FTC seeks to block Kate Spade, Michael Kors merger
The Michael Kors Store on Rodeo Drive on Feb. 23, 2017 in Beverly Hills, Calif. (Fg/bauer-griffin/GC Images via Getty Images, FILE)
(NEW YORK) — The Federal Trade Commission is asking a federal judge in New York to block the $8.5 billion merger of Tapestry, the company behind Coach, Kate Spade, and Capri, which controls Michael Kors.
In April, the FTC sued to block the sale, arguing that these brands dominate what’s known as the “accessible luxury” market and that if they combined, consumers would suffer by paying higher prices.
“This has to be the first time the focus of a federal court hearing turned to a $279 Kate Spade tote described as ‘colorful, joyful, feminine, green and white seen on Emily in Paris,” ABC News senior investigative reporter and correspondent Aaron Katersky said on Good Morning America Tuesday.
Tapestry argues the FTC is ignoring the reality of a marketplace, in which consumers have a lot of choices, suggesting it takes a mere stroll through Bloomingdale’s or Macy’s to see Gucci, Kors and Calvin Klein bags fighting for attention.
Michael Kors himself testified last month during a hearing, telling the judge there’s already plenty of competition for handbags, noting that he learned about one brand when he saw a photo of pop superstar Taylor Swift wearing an Aupen bag similar to those made by Kate Spade.
Kors also testified his handbags have “reached a point of brand fatigue” and a lawyer arguing in favor of the merger said it would revitalize the Michael Kors brand, so consumers have yet another choice. The goal, he said, is to sell more handbags to consumers.
The judge took these arguments under advisement and could rule at any time.
(NEW YORK) — Scammers don’t need a special occasion to try to steal your money or your identity. Whether it be holidays or big events, they are always on the prowl — the back-to-school shopping season is no different. Students and parents are particularly vulnerable right now as they shop for everything from textbooks to clothes and even jobs.
The rush to find the best deals has some consumers visiting unfamiliar websites and sometimes hastily clicking on links. All of the excitement can make for a less vigilant consumer — the perfect opportunity for bad actors to pounce. People aged 18 to 24 were more likely to report being targeted by text message or internet messaging than any other age group, according to the Better Business Bureau.
Shoppers need to be careful of fake websites appearing to sell popular supplies and textbooks at deeply discounted prices, as noted by Wells Fargo fraud and claims executive Dan Cusick. They may send fraudulent emails pretending to be a school asking you to update your personal information. The scammers also create fake social media ads that link to the fake websites. Consumers enter their payment information, giving scammers the chance to collect their credit card and bank details.
Fraudsters also set up fake rental sites offering discounted textbooks; they collect the rental fee but never send the books. You should always type the store’s website into your browser and shop from the store’s legitimate site, Cusick suggested. Log into a school’s online portal or app directly to update any student information, ignoring unsolicited or online offers and emails.
Fake scholarship and job offers
The FCC recently issued a warning to college students and their parents about a rise in fraudulent scholarships and fake job offers.Scammers post fake job postings that promise good pay and flexible hours on popular job sites and social media. They may even send emails that look like they’re coming from a business or college promising “guaranteed” scholarships that require you to pay a fee to be eligible.
After you apply, the FCC noted that one common tactic is for them to send you a check to deposit at your bank. They then ask you to send some of the money to another account. However, the check is fake and by the time it bounces, the scammer will have walked away with the money you sent them.
Bottom line is that your boss should be paying you, not the other way around. If they tell you to deposit a check and use some of the money for any reason, experts say it’s a scam.
Federal authorities recommend looking up the name of the company or the person who’s hiring you, plus the words “scam,” “review,” or “complaint” to see what others are saying about them.
If the email looks like it came from a professor or an office at your college, call them directly to confirm they’re really looking to fill a position. Beware of email addresses coming from non-company email addresses including Gmail, Yahoo and Hotmail. Ask the employer to send you details of the job duties, the pay and the hours. If they refuse, that could be another red flag.
Student Rental Scams
As the cost of college rises to record highs, experts say scammers are finding creative ways to dupe vulnerable and unsuspecting students. That’s especially true when it comes to fake apartment rentals.
The fraudsters rip off legitimate rental listings, including photos and descriptions, from reputable organizations. They then post the fake listing on their site at a deep discount. Once you show interest, they ask for your personal information like your bank account. They also create urgency, telling you to “act immediately” or “send money right away” and suggest you will lose the listing otherwise.
When it comes to rental scams, experts say beware of these major red flags: you can’t meet the person or see the rental property before you pay or they ask for payment upfront via wire transfer, gift card or directly into an account. Experts remind us to never send money or share personal information with unverified people or companies and to be guided by the old adage: if it seems too good to be true, it probably is.
(NEW YORK) — This summer brought lots of buzz around “tourist taxes” and other fees that can get tacked on to normal travel expenses. Now, another fee that may be familiar to avid cruisers is increasing on one major cruise line.
The so-called “Crew Appreciation” fee is a daily amount that’s automatically added to a guests’ onboard accounts with Princess Cruises “to recognize the efforts of a wide variety of crewmembers who contribute to the experiences of all our guests” and are pooled and distributed throughout the year in compensation and bonuses.
Travelers will pay slightly more starting later this month depending on the type of accommodations they book, according to the cruise line, which last raised the price in February 2023.
Echoing recent headlines surrounding updates to airline baggage prices, Princess Cruises’ Crew Appreciation fee is rising by just $1 per person, per day in various classes of cabins.
Travelers in suites will see a $19 daily fee, while those in mini suites, cabanas or Club Classes will pay $18. Guests in all other staterooms will pay $17.
“The crewmembers eligible to receive these funds work in various departments, many of whom rotate among different ships, throughout our fleet of ships,” Princess states on its website. “Guests have complete discretion to adjust these crew appreciation [fees] while onboard; however, crew appreciation may only be adjusted prior to disembarking the ship and not refundable post cruise.”
Travelers can choose a prepaid crew appreciation option while managing their booking, but if it’s not adjusted up to the time a passenger settles up the account prior to disembarkation, the payment becomes final and nonrefundable.
Full details of the policy are available on the Princess Cruises website.
(NEW YORK) — If you’ve opened Instagram over the last few days, you’ve likely seen a post that begins with the words “Goodbye Meta AI.”
The post, most often shared on Instagram stories, features black-and-white text warning of “legal consequences” and the use of artificial intelligence by Meta, the parent company of Instagram, Threads and Facebook.
“If you do not post at least once it will be assumed you are okay with them using your information and photos,” the text reads, in part. “I do not give Meta or anyone else permission to use any of my personal data, profile information or photos.”
Since early September, the message has been shared widely, even though it is a hoax.
More recently, when the message is shared on Instagram stories, it is blocked out by a warning that the message contains “false information.”
The warning directs users to a fact-check on the website LeadStories.com.
“Does posting a statement ensure that users of Meta services will not have their data used in Meta’s artificial intelligence training? No, that’s not true: Posting the viral statement, or any other statement, doesn’t mean that Meta will not use that data for AI training, but users in Europe can object via a form in their account settings,” the fact-check reads. “The statement is an example of “copypasta,” text containing information that’s often not true but which is repeatedly copied and pasted online.”
Meta describes generative AI as, “a type of artificial intelligence that can create new content when a person or business gives it instructions or asks it a question.”
When Meta announced its new generative AI features last year, the company detailed how and why it uses data for AI purposes.
According to the company, it pulls data for AI from users’ public posts, their interactions with AI features and publicly-available information from places like databases and search engines.
“We use public posts and comments on Facebook and Instagram to train generative AI models for these features and for the open-source community,” reads Meta’s public privacy policy. “We don’t use posts or comments with an audience other than Public for these purposes.”
The company does not appear to pull information from data for generative AI from user accounts that are set to private.
Meta did not reply to ABC News’ request for comment.
