Consumer Groups: Facebook’s Facial Recognition Violates Privacy Rights

Facebook violates its users’ privacy rights through the use of its facial recognition software, according to consumer groups led by the Electronic Privacy Information Center.

Their complaint to the federal government focuses on the use of Facebook software that identifies people in photographs that are uploaded to its site.

A complaint filed Friday by a coalition of consumer organizations with Federal Trade Commission said the social media giant “routinely scans photos for biometric facial matches without the consent of the image subject.”

The complaint says the company tries to improve its facial recognition prowess by deceptively encouraging users the participate in the process of identifying people in photographs.

“This unwanted, unnecessary, and dangerous identification of individuals undermines user privacy, ignores the explicit preferences of Facebook users, and is contrary to law in several state and many parts of the world.”

The groups maintain there is little users can do to prevent images of their faces from being in a social media system like Facebook’s. They contend facial scanning can be abused by authoritarian governments, a key argument considering Facebook may be required to provide user information to governments.

The complaint is the latest in a string of privacy-related issues the FTC is already investigating, including charges it allowed the personal information of 87 million users to be improperly harvested by Cambridge Analytica, the British consulting firm which was hired by U.S. President Donald Trump during his 2016 presidential campaign.

Until Thursday, Facebook had not said how many accounts had been harvested by Cambridge Analytica. Facebook has also been hesitant to explain how the company’s product might have been used by Russian-supported entities to affect the U.S. presidential election outcome.

Facebook CEO Mark Zuckerberg is scheduled to testify next week before two congressional committees.

Oklahoma Teacher Walkout Stretches Into 5th Day

A teachers strike in Oklahoma stretched into a fifth day on Friday, and a state union leader said he doesn’t think pending proposals to increase revenue are enough to stop the walkout from extending into next week.

The Senate considered separate proposals Friday to expand tribal gambling and tax certain internet sales that are expected to generate roughly $40 million annually.

But Oklahoma Education Association Executive Director David Duvall says he doesn’t think those are enough to keep teachers from walking out again next week.

“Our members know their needs, and they’re going to tell us when it’s enough,” Duvall said. “I anticipate that we’ll be back up here on Monday.”

Senate Floor Leader Greg Treat, a key negotiator on the budget, said he had not met with education union leaders and didn’t know what it would take to resolve the situation.

“I’m not the one who started the walkout, so I’m not the person to ask,” said Treat, a Republican from Oklahoma City.

Oklahoma is the second state where teachers have gone on strike this year. West Virginia teachers won a 5 percent pay increase after striking for nine days.

Oklahoma’s Republican Gov. Mary Fallin has faced the brunt of criticism from teachers, many of whom blame the term-limited governor for supporting tax cuts and generous state subsidies for businesses that have led to declines in state funding for schools and other state services. The governor further raised the ire of teachers after an interview this week in which she likened striking teachers to a “teenage kid that wants a better car.”

Dozens of protesters inside the packed Capitol responded Wednesday by jangling their keys in the Capitol rotunda and chanting “Where’s our car?”

And when Fallin took the state airplane to a business opening in McAlester, about 140 miles (225 kilometers) southeast of Oklahoma City, several protesters were on hand at the airport to jeer her.

“It just seems like there’s a large lack of understanding on her part,” said Jennifer Smith, an elementary school teacher from Tulsa who held a sign comparing Fallin to Dolores Umbridge, the villainous schoolmarm from the popular Harry Potter series.

Fallin, a lame-duck governor in her final year, has had scant success in recent years pushing her agenda, despite overwhelming GOP majorities in both chambers. Her proposal last year to generate revenue for teacher raises by broadening the sales tax fell flat in the Legislature. She focused her final State of the State address this year on endorsing a tax-hike package dubbed “Step Up” that was supported by civic and industry leaders, but the measure never made it out of the House.

Ultimately, the governor signed legislation last week granting teachers pay raises of about $6,100, or 15 to 18 percent, as well as tens of millions of new dollars for public schools. But many educators said classrooms need more money, joining a movement of teachers that has ignited protests in other Republican-led states including West Virginia, Kentucky and Arizona.

Many teachers already are back at work, especially in rural communities where local boards didn’t vote to shut down. But the state’s two largest school districts, Oklahoma City and Tulsa, announced plans to close for a fifth day on Friday.

This story was written by the Associated Press.

Boss Buzzing you After Hours? NYC Might let you Say Buzz off

Technology that once promised freedom from the confines of an office has, for many workers, become a ball and chain, blurring the lines between work hours and, well, any other hours. A New York City Council member wants to put a stop to that.

The proposal would bar employers from requiring employees to respond to non-emergency emails, texts and other digital communications outside regular work hours. It would also outlaw retaliating against workers who choose to unplug.

The recently introduced legislation is only in the beginning stages, with initial committee hearings expected sometime in June, and doubters wonder how it could work, especially in always-buzzing New York City.

But bill sponsor Rafael Espinal, a Democrat who represents parts of Brooklyn, said the legislation is needed because the city that never sleeps isn’t supposed to be the city that never stops working.

“Work has spilled into our personal lives,” he said. “We’re always connected to our phones or to a computer once we leave the office.”

It’s important, he said, for people to be “able to draw a clear line between the workplace and their personal lives, to give them time to connect with their family, friends, reduce their stress levels and be able to go back to work and perform at their optimal level.”

The legislation would cover private companies with more than 10 employees. There would be exemptions for certain types of jobs that require people to be on call. Barring emergencies, bosses wouldn’t be able to demand that workers check work emails or messages in off hours.

Companies that violated the rule would face fines of at least $250 per incident.

Espinal said he was inspired by a French law that took effect this year that gave employees the right to ignore off-hour communications.

Employers who wanted to return a communication could do so.

“If you love your job and you love what you’re doing, I highly doubt that you will stop working,” Espinal said.

The bill would be intended to make life better for people like Arlene Pitterson, a marketing and event planning consultant in Brooklyn, who recalled one boss routinely pestering her with late-night emails, then getting upset when she didn’t reply.

It was among the conditions that led her to working for herself, in which she now sets her own boundaries about when she’ll respond to people.

“The fact that we have to get to a point where we have a law about it is unfortunate, but it’s necessary,” said Pitterson, 40.

“Technology has allowed us to work from anywhere at any time,” she said. “It’s now about being able to control the instruments so that we can still have a life.”

The reality, though, is that the world has become a 24/7 place, and adhering to a policy like the one Espinal is proposing would be detrimental to a company’s competitiveness, said labor lawyer Louis DiLorenzo of Bond, Schoeneck & King, who has spent years representing management and employers.

“The problems are going to be tremendous,” DiLorenzo said. “I just don’t think you can legislate against progress.”

He also questioned how it would be enforced, and how an emergency would be defined.

“I can’t think of a business that we represent that there aren’t times where a lot of people wouldn’t think of them as emergencies, but the client does,” he said.

David Weinman, president of Fabco Shoes, a chain of more than 40 stores in New York City and New Jersey that employs 190 people, sees the proposal it as government overreach.

“I think the city needs to get out of everyone’s hair,” said Weinman, 61. “Regulations are great when they don’t make everything you do more complicated.”

He said he sends emails to employees on their off days or outside of work hours, but usually to make sure he doesn’t forget to send it at a later time, and he’s not looking for responses when they’re not working.

“I don’t know anyone who retaliates against employees because they don’t answer emails,” he said.

This story was written by the Associated Press.

March US Job Creation Dips, Jobless Rate Unchanged

The U.S. Labor Department reported Friday the unemployment rate in March remained at a 17-year-low of 4.1-percent for the sixth straight month.

U.S. employers added 103,000 jobs in March, less than the 175,000 analysts expected, following several months of larger increases. The modest job creation was partly caused by the loss of 15,000 construction jobs and 4,400 retail positions. There were job gains in manufacturing, health care, mining and other sectors, but the rate of those increases slowed.

Average hourly wages climbed in March and were 2.7 percent higher than they were a year ago.

Although fewer jobs than expected were added in March, the U.S. economy appears to be healthy. The recovery from the Great Recession that ended in 2009 is now the second-longest expansion since the mid-19th century.

Facebook: Up to 2.7 Million EU Users Affected by Data-Mining

The European Union said Friday Facebook has told it that up to 2.7 million people in the 28-nation bloc may have been victim of improper data sharing involving political data-mining firm Cambridge Analytica.

EU spokesman Christian Wigand said EU Justice Commissioner Vera Jourova will have a telephone call with Facebook COO Sheryl Sandberg early next week to address the massive data leaks.

The EU and Facebook will be looking at what changes the social media giant needs to make to better protect users and how the U.S. company must adapt to new EU data protection rules.

Wigand said that EU data protection authorities will discuss over the coming days “a strong coordinated approach” on how to deal with the Facebook investigation.

Separately, Italy’s competition authority opened an investigation Friday into Facebook for allegedly misleading practices following revelations that the social network sold users’ data without consent.

Authority chairman Giovanni Pitruzzella told Sky News24 that the investigation will focus on Facebook’s claims on its home page that the service is free, without revealing that it makes money off users’ data.

The investigation comes as Italian consumer advocate group Codacons prepares a U.S. class action against Facebook on behalf of Italians whose data was mined by Cambridge Analytica. Codacons said just 57 Italians downloaded the Cambridge Analytica app, but that an estimated 214,000 Italians could be affected because the data mined extended to also the users’ friends.

A top Facebook privacy official is scheduled to meet with the authority later this month.

This story was earlier corrected to show that the EU call will take place with Facebook COO Sheryl Sandberg not with Facebook CEO Mark Zuckerberg.

As Trump Tweets, Amazon Seeks to Expand its Business Empire

Amazon is spending millions of dollars on lobbying as the global online retailer seeks to expand its reach into a swath of industries that President Donald Trump’s broadsides haven’t come close to hitting.

Trump’s attacks over the last week targeted what Amazon is best known for: rapidly shipping just about any product you can imagine to your door. But the company CEO Jeff Bezos founded more than two decades ago is now a sprawling empire that sells groceries in brick-and-mortar stores, hosts the online services of other companies and federal offices in a network of data centers, and even recently branched into health care.

Amazon relies on a nearly 30-member in-house lobbying team that’s four times as large as it was three years ago as well as outside firms to influence the lawmakers and federal regulators who can help determine its success. The outside roster includes a retired congressman from Washington state who was a senior member of the powerful House Appropriations Committee when he stepped down.

Overall, Amazon spent $15.6 million on lobbying in 2017.

“Amazon is just not on an even playing field,” Trump told reporters Thursday aboard Air Force One. “They have a tremendous lobbying effort, in addition to having The Washington Post, which is as far as I’m concerned another lobbyist. But they have a big lobbying effort, one of the biggest, frankly, one of the biggest.”

Bezos owns the Post. He and the newspaper have previously declared that Bezos isn’t involved in any journalistic decisions.

Earlier in the week, Trump alleged that Amazon is bilking the U.S. Postal Service for being its “delivery boy,” a doubtful claim about a contract that’s actually been judged profitable for the post office. And he has charged that Amazon pays “little or no taxes,” a claim that may have merit. Matthew Gardner, a senior fellow at the left-leaning Institute on Taxation and Economic Policy, said in February that Amazon “has built its business model on tax avoidance.” Amazon reported $5.6 billion of U.S. profits in 2017 “and didn’t pay a dime of federal income taxes on it,” according to Gardner.

The company declined to comment on Trump’s remarks and did not immediately respond to a request for comment about its lobbying operations.

Amazon has grown rapidly since it launched in 1995 as a site that sold books. It has changed the way people buy paper towels, diapers or just about anything else. And its ambitions go far beyond online shopping: its Alexa voice assistant is in tablets, cars and its Echo devices; it runs the Whole Foods grocery chain; the company produces movies and TV shows and it designs its own brands of furniture and clothing.

The company is in the midst of launching an independent business with JPMorgan Chase and Berkshire Hathaway that is seeking to lower health care costs for employees at the three companies. Given the three players’ outsize influence the alliance has the potential to shake up how Americans shop for health care and the initiative sent a shudder through the industry when it was announced in January.

Amazon Web Services is angling for a much larger share of the federal government’s market for cloud computing, which allows massive amounts of data to be stored and managed on remote servers. The CIA signed a $600 million deal with Amazon in 2013 to build a system to share secure data across the U.S. intelligence community.

A partner of Amazon Web Services, the Virginia-based Rean Cloud LLC, in February scored what appeared to be a lucrative cloud computing contract from the Pentagon. But the contract, initially projected to be worth as much as $950 million, was scaled back to $65 million after Amazon’s competitors complained about the award.

Lobbying disclosure records filed with the House and Senate show Amazon is engaged on a wide variety of other issues, from trade to transportation to telecommunications. The company also lobbied lawmakers and federal agencies on the testing and operation of unmanned aerial vehicles. Amazon has been exploring the use of drones for deliveries, but current federal rules restrict flying beyond the operator’s line of sight.

The $15.6 million Amazon spent on lobbying last year was $2.6 million more than in 2016, according to the disclosure records. The bulk of the money — $12.8 million — went for Amazon’s in-house lobbying team. The nearly 30-member unit is led by Brian Huseman, who worked previously as chief of staff at the Federal Trade Commission and a Justice Department trial attorney.

As most large corporations do, Amazon also employs outside lobbying firms — as many as 14 in 2017.

In Amazon’s corner is former Washington congressman Norm Dicks of the firm Van Ness Feldman. Dicks was serving as the top Democrat on the House Appropriations Committee when he ended his 36-year congressional career in 2013. He represented the company on information technology matters and “issues related to cloud computing usage by the federal government,” according to the records, which show Van Ness Feldman earned $160,000 from Amazon last year.

Amazon brought aboard four new firms in 2017, according to the records. Newcomers Ballard Partners, BGR Government Affairs, Brownstein Hyatt, and McGuireWoods Consulting lobbied for Amazon on transportation, taxes, drones and other issues.

This story was written by the Associated Press.

New Service Robots Gaining Popularity in Europe

Robots are constantly adding new skills to their repertoire. In Italy, the first dedicated interactive service robot, “Robby the hotel concierge” and his brother, “Cayuki the car salesman,” are taking the country by storm with their technological efficiencies. In Finland, another kind of robot – “Elias” is thrilling classrooms with his language and dancing skills. As VOA’s Mariama Diallo reports, the next generation of robots is ready to serve, educate and entertain the masses.

Facebook Scandal May Impact China Overseas Surveillance Plans

China is turning artificial intelligence, face scanning, and other Big Data systems into new tools domestically to enhance the communist party’s command and control systems.

The party’s methods of surveillance and increasing use of technology present an interesting contrast with the ongoing scandal concerning the scraping and manipulation of Facebook data. In fact, analysts argue, the scandal and its after-effects will seriously impact China’s efforts to extend its surveillance systems to other countries.

In China, facial recognition and artificial intelligence are being used to stop jaywalkers and to control the number of sheets of toilet paper a person can obtain when using public toilets. Authorities in the southern city of Shenzhen recently began using the combined technology of facial recognition, mobile networks, and social media apps to send offenders fines in real time.

And that is just a portion of the state’s growing tech-infused control.

China’s capabilities also allow it to monitor business and political activities across numerous countries that are using Chinese technology platforms, including telecom equipment, payment systems, internet software and engineering standards.

Growing reach

The number of countries and markets using Chinese technology platforms is growing by the day, analysts said.

“Based on its (China’s) oversight of the platforms, it gives Chinese companies an advantage and that gives Chinese citizens an advantage and it means that China can more easily project power in the countries that are using platforms by Chinese companies,” James Grimmelmann, a professor at Cornell Law School told VOA. “If you then add China’s ability to compile data from them and use them for surveillance purposes, you can easily see how this turns into a technique for political influence, how this turns into a technique for espionage.”

The Facebook-Cambridge Analytica scandal involves the use of personal data collected from 87 million people for the purpose of political manipulation in the United States and other countries.

Coming amid growing concerns about alleged Russian manipulation of U.S. elections and controversies surrounding the use of fake news, analysts say the scandal will result in massive regulatory changes in areas like privacy and monopoly of data by a few companies.

And the backlash could be seen across several countries where Chinese companies have gained a foothold by building elaborate telecom and internet infrastructure.

Alex Capri, a senior fellow at the department of analytics and operations of NUS Business School in Singapore, cited the case of Malaysia, where Chinese Internet giant Alibaba is closely integrated with a vast section of local business through its e-commerce platform.

“A lot of people look at Alibaba as almost an emissary of the communist state. So that makes a lot of people very nervous in terms of the amount of control and certainly the lack of privacy of data,” he said. “That is something that governments are going to be struggling with now and into the future in Asia when dealing with these big Chinese e-commerce platforms.”

There are signs that Malaysia and other countries may do to China what Beijing has long done to foreign businesses, namely demand that servers used by foreign companies are physically located in their jurisdiction. Once implemented, Chinese social media and e-commerce platforms could lose much of the business edge they enjoy at present.

European challenge

Chinese companies have been keen to extend their reach to Europe with not just physical infrastructure construction but also data and telecom networks. They will now have to follow the European Union’s new General Data Protection Regulation (GDPR), which comes into effect May 25.

The GDPR would be a challenge to Chinese companies accustomed to standards in which ordinary people enjoy few access rights. The new European law makes it compulsory for foreign companies doing business in the European Union to keep the data of EU residents secure and make it available to any such resident who demands it.

“If an EU citizen, EU resident, asks Alibaba to provide this information with all the information that they have in their database, Alibaba has to abide. If they don’t, they will get into some discussion, or conversation or trouble with the EU authorities,” Kersi Porbunderwalla, secretary general of Copenhagen Compliance said.

China unaffected

China is likely to remain immune to the wave of regulatory changes that are expected to sweep through the developed world following the Facebook scandal, Capri pointed out.

“The Chinese model, which essentially says, ‘Look, the state has to have access to all of this data, the State has to mandate that you turn over this data that is requested, the State also needs to get the encryption keys to your programs,” he said.

He said the Communist Party is unlikely to bring in major regulatory changes to protect privacy because that would mean cutting off data access for itself.

Smartphone Technology Helps Mental Health Patients

About 1 percent of the world’s population lives with the mental condition called bipolar disorder, characterized by swings between elevated and depressed moods. In most cases, timely interaction with psychotherapists, family and friends can alleviate the symptoms. Researchers in Denmark say modern technology can help by keeping track of a patient’s symptoms and summoning help quickly when needed. VOA’s George Putic reports.

Facebook: Public Data of Most Users Probably Has Been Scraped

Facebook’s acknowledgement that the personal data of most of its 2.2 billion members has probably been scraped by “malicious actors” is the latest example of the social network’s failure to protect its users’ data.

Not to mention its seeming inability to even identify the problem until the company was embroiled in scandal.

CEO Mark Zuckerberg told reporters Wednesday that Facebook is shutting down a feature that let people search for Facebook users by phone number or email address. Although that was useful for people who wanted to find others on Facebook, it turns out that unscrupulous types also figured out years ago that they could use it identify individuals and collect data off their profiles.

The scrapers were at it long enough, Zuckerberg said, that “at some point during the last several years, someone has probably accessed your public information in this way.”

The only way to be safe would have been for users to deliberately turn off that search feature several years ago. Facebook had it turned on by default.

Several investigations

“I think Facebook has not been clear enough with how to use its privacy settings,” said Jamie Winterton, director of strategy for Arizona State University’s Global Security Initiative. “That, to me, was the failure.”

The breach was a stunning admission for a company already reeling from allegations that the political data-mining firm Cambridge Analytica inappropriately accessed data on as many as 87 million Facebook users to influence elections.

Over the past few weeks, the scandal has mushroomed into investigations across continents, including a probe by the U.S. Federal Trade Commission. Zuckerberg himself will be questioned by Congress for the first time Tuesday.

“The FTC looked the other way for years when consumer groups told them Facebook was violating its 2011 deal to better protect its users. But now the Cambridge Analytica scandal has awoken the FTC from its long digital privacy slumber,” said Jeffrey Chester, executive director for the Washington-based privacy nonprofit Center for Digital Democracy.

Problem found after Cambridge Analytica

Neither Zuckerberg nor his company has identified those who carried out the data scraping. Outside experts believe they could have been identity thieves, scam artists or shady data brokers assembling marketing profiles.

Zuckerberg said the company detected the problem in a data-privacy audit started after the Cambridge Analytica disclosures, but didn’t say why the company hadn’t noticed it — or fixed it — earlier.

Facebook did not immediately respond to a request for comment Thursday on when it discovered the data scraping.

In his call with reporters Wednesday, Zuckerberg said the company had tried “rate limiting” the searches. This restricted how many searches someone can conduct at one time from a particular IP address, a numeric designation that identifies a device’s location on the internet. But Zuckerberg said the scrapers circumvented that defense by cycling through multiple IP addresses.

Public information useful 

The scraped information was limited to what a user had chosen to make public — which, depending on a person’s privacy settings, could be a lot — as well as what Facebook requires people to share. That includes full name, profile picture and listings of school or workplace networks.

But hackers and scam artists could then use that information, and combine it with other data in circulation, to pull hoaxes on people, plant malware on their computers or commit other mischief.

Having access to such a massive amount of data could also pose national security risks, Winterton said.

A foreign entity could conceivably use such information to influence elections or stir up discord, exactly what Russia is alleged to have done, using Facebook and other social media, in the 2016 presidential elections.

Oversharing

Privacy advocates have long been critical of Facebook’s penchant for pushing people to share more and more information, often through pro-sharing default options.

While the company offers detailed privacy controls — users can turn off ad targeting, for example, or face recognition, and post updates that no one else sees — many people never change their settings, and often don’t even know how to.

The company has tried to simplify its settings multiple times over the years, most recently this week.

Winterton said that for individual Facebook users, worrying about this data scraping won’t do much good, after all, the data is already out there. But she said it might be a good time to “reflect on what we are sharing and how we are sharing it and whether we need to.”

“Just because someone asks us information, it doesn’t mean we have to give it to them if we are not comfortable,” she said.

She added that while she no longer has a Facebook account, when she did she put her birth year as 1912 and her hometown as Kuala Lumpur, Malaysia. Neither is true.

This story was written by the Associated Press

Venezuela Cuts Commercial Ties With Panama Officials, Firms

Venezuela said on Thursday it was halting commercial relations with Panamanian officials and companies, including regional airline Copa, for alleged involvement in money laundering, prompting Panama to recall its ambassador.

The resolution names Panamanian President Juan Carlos Varela and nearly two dozen Cabinet ministers and top-ranking officials, adding that Panama’s financial system had been used by Venezuelan nationals involved in acts of corruption.

Venezuela said the individuals named in the resolution “present an imminent risk to the [Venezuelan] financial system, the stability of commerce in the country, and the sovereignty and economic independence of the Venezuelan people.”

The statement came a week after Panama declared President Nicolas Maduro and about 50 Venezuelan nationals as “high risk” for laundering money and financing terrorism.

Caracas did not detail whether the move would halt the operations of Copa in Venezuela, which is one of the crisis-stricken country’s few providers of international flights following a sharp reduction in airline services.

Copa’s website showed its planned Panama City-Caracas flight later Thursday was canceled. Copa flights Friday between the two cities were listed as scheduled.

The company did not respond to a request for comment.

Panama’s Varela, in brief comments to reporters Thursday, described the Venezuelan announcement as nonsensical.

“We have not heard anything about breaking relations but rather about a set of supposed sanctions, it’s gibberish,” Varela said.

The South American country has been hit with sanctions by Canada, the United States and a number of other countries over issues ranging from human rights violations to corruption and drug trafficking.

Maduro says the country is victim of an “economic war” led by his adversaries with the help of Washington, and says the sanctions are part of foreign countries’ efforts to undermine his government.

This story was written by Reuters.

Facebook Fined $33 Million for Failing to Aid Brazil Graft Probe

A Brazilian judge has ordered that Facebook Inc pay 111.7 million reais ($33.4 million) for failing to cooperate with a corruption investigation, federal prosecutors said on Thursday, prompting Facebook to say it was exploring “all legal options.”

The judge fined Facebook for failing to give access in 2016 to WhatsApp messages exchanged by individuals under investigation for defrauding the healthcare system of Brazil’s Amazonas state, the prosecutors said in a statement. In an emailed comment sent to Reuters, Facebook called the fine groundless.

“Facebook cooperates with law enforcement. In this particular case we have disclosed the data required by applicable law,” the statement said. “We understand this fine lacks grounds, and are exploring all legal options at our disposal.”

According to federal police, a Brazilian judge ordered in April 2016 that Facebook give authorities access to the WhatsApp messages in question.

The fine amounted to 1 million reais plus interest for every day Facebook did not comply with the order, beginning when it took effect in mid-June 2016, and ending when the corruption investigation was made public that September, police said.

Through the probe known as “Operacao Maus Caminhos,” or “Operation Bad Paths,” federal police exposed the embezzlement of tens of millions of reais of public funds.

This story was written by VOA News

Jury Awards $37 Million in Talc Cancer Risk Case

Johnson & Johnson and Imerys SA must pay at least $37 million in a lawsuit claiming a man developed cancer because of his exposure to asbestos in

talc-based products including Johnson’s Baby Powder, a New Jersey state court jury said Thursday.

The verdict by jurors in New Brunswick, New Jersey, came in the second trial nationally to center on claims that J&J’s talc products contained asbestos as the company separately fights thousands of cases claiming they can also cause ovarian cancer.

The verdict came in a lawsuit by Stephen Lanzo, who alleged that he developed mesothelioma after inhaling dust that was generated through his regular use of J&J talc powder products since his birth in 1972.

Mesothelioma is a deadly form of cancer closely associated with exposure to asbestos. It affects the delicate tissue that lines body cavities, most often around the lungs, but also in the abdomen and elsewhere.

The jury awarded Lanzo $30 million and his wife $7 million. It found J&J was responsible for 70 percent of the damages and Imerys, its talc supplier, responsible for 30 percent.

The jury will return Tuesday for further proceedings to determine whether it should award punitive damages, according to an online broadcast of the trial by Courtroom View Network.

J&J denied the allegations and says that Johnson’s Baby Powder, which has been on the market since 1894, does not contain asbestos or cause mesothelioma or ovarian cancer.

“While we are disappointed with this decision, the jury has further deliberations to conduct in this trial and we will reserve additional comment until the case is fully completed,” Johnson & Johnson said in a statement.

Imerys did not immediately respond to a request for comment.

This story was written by Reuters.

Trump Says US Will Weigh Tariffs on Another $100B Worth of Chinese Goods

U.S. President Donald Trump ratcheted up the trade war rhetoric with Beijing on Thursday, saying he had instructed the U.S. trade representative to consider tariffs on an additional $100 billion worth of Chinese goods.

The move came a day after China issued a list of U.S. goods, including soybeans and small aircraft, worth $50 billion for possible tariff hikes. Beijing’s response came after the U.S. proposed tariffs on $50 billion worth of Chinese goods earlier this week.

U.S. stock futures dropped on Trump’s latest trade directive. Dow futures fell and were down about 400 points in after-hours trading.

Financial markets have swung wildly over the past few days in response to fears of escalating trade tensions between Washington and Beijing.

“Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers,” Trump said.

Since the start of this week, the United States and China have been engaging in a tit-for-tat trade spat. On Monday, in response to earlier tariffs on steel and aluminum imposed by the Trump administration, China started tariffs of up to 25 percent on 128 U.S. products, including fruits, nuts, pork, wine, steel and aluminum.

Later on the same day, the USTR proposed to increase tariffs on 1,300 imported goods from China, mostly aerospace, medical and information technology products.

Less than 12 hours later, China said it would impose retaliatory duties of 25 percent on 106 politically sensitive American goods, including soybeans, automobiles and aircraft.

The proposed U.S. list is now entering a “public notice and comment process, including a hearing,” the USTR said. After this process is completed, the USTR will issue a final determination on the products subject to the additional duties.

China’s commerce ministry said the question of when the measures would go into effect would depend on when the U.S. tariffs became active.

China’s ambassador to the United States, Cui Tiankai, told reporters on Wednesday, “Negotiation would still be our preference, but it takes two to tango. We will see what the U.S. will do.”

A senior U.S. official told Reuters late Thursday that the United States was willing to negotiate with China on trade, but only if talks were serious, as previous attempts produced little progress.

No formal negotiating sessions have been set, but there have been “ongoing communications with the Chinese on trade,” said the official, who requested anonymity to discuss the Trump administration’s trade strategy.

Some information for this report came from Reuters.

Amid Trade Spats, Trump to Push US as ‘Partner of Choice’ for Latin America

President Donald Trump will make the case that the United States – and not China – should be the trade “partner of choice” for Latin America when he speaks at a regional summit next week, a senior administration official said on Thursday.

Trump is due to make his first visit to the region late next week to attend the Summit of the Americas in Lima, Peru. The trip comes as his government is waging a trade battle with China and pushing to overhaul the North American Free Trade Agreement.

“President Trump has been very clear … in terms of his economic policies that the Chinese economic aggression in the region has not been productive for the hemisphere and that the United States should remain the partner of choice for them,” the official told reporters on a conference call.

Substantive discussions on NAFTA are not expected at the summit, the official said.

Trump will deliver an address to the summit where he will talk about “shared values” in the hemisphere and the need to reduce drug trafficking, the official said.

It was unclear how much emphasis Trump would place on stopping illegal immigration from the region into the United States – one of his main promises in his presidential run for office.

Leading up to the summit, Trump announced this week he wants to post National Guard troops along the southern border with Mexico, and has also ramped up tough rhetoric against illegal immigrants from Honduras and other parts of Central America.

“I think the president is a very straight speaker. He speaks what’s on his mind,” the official said.

Trump also plans to address the crisis in Venezuela with regional leaders, the official said. But the U.S. government is still examining its next steps for sanctions on Venezuela with new announcements not expected for several months, the official said.

 

High-Tech Treadmill Uses Virtual Reality to Encourage Cardiovascular Fitness

Virtual reality, or VR, is finding more applications as the technology matures. It is no longer only used for gaming or entertainment. One Austin-based company, Blue Goji, is using VR to improve health by making cardiovascular workouts more fun.

The company featured its prototype Infinity treadmill at Austin’s South By Southwest.

The treadmill is paired with a virtual reality headset worn by the user. Before starting the treadmill, the user is hooked up to a belt to prevent falls while running on the treadmill and playing a VR game.

The fully immersive experience transports the user into a virtual world where he or she can be racing against virtual people.

“You have much more motivation to actually get running and do something that pushes your limits. It was pretty cool,” said Leonardo Mattiazzi, who tested the Infinity treadmill. He said it took the boredom out of running inside without actually going anywhere.

Motion sickness less likely

In addition to encouraging better cardiovascular health, the active use of virtual reality also helps solve a common problem while wearing a VR headset said Blue Goji’s marketing associate, Kyra Constam.

“A lot of VR experiences cause motion sickness because there’s a disconnect in the brain, just psychologically. You’re moving in the game, but you’re not moving in real life, and we have come up with the solution. When you’re moving on the treadmill and you’re moving in the game, it mitigates that motion sickness, and you really get full immersion without all of the negative side effects.”

Constam added that any disorientation usually goes away quickly.

However, users who tested the Infinity treadmill wearing the VR headset each had a different experience.

“Pretty quickly you adjust to it,” said Mattiazzi, who took 10 seconds to adjust to running in the virtual world.

VR learning curve

“All I could think of when I was doing it was if my wife was doing this, she would have been barfing all over that because it’s interesting how the brain works. Going downhill, it felt like I was on a roller coaster,” said first time user Mark Sackler, who added, “I don’t get motion sickness easily, but I got a little, felt a little queasy at one point when I was out of control. So it’s surprisingly realistic.”

“There’s a bit of a learning curve for VR in general. I believe that the first time you do it is definitely going to be the most disorienting time, and the more you do it, the more you get used to it,” Constam said.

The cost for the hardware and software is fairly steep at $12,000. However, Constam said the virtual reality treadmill is ideal for high-end gyms, rehabilitation centers and physical therapy clinics. Blue Goji plans to make the Infinity treadmill ready for the public in 2019.

Opioid Addiction Costs Employers $2.6B a Year for Care

A new report shows large employers spent $2.6 billion to treat opioid addiction and overdoses in 2016, an eightfold increase since 2004. More than half went to treat employees’ children.

The analysis released Thursday by the nonpartisan Kaiser Family Foundation finds such spending cost companies and workers about $26 per enrollee in 2016.

Employers have been limiting insurance coverage of opioids because of concerns about addiction. The report finds spending on opioid prescriptions falling 27 percent from a peak in 2009.

Researchers analyzed insurance claims from employers with more than 1,000 workers. Most are self-insured, meaning they assume the financial risk.

Workers share the costs. Steve Wojcik of the National Business Group on Health says for every $5 increase, employers typically cover $4 and pass $1 to workers.

Aid Group Sends Food in a Bottle to North Korea

Humanitarian groups in South Korea are using the ocean current to send needed food and information from the outside world into impoverished regions of North Korea. 

On Ganghwa Island in the Yellow Sea, located just south of the inter-Korean border, a group of North Korean defectors and volunteers with humanitarian groups this week launched aid packages containing rice, medicine, U.S. dollars and banned information. The ocean’s current, they say, will carry the sealed bottles to the cities and towns along the west coast of North Korea.

“If we set the date and time right, it will get there 100%,” said Park Jung-oh, with the Kuen Saem Education Center in Seoul that helps defectors from the communist North assimilate into life in the democratic South. 

Bottles vs balloons

Park said the ocean current is a safer and more reliable delivery system than launching balloons into the wind, a method that other North Korea activist groups have used to send packages containing mostly South Korean movies, television dramas and news critical of the Kim Jong Un government that is prohibited in the North.

In 2014, North and South Korean forces exchanged gunfire when an activist group from the South launched balloons full of leaflets into the North. That incident nearly disrupted plans at the time to hold a reunion for families that have been separated by the division of the Korean Peninsula at the end of World War II.

The activists have received little attention this year from either Seoul or Pyongyang as inter-Korean relations are improving and diplomatic talks appear to be progressing to peacefully resolve the North’s nuclear threat.

This week, the group involved in floating bottles of aid to the North sent over 500 kilograms of rice and 400 computer memory sticks full of South Korean movies and foreign news programs that are also not permitted in the North. In the last three years they have performed this operation 53 times, and will come out again in about 15 days. 

The United Nations reports that over 40% of North Korea’s population is undernourished. Conditions in the country have improved since the 1990s when failures in the communist agricultural system led to a severe famine and millions died of starvation. But food shortages are still common and there are concerns that sanctions on most exports, meant to pressure Pyongyang to give up its nuclear program, are increasing poverty and hunger in the country.

Defectors

Many of the aid activists are defectors who escaped poverty and repression in North Korea, and have become advocates to bring international attention to the widespread human rights abuses still going on in their homeland.

Jung Kwang-il, a North Korean defector who recently met with U.S. President Donald Trump at the White House, has included a copy of the U.S. president’s fiery address last year to the United Nations as part of the information package being sent.

In his speech, Mr. Trump threatened to “totally destroy North Korea” if the Kim government continues to threaten the world with its nuclear weapons development program. He also strongly criticized the North Korean leader for the pervasive starvation and oppression in the country.

“So the message that we are sending to them is that the U.S. President knows that you are living in these harsh conditions,” said Jung, who leads a North Korean human rights activist group in Seoul called No Chain.

The North Korean defectors involved in this unconventional aid effort have raised money and donated their time to help those most in need in the country they left behind.

“It is very difficult when doing it, but after sending it I feel proud,” said Kim Yong-hwa, who is also a defector-turned-activist with the North Korean Refugees Human Rights Association of Korea in Seoul.

Some of their support comes from Christian churches that want to send bibles into the communist North, where religious teaching is also highly restricted.

A 2014 U.N. human rights report documented a network of political prisons in North Korea and numerous cases of state sponsored murder, torture and rape. In the U.N. Security Council, China, North Korea closest ally, is believed to be holding up a motion passed by the General Assembly to refer the Kim Jing Un government to the International Criminal Court for crimes against humanity.

Surgeon General: More Americans Should Carry Overdose Antidote

The nation’s chief doctor wants more Americans to start carrying the overdose antidote naloxone to help combat the nation’s opioid crisis and save lives.

U.S. Surgeon General Dr. Jerome Adams is expected to speak about the new public health advisory Thursday morning at the National Rx Drug Abuse & Heroin Summit in Atlanta.

In a news release, Adams said he hopes those who are at risk, as well as their friends and family members, will keep the antidote on hand and learn how to use it.

“Each day we lose 115 Americans to an opioid overdose, that’s one person every 12.5 minutes,” Adams said in a statement. “It is time to make sure more people have access to this lifesaving medication, because 77 percent of opioid overdose deaths occur outside of a medical setting and more than half occur at home.”

Fatal opioid overdoses

More than 42,000 Americans suffered fatal opioid overdoses in 2016, his statement said.

Naloxone can restore a person’s breathing after it is injected or sprayed in the nostrils, quickly bringing overdose victims back from near-death.

The drug, which, is often referred to by the brand name Narcan, is available over the counter in most states and is regularly used by first responders across the country. A two-dose pack of Narcan is among many options available and the drug is increasingly covered by insurance, according to The Network for Public Health Law, a nonprofit that helps government agencies.

As of July 2017, all 50 states have passed laws improving naloxone access, the nonprofit said.

A safety net?

Maine’s Republican Gov. Paul LePage has been one of the most outspoken opponents of the push, arguing that naloxone doesn’t treat addiction and merely discourages people from seeking treatment by essentially offering a safety net if they do overdose.

Proponents, however, argue that greater access to naloxone doesn’t draw people to illegal drug use or foster an addiction.

“To manage opioid addiction and prevent future overdoses, increased naloxone availability must occur in conjunction with expanded access to evidence-based treatment for opioid use disorder,” Adams said in a statement.

Adams’ recommendation for more people to possess naloxone comes a month after Philadelphia’s health department urged residents to do the same.

Before his current role, Adams had been Indiana’s health commissioner, where he promoted needle-exchange programs aimed at stemming the spread of diseases among intravenous drug users.

Australia Begins Privacy Investigation into Facebook

Australia’s Privacy Commissioner said on Thursday she had opened a formal investigation into social media giant Facebook Inc after the company confirmed data from 300,000 Australian users may have been used without authorization.

The investigation will consider whether Facebook has breached Australia’s privacy laws, Privacy Commissioner Angelene Falk said in a statement.

Facebook said on Wednesday that the personal information of up to 87 million users, mostly in the United States, may have been improperly shared with political consultancy Cambridge Analytica, up from a previous news media estimate of more than 50 million.

Trump Administration Seeks to Temper China Trade War Fears

President Donald Trump said Wednesday the United States is not in a trade war with China, after Beijing announced plans to impose tariffs on $50 billion worth of U.S. goods in response to a similar package announced by the United States.

In a Twitter post Wednesday, Trump contended, “We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S.” He added, “Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!”

On the same day, White House chief economic adviser Larry Kudlow told Bloomberg News, “None of the tariffs have been put in place yet, and these are all proposals.”

Commerce Secretary Wilbur Ross told CNBC, “Even shooting wars end with negotiations. … So it wouldn’t be surprising at all if the net outcome of all this is some sort of negotiation.”

Tit-for-tat trade spat

Since the start of this week, the United States and China have been engaging in a tit-for-tat trade spat. On Monday, in response to earlier tariffs on steel and aluminum imposed by the Trump administration, China started tariffs of up to 25 percent on 128 U.S. products, including fruits, nuts, pork, wine, steel and aluminum.

Later the same day, the U.S. Trade Representatives (USTR) proposed to increase tariffs on 1,300 imported goods from China, mostly aerospace, medical and information technology products.

Less than 12 hours later, China announced it plans to impose retaliatory duties of 25 percent on 106 politically sensitive American goods, including soybeans, automobiles and aircraft.

The proposed list is now entering a “public notice and comment process, including a hearing,” the USTR said. After this process is completed, the USTR will issue a final determination on the products subject to the additional duties.

China’s commerce ministry said the question of when the measures will go into effect will depend on when the U.S. tariffs become active.

China’s Ambassador to the United States Cui Tiankai told reporters on Wednesday, “Negotiation would still be our preference, but it takes two to tango. We will see what the U.S. will do.”

White House Press Secretary Sarah Huckabee Sanders reiterated at Wednesday’s press briefing that this measure is now going through the review process, and “it will be a couple of months before tariffs on either side would go into effect and be implemented.”

“We’re hopeful China will do the right thing. Look, China created the problem, not President Trump. We’re finally having a president who’s willing to stand up and say enough is enough, we’re going to stop the unfair trade practices,” Sanders said.

She also warned if China doesn’t stop the unfair trade practices, the administration will move forward to the next step.

Already in a trade war

Scott Kennedy, deputy director of the Freeman Chair in China Studies at the Center for Strategic and International Studies, said he believes that the U.S. and China are already in a trade war.

“It started several weeks ago when the United States instituted penalties on Chinese steel and aluminum, and then the Chinese responded with penalties that also went into effect, so we haven’t just put our guns on the table, we’ve actually pulled the trigger. In the last few days, we’ve announced additional tariffs that will come into effect in the coming weeks. If this isn’t a trade war, I don’t know what one is,” Kennedy told VOA.

​Farming first to be hit

At the frontline of this war is America’s farming industry.

China, which buys nearly $20 billion in U.S. agricultural products annually, has become one of the most important export markets for U.S. farmers, but many agricultural products, including soybeans, cotton, frozen beef and sorghum, will be subject to tariffs if it goes into effect.

American Farm Bureau Federation Policy Communications Director Will Rodger told VOA, “Right now, we export about 20 percent of what we produce. We are very, very dependent on exports. We are looking at 25 percent being placed on soybeans into China.

“The actual economic impact will not be good, it will certainly be bad, the question is how large it’s going to be, we don’t know exactly,” Rodger said.

He said farm income is already at a 16-year low, resulting in many farmers in economic distress.

“While we haven’t reached the crisis point, we have one or two more years of declining income, we will be there pretty quickly,” he noted.

Rodger said the current trade dispute is obviously not a good thing. 

“We need it to stop, we need China and the United States to sit down and come up with a reasonable agreement in a reasonable fashion,” he added.

Losses in the short term

If the tariffs go into effect, China trade expert Kennedy pointed out, there will be potential job losses by the reduced export opportunities, but the most important impact in the short term will be on the financial markets.

Kennedy said the trade dispute between the U.S. and China is not about how fast this is resolved, but the way it is resolved.

“The issues the Trump administration has raised are issues American presidents have raised with China for almost two decades now, and not made the progress that they want. We shouldn’t be looking for a quick deal and put this behind us, we should be ready for a sustained level of tension until China relents,” he said.

Kennedy said China won’t do that easily. 

“China has an economic governance system which is distinctive and critical to the way the Communist Party runs the country, so it’s going to take a lot for them to move fundamentally,” he said.

“The two sides may make some type of short term deal to address superficially the challenges, but this is not something that will go away in the next few weeks,” Kennedy added.

State Department correspondent Nike Ching contributed to this report.

 

Wall Street Closes Higher as China Tariff Fears Ease

Wall Street’s three major indexes staged a comeback to close around 1 percent higher Wednesday as investors turned their focus to earnings and away from a trade conflict between the United States and China that

wreaked havoc in earlier trading.

After investors fled equities in the morning because of proposed retaliatory tariffs from China, their concerns about a potential trade war eased by the afternoon after President Donald Trump’s top economic adviser, Larry Kudlow, said the administration was in a “negotiation” with China rather than a trade war.

Investors said they were comforted by the fact that any tariffs would not take effect immediately, if at all.

Strategists also cited the Standard & Poor’s bounce above a key technical

support level and said they expected equities to rise further around the first-quarter earnings season, due to start in mid-April.

“We’re starting to feel that while markets hate uncertainty, Trump’s bark is worse than his bite when it comes to trade,” said Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas. 

“It’s earnings that’s going to lift us off this bottom. It wouldn’t shock me if we chopped around sideways for a little bit before earnings season. … The trade stuff is really a sideshow. We’re waiting for real economic data, like the jobs report Friday, and for earnings. For now, it’s going to be all about the technicals,” he said.

A rebound

The S&P opened below its 200-day moving average, a key technical level, but inched above it as the session progressed, and by afternoon was in positive territory.

The Dow Jones industrial average rose 230.94 points, or 0.96 percent, to close at 24,264.30; the S&P 500 gained 30.24 points, or 1.16 percent, to 2,644.69; and the Nasdaq Composite added 100.83 points, or 1.45 percent, to 7,042.11.

The turnaround marked the first time the S&P had showed gains for two consecutive days since early March.

Despite big swings in stocks, trading activity in U.S. equity options was muted as expectations for strong corporate earnings quelled the urge to load up on contracts that benefit from a surge in market volatility.

The CBOE Volatility Index, the most widely followed barometer of expected near-term volatility for the S&P 500, closed down 1.04 points at 20.06.

The technology sector rose 1.4 percent with only two of its stocks ending the day in negative territory, including Facebook Inc., which was pummeled after news its chief executive would testify in Congress over a data privacy scandal.

It too closed well off its session low with a 0.6 percent drop to $155.10.

Boeing was the biggest drag on the Dow because of its exposure to China, and ended the day well off its session lows with a 1 percent decline to $327.44 after falling as low as $311.88.

Farm machinery company Deere & Co ended down 2.9 percent at $148.57 as it could be hurt by China tariffs if its customers’ exports are curbed.

After being a laggard for much of the session, the S&P 500’s industrials sector turned positive late in the day to close 0.4 percent higher.

Advancing issues outnumbered declining ones on the NYSE by a 2.19-to-1 ratio; on Nasdaq, a 2.95-to-1 ratio favored advancers.

The S&P 500 posted one new 52-week high and eight new lows; the Nasdaq Composite recorded 40 new highs and 94 new lows.

Volume on U.S. exchanges was 7.04 billion shares, compared with the 7.3 billion average for the last 20 trading days.