Wednesday, November 02, 2016

Nutella’s Makers Want To Convince FDA That Chocolate Spread Isn’t Just For Dessert

When you think of sweet, hazelnut chocolate spread, are you imagining eating it for breakfast or for dessert? If you’re in the latter camp, you agree with the current stance of federal regulators. The makers of Nutella are now trying to make the case, however, that the spread should be considered more of a breakfast item.

Ferrero SpA wants the Food and Drug Administration to reduce Nutella’s serving size from two tablespoons to one, Bloomberg reports, and filed a petition with the agency in 2014 to that effect, asking for it fall into a category with things like jams, jellies, and honey.

At the heart of the matter is the question of how much Nutella people are customarily consuming at one time: Ferrero claims the two-tablespoon serving size on the U.S. label could be confusing and make people think they should use that much on their toast. The FDA sets “reference amounts customarily consumed,” or RACC for 139 categories of food products. That helps determine serving size. Since 1993, the FDA has considered Nutella among “other dessert toppings.” But it should be like jam, Ferrero said in its petition.

“Because Nutella is used in the same manner as jams and jellies, uniformity in RACC values among Nutella, jams, and jellies would enable consumers to make informed nutritional comparisons of these similar products,” Ferrero wrote in its petition.

The FDA wants to find out if that’s true or not, announcing [PDF]that it’s looking to get information and comments “on the appropriate reference amount customarily consumed (RACC) and product category for flavored nut butter spreads (e.g., cocoa, cookie, and coffee flavored), and products that can be used to fill cupcakes and other desserts, such as cakes and pastries.”

The FDA says it’s asking for information now because it recently issued a final rule updating certain RACCs — and because of the petition. Starting Nov. 2, the agency will take comments on the issue for 60 days total.


by Mary Beth Quirk via Consumerist

ESPN, ABC, Fox News, Fox Sports All Joining Hulu’s Eventual Live Streaming Service

Once upon a time (two whole years ago!) the idea of successfully getting an internet-based cable alternative up, running, and profitable seemed, perhaps, like a pipe dream. These days, even though we don’t know if the ventures are exactly profitable, the online competition to get your monthly TV dollars is fierce. And now Hulu is latest player to grab some big headliners for itsplan to start zapping linear TV channels to your online eyeballs.

Hulu announced this week that its streaming TV service, set to launch at some nebulous point in “early 2017,” has managed to ink deals with some big broadcast and networks to bring them on board.

Channels that have agreed to be a part of the live and on-demand service include broadcast networks Fox and ABC as well as a whole pile of cable channels: the Fox Sports and ESPN collections for the sports fans; Disney, Disney X D, and Disney Junior for the kids; Fox News and Fox Business; and National Geographic. That’s on top of an earlier deal that saw CNN, Cartoon Network, TNT, TBS, and others signing on.

If you feel like you’re sensing a pattern here, you’re right: All of the participating channels announced to date are owned by Time Warner, Fox, or Disney.

Time Warner now owns a 10% stake in Hulu; founding partners Disney and Fox each currently own a 30% stake in Hulu.

That leaves one key player, and likely content partner, as yet unannounced: Comcast, which through NBCUniversal owns that remaining 30% stake in Hulu, and has a wide range of broadcast and cable channels it would no doubt like to get in front of more viewers.

The Hulu deals, meanwhile, ably highlight why vertical integration is a tricky proposition. Consider: because Comcast owns NBCUniversal, if that content signs on to this Hulu service then Comcast wins whether or not you subscribe to traditional Comcast cable. If you have an internet connection, and then pay for Hulu access, Comcast would still theoretically get a good chunk of your money.

Vertical integration issues now also apply to Time Warner’s stake in the venture, since AT&T is set to gobble Time Warner all up. If that merger gets approved, then AT&T and Comcast would both own stakes in Hulu’s over-the-top service — and AT&T would find itself in direct competition with itself, as it’s launching its own DirecTV Now over-the-top streaming service before the end of the year.

That means Hulu, and competition in the over-the-top (streaming TV) marketplace, is likely to become one of the many issues opponents raise during the merger review process.


by Kate Cox via Consumerist

More Amazon Drivers Accuse Company Of Not Paying Required Overtime Wages

As Amazon shifts more of its logistics workload away from traditional parcel services like FedEx and UPS and toward contractors who deliver orders in Amazon’s name, the e-commerce giant continues to face legal challenges over the way those contracted workers are being treated. The latest example comes out of Illinois, where former delivery drivers are accusing Amazon of not paying them required overtime wages.

This is according to a lawsuit [PDF] filed yesterday in a federal court in Illinois by drivers employed by Amazon contractors Silverstar and Gold Standard.

The complaint contends that Amazon should also be considered a “joint employer” of these drivers, as they are: trained, evaluated, and supervised by Amazon personnel; report to work every day at a warehouse operated by Amazon; carry only Amazon parcels; wear Amazon uniforms; drive Amazon-branded vehicles; and report problems directly to Amazon.

The plaintiffs say they worked as many as 13 hours in a day delivering packages on behalf of Amazon but that they and other drivers were not paid time-and-a-half overtime wages when they worked more than 40 hours in a week. This failure to pay the increased overtime pay, alleges the lawsuit, is a violation of both the federal Fair Labor Standards Act and the Illinois Minimum Wage Law.

“We never got paid overtime,” says one plaintiff in a statement about the lawsuit, which hopes to represent all similarly situated Amazon drivers. “We’d get the list of addresses and packages from Amazon and we were under pressure to get all our packages delivered that day no matter how long it took.”

We’ve reached out to Amazon about these allegations, but have yet to hear back.

This is just the latest legal headache for Amazon over its use of contract delivery drivers and messengers.

In January, drivers in Arizona accused Amazon of misclassifying them as independent contractors to avoid paying overtime and other compensation. That lawsuit has since been settled out of court.

Last year, drivers hired by the Scoobeez messenger service to make Amazon Prime Now deliveries sued both companies, saying that they sometimes ended up netting less than the minimum wage.

Most recently, just last week an Amazon contractor called Cornucopia Logistics reached a deal with the New York state attorney general’s office to provide back pay to drivers whose wages were docked for lunch hours they didn’t take.


by Chris Morran via Consumerist

JCPenney Kicks Off Black Friday The Wednesday Before Thanksgiving

Last year, JCPenney waited around until Thanksgiving Day to begin its Black Friday/Shopping Frenzy Week deals. This year, the department store chain has decided that’s way too late, and plans to start its deals even earlier: all of its advertised specials for Black Friday will be available on Wednesday.

While this might be a fun idea for stores that plan to close on Thanksgiving Day to draw early shoppers even while they give their employees the actual holiday off, JCPenney isn’t part of that club. Stores (outside of states where it’s explicitly illegal to be open on the holiday, and there are still a few) will open at 3 P.M. on Thanksgiving Day.

In an interview with AdAge, the company’s chief customer and marketing officer went out of her way to point out that the Thanksgiving hours are something that both customers and employees want. The retailer is offering double pay to entice employees to volunteer, and she points out that shopping on Thanksgiving has already become a tradition for some families.

If we’ve started calling Thanksgiving Day retail Brown Thursday, what does that make sales that kick off on Wednesday? Gray Wednesday?

JC Penney to Start Black Friday Sales Before Thanksgiving This Year [AdAge]


by Laura Northrup via Consumerist

Amazon Now Charging Both Prime And Non-Prime Prices At Physical Bookstores

For years, Amazon has offered slightly different pricing for products depending on whether or not a customer was a member of the company’s $99/year Prime service. Now, it appears those price discrepancies have migrated to the company’s physical bookstores as the company works to bulk up its Prime subscriptions. 

GeekWire reports that Amazon recently implemented a new pricing structure at its physical bookstores in Seattle, Portland, OR, and San Diego, with employees now asking customers checking out if they are an Amazon Prime member.

Under the pricing structure, customers who pay $99/year (or $10.99/month) for Prime membership can buy books and other products at the store for the same price they are listed on Amazon.com.

Customers who aren’t Prime members will be charged the product’s “list price.”

Figuring out just how much you’ll pay for a book can also be difficult for customers, GeekWire points out, as there are no price tag on shelves. Instead, customers can either scan a book at a kiosk or use Amazon’s app to find out the cost.

GeekWire checked the price of several books at the Seattle Amazon store kiosks, finding that discounts ranged from 6% to 40% for some titles.

In one case, F. Scott Fitzgerald’s “The Great Gatsby” has a list price of $16, but a Prime price of $9.60. The bottom of the kiosk screen declares, ”Join Prime to save $6.40 on this time. Ask about a Prime free trial at checkout.”

The Amazon.com listing for the book shows the same prices:

screen-shot-2016-11-02-at-8-48-17-am

The price differences don’t translate to some products sold at the bookstores, GeekWire points out. For example, Amazon’s devices, like the Echo speaker and Fire tablets, are sold for the same price as they are listing on Amazon.com to both Prime and non-Prime members visiting the bookstores.

Still, it’s fairly clear that Amazon is using its new bookstores as an avenue to enroll more Prime subscribers, as signs around the stores explain the pricing model, and provide information about how customers can sign up for a 30-day trial.

Additionally, the bookstore discounts are yet another way the company keeps bulking up its Prime benefits. In recent months the company has added on-demand TV and movies, photo storage sharing capabilities, game streaming portal Twitch, a music-streaming library, and free audio and e-books in order to keep members happy, and encourage sales.

Amazon charges non-Prime members more at physical bookstores, hinting at new retail strategy [GeekWire]


by Ashlee Kieler via Consumerist

Uber Teaming Up With GM To Offer Car-Sharing Program For Drivers

Although GM has already invested $500 million in Lyft and has a $99/week program to rent cars to drivers on that platform, it seems the carmaker isn’t interested in playing favorites: GM has now teamed up with Uber to offer a car-sharing program for drivers as well.

Uber will be partnering with GM’s existing car-sharing company, Maven, which launched in Germany and the U.S. early this year, Recode reports.

Uber drivers in San Francisco will be able to rent a GM vehicle — the Chevrolet Cruze, Malibu, or Trax — for $179 a week plus additional taxes and fees, GM says. The pilot program will only last 90 days.

“We want options that fit around [drivers’] lives,” Rachel Holt, Uber’s GM of the U.S. and Canada, told reporters during a press call.

So what about any potential conflicts, you know, what with GM also partnering with Lyft for its Express Drive program? Lyft says there is no threat to its business with this partnership, because Lyft is also working with Hertz to rent cars to drivers.

“Maven’s supply channels do not impact our programs with GM,” a Lyft spokesperson told Recode in a statement. “We continue to work together to shape the future of mobility.”


by Mary Beth Quirk via Consumerist

Tuesday, November 01, 2016

MyPillow Subjected To Plenty Of Legal Tossing And Turning

Sleeping on the wrong pillow can make you pretty miserable, but that doesn’t mean that sleeping on the right pillow is a magical medical treatment. MyPillow, a $90 pillow that could be yours if you ordered it from direct-response television ads, has had some legal problems ranging from false advertising to knowing failure to collect sales tax to class action suits.

Truth in Advertising has been on the pillow’s case for most of the last year, and consumer protection officials in California have come to a settlement with the company over accusations of false advertising. Turns out that you can’t make unfounded claims about how a pillow treats actual medical problems.

Here are MyPillow’s recent legal troubles, which either have had or will have real-life financial consequences for the company. For some perspective, the company has reportedly sold four million pillows, though.

April 12, 2013: Early investors claimed that they owned part of the company in a lawsuit.

April 26, 2013: Computerworld reported a complex issue between Salesforce and MyPillow involving a software contract and a $125,000 AmEx bill.

Oct. 13, 2016: Proposed settlement of $5 per household in a class action lawsuit for false advertising which accuses MyPillow of, among other things, billing the company’s founder and CEO as a “sleep expert” when he has no special medical training, and claiming that the pillows are good for medical conditions like fibromyalgia, insomnia, and sleep apnea.

Nov. 1, 2016: In a settlement with district attorneys in California, MyPillow has to pay $995,000 in civil penalties and donate $100,000 to domestic violence and homeless shelters. The company didn’t admit any wrongdoing, but agreed to stop making health claims not supported by scientific proof, and must remove the “The Official Pillow of the National Sleep Foundation!” endorsement on its website, since it failed to disclose the financial link with the Sleep Foundation.

The settlement means that the company is barred from making health claims about its pillows… in California.


by Laura Northrup via Consumerist

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