Tag Archives: Business

TurboTax maker Intuit faces FTC ban on advertising ‘free’ services

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Intuit is once again facing consequences for misleading advertising that claims it offers "free" services. The Federal Trade Commission (FTC) is banning TurboTax's maker from claiming services are free when most customers will end up having to pay. "We find that Intuit's ads on their face, expressly or by strong implication, conveyed to reasonable consumers the message that they can file their taxes with TurboTax for free," the FTC concluded. "Respondent's claims of free filing are false for roughly two-thirds of U.S. taxpayers, who do not meet Intuit's simple tax return qualifications and are therefore ineligible to file for free with TurboTax."

The FTC further emphasized that companies can't describe a product as "free, free, free" when most people will have a "fee, fee, fee" — a warning that's just waiting to be turned into an intimidating jingle. The regulatory body stated that Intuit must clearly state percent of customers would qualify for free services. Meanwhile, Intuit is appealing the decision, stating, "We believe that when the matter ultimately returns to a neutral body we will prevail."

Intuit isn't required to pay a fee for its transgressions this time. However, the FTC's ban comes nearly two years after Intuit reached a $141 million settlement with all 50 states and the District of Columbia. The company had to refund almost 4.4 million customers "for deceiving millions of low-income Americans into paying for tax services that should have been free," New York Attorney General Letitia James announced at the time.

Intuit was found to have pulled a bait-and-switch on customers, luring them in with the promise of free tax prep and then charging them when it was time to file. It also hid its IRS Free Filing page from search engine results for a tax season (and dropped out of the Free File Alliance in 2021). Intuit didn't admit to any wrongdoing and expressed no regret in a statement about the ordeal.

This article originally appeared on Engadget at https://www.engadget.com/turbotax-maker-intuit-faces-ftc-ban-on-advertising-free-services-104033493.html?src=rss

Alphabet is cutting dozens of jobs at its X moonshot lab

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Just days after Alphabet and Google CEO Sudar Pichai warned workers of more downsizing this year, the former is laying off dozens of employees, mainly support staff, at its moonshot lab. Alphabet is also restructuring X (not to be confused with the platform formerly known as Twitter) to make it easier to spin out projects as independent startups with backing from outside investors. Alphabet confirmed these changes, which were first reported by Bloomberg, to Engadget.

"As we’ve said, we’re responsibly investing in our company's biggest priorities and the significant opportunities ahead," a Google spokesperson told Engadget in a statement. "To best position us for these opportunities, throughout the second half of 2023, a number of our teams made changes to become more efficient and work better, and to align their resources to their biggest product priorities. Some teams are continuing to make these kinds of organizational changes, which include some role eliminations globally. We’re continuing to support any impacted employees as they look for new roles here at Google and beyond."

“We’re expanding our approach to focus on spinning out more projects as independent companies funded through market-based capital,” X division head Astro Teller told staff in a memo. “We’ll do this by opening our scope to collaborate with a broader base of industry and financial partners, and by continuing to emphasize lean teams and capital efficiency.”

“This approach will give us more opportunity to focus on what Xers do best: inventing breakthrough technologies to help solve some of the world’s most pressing challenges,” Teller added. “Because the world needs moonshots more now than ever.”

X is all about attempting to tackle major problems such as food waste, climate change and connectivity through innovation, but it hasn't found a ton of success through its spinoff businesses as yet. Last year, former Alphabet Chief Financial Officer Ruth Porat became the company's president and chief investment officer and now oversees X.

As Bloomberg notes, there has been a greater onus on X to turn its ambitious ideas into profitable businesses over the last few years, while Alphabet is cutting costs across the board. Earlier this month, Google laid off hundreds of workers from various divisions, including the hardware, engineering and ad sales teams, as it places more emphasis on artificial intelligence. A year ago, Google let go most workers from its Area 120 startup incubator.

This article originally appeared on Engadget at https://www.engadget.com/alphabet-is-cutting-dozens-of-jobs-at-its-x-moonshot-lab-203505073.html?src=rss

Apparel supplier for North Face, Vans admits its cyberattack led to a data breach of 35 million customers

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Major apparel supplier VF Corp followed up on its December cyberattack disclosure, with its latest Securities and Exchange Commission form admitting to a data breach impacting up to 35.5 million customers. That means if you've purchased from its major brands like Vans, North Face, Timberland, Dickies and more, you may have been impacted. But VF Corp still insists that the incident won't hurt its financial performance.

Initially, VF Corp warned customers that the cyberattack it experienced in December could have an impact on its holiday order fulfillment. The company said "unauthorized occurrences" on its IT systems caused operational disruptions, and the attackers likely stole personal information. Now, it's come out just how widespread the damage from the attack could be. 

VF Corp did not respond to a request for comment clarifying what type of data the hackers stole. In the SEC filing, however, the company said it did not collect consumer social security numbers, bank account information or payment card information, and that there is no evidence the hackers stole passwords. It also said that the unauthorized users were "ejected" from its systems by December 15, after being discovered two days earlier. 

"Since the filing of the Original Report, VF has substantially restored the IT systems and data that were impacted by the cyber incident, but continues to work through minor operational impacts," the latest filing states. VF still has not confirmed who was behind the attack.

This article originally appeared on Engadget at https://www.engadget.com/apparel-supplier-for-north-face-vans-admits-its-cyberattack-led-to-a-data-breach-of-35-million-customers-153411926.html?src=rss

LinkedIn’s new AI feature helps people find jobs by grouping them into tailored categories

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For many, "new year, new me" includes finding a new job. Scouring sites like LinkedIn and Indeed for opportunities can feel like a full-time role in and of itself. This process could potentially improve moving forward, with LinkedIn announcing its latest feature: Job Collections. 

Basically, instead of searching for a specific industry or role, LinkedIn is using generative AI and large language models to analyze each job posting and categorize it into groups such as IT, pro sports, remote and top startups. Along with saving time, LinkedIn indicates that this feature can benefit people who aren't sure what their next step looks like. The company compares it to Airbnb Experiences — you might not know what you're searching for, but you could find something great. Its success relies significantly on how well it understands you versus wasting your time further sorting through jobs that are completely off base. 

According to LinkedIn, applications rose 50 percent in the US and 36 percent globally last January (a month that typically sees a spike), with 85 percent of working people contemplating changing jobs this year. The number of people searching for a job isn't surprising, given the number of recent layoffs. In the tech industry alone, 2024 has already seen layoffs at Twitch, Google, Meta, Discord and more.  

To use LinkedIn's new feature, simply go to the Jobs tab and click on "Explore with Job Collections." You can now also go to Preferences and choose from things like employment and location type. Then LinkedIn will highlight them in green anytime they appear on a job listing. Plus, if a job isn't exactly what you want but the company is, you can now send them an "I'm Interested" notification right from the listing instead of visiting their profile to do so. 

This article originally appeared on Engadget at https://www.engadget.com/linkedins-new-ai-feature-helps-people-find-jobs-by-grouping-them-into-tailored-categories-104032853.html?src=rss

Supreme Court declines appeals from Apple and Epic Games in App Store case

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The US Supreme Court has declined to hear the appeals filed by both Apple and Epic Games following a judge’s ruling that Apple must allow developers to offer alternative methods to pay for apps and services other than through the App Store. It did not provide an explanation as to why it refused to review either appeal, but it means the permanent injunction giving developers a way to avoid the 30 percent cut Apple takes will remain in place.

Apple made the appeal to the high court back in September of last year, requesting it review the circuit court’s decision it deemed “unconstitutional.” The case brought forward by Epic Games is the first to challenge the business model of the App store, which helps Apple rake in billions. In May 2023, Apple said that developers generated about $1 trillion in total billings through the App Store in 2022. Gaming apps sold on the App Store generate an estimated $100 billion in revenue each year.

While the Ninth Circuit ruled in favor of Epic’s appeal that Apple has indeed broken California's Unfair Competition law, it rejected Epic’s claim that the App store is a monopoly. In addition to declining to hear Apple’s appeal, SCOTUS also will not review Epic’s appeal that the district court had made “legal errors.”

Epic claimed that Apple violates federal antitrust laws through its business model, however, this is not an issue the high court will consider. The CEO of Epic Games, Tim Sweeney, called the appeal denial “a sad outcome” on X.

Epic Games has been front and center in the fight against Apple’s developer transaction fee policy since 2020. Other companies, including Spotify and the New York Times, are also trying to challenge app store policies on Apple and Google platforms. The Coalition for App Fairness, which consists of more than 60 companies now, believes no developers should be required to use the app store exclusively. The Epic lawsuit was just the start — problems have been piling up for Apple. Even the Department of Justice (DOJ) is reportedly considering filing an antitrust case against it. The DOJ has been conducting an investigation into whether Apple’s App Store practices have killed competition in the space.

This article originally appeared on Engadget at https://www.engadget.com/supreme-court-declines-appeals-from-apple-and-epic-games-in-app-store-case-192755323.html?src=rss

Google is laying off hundreds of workers who sell ads to big businesses

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Days after laying off more than a thousand employees from Pixel, Nest, Fitbit, Google Assistant and core engineering divisions, Google is cutting “hundreds of roles” on its advertising sales team, a company spokesperson told Engadget on Tuesday.

“Every year we go through a rigorous process to structure our team to provide the best service to our Ads customers,” the company said in a statement. “We map customers to the right specialist teams and sales channels to meet their service needs. As part of this, a few hundred roles globally are being eliminated and impacted employees will be able to apply for open roles on the team or elsewhere at Google.”

The spokesperson declined to share information about the exact number of employees impacted by the cuts or where they were located. The news was first reported by Business Insider, which obtained a memo that Google’s chief business officer Philipp Schindler sent staff on Tuesday.

Google’s latest cuts continue the trend of layoffs at tech companies, which shed thousands of jobs in 2023. In the first two weeks of this year, for instance Amazon cut hundreds of workers in video game streaming service Twitch, Prime Video, MGM Studios, and Audible. Discord, Meta, Unity and Duolingo have also let go employees in 2024.

In December, The Information reported that Google was planning to reorganize its ad sales unit, which has more than 30,000 people, in favor of using machine learning to help customers buy more ads on flagship products like Google Search and YouTube, which is how the company makes a bulk of its revenue. Most of the company’s cuts taking place today will focus on ad sales teams selling ads to large businesses.

Meanwhile, the company is reportedly throwing millions of dollars of stock at select researchers at DeepMind, its artificial intelligence unit, to stop them from decamping to rivals like OpenAI.

This article originally appeared on Engadget at https://www.engadget.com/google-is-laying-off-hundreds-of-workers-who-sell-ads-to-big-businesses-190057680.html?src=rss

Meta reportedly laid off 60 technical program managers at Instagram

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When Mark Zuckerberg announced last year that Meta was laying off 10,000 workers, he described 2023 as a "year of efficiency" defined by removing layers of middle management to create a "leaner org." Turns out the company still isn't done restructuring its organization. According to Business Insider, Meta recently told at least 60 of its employees at Instagram that it's eliminating their position altogether. The affected employees are technical program managers, the people who go in between Meta's tech workers, including its engineers, and the higher level product managers.

Based on posts on Blind, an app for tech employees, and on LinkedIn seen by the publication, the workers losing their jobs are given the chance to be interviewed to be considered for a position as product manager. By March, those who chose to leave or weren't given a new role will no longer have a job with Meta. The company slashed 11,000 jobs in the fall of 2022 in addition to the 10,000 workers it laid off last year in an effort to cut costs. It also issued a hiring freeze and closed thousands of open roles it was originally hiring for. 

"A leaner org will execute its highest priorities faster. People will be more productive, and their work will be more fun and fulfilling," Zuckerberg said last year. It's unclear if Meta has already lifted its hiring freeze, but it's expected to do so only after it's done with restructuring. 

This article originally appeared on Engadget at https://www.engadget.com/meta-reportedly-laid-off-60-technical-program-managers-at-instagram-095558424.html?src=rss

New Department of Labor rule could reclassify countless gig workers as employees

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The US Department of Labor (DOL) published a final rule to the Federal Register on Wednesday that would increase the difficulty of classifying workers as independent contractors. If the rule survives court challenges unscathed, it will replace a business-friendly Trump-era regulation that did the opposite. It’s scheduled to go into effect on March 11.

The new rule, first proposed in 2022, could have profound implications for companies like Uber and DoorDash that rely heavily on gig workers. It would mandate that workers who are “economically dependent” on a company be considered employees.

The rule restores a pre-Trump precedent of using six factors to determine workers’ classification. These include their opportunity for profit or loss, the financial stake and nature of resources the worker has invested in the work, the work relationship’s permanence, the employer’s degree of control over the person’s work, how essential the person’s work is to the employer’s business and the worker’s skill and initiative.

In its decision to publish the new guidance, the DOL cites a “longstanding precedent” in the courts predating the Trump administration’s hard right turn. “A century of labor protections for working people is premised on the employer-employee relationship,” Acting Labor Secretary Julie Su said in a press call with Bloomberg.

“Misclassifying employees as independent contractors is a serious issue that deprives workers of basic rights and protections,” Su wrote in the announcement post. “This rule will help protect workers, especially those facing the greatest risk of exploitation, by making sure they are classified properly and that they receive the wages they’ve earned.”

Uber Eats and Deliveroo takeaway delivery cycle couriers on 30th March 2023 in London, United Kingdom. Uber Eats is an online food ordering and delivery platform launched by Uber in 2014. It acts as an intermediary between independent takeaway food outlets and customers, with thousands of cycle couriers delivering food by bicycle and other forms of transport. Gig workers are independent contractors, online platform workers, contract firm workers, on-call workers and temporary workers. Gig workers enter into formal agreements with on-demand companies to provide services to the companys clients. (photo by Mike Kemp/In Pictures via Getty Images)
Mike Kemp via Getty Images

If the rule takes effect, it’s expected to increase employer costs. The US Chamber of Commerce, a non-government lobby for business interests, unsurprisingly opposes it. “It is likely to threaten the flexibility of individuals to work when and how they want and could have significant negative impacts on our economy,” Marc Freedman, VP of the US Chamber of Commerce, said in a statement to Reuters.

DoorDash sounds optimistic that the rule wouldn’t apply to its workforce. “We are confident that Dashers are properly classified as independent contractors under the FLSA, and we do not anticipate this rule causing changes to our business,” the company wrote in a statement. “We will continue to engage with the Department of Labor, Congress, and other stakeholders to find solutions that ensure Dashers maintain their flexibility while gaining access to new benefits and protections.”

Groups with similar views are expected to mount legal challenges to the rule before it goes into effect. A previous attempt by the Biden Administration to void the Trump-era rules met such a fate when a federal judge blocked the DOL’s reversal.

Although the most prominent theoretical applications of the rule would be with gig economy apps like DoorDash, Lyft and Uber, it could stretch to sectors including healthcare, trucking and construction. “The department is seeing misclassifications in places it hasn’t seen it before,” Wage and Hour Division Administrator Jessica Looma said to Bloomberg on Monday. “Health care, construction, janitorial, and even restaurant workers who are often living paycheck to paycheck are some of the most vulnerable workers.”

This article originally appeared on Engadget at https://www.engadget.com/new-department-of-labor-rule-could-reclassify-countless-gig-workers-as-employees-130836919.html?src=rss

OpenAI admits it’s impossible to train generative AI without copyrighted materials

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OpenAI and its biggest backer, Microsoft, are facing several lawsuits accusing them of using other people's copyrighted works without permission to train the former's large language models (LLMs). And based on what OpenAI told the House of Lords Communications and Digital Select Committee, we might see more lawsuits against the companies in the future. It would be "impossible to train today's leading AI models without using copyrighted materials," OpenAI wrote in its written evidence (PDF) submission for the committee's inquiry into LLMs, as first reported by the The Guardian.

The company explained that it's because copyright today "covers virtually every sort of human expression — including blog posts, photographs, forum posts, scraps of software code, and government documents." It added that "[l]imiting training data to public domain books and drawings created more than a century ago might yield an interesting experiment, but would not provide AI systems that meet the needs of today's citizens." OpenAI also insisted that it complies with copyright laws when it trains its models. In a new post on its blog made in response to the The New York Times' lawsuit, it said the use of publicly available internet materials to train AI falls under fair use doctrine. 

It admitted, however, that there is "still work to be done to support and empower creators." The company talked about the ways it's allowing publishers to block the GPTBot web crawler from being able to access their websites. It also said that it's developing additional mechanisms allowing rightsholders to opt out of training and that it's engaging with them to find mutually beneficial agreements. 

In some of the lawsuits filed against OpenAI and Microsoft, the plaintiffs accuse the companies of refusing to pay authors for their work while building a billion-dollar industry and enjoying enormous financial gain from copyrighted materials. The more recent case filed by a couple of non-fiction authors argued that the companies could've explored alternative financing options, such as profit sharing, but have "decided to steal" instead.

OpenAI didn't address those particular lawsuits, but it did provide a direct answer to The New York Times' complaint that accuses it of using its published news articles without permission. The publication isn't telling the full story, it said. It was already negotiating with The Times regarding a "high-value partnership" that would give it access to the publication's reporting. The two parties were apparently still in touch until December 19, and OpenAI only found out about the lawsuit on December by reading about it on The Times.

In the complaint filed by the newspaper, it cited instances of ChatGPT providing users with "near-verbatim excerpts" from paywalled articles. OpenAI accused the publication of intentionally manipulating prompts, such as including lengthy excerpts of articles in its interaction with the chatbot to get it to regurgitate content. It's also accusing The Times of cherry picking examples from many attempts. OpenAI said the lawsuit filed by The Times has no merit, but it's still hopeful for a "constructive partnership" with the publication. 

This article originally appeared on Engadget at https://www.engadget.com/openai-admits-its-impossible-to-train-generative-ai-without-copyrighted-materials-103311496.html?src=rss

Duolingo lays off contractors as it starts relying more on AI

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Duolingo has cut 10 percent of its contractors and using AI tools to handle the tasks they used to do, Bloomberg reports. "We just no longer need as many people to do the type of work some of these contractors were doing," a spokesperson told the news organization without saying what they did for the company exactly. "Part of that could be attributed to AI." 

As Bloomberg notes, Chief Executive Officer Luis von Ahn told shareholders in November that the company is using AI to create new content, such as scripts, "dramatically faster." Duolingo also relies on AI to generate the voices users hear in-app. The company previously released customer-facing AI features, as well. Last year, it introduced a premium tier called Duolingo Max that gives subscribers access to a chatbot that can explain why their responses were correct or incorrect. Another Max feature called Roleplay lets subscribers practice their language skills in made-up scenarios, like ordering food in a Parisian cafe. 

The rise of modern generative AIs over the past couple of years brought to surface society's fear of losing jobs to technology. In this case, no full-timers were affected by the job reductions, and the spokesperson said it's not a sign that it's straight up replacing its workers with artificial intelligence. A lot of the company's full-time employees and contractors are apparently using AI tools to accomplish certain tasks in their work.

This article originally appeared on Engadget at https://www.engadget.com/duolingo-lays-off-contractors-as-it-starts-relying-more-on-ai-060331602.html?src=rss