Tag Archives: Deceptive

Uber Agrees To Settle DA Suits Over Safety Practices

by Jason Doiy, The Recorder

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Uber Technologies Inc. will pay up to $25 million to settle a lawsuit brought by the San Francisco and Los Angeles district attorneys’ offices over how it has touted safety measures. … Uber agreed to change the way it describes its driver checks and safety practices and to cooperate with the Division of Measurement Standards to certify that ride charges are accurate and fair. [The complaint claimed] the San Francisco-based ride-hailing company misled consumers by advertising the “safest rides on the road,” coupled with “industry leading background checks.” Read More ›

CFC Sponsors SB 899 (Hueso) To End Gender Bias In Retail Prices

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6/30 update: Senator Ben Hueso (D-San Diego) dropped SB 899 today after it became apparent that a majority of the  Assembly Judiciary Committee would not support the bill unless he accepted amendments proposed by the committee’s leadership that would have eviscerated the bill. Women shouldn’t be charged … Read More ›

FCC Cracks Down On Verizon Wireless For Using ‘Supercookies’

by Andrea Peterson, Washington Post

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The practice came to the public’s attention in late 2014, when it received criticism from privacy advocates who called the code a “supercookie” because it was almost impossible for users to avoid. … Last January, researcher Jonathan Mayer revealed evidence that others could hijack the supercookie for their own purposes: An online advertising company called Turn was using the codes to help follow people around online, he said. Turn used the supercookie to “respawn” its traditional cookies — even if users took steps to protect their privacy by removing the cookies. Read More ›

Overdraft Practices Continue To Gut Bank Accounts And Haunt Customers

by Michael Corkery and Jessica Silver-Greenberg, New York Times

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The nation’s big consumer banks collected about $11 billion in overdraft fees last year, which accounted for 8 percent of their profits, according to a report by the Consumer Financial Protection Bureau. … Many customers end up confused by how overdrafts work. In their marketing materials, for example, banks present the choice of whether to sign up for overdraft as an offer of “overdraft protection” — a feature many customers thought would automatically deny transactions and shield them from incurring the fees at all. In reality, it is a service authorizing the banks to charge the overdraft fees. Read More ›

Why Is The UC System Investing In A Payday Lender Accused Of Trapping Consumers In Perpetual Debt?

by David Lazarus, Los Angeles Times

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The university has invested millions of dollars in an investment fund that owns one of the country’s largest payday lenders, ACE Cash Express. … [The CFPB] has found that only 15% of payday loan borrowers are able to repay their loans on time. The remaining 85% either default or have to take out new loans to cover their old loans. Because the typical two-week payday loan can cost $15 for every $100 borrowed, the bureau said; this translates to an annual percentage rate of almost 400%. Read More ›

Uber Seeks To Head Off Lawsuits With New Binding Driver Agreement

by Carolyn Said, San Francisco Chronicle

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One East Bay driver, who asked not to be identified because he fears retaliation from Uber, said he had not immediately understood that he could opt out of the [binding arbitration] provision. “That wasn’t obvious to me,” said that driver, who graduated from UC Berkeley and worked in a professional job for many years. … Retaliation by Uber against drivers for opting out of the arbitration clause or for pursuing First Amendment rights to criticize the company would be illegal, but numerous drivers commenting on social media seemed unaware of this. Read More ›

Nonprofit Blue Shield Accused Of Backing Out Of $140-Million Charity Pledge

by Chad Terhune, Los Angeles Times

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Blue Shield’s corporate conduct has come under intense scrutiny for the past year after officials revoked its longtime state tax exemption. Auditors at the California Franchise Tax Board criticized the insurer for stockpiling “extraordinarily high surpluses” of $4 billion and for failing to offer more affordable coverage as a nonprofit. California Insurance Commissioner Dave Jones is also investigating Blue Shield’s disclosures on executive compensation. Read More ›

85,000 Additional Corinthian Students To Get Fast-Track Debt Relief

by Chris Kirkham, Los Angeles Times

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There was enough evidence to conclude that Everest’s California and online campuses, along with California WyoTech schools, had deceived students by overstating job placement numbers. … [The California Attorney General’s Office] alleged in a lawsuit filed in 2013 that Corinthian had overstated job placement rates by counting graduates who were employed at temporary staffing agencies or one-day health fairs. In some cases, according to the complaint, Corinthian had paid staffing agencies to hire students in order to satisfy accrediting entities. Read More ›

Corinthian College Students Sort Through Confusion, Bureaucracy After Company’s Fall

by Katy Murphy, Contra Costa Times

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The Department of Education created a special claim form for students who as far back as 2010 attended Heald programs it found to have inflated job-placement numbers – about 80 percent of all of the chain’s offerings. Roughly 6,100 such claims had been filed as of mid-October compared with only a handful in the past. … The department has estimated that roughly 40,000 former Heald students alone were defrauded because of their programs’ phony job placement rates and are eligible for the relief. Read More ›

More Trouble For ITT Education Services: Agency Restricts For-Profit’s Use Of Federal Student Aid

by Ashlee Kieler, Consumerist

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The new restrictions from the Dept. of Education are just the latest regulatory and legal issue for ITT Educational Services. Last month, the company revealed that the Department of Justice was looking into whether the company defrauded the federal government. … Back in May, the SEC filed fraud charges against current and former executives with the company for their part in concealing problems with company-run student loan programs. … The company has faced actions from several states, including the suspension of GI Bill Eligibility in the state of California in May of this year. Read More ›

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