word, after calling the negotiation a “win” just a month ago.
“It’s unfortunate that this is how we’re running our economy today,” he said.
Biden told ABC News’ Mary Bruce at the White House on Tuesday that he was “confident” in avoiding a strike.
“Congress, I think, has to act to prevent it. It’s not an easy call, but I think we have to do it. The economy’s at risk,” he said.
What a railroad strike could mean for the economy
A potential strike could lead to $2 billion a day in lost economic output, according to the Association of American Railroads, which lobbies on behalf of railway companies.
“No one benefits from a rail work stoppage — not our customers, not rail employees and not the American economy,” AAR President and CEO Ian Jefferies said in a statement Monday night. “Now is the appropriate time for Congress to pass legislation to implement the agreements already ratified by eight of the twelve unions. A clear pattern of ratified agreements has been established and Congressional action to prevent a work stoppage in this manner is appropriate.”
“A national rail strike would severely impact the economy and the public,” the NCCC said last week.
Rail is critical to the entire goods side of the economy, including agriculture, manufacturing, retail and warehousing. Freight railroads are responsible for transporting 40% of the nation’s long-haul freight and a work stoppage could endanger those shipments.
Moody’s Analytics chief economist, Mark Zandi, said that a railroad strike would be “economically costly,” and that a freight shutdown would roil supply chains and put upward pressure on U.S. goods inflation, making price problems temporarily worse.
The main channel for a strike to boost inflation is through the higher cost of transportation, particularly for agriculture, Zandi said. Corn, wheat and soybeans are the primary agriculture commodities that use rail.
A strike would also affect shipments of ethanol, potentially leading to higher gas prices, according to Zandi.
Trucking freight rates, which are still elevated above pre-pandemic levels, could also be pushed higher. Zandi said that the American Trucking Association estimates that a rail work stoppage would require 500,000 more trucks and 80,000 more drivers to fill the gap — an untenable number.
More immediately, however, Zandi said a strike would not have a material impact on holiday sales. Inventories of Christmas goods are ample and the major shipping of goods from ports to warehouses for the season is long over.
“Getting goods from warehouses to homes is done by truck,” Zandi said. “Perhaps some trucks would be diverted to help move goods typically done by rail, but this should not be a significant factor for Christmas.”
Local rails, though, could see disruptions should a rail strike occur — leaving commuters in a lurch. Freight companies own and operate many of the tracks across the country and in the event of a strike, local trains that run on those tracks would be forced to cancel trips.
But some Amtrak trains and commuter rails that run along the Northeast Corridor wouldn’t be affected by this. Amtrak owns some of its tracks, and they are not involved in the ongoing negotiations. In addition, local rail that own and operate their own tracks would not be affected — such as Trinity Railway Express in Dallas and Bay Area Rapid Transit in San Francisco.
Why Congress is involved in potential rail strike
All labor disputes in the railway and airline industries — which are seen as critical to the U.S. economy, stretching across major industries from energy to agriculture — are governed by a 1920s-era federal law known as the Railway Labor Act, or RLA.
Congress enacted that law after decades of sometimes violent worker strikes and when Americans had grown dependent on many industries, particularly farming and manufacturing.
Under the RLA, if the parties in the rail labor dispute do not reach agreement on a new contract, the railroads can either impose their own work rules or employees can strike — or both.
At that point, the RLA would no longer set the terms of behavior.
Congress, acting with authority from the Constitution’s commerce clause, has not voted to end a railroad strike since April 1991 — less than 24 hours after a walkout. At the time, lawmakers approved a joint resolution — with President George H. W. Bush being roused from his bed in the middle of the night to sign the bill — that forced the parties in the dispute into a 65-day binding arbitration process.
Had those workers not approved of the terms in arbitration, Congress mandated that less generous solutions from the Presidential Emergency Board, acting as a third party, be accepted.
ABC News’ Adam Carlson, Cheyenne Haslett and Lauren Peller contributed to this report.
(NEW YORK) — A woman in Florida has sued Kraft Heinz Foods Company, claiming the time it takes to make its microwaveable cup of Velveeta macaroni and cheese is longer than what the claims on the label indicate.
Amanda Ramirez filed a $5 million class action lawsuit against the company earlier in November over the “ready in 3 1/2 minutes” claim on the packaging of Velveeta Shells & Cheese cups.
“Consumers are misled to expect the Product will be ready for consumption in a shorter amount of time than it really takes to prepare,” the lawsuit reads. “Defendant sold more of the Product and at higher prices than it would have in the absence of this misconduct, resulting in additional profits at the expense of consumers.”
In the suit, Ramirez claims that the “3 1/2 minutes” phrase on the packaging refers to the cooking time only.
“According to the directions on the back of the packaging, there are four steps in preparing the product,” the suit reads. “First, consumers must ‘REMOVE lid and Cheese Sauce Pouch.’ Next, they must ‘ADD water to fill line in cup. STIR.’ Third, ‘MICROWAVE, uncovered, on HIGH 3-1/2 min. DO NOT DRAIN.’ Finally, they should ‘STIR IN contents of cheese sauce pouch.’ Defendant then notes that ‘CHEESE SAUCE WILL THICKEN UPON STANDING.’ “
“Consumers seeing ‘ready in 3½ minutes’ will believe it represents the total amount of time it takes to prepare the Product, meaning from the moment it is unopened to the moment it is ready for consumption,” the suit continues. “However, the directions outlined above show that 3-and-a-half minutes is just the length of time to complete one of several steps. The label does not state the Product takes ‘3½ minutes to cook in the microwave,’ which would have been true.”
Ramirez claims in the suit that the mac and cheese products are “sold at a premium price, approximately no less than $10.99 for eight 2.39 oz cups, excluding tax and sales,” which she said are priced “higher than similar products represented in a non-misleading way and higher than it would be sold for absent the misleading representations and omissions.”
“Good Morning America” has reached out to Kraft Heinz for comment on the lawsuit. In previous comments to other publications, the company has stated: “We are aware of this frivolous lawsuit and will strongly defend against the allegations in the complaint.”
Ramirez sued “individually and on behalf of all others similarly situated,” which indicates this could lead to a class action settlement for consumers.
“The members of the class Plaintiff seeks to represent are more than 100, because the Product has been sold with the representations described here from thousands of stores in the States covered by Plaintiff’s proposed classes,” the suit states.
The suit is seeking at least $5 million in damages, “including statutory and punitive exclusive of interest and costs.”
A West Palm Beach-based law firm filed the suit with Ramirez, according to the documents, along with Sheehan and Associates, a New York law firm led by Spencer Sheehan, who has brought hundreds of lawsuits against other popular grocery products such as Pop-Tarts, NPR first reported.
The Pop-Tarts lawsuit claimed that the product’s packaging was “misleading because the label gives consumers the impression the fruit filling only contains strawberries as its fruit ingredient.” A federal judge in New York dismissed the suit in April, stating that “no reasonable consumer would see the entire product label, reading the words ‘Frosted Strawberry Pop-Tarts’ next to a picture of a toaster pastry coated in frosting, and reasonably expect that fresh strawberries would be the sole ingredient in the Product.”
(WASHINGTON) — Hundreds of thousands of rail workers stand on the brink of a nationwide strike that would paralyze the U.S. supply chain and passenger rail service ahead of the busy holiday season.
“Let me be clear: a rail shutdown would devastate our economy,” President Joe Biden said on Monday. “Without freight rail, many U.S. industries would shut down.”
Biden asked Congress to pass a law that imposes the terms of a tentative agreement reached in September but was rejected by several unions.
Still, the fate of a potential deal between rail workers and companies remains uncertain, especially if Congress fails to impose the tentative agreement. Four of 12 unions have already voted down the agreement and those four unions represent the majority of unionized rail workers.
A nationwide strike is expected unless the contract is ratified by each of the 12 rail unions, since all of the unions have vowed not to cross the picket line in the event of a work stoppage.
Unions have said rail employees are seeking improvements to working conditions, since workers do not receive paid sick days. The unions have accused rail companies of penalizing workers for taking time off for medical reasons and holding the nation’s economy hostage to ensure a favorable deal.
The National Carriers’ Conference Committee, or NCCC, which represents the nation’s freight railroads in national collective bargaining, has said rail employees are provided “significant” time off and the companies have offered a fair contract that includes a considerable wage increase.
Here’s a timeline of how the U.S. arrived at the precipice of a rail shutdown and what to expect as a deadline nears in the coming weeks:
July 15 – As rail unions and companies struggle to reach an agreement on the terms of a new contract, Biden signs an executive order that creates a presidential emergency board.
The board’s goal is to issue guideline recommendations for an agreement between the two sides in order to avert a potentially devastating rail strike.
Aug. 16 – The presidential emergency board issues recommendations for a compromise agreement between the unions and rail companies.
The recommendations include a 24% raise from 2020 to 2024 and bonus increases. The union’s demand for a new time-off policy, however, is omitted.
Sept. 14 – Rail workers and companies prepare for a potential strike that could cost $2 billion a day in lost economic output, according to the Association of American Railroads, which lobbies on behalf of rail companies.
Freight railroads are responsible for carrying 40% of the nation’s long-haul freight and a work stoppage could jeopardize these shipments.
Sept. 15 – Rail companies and unions reach a tentative labor agreement after 20 consecutive hours of negotiations brokered by U.S. Secretary of Labor Marty Walsh.
The tentative agreement “balances the needs of workers, businesses, and our nation’s economy,” Walsh said.
The agreement improves the time-off policies at the rail companies, which are a key sticking point in the negotiations, according to a statement from the two largest unions, the Brotherhood of Locomotive Engineers Trainmen, or BLET, and the SMART Transportation Division, or SMART-TD.
Oct. 11 – A union representing about 12,000 rail workers votes down the tentative contract that was brokered by the White House, raising the possibility of an eventual strike.
The Brotherhood of Maintenance of Way Employees Division of the Teamsters, or BMWED, rejects the tentative contract due to frustration with compensation and working conditions, particularly a lack of paid sick days, BMWED President Tony Cardell says in a statement.
“Railroaders do not feel valued,” Cardell says. “They resent the fact that management holds no regard for their quality of life.”
The National Carriers’ Conference Committee, or NCCC, the group representing the freight railroad companies, expresses “disappointment” in the decision to reject the contract.
Oct. 27 – A second union rejects the White House-brokered deal, elevating the likelihood of a nationwide strike.
The vote by the Brotherhood of Railroad Signalmen, a union representing 6,000 workers, centers on the lack of paid sick days, according to a statement from Brotherhood of Railroad Signalmen President Michael Baldwin.
The NCCC expresses disappointment over the union vote.
The tentative contract “included the largest wage package in nearly five decades, maintained rail employees’ platinum-level health benefits, and added an additional day of paid time off,” the NCCC says in a statement.
Nov. 21 – The nation’s largest rail union votes down the tentative contract brokered by the White House, dramatically escalating the likelihood of a strike.
SMART-TD, which represents about 28,000 conductors, narrowly rejects the contract in a vote that garnered record turnout, the union says.
The second-largest rail union, made up of engineers, votes in favor of the contract, splitting the top rail unions.
Nov. 28 – Biden asks Congress to intervene and avert a potential strike by forcing the workers’ unions to accept a White House-brokered deal as a December deadline approaches.
In a statement, Biden touts himself as a “pro-labor” president but says the larger economic implications outweigh those concerns.
“I am reluctant to override the ratification procedures and the views of those who voted against the agreement. But in this case — where the economic impact of a shutdown would hurt millions of other working people and families — I believe Congress must use its powers to adopt this deal,” he says.
He calls on Congress to quickly pass legislation to adopt the White House-brokered deal reached in September.
Outgoing Speaker Nancy Pelosi later says in a statement that the House will soon take up such legislation and will not modify the agreed-upon terms.
Nov. 29 – Biden tells ABC News he’s “confident” the U.S. will avert a rail strike.
“Congress, I think, has to act to prevent it,” he says. “It’s not an easy call, but I think we have to do it.”
Dec. 4 – By the end of the week that concludes on Dec. 4, House lawmakers are expected to take up a bill that adopts the tentative agreement brokered by the White House.
If passed, the bill will be sent to the Senate, where it faces uncertain prospects as the chamber is split 50-50 between the parties. Most legislation requires 60 votes to overcome a filibuster.
Dec. 9 – A strike deadline looms on Dec. 9, when unions could move forward with a coordinated work stoppage.
Additional reporting contributed by Morgan Winsor, Sam Sweeney, Sarah Kolinovsky, Amanda Maile, Zunaira Zaki, Trish Turner, Ahmad Hemingway and William Kim
(NEW YORK) — Historic protests across China over its zero-COVID policy battered U.S. stocks on Monday, highlighting a close link between the contentious Chinese measures and domestic economic conditions that could help determine whether the U.S. enters a recession.
Residents in isolation in some regions say they’ve gone without sufficient food or medical care. Meanwhile, protests flared up after a fire on Thursday in an apartment building in the northwest city of Urumqi that killed at least 10 people, as some alleged that lockdowns obstructed the rescue of victims, while government officials denied any such impact.
Tension over COVID lockdowns in the world’s second-largest economy coincides with a precarious U.S. economic outlook.
An aggressive series of interest rate hikes from the Federal Reserve aim to dial back sky-high inflation by slowing the economy and slashing demand. But the approach risks tipping the country in a downturn and putting millions out of work. Plus, ongoing disruption from the Russia-Ukraine war has exposed vulnerability in economies across the globe, including the U.S, experts said.
COVID lockdowns in China have clogged supply chains in the manufacturing stalwart, extending pandemic-era bottlenecks that have contributed to inflation, analysts told ABC News. Meanwhile, the zero-COVID policy has stagnated the Chinese economy, hurting spending among Chinese customers and in turn pummeling U.S companies that depend on it, they said.
“When consumers are locked down in these different cities, it’s a gut punch to the U.S. economy,” Dan Ives, a managing director of equity research at Wedbush, an investment firm, told ABC News. “It has reached a fork in the road.”
Here’s what you need to know about how China’s zero-COVID policy heightens the risk of a U.S. recession:
Zero-COVID policy contributes to US inflation
A key threat to U.S. economic performance is inflation, which remains highly elevated and owes in part to Chinese lockdowns.
Sky-high price hikes stem from the pandemic, when millions across the globe facing lockdowns replaced restaurant expenditures with couches and exercise bikes. But the surge in demand for goods far outpaced supply, as COVID-related bottlenecks slowed delivery times. When demand exceeded supply, prices skyrocketed.
Some supply bottlenecks have eased but others remain, including China’s zero-COVID policy and its related lockdowns.
“The main effect of the zero-tolerance policy in China is interrupting some supply chains,” David Dollar, a senior fellow at the Brookings Institution focused on U.S.-China economic relations, told ABC News.
“We still import a lot from China and those problems in supply chains means the products are not here and that contributes a little bit to inflationary pressure,” he added.
For instance, China’s zero-COVID policy has led to major iPhone shortages heading into the holidays, according to a report released by Ives on Monday. Shortages have reached as low as 35% of typical holiday inventory in some stores, causing overall iPhone demand to outstrip supply by a ratio of 3 to 1, he found.
The iPhone shortage is the “poster child” of a larger trend, Ives told ABC News. The zero-COVID policy continues to reduce the supply of goods from China by an estimated 10% to 20%, he said.
To be sure, analysts disagree about the extent to which supply shortages have contributed to inflation, as opposed to a flood of stimulus payments that juiced demand.
“There’s definitely some linkage but I would not exaggerate it,” Dollar said.
Zero-COVID policy hurts Chinese consumers and U.S. companies
In addition to clogging up supply, the Chinese lockdowns have suppressed consumer demand in the country, causing slowdowns at U.S. companies that operate a significant portion of their business in China.
Holiday spending during a weeklong National Day break last month fell 56% compared to pre-pandemic levels, Bloomberg reported. Overall, China’s gross domestic product grew 3.9% over three months ending in September, well below 4.9% growth seen over the same period last year.
“People are locked down at home a lot of the time, so they’re not out spending money,” said Dollar, of the Brookings Institution.
“If China were growing well, it’d be importing more from the U.S. and contributing to the profits of U.S. companies that operate there,” he added. “That’s all not happening this year.”
Sluggish consumer demand in China contributed to the market sell off on Monday in response to civil unrest over the zero-COVID policy, Dollar said.
As of Monday afternoon, shares in Apple fell nearly 3%.
“A lot of big American companies listed in New York have serious business in China,” he said. “If there’s civil and political unrest, if the Chinese economy is slowing down, that creates uncertainty for a lot of American businesses.”
(WASHINGTON) — President Joe Biden on Monday asked Congress to intervene and avert a potential strike of the nation’s railway workers — which could upend huge parts of the economy that depend on freight to move goods — by forcing the workers’ unions to accept a deal negotiated earlier this year.
In a statement, Biden described himself as a “proud pro-labor” president and said his decision was a difficult one.
But he said the larger economic considerations outweighed those concerns.
“I am reluctant to override the ratification procedures and the views of those who voted against the agreement. But in this case — where the economic impact of a shutdown would hurt millions of other working people and families — I believe Congress must use its powers to adopt this deal,” he said.
He asked Congress to quickly pass legislation to adopt the tentative deal between the rail companies and employees that was reached in September and brokered by the White House.
If a deal is not reached — or forced by Congress — then a strike could begin after the Dec. 9 deadline. Outgoing Speaker Nancy Pelosi said in a statement Monday night that the House will soon take up such legislation and won’t modify the agreed-upon terms from September.
Like Biden, she said, “We are reluctant to bypass the standard ratification process for the Tentative Agreement — but we must act to prevent a catastrophic nationwide rail strike, which would grind our economy to a halt.”
The tentative contract included a 24% compounded wage increase and $5,000 total in lump-sum payments.
Pelosi praised certain elements of that deal but said, “Democrats are continuing to fight for more of railroad workers’ priorities, including paid sick leave.”
Sen. Bernie Sanders, I-Vt., a member of the Democratic caucus, has said his colleagues should do more for workers.
The two largest unions had initially highlighted how the tentative agreement included “wage increases, bonuses, with no increases to insurance copays and deductibles” and improved time-off policies, which had become a sticking point.
While eight of the 12 rail unions then went on to formally ratify the agreement, four rejected it — including the largest in the nation, with 50.8% of its workers voting against the deal.
Some of the workers’ groups who rejected the agreement cited frustration with compensation and working conditions, particularly a lack of paid sick days.
Because all of the rail workers have vowed not to cross the picket line in the event of a stoppage, the objections of four of the 12 unions ensures a strike unless there is a last-minute change in negotiations or congressional intervention.
Biden said Monday he was calling for Congress to act on advice of his secretaries of labor, agriculture transportation, who “believe that there is no path to resolve the dispute at the bargaining table and have recommended that we seek Congressional action,” according to his statement.
In urging Congress to ratify the deal between the rail companies and workers, however, Biden also warned lawmakers not to try and change the terms on their own.
“Some in Congress want to modify the deal to either improve it for labor or for management. However well-intentioned, any changes would risk delay and a debilitating shutdown. The agreement was reached in good faith by both sides,” he said.
A strike would “devastate our economy,” he said, noting that “the holiday season” was no time for that outcome.
What a railroad strike could mean for the economy
A potential strike could lead to $2 billion a day in lost economic output, according to the Association of American Railroads, which lobbies on behalf of railway companies.
“No one benefits from a rail work stoppage — not our customers, not rail employees and not the American economy,” AAR President and CEO Ian Jefferies said in a statement Monday night. “Now is the appropriate time for Congress to pass legislation to implement the agreements already ratified by eight of the twelve unions. A clear pattern of ratified agreements has been established and Congressional action to prevent a work stoppage in this manner is appropriate.”
“A national rail strike would severely impact the economy and the public,” the National Carriers’ Conference Committee, or NCCC, the group representing the freight railroad companies, said last week.
Rail is critical to the entire goods side of the economy, including agriculture, manufacturing, retail and warehousing. Freight railroads are responsible for transporting 40% of the nation’s long-haul freight and a work stoppage could endanger those shipments.
Moody’s Analytics chief economist, Mark Zandi, said that a railroad strike would be “economically costly,” and that a freight shutdown would roil supply chains and put upward pressure on U.S. goods inflation, making price problems temporarily worse.
The main channel for a strike to boost inflation is through the higher cost of transportation, particularly for agriculture, Zandi said. Corn, wheat and soybeans are the primary agriculture commodities that use rail.
A strike would also affect shipments of ethanol, potentially leading to higher gas prices, according to Zandi.
Trucking freight rates, which are still elevated above pre-pandemic levels, could also be pushed higher. Zandi said that the American Trucking Association estimates that a rail work stoppage would require 500,000 more trucks and 80,000 more drivers to fill the gap — an untenable number.
More immediately, however, Zandi said a strike would not have a material impact on holiday sales. Inventories of Christmas goods are ample and the major shipping of goods from ports to warehouses for the season is long over.
“Getting goods from warehouses to homes is done by truck,” Zandi said. “Perhaps some trucks would be diverted to help move goods typically done by rail, but this should not be a significant factor for Christmas.”
Local rails, though, could see disruptions should a rail strike occur — leaving commuters in a lurch. Freight companies own and operate many of the tracks across the country and in the event of a strike, local trains that run on those tracks would be forced to cancel trips.
But some Amtrak trains and commuter rails that run along the Northeast Corridor wouldn’t be affected by this. Amtrak owns some of its tracks, and they are not involved in the ongoing negotiations. In addition, local rail that own and operate their own tracks would not be affected — such as Trinity Railway Express in Dallas and Bay Area Rapid Transit in San Francisco.
Why Congress is involved in potential rail strike
All labor disputes in the railway and airline industries — which are seen as critical to the U.S. economy, stretching across major industries from energy to agriculture — are governed by a 1920s-era federal law known as the Railway Labor Act, or RLA.
Congress enacted that law after decades of sometimes violent worker strikes and when Americans had grown dependent on many industries, particularly farming and manufacturing.
Under the RLA, if the parties in the rail labor dispute do not reach agreement on a new contract, the railroads can either impose their own work rules or employees can strike — or both.
At that point, the RLA would no longer set the terms of behavior.
Congress, acting with authority from the Constitution’s commerce clause, has not voted to end a railroad strike since April 1991 — less than 24 hours after a walkout. At the time, lawmakers approved a joint resolution — with President George H. W. Bush being roused from his bed in the middle of the night to sign the bill — that forced the parties in the dispute into a 65-day binding arbitration process.
Had those workers not approved of the terms in arbitration, Congress mandated that less generous solutions from the Presidential Emergency Board, acting as a third party, be accepted.
