Apple can’t get out of facing a class-action lawsuit over AirTags stalking claims

A San Francisco judge has ruled that Apple must face a lawsuit accusing the company of negligence over the potential stalking risks created by its AirTags, Bloomberg reports. While the bulk of the roughly three dozen claims in the class-action suit were dismissed, US District Judge Vince Chhabria denied Apple’s bid to have the suit thrown out based on three plaintiffs’ claims alleging that “when they were stalked, the problems with the AirTag’s safety features were substantial, and that those safety defects caused their injuries.”

While the suit argues that Apple was warned of the potential for its Bluetooth item trackers to be misused and thus should be held liable under California law, Apple disagrees, according to Bloomberg. After it released AirTags, Apple later rolled out safety features designed to thwart stalking attempts, like an update that made it so AirTags would emit a loud sound when they get a certain distance from their owner and notifications about unknown trackers. Apple and Google also last year announced that they’re working together on developing industry standards to proactively fight the misuse of tracking devices.

Nevertheless, the lawsuit argues that AirTags have “become the weapon of choice of stalkers and abusers,” Bloomberg reports. The case was filed in the Northern California district court.

This article originally appeared on Engadget at https://www.engadget.com/apple-cant-get-out-of-facing-a-class-action-lawsuit-over-airtags-stalking-claims-184329639.html?src=rss

Tesla settles long-running racial discrimination court battle with former worker

Owen Diaz's lengthy court battle against Tesla is officially over, now that both parties have agreed on a settlement. Attorney Lawrence Organ, Diaz's lawyer, told CNBC that that the "parties have reached an amicable resolution of their disputes," but that the "terms of the settlement are confidential." If you've been following this case for a while now, that means you won't get to find out how much Diaz is getting after the massive $137 million in damages he was originally awarded got dramatically lowered to $3.2 million. 

The former elevator operator famously sued the automaker for enabling a racist workplace, saying that he faced discrimination "straight from the Jim Crow era" as a Black individual. He said his fellow workers left left drawings of swastika and racist graffiti, such as ones of Inki the Caveman, on his workspace and around Tesla's Fremont assembly plant. Diaz also said that he and other Black workers were subjected to racial slurs, and that the company failed to address thes behaviors despite repeated complaints. 

In 2021, a San Francisco court ordered Tesla to pay $137 million in damages to its former worker, which was one of the highest amounts awarded to a plaintiff suing on the basis of discrimination. However, a judge during the appeals that followed found the amount excessive and lowered it to $15 million, even though he upheld the original jury's verdict. The parties went back into trial after Diaz refused the lowered amount, but a jury lowered the damages Tesla must pay even further to $3.2 million. At the time, Diaz's lawyer said he was wrongly attacked by the defense and that they had already requested a new trial due to misconduct. It looks like both parties have since agreed to negotiate behind closed doors. 

While Diaz's case is done, Organ also represents Marcus Vaughn, who filed another lawsuit against the automaker for racial harassment. Vaughn called Tesla's Fremont plant a "hotbed for racist behavior" and petitioned the court last year to give his lawsuit class action status so that he could add 240 Black colleagues to his complaint. 

This article originally appeared on Engadget at https://www.engadget.com/tesla-settles-long-running-racial-discrimination-court-battle-with-former-worker-133036456.html?src=rss

Tesla settles long-running racial discrimination court battle with former worker

Owen Diaz's lengthy court battle against Tesla is officially over, now that both parties have agreed on a settlement. Attorney Lawrence Organ, Diaz's lawyer, told CNBC that that the "parties have reached an amicable resolution of their disputes," but that the "terms of the settlement are confidential." If you've been following this case for a while now, that means you won't get to find out how much Diaz is getting after the massive $137 million in damages he was originally awarded got dramatically lowered to $3.2 million. 

The former elevator operator famously sued the automaker for enabling a racist workplace, saying that he faced discrimination "straight from the Jim Crow era" as a Black individual. He said his fellow workers left left drawings of swastika and racist graffiti, such as ones of Inki the Caveman, on his workspace and around Tesla's Fremont assembly plant. Diaz also said that he and other Black workers were subjected to racial slurs, and that the company failed to address thes behaviors despite repeated complaints. 

In 2021, a San Francisco court ordered Tesla to pay $137 million in damages to its former worker, which was one of the highest amounts awarded to a plaintiff suing on the basis of discrimination. However, a judge during the appeals that followed found the amount excessive and lowered it to $15 million, even though he upheld the original jury's verdict. The parties went back into trial after Diaz refused the lowered amount, but a jury lowered the damages Tesla must pay even further to $3.2 million. At the time, Diaz's lawyer said he was wrongly attacked by the defense and that they had already requested a new trial due to misconduct. It looks like both parties have since agreed to negotiate behind closed doors. 

While Diaz's case is done, Organ also represents Marcus Vaughn, who filed another lawsuit against the automaker for racial harassment. Vaughn called Tesla's Fremont plant a "hotbed for racist behavior" and petitioned the court last year to give his lawsuit class action status so that he could add 240 Black colleagues to his complaint. 

This article originally appeared on Engadget at https://www.engadget.com/tesla-settles-long-running-racial-discrimination-court-battle-with-former-worker-133036456.html?src=rss

Whoops! Amazon served costly ads for products people couldn’t actually buy

It can be quite annoying to click through an Amazon ad in your results only to find out that the product you want can't be shipped to your place. Now, imagine you're the small business owner being charged for those ads. (Forget corporations and drop shippers, I know you all hate them.) There you are, thinking you're going to make a killing based on how much ad action you're getting. Except those ads don't translate to sales, because Amazon has been serving them to people who can't even buy your products. That's apparently what happened to at least one seller who told Bloomberg that he was charged between $200,000 and $300,000 for ads served to California residents, where he can't sell his advanced gaming computer items. 

The seller stopped shipping to California due to the state's personal computer power consumption regulations, which would require him to get costly lab reports for his products. But Amazon's automated system apparently continued advertising his products there and allegedly denied that there was an issue when he flagged the problem and followed up for several weeks. Since he was being charged thousands, the seller, who employs 80 people in Virginia to assemble custom computers, reportedly made zero profit in November, December and January. 

Amazon has acknowledged the issue in a statement sent to Engadget. It told us that it had investigated the matter and found that it only affected "a tiny fraction" of sellers. It also said that it had already apologized to the seller who talked to Bloomberg and that the company is in the process of refunding him $15,000. That's a tiny fraction of the hundreds of thousands the seller said he'd lost, but Amazon says it only served "a very small portion" of his listings to California residents. "We will similarly contact and refund any affected sellers, and are updating our processes to ensure any such ads are not charged going forward," the spokesperson said. 

The company's advertising system generally can't geo-target advertisements like Google ads can, because it focuses on matching buyers to certain brands or products they may be interested in. It also can't ensure that the product it's advertising complies with state regulations and, hence, can be shipped to its residents. As Bloomberg notes, this is far from the first time Amazon faced an issue regarding its advertisements. Last year, the Federal Trade Commission filed an antitrust lawsuit against the company, and one of the regulator's accusations was that it was "deliberately increasing junk ads that worsen search quality." A report that came out after the lawsuit revealed that Amazon can strike deals with other companies to make sure their listings are devoid of junk ads, though, which is why Apple's official product pages might look cleaner and less cluttered compared to its competitors'.

This article originally appeared on Engadget at https://www.engadget.com/whoops-amazon-served-costly-ads-for-products-people-couldnt-actually-buy-123046646.html?src=rss

Tesla paid no federal income taxes while paying executives $2.5 billion over five years

In case you need another reason to shout "tax the rich" from the rooftops, it's here, and it's going to make you angry. A study found that 35 major US companies paid their top five executives more than they paid in federal income taxes between 2018 and 2022, the Guardian reports. The findings, which come from The Institute for Policy Studies and Americans for Tax Fairness, are even less shocking when you learn the worst offender: Tesla.

Elon Musk's company earned $4.4 billion during those five years and gave its executives $2.5 billion. Despite that, Tesla not only didn't pay any federal taxes, but it received $1 million in refunds from the government. Musk himself is the second richest person in the world, with Forbes reporting he had a net worth of $207.9 billion at the start of March.

Tesla is one of 35 companies that paid less federal income tax than they paid their top five executives during that period. In total, the well-deserving and not-at-all greedy execs of these companies raked in $9.5 billion over these years, while cumulatively those same companies received $1.8 billion back from the government. Eighteen of these businesses reported net profits over the five years but didn't pay a cent of federal income tax. (All but one got refunds).

The study lists other notable companies like T-Mobile, Netflix, Ford Motor alongside Tesla. T-Mobile made $17.9 billion, paid executives $675 million and received $80 million in refunds. The mobile provider has spent an incredible amount of money on lobbying Congress for tax breaks, spending $9 million in 2022 alone. Netflix actually did pay some taxes, but the $236 million was just 1.6 percent of its $15.1 billion in earnings — and just over a third of what it paid those top five executives. The statutory rate for federal income tax is 21 percent, so yeah, feel free to scream.

Update, March 14 2024, 6:23AM ET: An earlier version of this report cited Match Group, which was cited in a separate report on corporate taxation.

This article originally appeared on Engadget at https://www.engadget.com/tesla-paid-no-federal-income-taxes-while-paying-executives-25-billion-over-five-years-154529907.html?src=rss

Tesla paid no federal income taxes while paying executives $2.5 billion over five years

In case you need another reason to shout "tax the rich" from the rooftops, it's here, and it's going to make you angry. A study found that 35 major US companies paid their top five executives more than they paid in federal income taxes between 2018 and 2022, the Guardian reports. The findings, which come from The Institute for Policy Studies and Americans for Tax Fairness, are even less shocking when you learn the worst offender: Tesla.

Elon Musk's company earned $4.4 billion during those five years and gave its executives $2.5 billion. Despite that, Tesla not only didn't pay any federal taxes, but it received $1 million in refunds from the government. Musk himself is the second richest person in the world, with Forbes reporting he had a net worth of $207.9 billion at the start of March.

Tesla is one of 35 companies that paid less federal income tax than they paid their top five executives during that period. In total, the well-deserving and not-at-all greedy execs of these companies raked in $9.5 billion over these years, while cumulatively those same companies received $1.8 billion back from the government. Eighteen of these businesses reported net profits over the five years but didn't pay a cent of federal income tax. (All but one got refunds).

The study lists other notable companies like T-Mobile, Netflix, Ford Motor and Match Group alongside Tesla. T-Mobile made $17.9 billion, paid executives $675 million and received $80 million in refunds. The mobile provider has spent an incredible amount of money on lobbying Congress for tax breaks, spending $9 million in 2022 alone. Netflix actually did pay some taxes, but the $236 million was just 1.6 percent of its $15.1 billion in earnings — and just over a third of what it paid those top five executives. The statutory rate for federal income tax is 21 percent, so yeah, feel free to scream.

This article originally appeared on Engadget at https://www.engadget.com/tesla-paid-no-federal-income-taxes-while-paying-executives-25-billion-over-five-years-154529907.html?src=rss

The US Government says IP infringement is all over NFT marketplaces

The non-fungible token (NFT) bubble burst quite some time ago, but the US Government has only just published a report looking into the surrounding legal framework. The study, carried out jointly by the US Copyright Office (USCO) and the Patent and Trademark Office (USPTO) following a 2022 request by the Senate, determined that current intellectual property laws are robust enough to deal with copyright or trademark infringement in NFTs. The agencies also determined that although there are some benefits to the tokens, "trademark infringement and misuse is prevalent on NFT marketplaces."

As a reminder, an NFT is a digital certificate of authenticity conferring ownership of a collectible, such as an artwork or piece of music. It's effectively a verified link to a piece of media which may or may not live on the blockchain, but whoever owns the destination of an NFT's URL can change the media it points to at any time. In one notable case in 2021, Signal founder Moxie Marlinspike created an NFT that he promised would appear to be a poop emoji when someone bought it.

The offices noted that NFTs and associated smart contracts can aid trademark owners in managing, licensing and transferring IP rights. Those who weighed in on the issue in public comments pointed out that NFTs can help artists make money from future sales of their work too. That's not inherently a bad thing, even if a large swath of NFT art is butt-ugly.

However, the study noted "widespread concern that NFT buyers and sellers do not know what IP rights are implicated in the creation, marketing and transfer of NFTs and that NFTs may be used to facilitate copyright or trademark infringement."

The report notes that the decentralized nature of NFTs and blockchain networks complicates any attempts to enforce trademarks. "While some individual NFT platforms have developed protocols to help trademark owners enforce their rights, there is no centralized authority that requires all platforms to do so," the report reads. "There are also no cross-platform mechanisms to allow trademark owners to identify and take down infringing content, settle trademark-related disputes involving blockchain-based domain names, or confirm that sellers own the trademark rights associated with the assets they offer."

With all of that in mind, the offices said that educating the public about NFTs could help ensure a better understanding and awareness of the tokens and how they work. Still, they recommended in their report to Congress that the current use of NFTs doesn't require changes to current IP laws. They also noted that "incorporating NFTs into their registration and recordation practices is not necessary or advisable at this time." In other words, they don't think they should have to deal with NFTs either.

This article originally appeared on Engadget at https://www.engadget.com/the-us-government-says-ip-infringement-is-all-over-nft-marketplaces-155757506.html?src=rss

Now it’s NVIDIA being sued over AI copyright infringement

It's getting hard to keep up with copyright lawsuits against generative AI, with a new proposed class action hitting the courts last week. This time, authors are suing NVIDIA over its AI platform NeMo, a language model that allows businesses to create and train their own chatbots, Ars Technica reported. They claim the company trained it on a controversial dataset that illegally used their books without consent.

Authors Abdi Nazemian, Brian Keene and Stewart O’Nan demanded a jury trial and asked NVIDIA to pay damages and destroy all copies of the Books3 dataset used to power NeMo large language models (LLMs). They claim that dataset copied a shadow library called Bibliotek consisting of 196,640 pirated books. 

"In sum, NVIDIA has admitted training its NeMo Megatron models on a copy of The Pile dataset," the claim states. "Therefore, NVIDIA necessarily also trained its NeMo Megatron models on a copy of Books3, because Books3 is part of The Pile. Certain books written by Plaintiffs are part of Books3— including the Infringed Works—and thus NVIDIA necessarily trained its NeMo Megatron models on one or more copies of the Infringed Works, thereby directly infringing the copyrights of the Plaintiffs. 

In response, NVIDIA told The Wall Street Journal that "we respect the rights of all content creators and believe we created NeMo in full compliance with copyright law."

Last year, OpenAI and Microsoft were hit with a copyright lawsuit from nonfiction authors, claiming the companies made money off their works but refused to pay them. A similar lawsuit was launched earlier this year. That's on top of a lawsuit from news organizations like The Intercept and Raw Story, and of course, the legal action that kicked all of this off from The New York Times

This article originally appeared on Engadget at https://www.engadget.com/now-its-nvidia-being-sued-over-ai-copyright-infringement-083407300.html?src=rss

OpenAI says Elon Musk’s lawsuit allegations are ‘incoherent’

"There is no Founding Agreement, or any agreement at all with Musk," OpenAI said in a court filing as a defendant in Elon Musk's lawsuit. We're, of course, talking about the lawsuit Musk filed against OpenAI, which accuses it of violating its status as a non-profit, as well as of violating a founding agreement promising the organization would never operate for profit and would release its AI publicly. The company said the billionaire's claims are based on "convoluted — often incoherent — factual premises." It called that founding agreement "a fiction Musk has conjured to lay unearned claim to the fruits of an enterprise he initially supported, then abandoned, then watched succeed without him."

If the case goes to discovery, there's evidence that would show that Musk supported OpenAI's transition into a for-profit structure, "to be controlled by Musk himself," OpenAI continued. Further, the billionaire allegedly ceased supporting the project when his ideas weren't followed. That statement echoes the company's blog post from earlier this month, wherein it published purported emails to and from Musk from when he was still involved with the organization. Based on those exchanges, Musk knew and was in favor of turning OpenAI into a for-profit entity. He even wanted full control of it as CEO and to have majority equity. Musk also agreed with a suggestion to attach the organization to Tesla, so that the automaker could provide its funding. In the end, the parties didn't come to agreement, and Musk ended his involvement. 

"Seeing the remarkable technological advances OpenAI has achieved, Musk now wants that success for himself," OpenAI wrote in its filing. "Musk purports to bring this suit for humanity, when the truth — evident even from the face of Musk’s contradictory pleading — is that he brings it to advance his own commercial interests."

Musk introduced his own artificial intelligence company called xAI last year, with the rather lofty goal of understanding "the true nature of the universe." A few days after OpenAI published its blog post wherein it claimed that Musk knew it never intended to open source its technology, the billionaire announced that xAI was going to open source its Grok chatbot. While it could very well be a dig at OpenAI, open sourcing Grok could also get his company feedback from the developer community, which xAI could then use to improve its technology. 

This article originally appeared on Engadget at https://www.engadget.com/openai-says-elon-musks-lawsuit-allegations-are-incoherent-070056403.html?src=rss

How 19 years of Amazon Prime has satisfied our need for speed

Just as Engadget was hitting publish on its first posts, I was putting a freshly minted English degree to use working at an indie bookshop in Los Angeles. In seemingly unrelated news, Amazon had just reported its first profitable year after switching from selling books to selling “everything” four years before. (It still sold a lot of books.)

Our bookstore did a good job keeping shelves stocked with a balance of the more worthy popular hits and smaller, better fare. But we couldn’t have every book a customer might want, so we offered to order any in-print title. If a distributor had it, it’d take about a week to get in, longer if we had to go through the publisher. That seemed fine for most customers.

But sometimes “about a week” was too long. A few people came right out and said, “Nah, I’ll order it on Amazon.” In 2005, Amazon launched Prime, the membership program that, for $79 a year, gave customers unlimited two-day shipping on most orders. At launch, CEO Jeff Bezos called it “‘all-you-can-eat’ express shipping.” No one knew at the time how hungry the world was for Amazon’s brand of convenience. And now, nearly two decades later, we’ve seen the shifts that accommodate that buffet — in labor, retail and the entire customer experience.

Prime wasn’t an overnight success. It’s estimated that six years after launch, just four million households paid for the service. But 10 years later, in 2021, Bezos claimed it had accrued 200 million members worldwide. Outside of that milestone, Amazon hasn’t made its membership numbers public, but it’s likely the figure is higher now.

That shipping should be both free and fast has become an expectation, and no company has done more to alter the landscape of logistics than Amazon. On its own, the company operates over a hundred warehouses in the US, each ranging from 600,000 to four million square feet. Each one employs between 1,000 and 1,500 people, and an army of around 750,000 robots works alongside humans in many locations.

The company operates a fleet of cargo planes, is experimenting with drone deliveries and deploys thousands of delivery vans — though none of those Amazon-branded vans are driven by actual employees. Rather, separate companies, known as delivery service partners (DSP), subcontract drivers to operate those vans. Amazon employs 1.5 million people either full or part time (with one million in the US), but those figures don’t include independent contractors and temporary personnel. In addition to the DSP program, Amazon Flex lets individuals use their own cars to deliver smile-emblazoned packages to porches. The company outsources delivery to traditional providers too, relying on both UPS and the US Postal Service, the latter it has compelled to deliver packages on Sundays since 2013.

Such vast orchestration to deliver Stanley Quenchers and pimple patches faster than anyone has paid off. However, it’s hard to look at growth and revenue numbers without considering the human costs. Contracted drivers pee in bottles because meeting quotas leaves no time for bathroom breaks. Workers sustain serious injuries at automated warehouses. The company has been sued for retaliatory firing, intrusive employee surveillance practices and failure to follow COVID safety guidelines. Amazon again made the dirty dozen list in 2023 for workplace safety, according to the advocacy group National COSH. And while it has taken steps to improve, with better compensation, the company takes anti-union actions typical of a massive corporation, joining others in calling the National Labor Relations Board “unconstitutional.”

Apart from worker issues, Amazon’s dominance has made life harder for retail businesses in general, particularly the big chains. The Amazon Effect became shorthand for the mall-emptying squeeze of e-commerce on traditional retail. Even businesses that team up with Amazon don’t fare well. Third-party sellers on the site are subject to punitive measures and must contend with increasing fees, which sometimes put them out of business. Sellers who do perform well have seen products copied and sold by Amazon’s private label. Notable partnerships have had dismal results, such as when Borders outsourced its early web sales or the exclusivity deal with Toys ‘R’ Us. Of course, Borders no longer exists, and Toys ‘R’ Us filed for bankruptcy in 2017.

Trying to beat Amazon on speed and price is pointless. Joining them is unwise. So retailers compete in other ways. At the bookstore, we focused on our strengths: a varied, multi-talented staff who could size up a customer’s reading tastes and stick a good book in their hands. If someone came into our store circa 2005 and said they were into fantasy, there’s a good chance our book buyer would pass them a copy of George R.R. Martin’s latest, years before HBO had anything to do with it.

We had a curated ‘zine section and hosted live events with bestselling authors, cult magazine founders and local writers. But mostly, we capitalized on folks who wanted something more from their shopping experience than just speed and convenience, people who didn’t mind if it took a week to get a book, as long as it came with a little local community. Some just wanted to browse books while sitting under the tree (there’s a tree in the middle of the store), petting a cat (in my day, that was Lucy) and listening to what we felt were pretty wicked playlists.

Today, Skylight Books is still a force of creativity and verve in the Los Feliz neighborhood, and it has even expanded into an annex next door. In general, after the initial casualties from the retail apocalypse and COVID, independent bookstores are doing OK, with established names staying put and new stores opening. Elsewhere in the retail industry, big chains continue to close locations, but independent retail seems to be growing. Personally, I enjoy the new bakeries, brewpubs and bulk stores that have sprung up around the neighborhoods where I now live.

I can’t, as a commerce writer, ignore that a decent portion of my job directs readers to Amazon’s website. The company is playing a part in displaying the very words you’re reading, as Engadget’s site is facilitated by Amazon Web Services (AWS) through Yahoo’s cloud partnership. The company is one of the biggest on the planet, the second largest employer in the US and a good portion of every retail dollar spent in the US goes into Amazon’s revenue chest.

With its acquisition of Whole Foods’ 500+ stores, Amazon is doing fine in the physical retail sector. Yet the company doesn’t tend to win when it tries to fabricate other retail experiences. Amazon Books, Amazon Style and Amazon 4-Star were all small-scale retail spaces that tried to leverage Amazon’s brand, massive trove of buyer data and cutting-edge retail technology. At their peak, those stores comprised about 70 brick-and-mortar locations, all of which are now closed. The cashierless Amazon Go still has more than 20 locations in the US, but Amazon shut down nine of them in 2023 and hasn’t announced plans to open more.

Those misfires could be statistically inevitable; more than half of new businesses go under before they hit the 10-year mark. But perhaps those stores failed because, as physical spaces, they couldn’t capitalize on Amazon’s primary strength: zero-effort buying. Shopping at Amazon.com isn’t particularly pleasant. The website is cluttered and confusing. Suspect products and fake reviews erode shoppers’ trust. It isn’t even the cheapest place to shop. But that 1-Click™ buy button and turbo delivery makes stuff appear on our doorsteps like it slid there on greased rails.

Yet when people get up the energy to leave their homes, they may hope for more: human experiences created by people from their own neighborhoods who do what they do out of passion, not because market data indicates dollars to be had in a given sector. With its trillion-dollar valuation, Amazon isn’t going anywhere, but under its massive shadow, there’s still room for businesses that focus on the human element of commercial transactions, places where people might want to spend some of the time Amazon’s speed and convenience may have saved them.


To celebrate Engadget's 20th anniversary, we're taking a look back at the products and services that have changed the industry since March 2, 2004.

This article originally appeared on Engadget at https://www.engadget.com/how-19-years-of-amazon-prime-has-satisfied-our-need-for-speed-141557261.html?src=rss