Posts with «company legal & law matters» label

US Attorneys General will take legal action against telecom providers enabling robocalls

The Attorneys General of all 50 states have joined forces in hopes of giving teeth to the seemingly never-ending fight against robocalls. North Carolina AG Josh Stein, Indiana AG Todd Rokita and Ohio AG Dave Yost are leading the formation of the new Anti-Robocall Litigation Task Force. In Stein's announcement, he said the group will focus on taking legal action against telecoms, particularly gateway providers, allowing or turning a blind eye to foreign robocalls made to US numbers.

He explained that gateway providers routing foreign phone calls into the US telephone network have the responsibility under the law to ensure the traffic they're bringing in is legal. Stein said that they mostly aren't taking any action to keep robocalls out of the US phone network, though, and they're even intentionally allowing robocall traffic through in return for steady revenue in many cases. 

Stein said in a statement:

"We're... going to take action against phone companies that violate state and federal laws. I’m proud to create this nationwide task force to hold companies accountable when they turn a blind eye to the robocallers they’re letting on to their networks so they can make more money. I’ve already brought one pathbreaking lawsuit against an out-of-state gateway provider, and I won’t hesitate to take legal action against others who break our laws and bombard North Carolinians with these harmful, unlawful calls."

The Attorney General referenced data from the National Consumer Law Center, which previously reported that American phone numbers get more than 33 million scam robocalls a day. Those include Social Security scams targeting seniors and gift card scams, wherein bad actors pretend they're from the IRS. In that report, the center warned that consumers will keep on getting robocalls as long as phone providers are earning from them. 

Stein already has experience sparring with shady gateway providers. Back in January, he sued Articul8 for routing more than 65 million calls to phone numbers in North Carolina and inundating residents with up to 200 fraudulent telemarketing calls every single day. He previously urged the FCC to implement measures designed to put a stop to illegal foreign calls made through providers like Articul8, as well. And in 2019, Stein became instrumental in the development of an agreement between the US Attorneys General and 12 carriers in the country to use the STIR/SHAKEN call-blocking technology.

New York regulators slap Robinhood's crypto business with $30 million fine

In the latest in what seems to be a string of challenges the company has to grapple with, Robinhood's crypto division has been slapped with a $30 million fine by the New York State Department of Financial Services. It's the first crypto-focused enforcement action by the regulator, which has issued the multimillion dollar penalty against Robinhood for what it says are violations against the state's anti-money laundering and cybersecurity regulations. In its announcement, the Financial Services Department said it found significant deficiencies in the company's compliance programs following a supervisory examination.

Apparently, there weren't enough people working in Robinhood's money laundering compliance program. The company also failed to transition from a manual monitoring system, which is no longer sufficient now that it's much larger than when it started. In addition, the department found that policies within Robinhood's cybersecurity program aren't in full compliance with official cybersecurity and virtual currency regulations. 

The New York regulator also mentioned that Robinhood improperly certified compliance with the Department's Transaction Monitoring Regulation and Cybersecurity Regulation. Since it wasn't fully compliant with the state's cybersecurity rules, Robinhood violated the law by claiming compliance. Finally, the regulator said Robinhood failed to adhere to consumer protection requirements by not maintaining a separate phone number (and displaying it on its website) specifically for consumer complaints. 

Superintendent of Financial Services, Adrienne A. Harris, said in a statement:

"As its business grew, Robinhood Crypto failed to invest the proper resources and attention to develop and maintain a culture of compliance—a failure that resulted in significant violations of the Department’s anti-money laundering and cybersecurity regulations. All virtual currency companies licensed in New York State are subject to the same anti-money laundering, consumer protection, and cybersecurity regulations as traditional financial services companies. DFS will continue to investigate and take action when any licensee violates the law or the Department’s regulations, which are critical to protecting consumers and ensuring the safety and soundness of the institutions."

Aside from having to pay $30 million, Robinhood must retain an independent consultant who will evaluate if it has taken the appropriate actions to address its violations and deficiencies under the settlement.

Robinhood also recently announced that it's laying off 23 percent of its workforce due to record inflation and the cryptocurrency crash. It's the company's second round of job cuts this year and will affect employees across divisions. That revelation came after Robinhood published its earnings for the second quarter of 2022, wherein it posted a net loss of $295 million and announced a decrease of 1.9 million in monthly active users. 

Meta faces lawsuit for allegedly collecting patient health data without consent

Meta may have scooped up sensitive medical information without consent. The Vergereports that two proposed class-action lawsuits accuse the company and hospitals of violating HIPAA, the California Invasion of Privacy Act and other laws by collecting patient data without consent. Meta's Pixel analytic tracking tool allegedly sent health statuses, appointment details and other data to Facebook when it was present on patient portals.

In one lawsuit, a patient said Pixel gathered data from the UC San Francisco and Dignity Health portals that was used to deliver ads related to heart and knee issues. The second lawsuit is broader and claims at least 664 providers shared medical info with Facebook through Pixel.

We've asked Meta for comment. The company requires that sites using Pixel obtain the right to share data before sending it to Facebook, but the plaintiffs claim Meta refused to enforce its policies. It placed Pixel on the facilities' websites despite knowing the kind of data it would collect, according to the lawsuits.

The lawsuits aren't guaranteed to achieve class-action status, and such lawsuits rarely provide large payouts to individuals. If successful, though, the legal action could prove costly for Meta. They're asking for damages on behalf of all Facebook users whose healthcare providers rely on Pixel, and that could include millions of people.

The Morning After: Did Microsoft just neg Blizzard Activision?

In a recent filing, Microsoft told New Zealand’s Commerce Commission that Blizzard Activision produces no “must-have” games. Weird thing to say when the company plans to spend $68.7 billion to buy the gaming giant behind Call of Duty, Overwatch, Diablo, World of Warcraft and plenty more.

In the document, Microsoft said: “There is nothing unique about the video games developed and published by Activision Blizzard that is a ‘must have’ for rival PC and console video game distributors that give rise to a foreclosure concern.”

Attempting to downplay the importance of Call of Duty is just one of the ways Microsoft has tried to placate regulators. In February, the company pledged it would continue to make the franchise available on PlayStation consoles beyond any existing agreements between Sony and Activision.

— Mat Smith

The biggest stories you might have missed

An e-bike sharing company co-founded by Usain Bolt appears to have shut down

It left its equipment in the streets in some cities.

An e-bike- and scooter-sharing startup co-founded by Olympian Usain Bolt appears to have stopped operations. Bolt Mobility offered bikes in five cities, including Portland, Burlington, Vermont and Richmond in California, and others. "We learned a couple of weeks ago (from them) that Bolt is ceasing operations," a transportation planner in Chittenden County, Vermont, told TechCrunch. "They’ve vanished, leaving equipment behind and emails and calls unanswered.”

Continue reading.

Apple's App Store homepage will soon feature ads

You'll also see them on individual app pages.

Apple famously bragged it’ll never invade your privacy to serve ads, but it does have an ad business on its App Store and elsewhere. The company is now expanding that business by adding a new ad slot to its Today homepage tab and on individual app pages. The company says these new ad slots will adhere to Apple's policies on privacy and transparency, by not offering personalized ads to users under 18, never using sensitive data and avoiding hyper-targeting.

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The best Xbox games for 2022

Whether you have Series X, Series S, One X or One S, there's something here for you.

Engadget

Microsoft’s console strategy is unique. Someone with a nine-year-old Xbox One has access to an almost-identical library of games as the owner of a brand-new Xbox Series X. That makes it difficult to maintain meaningfully different lists for its various consoles — at least for now. But while next-gen exclusives may be few and far between, there are a lot of gamers who simply haven’t experienced much of what Microsoft has had to offer since the mid-'10s.

It’s in that frame of mind that we approach this list, now updated: What games would we recommend to someone picking up an Xbox today? Expect more updated guides to the best games throughout the week.

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Twitter investor sues Elon Musk in a bid to force through $44 billion takeover

The proposed class action suit accuses Musk of breaching his fiduciary duty to Twitter shareholders.

Reuters

It's not only Twitter trying to force Elon Musk to buy the company for $44 billion. An investor filed a proposed class action lawsuit to try stopping Musk from backing out of the deal. Luigi Crispo's suit accuses Musk of breach of contract and breach of fiduciary duty to Twitter's shareholders. Musk last month claimed the company made “false and misleading representations,” and that it misrepresented the number of bots and fake accounts on its platform. Crispo concurred with Twitter's claims that Musk is using false claims about bots and spam to wriggle out of the deal without a valid legal standing.

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Spotify's latest fancy feature for Premium users is a play button

Premium features.

It’s 2022 and Spotify is adding the most basic of functions to its iOS and Android apps: dedicated play and shuffle buttons on playlists and album pages. Until now, tapping the button on most playlists started playback, shuffled. This vanilla playback ‘feature,’ however, will only be available to Spotify Premium subscribers.

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TikTok might be working on a music service

There’s already a "TikTok Music" trademark application filed.

TikTok’s parent company, ByteDance, has filed a trademark application with the US Patent and Trademark Office for "TikTok Music." The service would let users "purchase, play, share, download music, songs, albums, lyrics... live stream audio and video... edit and upload photographs as the cover of playlists... [and] comment on music, songs and albums."

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NYPD must disclose facial recognition procedures deployed against Black Lives Matter protesters

New York police must now comply with a public records request related to its use of facial recognition and other surveillance on protestors. A judge has ordered the New York Police Department to release documents pertaining to its monitoring of Black Lives Matters protests during the summer of 2020, requiring it to release 2,700 emails and other documents to the public or state why it fall"and/or allege with specificity that each document falls within one of the enumerated exemptions of Public Officers Law."

The NYPD previously rejected a Freedom of Information Law (FOIL) request by Amnesty International and the Surveillance Technology Oversight Project for records related to its use of facial recognition and surveillance tools on activists (as well as a subsequent appeal to that FOIL request), leading both groups to sue the law enforcement organization last year. The police agency has argued that the records request would cover over 30 million documents, and that following through would be “unreasonably burdensome."

In a ruling issued on Friday, New York Supreme Court Justice Lawrence Love rejected the NYPD's reasoning. Legal teams for the NYPD and Amnesty International have met since the lawsuit was filed, and narrowed down the number of documents to 2,700 in total, an amount that Love called “far more reasonable." The judge also ordered both Amnesty International and STOP to re-submit its FOIL request, this time tailoring it to cover the 2,700 documents in question.

A number of public records requests from Buzzfeed, Wired and other news outlets revealed that the NYPD has an extensive range of surveillance tools at its disposal. The policy agency has purchased technology such as cell site simulators, gait recognition software, X-ray vans and facial recognition software from notorious vendor Clearview AI.

Judge refuses to remove Visa from Pornhub case on child porn

A federal judge refused to remove Visa from a lawsuit that alleges it aided MindGeek — the parent company of Pornhub — in monetizing child porn. In a decision issued on July 29th, U.S. District Judge Cormac Carney accuses the payment processor of refusing to cut business ties with MindGeek, despite being aware that Pornhub and other MindGeek-owned pornography sites distributed child pornography. The lawsuit was filed by a woman whose underage videos were posted on Pornhub without her permission.

“If Visa was aware that there was a substantial amount of child porn on MindGeek’s sites, which the Court must accept as true at this stage of the proceedings, then it was aware that it was processing the monetization of child porn, moving money from advertisers to MindGeek for advertisements playing alongside child porn like Plaintiff’s videos,” wrote Judge Carney.

Visa has argued that it is an “improper defendant” in the case and does not tolerate illegal activity. “Visa condemns sex trafficking, sexual exploitation and child sexual abuse materials as repugnant to our values and purpose as a company. This pre-trial ruling is disappointing and mischaracterizes Visa’s role and its policies and practices. Visa will not tolerate the use of our network for illegal activity. We continue to believe that Visa is an improper defendant in this case,” a Visa spokesperson wrote in a statement to Variety.

Pornhub and other MindGeek-owned porn sites regularly feature nonconsensual or underage porn videos, according to recent reporting in both the New Yorker and the New York Times. MindGeek has maintained that it has protocols in place to prevent the posting and reposting of such illegal material on its site. In 2020, MindGeek banned all unverified users from posting on its sites and removed millions of uploaded videos in the aftermath. In order to post on any MindGeek properties, a user must submit their government ID to a third-party firm and verify their identity. 

 “When the court can actually consider the facts, we are confident the plaintiff’s claims will be dismissed for lack of merit. MindGeek has zero tolerance for the posting of illegal content on its platforms, and has instituted the most comprehensive safeguards in user-generated platform history,” a MindGeek spokesperson wrote to Variety

The Montreal-based company has been in disarray following years of media attention over what critics believe is a flawed moderation process that allows illegal content to thrive on its porn sites. Both the CEO and COO of MindGeek abruptly resigned in June. The company also laid off an unspecified number of employees this summer.

Twitter investor sues Elon Musk in a bid to force through $44 billion takeover

It's not only Twitter that's trying to force Elon Musk to buy the company for $44 billion. An investor filed a proposed class action lawsuit to try stopping Musk from backing out of the deal. Luigi Crispo's suit accuses Musk of breach of contract and breach of fiduciary duty to Twitter's shareholders, according to Bloomberg. It claims he offered feeble "rationales for reneging on his contract." Two “corporate acquisition entities” connected to the deal are also named as defendants.

Musk last month attempted to wash his hands of his bid to buy Twitter, claiming the company made “false and misleading representations” and that it misrepresented the number of bots and fake accounts on its platform. Crispo concurred with Twitter's claims that Musk is using false claims about bots and spam to wriggle out of the deal without a valid legal standing to do so. Also like Twitter, Crispo is seeking a court order that would require Musk to complete the buyout.

After he tried to back out, Twitter swiftly sued Musk in an attempt to make him "honor his obligations" and buy the company. Last week, Musk made a counter filing, which remains sealed for now. A judge granted Twitter's request for an expedited trial, which is scheduled to start on October 17th and last for five days. Its shareholders will vote on the takeover on September 13th.

Meanwhile, Crispo holds 5,500 shares in Twitter. Those are worth nearly $300,000 at the $54.20 per-share offer Musk made to buy Twitter outright back in April. The shares are currently worth $223,000 at Twitter's current share price, which was $40.55 at the time of writing.

TikTok might be working on a music service

TikTok has helped users discover both current and past musical artists, and now it might be starting its own music streaming service. Parent ByteDance has filed a trademark application with the US Patent and Trademark Office for "TikTok Music," Insider has reported. The service would let users "purchase, play, share, download music, songs, albums, lyrics... live stream audio and video... edit and upload photographs as the cover of playlists.. [and] comment on music, songs and albums." 

ByteDance already has a music streaming app called Resso, but it's only available in India, Brazil and Indonesia. That app has some of the features mentioned in the trademark filing, like playlists, song-sharing and community interaction. On top of that, TikTok redirects users in Brazil to the full song on Resso, as Insider notes.

The trademark application was first submitted in Australia and then filed in the US on May 9th. It's not clear if it intends to base such a service on Resso, but it has to demonstrate that it will actually use the trademark before applying for it in the US — so it's not just a placeholder, according to Insider. The company also described said you could "live stream audio and video interactive media programming in the field of entertainment, fashion, sports, and current events," as other possible use cases. 

Tim Hortons wants to settle location-tracking lawsuits with coffee and doughnuts

Tim Hortons has agreed to settle multiple class action lawsuits that accused the company of tracking customers' locations through its app without consent. Under the proposed settlement, which requires a judge's approval, eligible customers in Canada will receive a free hot drink and baked good. In other words, in exchange for your location data, the restaurant chain will give you coffee and a doughnut.

In an email to customers, the company said it will delete any geolocation data it obtained from them between April 1st, 2019 and September 30th, 2020, and tell third-party vendor Radar Labs to do the same. An investigation conducted by Canadian privacy officials determined last month that the Tim Hortons app was tracking and recording users' locations every few minutes, even when they didn't have the app open. The probe determined that the company and Radar Labs didn't have sufficient consent from users for that level of tracking. 

Tim Hortons has not admitted to any wrongdoing and isn't believed to have misused the data. It also avoided disciplinary action.

Twitter trial against Elon Musk begins October 17th

Twitter now has an exact start date for its trial against Elon Musk over his attempt to withdraw from his $44 billion purchase offer. The Vergenotes Delaware Court of Chancery Judge Kathaleen McCormick has scheduled the lawsuit's trial for October 17th. The courtroom showdown will last the promised five days, wrapping up on October 21st.

The timing represents a slight compromise. Twitter had pressed for a four-day trial starting in September. The social media firm's shareholder vote on the takeover is slated for September 13th. Musk's attorneys wanted to push the trial to February 2023, arguing that they needed more time to collect and interpret data on Twitter's volume of fake accounts and bots.

The move ultimately favors Twitter. It only has to wait a few months for a ruling. If Musk's team isn't finished combing through data by October, the company may also strengthen its argument that the Tesla chief rushed his offer and doesn't have enough information to level accusations of deceit. That, in turn, may let Twitter either force completion of the deal or demand compensation for a broken agreement.