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MyPillow facing eviction from warehouse, but election denier Mike Lindell says company is in 'great shape'

Education Images/Getty Images

(NEW YORK) -- Election denier Mike Lindell's company MyPillow is facing a court-ordered eviction from a warehouse in Minnesota amid his ongoing legal battles related to his claims about the 2020 election and voting machines, Lindell confirmed to ABC News.

But Lindell claims the eviction does not stem from financial difficulties, and rather is just a formality related to a mutual agreement between himself and the owner of the warehouse to vacate the property, which he says has not been used by MyPillow since the spring of 2023.

Lindell said MyPillow had subleased the space to a candy company last year and was planning on subleasing it to a sugar beet company this year -- but the sugar beet company backed out of the contract at the last minute, leaving himself and the warehouse owner "stranded."

He said he considered finding another subleaser, but he and the warehouse's owner, First Industrial, eventually decided to officially end their contract through the eviction process.

"And I said that's fine," Lindell told ABC News.

MyPillow does owe the owner of the warehouse $217,489 in past-due rent, according to court records.

"Plaintiff seeks to have Defendant evicted from the Premises for failing to pay Rent and other payments and charges due under the Lease Agreement in the amount of Two Hundred Seventeen Thousand, Four Hundred Eighty-Nine and 74/100 Dollars," a complaint from First Industrial says.

But Lindell insisted that his pillow company is doing fine financially.

"MyPillow is in great shape," Lindell said. "We have our best commercial out right now that launched on Monday, the most successful one in five years. It's amazing."

First International did not immediately respond to a request for comment from ABC News.

Over the years, MyPillow has lost numerous advertising opportunities due to Lindell's pushing of false and unsubstantiated claims about the 2020 election and election systems around the country.

Last month, a federal judge in Minnesota affirmed a $5 million arbitration award against Lindell, siding with a software engineer who challenged data that Lindell said proves China interfered in the 2020 election in favor of President Joe Biden. Lindell had offered a $5 million reward to anyone who could prove that "packet captures" he provided were not valid data "from the November 2020 election," leading software engineer Robert Zeidman to file for arbitration when a panel of contest judges failed to declare him the winner after he concluded the data contained no such information.

Lindell again said on Thursday that he's appealing this decision, and that the case will "go into next year."

Lindell says he has spent more than $45 million of his own money on claims about the security of voting machines and his push for the use of paper ballots in the 2024 election.

Copyright © 2024, ABC Audio. All rights reserved.


Warby Parker offering free eclipse glasses for total solar eclipse

Via NASA

(NEW YORK) -- As North America gears up for the total solar eclipse on April 8, Warby Parker, a New York City-based eyeglass retailer with over 200 stores across the United States and Canada, has announced it will distribute free ISO-certified solar eclipse glasses to ensure safe viewing for spectators.

This celestial event marks the last total solar eclipse visible from the contiguous United States until 2044. Those hoping for a glimpse, however, will need to take precautions to avoid injury.

Starting April 1, individuals can visit any Warby Parker retail location to receive up to two pairs of solar eclipse glasses at no cost, subject to availability, according to the company. These glasses are ISO-certified and meet the stringent safety standards required for direct observation of the celestial phenomenon, according to Warby Parker's website.

Viewing solar eclipses or the sun directly -- whether through a camera lens or the naked eye -- without proper protection can lead to serious eye injuries and potentially cause vision loss, according to the American Academy of Ophthalmology.

The American Astronomical Society and the American Academy of Ophthalmology have emphasized the critical need for eye protection, cautioning that much like how a magnifying glass can use sunlight to ignite a fire, looking at the sun without proper safeguards can seriously harm our eyes.

The sun's rays, when focused by the eye's lens, which normally helps us see clearly, can burn the retina and lead to solar retinopathy, according to the American Academy of Ophthalmology. This condition may cause persistent vision issues or even irreversible sight loss.

Regular sunglasses do not offer the protection our eyes need during such an event, the American Academy of Ophthalmology states. The gold standard for safety is to use special-purpose solar filters. These are found in eclipse glasses adhering to the ISO 12312-2 standard.

Special viewers like pinhole projectors, which allow people to see the shadow of the eclipse without looking at it directly, can also shield eyes from harmful solar radiation.

More ways to find free glasses

If you do not live near a Warby Parker retail location, the American Astronomical Society's Solar Eclipse Task Force spearheaded the Solar Eclipse Activities for Libraries project to distribute 5 million solar viewing glasses to 13,000 libraries across the U.S. Availability may vary.

New York state is also offering free I LOVE NY ISO-certified eclipse glasses at Welcome Centers, select Thruway Rest Stops and other statewide locations, with a daily limit of two per person while supplies last.

Copyright © 2024, ABC Audio. All rights reserved.


Why is Trump’s Truth Social stock soaring if the company is losing money?

Jonathan Raa/NurPhoto via Getty Images

(NEW YORK) -- Shares of former President Donald Trump’s social media platform Truth Social have soared in its first couple days of public trading.

Trump Media & Technology Group, the parent company of Truth Social, climbed 16% on Tuesday, its first day on the market. By afternoon trading on Wednesday, the stock had jumped another 14%.

The rally grants Truth Social a valuation of more than $8 billion, even though the company has yet to turn a profit and generates quarterly revenue of barely $1 million.

The stock performance also holds significant financial implications for Trump, whose 60% stake in the company could ultimately deliver a multi-billion dollar windfall.

Experts who spoke to ABC News said the stock boom stands divorced from the financial condition of the company, instead reflecting a buying spree among Trump supporters as well as opportunistic traders capitalizing on the momentum.

"This is people voicing their political opinions through the markets," Tom Essaye, president of financial data firm Sevens Report Research, told ABC News. "There’s nothing going on here that has anything to do with the financial fundamentals."

A representative for Truth Social did not immediately respond to ABC News' request for comment. "Truth Social is doing very well. It's hot as a pistol and doing great," Trump told reporters in New York on Monday.

Analysts drew parallels to the emergence in recent years of so-called meme stocks such as GameStop and AMC.

In 2021, the price of GameStop climbed nearly 700%, driven in part by traders discussing the company on a Reddit chatroom called Wall Street Bets. The rally did not coincide with a major strategy shift or executive shakeup for the ailing chain of video game stores.

The success of Truth Social similarly reflects an upswell of sentiment rather than a demonstration of company performance, Kristi Marvin, chief executive of SPACInsider.com, told ABC News.

"This has all the DNA of a meme stock," Marvin added.

Truth Social, listed as DJT, remains far smaller and less financially robust than its rivals in the crowded social media sector.

Research firm SimilarWeb estimates the company drew 5 million website visitors in February, which puts it well below the roughly 2 billion monthly active users reported by Instagram. TikTok boasts at least 1 billion monthly active users, the company said in 2021.

Truth Social generated roughly $3 million over the first 9 months of 2023, government filings show. Meanwhile, the company reported $49 million in net losses over that period. By comparison, Instagram-parent Meta delivered nearly $135 billion in revenue last year, company earnings showed.

"This is a tough business to become profitable in," Marvin said.

The stock rally arrives as Trump weathers financial challenges. A New York appeals court said on Monday that Trump must secure a $175 million bond, albeit a smaller figure than the $454 million he was asked to provide by a lower court.

Trump can’t sell or leverage his stake in Truth Social for at least six months due to a lockup provision intended to prevent a rapid selloff that could shake investor confidence, but the company has already bolstered Trump’s net worth.

On the heels of Friday’s merger vote, Trump joined the Bloomberg Billionaires Index for the first time with a reported net worth of $6.5 billion. On Wednesday, it ticked up to more than $7 billion.

Essaye, of Sevens Report Research, cautioned that the price of Truth Social would ultimately fall, when the company’s financial reality overtakes Trump supporters’ fervor.

"At some point, this will return back to earth. The financial reality always wins," Essaye said. "When? That is very hard to say."

However, the company still retains a possible avenue for financial success, he added.

Truth Social faces steep odds in the social media business, but the company may function as a vehicle for additional Trump-led media ventures.

"If you think about DJT as a way to buy equity in Donald Trump’s brand, then I would never say it can’t work out," Essaye added. "He’s very good at promoting his brand."

ABC News' Peter Charalambous contributed reporting.

Copyright © 2024, ABC Audio. All rights reserved.


McDonald's to add three Krispy Kreme doughnuts to menus nationwide

Joff Lee/Getty Images

(NEW YORK) -- Krispy Kreme and McDonald’s are expanding their partnership to put three doughnut flavors on menus at the Golden Arches across the U.S.

Following a successful local test at 160 McDonald’s restaurants around Lexington and Louisville, Kentucky, the companies announced Tuesday that a phased market rollout will kick off later this year, with nationwide availability expected by the end of 2026.

The melt-in-your-mouth yeast doughnuts will be delivered fresh daily and available individually, or in boxes of six, starting at breakfast and lasting throughout the day, while supplies last.

Three of Krispy Kreme’s most popular doughnuts will be on the McDonald’s menu: the iconic Original Glazed Doughnut, the Chocolate Iced with Sprinkles Doughnut, and the Chocolate Iced Kreme Filled Doughnut.

"Since the launch of breakfast nearly 50 years ago, we’ve continued to offer new menu items, flavors and experiences that have made McDonald’s an irreplaceable part of fans’ morning routines," McDonald's USA CMO Tariq Hassan said in a statement. He added that this partnership is also "a chance to unlock new business opportunities in the breakfast category and throughout the day."

Krispy Kreme President and CEO Josh Charlesworth echoed the excitement, adding that this partnership allows expanded reach for doughnut lovers.

"The top request we receive from consumers, every day, is, ‘Please bring Krispy Kreme to my town.’ Partnering with McDonald’s on a national scale will provide our fans and doughnut lovers unprecedented daily access to fresh doughnuts and the joy that is Krispy Kreme,” he said.

"Significantly, by making Kreme Krispy accessible to fans nationwide through this partnership, we expect to more than double our points of access by the end of 2026," Charlesworth continued. "The partnership accelerates the development of our existing Delivered Fresh Daily channel, creating operating leverage through distribution density and production utilization."

The companies plan to provide more details on the nationwide rollout in the coming months.

Copyright © 2024, ABC Audio. All rights reserved.


AI influencers explode on social media. Some are controlled by teens

Kathleen Caulderwood/ABC News

(NEW YORK) -- Agnes, a bespectacled 20-year-old poet, likes tarot cards and late-night philosophy debates. She has a crush on Finn, a 22-year-old farmer who knits in his free time. Finn's friend Jade, 22, also lives in the countryside, where she forages for mushrooms and bakes bread.

Jade, Finn and Agnes are influencers who frequently post selfies and life updates -- but none of them actually exist.

They are the creations of 1337, a company that designs and operates artificial intelligence-generated online influencers, sometimes selecting what to post based on advice from real-life teenagers.

The firm makes up one upstart in a burgeoning industry that harnesses AI to draw eyeballs and drive revenue in the lucrative business of social media. By 2035, the so-called "digital human economy" is projected to become a $125 billion market, according to a report from research firm Gartner.

Lil Miquela, an AI-generated influencer made by tech firm Brud, boasts 2.6 million followers on Instagram.

The onset of AI-generated accounts introduces new opportunities for expression on social media, but it also raises questions about the possible use of the influencers to manipulate followers or spread misinformation, Claire Leibowicz, head of the AI and media integrity program at the nonprofit Partnership on AI, told ABC News.

"This brings up fundamental questions of what it means to have human relationships," Leibowicz said.

1337, pronounced "leet," refers to its AI-generated influencers as "entities." Currently, the company says it operates 50 entities, each designed to appeal to a different audience. The company said it plans to add another 50 to its roster in April.

The company begins designing a new entity by identifying a community of people with a specific interest or trait who may take an interest in the influencer, Jenny Dearing, the co-founder and CEO of 1337, told ABC News. Then, she added, the firm fills out the details.

"We think about everything from how they might live their lives, where they reside, what does their room look like, what are their hobbies," Dearing said.

The company says humans are involved at multiple points to moderate the creation process, including ongoing curation from people Dearing described as "creators." Each creator is paired with an entity, helping to filter out flawed AI images and select posts in keeping with a given entity's persona. Some of the creators are teenagers.

Sawyer Erch, a 16-year-old who lives in Oakland, California, said they spend 20 to 30 minutes each day working as a creator for 1337. Using an app, Erch assesses AI-generated images to be included in future posts.

First, they said they check for abnormalities. "A lot of time, there'll be extra fingers or extra limbs," Erch said.

Next, they make sure a prospective post conforms to the entity's backstory and personality. "If it's something completely different, then you obviously can't pick that," Erch added.

Synthetic influencers offer an opportunity for people of all ages to interact with AI in a low-stakes setting, Erch said.

"AI is going to become more and more prominent," Erch said. "So I think it’s good for younger people and older people to play around with that."

Synthetic fashion influencers seem benign but similar products could be used to deceive their audience on more consequential issues, said Leibowicz, of Partnership on AI.

"While it may seem fine for influencers to be saying that this new lip gloss is really meaningful, we don't want that same technology to be used to cast doubt on much more," Leibowicz said. "I would argue there are more high-stakes use cases than lip gloss."

Some of the original 1337 profiles are identified as being generated by an AI tool, but the company said future profiles may not have the same disclaimer. Creators will determine what to disclose about an entity, the company said.

TikTok requires users to label AI-generated content, according to the company's content guidelines. Meta -- the parent company of Instagram and Facebook -- said last month it would begin labeling images created by OpenAI, Midjourney and other AI products.

"I hope this is a big step forward in trying to make sure that people know what they're looking at, and they know where what they're looking at comes from," Nick Clegg, Meta's president of global affairs, said in an interview with ABC's "Good Morning America."

"As the difference between human and synthetic content gets blurred, people want to know where the boundary lies," Clegg said.

The labeling approach shows a degree of enforcement but may face limitations, Leibowicz said.

"There's a visceral appeal to putting a little mark on TikTok or a mark on Instagram that says, 'This is fake,'" Leibowicz added. "But whether or not people care, and whether that will be applied in a context that matters, is a big open question."

No matter how it gets addressed, AI is here to stay, said M.B., Erch's mother.

"Pandora's box is open," she said. "AI is not going back in the box."

Editor's note: This story has been updated to adjust language and title.

Copyright © 2024, ABC Audio. All rights reserved.


Trump media company, parent of Truth Social, begins trading on Nasdaq

ABC News

For approximately $70, you can now own a share of the company behind former President Donald Trump's Truth Social platform.

Trading in Trump Media & Technology Group -- which uses the ticker symbol DJT -- began on the Nasdaq Tuesday morning after last week's vote for a merger between Trump Media and special purpose acquisition company Digital World Acquisition Corporation.

The company's market capitalization is approximately $2.7 billion.

Trump himself owns 58 percent of the shares in the company, placing his stake at more than $5 billion based on early trading Tuesday.

"Truth Social is doing very well. It's hot as a pistol and doing great," Trump told reporters in New York on Monday.

Trump can't sell or leverage his stake in the company for at least six months due to a lockup provision intended to prevent a rapid selloff that could shake investor confidence, but the company has already bolstered Trump's net worth. On the heels of Friday's merger vote, Trump joined the Bloomberg Billionaires Index for the first time with a reported net worth of $6.5 billion.

In public statements, Trump Media CEO Devin Nunes has expressed confidence in the long-term success of the social media platform.

"As a public company, we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors," Nunes said Monday. "We will continue to fulfill our commitment to Americans to serve as a safe harbor for free expression and to stand up to the ever-growing army of speech suppressors."

Trump Media has a long road before it reaches profitability, according to a recent SEC filing, and most new social media companies face a low likelihood of success. In the first nine months of 2023, Trump Media brought in less than $3.4 million in revenue while losing $49 million.

Shares in the special purpose acquisition company Digital World Acquisition Corp have performed well in recent months ahead of the merger, partially due a support from smaller investors rallying the price.

Trump himself is intertwined with the fate of the company as not only its majority shareholder but also the platform's most prominent user. If he were to stop using the platform, its share would likely suffer, a recent SEC filing acknowledged.

"If Truth Social fails to develop and maintain followers or a sufficient audience, if adverse trends develop in the social media platforms generally, or if President Trump were to cease to be able to devote substantial time to Truth Social, TMTG's business would be adversely affected," a recent filing said.

Copyright © 2024, ABC Audio. All rights reserved.


Chick-fil-A backtracks on no-antibiotics in chicken amid projected supply shortages

Jakub Porzycki/NurPhoto via Getty Images

(NEW YORK) -- Chick-fil-A is updating its commitment to customers about the quality and standards of its staple ingredient -- chicken.

The fast food chain announced on its website that while "serving quality food has always been our priority," effective this spring, the restaurant will "shift from No Antibiotics Ever (NAE) to No Antibiotics Important To Human Medicine (NAIHM)."

The key distinction between NAE and NAIHM, as outlined by Chick-fil-A, is that the first "means no antibiotics of any kind were used in raising the animal," while "NAIHM restricts the use of those antibiotics that are important to human medicine and commonly used to treat people, and allows use of animal antibiotics only if the animal and those around it were to become sick."

In the announcement, Chick-fil-A reiterated its dedication to high-quality chicken is rooted in three components: selectivity, high animal wellbeing standards, and evolving the brand's approach.

On the first point, the restaurant laid out that it only serves "real, white breast meat with no added fillers, artificial preservatives, steroids -- and no added hormones."

"We established an Animal Wellbeing Council of outside experts, which provides feedback on our policies and practices," the update stated. "With their input, we are constantly evaluating our approach to animal wellbeing to ensure it is consistent with or exceeds industry standards."

Chick-fil-A first set a goal in 2014 to sell antibiotic-free chicken at its restaurants within five years and committed to sourcing only cage-free eggs for its breakfast menu items by 2026.

With increasing outbreaks at U.S. chicken farms of Highly Pathogenic Avian Influenza (HPAI), commonly referred to as bird flu, chicken supplies have dwindled prompting an uptick in prices.

A representative for Chick-fil-A did not immediately respond to ABC News' request for additional comment.

Copyright © 2024, ABC Audio. All rights reserved.


Boeing CEO Dave Calhoun to step down

ABC News

Boeing CEO Dave Calhoun will step down at the end of the year, the company said in an announcement Monday.

The move comes amid fallout from a high-profile safety failure onboard an Alaska Airlines flight in January, when a door plug blew out of Boeing's 737 Max 9 aircraft while the plane was in flight.

In a statement on Monday, Calhoun acknowledged the challenges facing Boeing.

"The eyes of the world are on us, and I know that we will come through this moment a better company," Calhoun said. "We will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do."

Board Chair Larry Kellner, a board member for nearly 15 years, plans to forgo nomination for an additional term at the company’s annual shareholder meeting this spring, Boeing said.

Steve Mollenkopf, former CEO of chipmaker Qualcomm, will immediately take over as Boeing board chair and lead the search for a new chief executive, Boeing added.

The leadership change will also impact Boeing’s board of directors, the company said.

Calhoun, who served as CEO for four years, began his tenure in the aftermath of a previous safety scandal.

In 2019, Boeing 737 Max aircraft were grounded worldwide following a pair of crashes in Indonesia and Ethiopia that killed a combined 346 people. The aircraft were permitted to again take to the skies in 2021, following a two-year ban.

The renewed scrutiny over the incident aboard Alaska Airlines Flight 128 on Jan. 5 includes an investigation undertaken by a federal safety regulator and a criminal investigation by the Department of Justice.

On Monday, in a letter to employees, Calhoun called on the embattled company to focus on openness as it weathers the difficult period.

"We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company," Calhoun said.

"The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years," he added.

This is a developing story. Please check back for updates.

Copyright © 2024, ABC Audio. All rights reserved.


AI influencers explode on social media. Some are controlled by teens

Karl Tapales/Getty Images

(NEW YORK) -- Agnes, a bespectacled 20-year-old poet, likes tarot cards and late-night philosophy debates. She has a crush on Finn, a 22-year-old farmer who knits in his free time. Finn's friend Jade, 22, also lives in the countryside, where she forages for mushrooms and bakes bread.

Jade, Finn and Agnes are influencers who frequently post selfies and life updates -- but none of them actually exist.

They are the creations of 1337, a company that designs and operates artificial intelligence-generated online avatars, sometimes selecting what to post based on advice from real-life teenagers.

The firm makes up one upstart in a burgeoning industry that harnesses AI to draw eyeballs and drive revenue in the lucrative business of social media. By 2035, the so-called "digital human economy" is projected to become a $125 billion market, according to a report from research firm Gartner.

Lil Miquela, an AI-generated influencer made by tech firm Bud, boasts 2.6 million followers on Instagram.

The onset of AI-generated accounts introduces new opportunities for expression on social media, but it also raises questions about the possible use of the avatars to manipulate followers or spread misinformation, Claire Leibowicz, head of the AI and media integrity program at the nonprofit Partnership on AI, told ABC News.

"This brings up fundamental questions of what it means to have human relationships," Leibowicz said.

1337, pronounced "leet," refers to its AI-generated influencers as "entities." Currently, the company says it operates 50 entities, each designed to appeal to a different audience. The company said it plans to add another 50 to its roster in April.

The company begins designing a new entity by identifying a community of people with a specific interest or trait who may take an interest in the influencer, Jenny Dearing, the founder and CEO of 1337, told ABC News. Then, she added, the firm fills out the details.

"We think about everything from how they might live their lives, where they reside, what does their room look like, what are their hobbies," Dearing said.

The company says humans are involved at multiple points to moderate the creation process, including ongoing curation from people Dearing described as "creators." Each creator is paired with an entity, helping to filter out flawed AI images and select posts in keeping with a given entity's persona. Some of the creators are teenagers.

Sawyer Erch, a 16-year-old who lives in Oakland, California, said they spend 20 to 30 minutes each day working as a creator for 1337. Using an app, Erch assesses AI-generated images to be included in future posts.

First, they said they check for abnormalities. 

"A lot of time, there'll be extra fingers or extra limbs," Erch said.

Next, they make sure a prospective post conforms to the entity's backstory and personality. 

"If it's something completely different, then you obviously can't pick that," Erch added.

Synthetic influencers offer an opportunity for people of all ages to interact with AI in a low-stakes setting, Erch said.

"AI is going to become more and more prominent," Erch said. "So I think it’s good for younger people and older people to play around with that."

Some advocates, however, caution about the risks posed by AI-generated social media posts.

Synthetic fashion influencers seem benign but similar products could be used to deceive their audience on more consequential issues, said Leibowicz, of Partnership on AI.

"While it may seem fine for influencers to be saying that this new lip gloss is really meaningful, we don't want that same technology to be used to cast doubt on much more," Leibowicz said. "I would argue there are more high-stakes use cases than lip gloss."

Some of the original 1337 profiles are identified as being generated by an AI tool, but the company said future profiles may not have the same disclaimer. Creators will determine what to disclose about an entity, the company said.

TikTok requires users to label AI-generated content, according to the company's content guidelines. Meta -- the parent company of Instagram and Facebook -- said last month it would begin labeling images created by OpenAI, Midjourney and other AI products.

"I hope this is a big step forward in trying to make sure that people know what they're looking at, and they know where what they're looking at comes from," Nick Clegg, Meta's president of global affairs, said in an interview with ABC's Good Morning America.

"As the difference between human and synthetic content gets blurred, people want to know where the boundary lies," Clegg said.

The labeling approach shows a degree of enforcement but may face limitations, Leibowicz said.

"There's a visceral appeal to putting a little mark on TikTok or a mark on Instagram that says, 'This is fake,'" Leibowicz added. "But whether or not people care, and whether that will be applied in a context that matters, is a big open question."

No matter how it gets addressed, AI is here to stay, said M.B., Erch's mother.

"Pandora's box is open," she said. "AI is not going back in the box."

Copyright © 2024, ABC Audio. All rights reserved.


Nearly half a million Starbucks-branded mugs recalled due to potential burn, laceration hazards

The U.S. Consumer Product Safety Commission

(NEW YORK) -- For anyone who purchased a shimmery metallic mug with Starbucks branding over the holiday season, it's time to take stock of what's in your cupboard and immediately stop using any recalled items.

The U.S. Consumer Product Safety Commission announced Thursday that four types of ceramic mugs with metallic coating sold in 2023 Starbucks Holiday gift sets have been recalled due to reports of the vessel overheating or breaking, which could continue to result in injury.

Nestlé USA has owned the rights to sell Starbucks coffee and tea products in grocery and retail stores, outside of Starbucks coffee shops, since August 2018.

In a separate press release, Nestlé USA said "the company took immediate corrective action" when consumers first alerted them to the issue and reiterated that the company is "working closely with the U.S. Consumer Product Safety Commission on this recall."

As of time of publication, the CPSC and Nestlé USA said there had been 12 incidents reported in which the mugs overheated or broke, "resulting in 10 injuries, including nine severe burns/blisters on fingers or hands, and one cut on a finger," as well as one incident that "required medical attention."

"The quality, safety and integrity of Nestlé USA products remain our number one priority," the company said in a statement. "We sincerely apologize for any inconvenience this action represents to both our consumers and retail customers."

According to the CPSC, the recall impacts nearly 440,500 products sold online and in-store at Target and Walmart, as well as military retail outlets, from November 2023 through January 2024 with prices ranging from $10 to $20.

Affected products were sold in 11-ounce and 16-ounce sizes "as part of one of the following gift sets sold during the 2023 holiday season: Starbucks Holiday Gift Set with 2 Mugs, Starbucks Classic Hot Cocoa and Mug, Starbucks Peppermint and Classic Hot Cocoas and Mug, and Starbucks Holiday Blend Coffee and Mug," the CPSC stated.

"If microwaved or filled with extremely hot liquid, the mugs can overheat or break, posing burn and laceration hazards," the agency added.

The CPSC has urged consumers to "immediately stop using the recalled mugs" and "either return them to the place of purchase or contact Nestlé USA for a full refund."

Those who return the recalled mug to the location of purchase will receive cash or a gift card. Impacted customers who visit Nestlé USA online for a refund can find instructions to complete the process here.

Copyright © 2024, ABC Audio. All rights reserved.


It's 38% more expensive to buy a house than rent in US, analysis finds

Thomas Northcut/Getty Images

(NEW YORK) -- Buying a house in the United States is considerably more expensive than renting right now, and the real estate market is expected to stay that way for at least the next five years, according to a new analysis.

The analysis out Thursday from CBRE, a firm that tracks real estate prices, shows the average monthly payment on a new apartment lease in the U.S. is $2,165. The average monthly payment on a mortgage for a new home is $2,997, meaning it costs households, on average, 38% more to buy than to rent, according to the analysis.

Notably, the gap between buying and renting will continue to be a big hurdle for aspiring homeowners for at least five years, the analysis found -- mortgage payments are still expected to cost 11% more than rent in the year 2030.

Higher mortgage rates and a nationwide housing shortage are key factors behind persistently high home prices, according to the CBRE report. The report estimates there is a shortage of 3.8 million housing units in the U.S., mainly in single-family homes and smaller multi-unit dwellings.

"It is proving to make more sense [for individuals] to rent for a little longer," Matt Vance, an author of the CBRE report, told ABC News.

The disparity between renting and buying is especially stark in markets such as Los Angeles, San Francisco, Seattle, Denver and Nashville, Tennessee, according to the analysis.

"A 20% downpayment on the median Denver home today is equivalent to six years of the average apartment rent," Vance said.

But markets like Chicago, Dallas and Raleigh, North Carolina, are expected to see the gap between renting and buying return to pre-pandemic levels in the next five years, the report said.

Aspiring homeowners who are able to put down a payment and afford the monthly costs can still find great opportunities to build longer-term equity by investing in a home, Vance added.

A separate report out Thursday from the White House says one in every four renters in the U.S. is "severely rent-burdened," meaning they’re spending more than half of their income on housing.

Copyright © 2024, ABC Audio. All rights reserved.


Apple sued by Biden administration in landmark case over iPhone monopoly

ABC News

(NEW YORK) -- The Biden administration sued Apple on Thursday, alleging the tech giant created a monopoly in the smartphone market by blocking competitors from accessing hardware and software features of the iPhone.

The lawsuit, filed by the Department of Justice in federal court in New Jersey, is the latest in a series of efforts by the Biden administration to rein in what it argues is unlawful anticompetitive behavior by some of the nation’s largest tech companies. Sixteen state and district attorneys general joined the DOJ in bringing the case.

"We allege that Apple has maintained monopoly power in the smartphone market, not simply by staying ahead of the competition on the merits, but by violating federal antitrust law," Attorney General Merrick Garland said in a statement announcing the lawsuit. "If left unchallenged, Apple will only continue to strengthen its smartphone monopoly."

In the lawsuit, the department claims Apple has used its control over the iPhone to "engage in a broad, sustained, and illegal course of conduct" designed to maintain its control over the smartphone market and prevent its rivals from attracting consumers.

Apple strongly rebuked the lawsuit in a statement to ABC News.

"At Apple, we innovate every day to make technology people love -- designing products that work seamlessly together, protect people’s privacy and security, and create a magical experience for our users," the company said. "This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets."

"We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it," Apple added.

Among the actions alleged by DOJ, Apple has sought to block the spread of "SuperApps" that make it easier for consumers to switch between smartphone platforms. The DOJ accuses Apple of blocking development of cloud streaming apps and services that would make it easier for consumers to play high-quality games and other apps without paying for accompanying hardware.

Apple is also accused of deliberately making the quality of cross-platform messaging worse and less secure to incentivize users of other smartphones like Android to instead switch to an iPhone.

Speaking in Washington, D.C., on Thursday, Garland accused Apple of abusing its smartphone dominance to erase competition and hurt consumers.

Over the last two decades, Apple has become one of the most valuable public companies in the world,” Garland said. “That is in large part due to the success of the iPhone.”

“Apple has maintained monopoly power in the smartphone market not simply by staying ahead of the competition on the merits but by violating federal antitrust law. Consumers should not have to pay higher prices because companies break the law," Garland added.

The lawsuit against Apple adds another confrontation between the Biden administration and big tech over antitrust concerns.

In September, the Federal Trade Commission sued Amazon for illegally maintaining its monopoly power "to inflate prices, degrade quality, and stifle innovation for consumers and businesses." Amazon rejected the allegations and vowed to fight the case in court.

That same month, the trial began in a case brought by the DOJ against Google in an effort to rein in its dominance over the online search market. Google argued that its success in the sector owed to its superior product.

Copyright © 2024, ABC Audio. All rights reserved.


Meet your new virtual assistant: The AI in your car

The MBUX virtual assistant "is the most human-like interface with a Mercedes-Benz yet," according to the company, an d advanced 3D graphics make interactions with the driver more natural, intuitive and personalized. (Mercedes-Benz)

(NEW YORK) -- The artificially intelligent computer KITT from Knight Rider could do it all -- drive solo, speak to humans, land quips and fight crime. It was sentient, funny and self-aware. KITT was a futuristic -- but fictional -- TV character that had Americans in awe.

There are no KITTS in real life yet. There are, however, vehicles that can independently change lanes and maneuver in traffic. Some automakers are pushing the limits even more -- evolving conveyances into personal assistants that can keep tabs on our daily routines and make conversation on those lonely and tiresome drives home.

This is the future: Your vehicle's AI calling into work meetings when you're running late. Offering restaurant recommendations in foreign locales. Listening to you vent about life and offering reassuring adages to get you through the day.

"We're enhancing the layers of communication between the MBUX virtual assistant and our customers ... it's our vision of the hyper-personalized experience inside the car," Andreas Biehl, head of user interaction concepts for Mercedes-Benz AG, told ABC News. "Our AI system -- our 'brain' -- can learn scenarios ... and use that to make the right suggestions."

He added, "We see this as a must-have experience for our customers."

Mercedes unveiled the generative AI virtual assistant earlier this year in Las Vegas. Models that run on the upcoming MB.OS platform, such as the Concept CLA Class, will include this advanced tech, which the company calls "the most human-like interface with a Mercedes-Benz yet."

The virtual assistant, now seen on screen via a "living" star avatar and 3D graphics, can even express four personality traits (natural, predictive, personal and empathetic) and emotions ranging from excited to sensitive, according to Mercedes. Drivers no longer have to prompt the assistant by saying "Hey Mercedes" in the cabin; the car will engage with the driver automatically and can even recognize the driver's voice, according to Biehl.

If the MB.OS system senses that you're stressed or unhappy -- either from your tone or driving style -- it may cut the conversation short or start a seat massage to relax you.

"The virtual assistant is always listening," said Biehl. "But we have to be very careful we're not catching the wrong things. We want to be there when we are needed."

German automaker Volkswagen is in the process of integrating ChatGPT into its vehicles' IDA voice assistant, which can give drivers additional information beyond the voice assistant's current capabilities: controlling the infotainment, navigation and air conditioning.

"Enriching conversations, clearing up questions, receiving vehicle-specific information ... this is part of its continuously expanding capabilities," a company spokesperson told ABC News. "Volkswagen always strives to offer the latest technology and will continue to do so in the future."

The spokesperson gave an example of how ChatGPT could improve the user experience: "You ask your car to find you a Thai restaurant. The car then lists numerous nearby places. You then decide you are going to cook a meal yourself so ask the car for the ingredients that are in a Thai Green Curry. ChatGPT will look that up, and you can then ask where you can buy those ingredients."

Erik Gordon, a business professor at the University of Michigan, questioned why automakers are fixated on AI driving systems.

"Car companies are trying to differentiate themselves not on styling, not on reliability, but on features that sometimes seem more like gadgets," he told ABC News. "Automakers think consumers are enamored with this technology. They will need to find a way to add these driver-assistance features in way that doesn't feel like we're giving up control."

He argued there may be "tremendous backlash" against the idea that vehicles can act like a human passenger.

"A lot of people don't want their car or any machine to know that much about them," Gordon said. "I predict 9 out of 10 consumers will turn it off."

Biehl noted that customers can disable the MBUX virtual assistant.

"Users will have full control of this," he said. "They can always opt out."

Kelly Funkhouser, associate director of vehicle technology at Consumer Reports, said some drivers may not be alarmed to learn that their vehicles are spying on their conversations.

"Our devices are already listening -- Alexa, our Google assistants -- they're waiting to hear that 'wakeup' word," she told ABC News. Companies like Mercedes "must believe there's a benefit to consumers," she added.

Automakers, however, have to address the larger issue: So few customers actually utilize the voice commands.

"Historically those voice commands haven't been very good," Funkhouser said. "The systems have definitely improved in the past several years but they're still not perfect. Telling your car to change the heat or radio tends to annoy drivers. You have to pause [what you're doing] to interact with the AI. It's easier to use 1 or 2 buttons."

Funkhouser pointed out that advancements in AI assistants come as automakers replace buttons and knobs with giant screens that can be confusing to navigate, especially while driving.

"The HMI -- human machine interface -- is becoming more complicated," she said. "Having a voice assistant is not a good solution to solving the problem of distracting controls and displays. There's a bit of consumer pushback to bring back buttons."

Biehl, of Mercedes, said the company's new voice assistant is an "evolutionary step" of an already "successful product in the market."

"There's more human-like behavior and personality traits ... the driver can talk to assistant and the assistant can react in an adequate way," he said. "The assistant makes the life of our customers easier."

Copyright © 2024, ABC Audio. All rights reserved.


Senate mulls TikTok ban amid US national security concerns

The TikTok logo on a smartphone arranged in New York, March 9, 2023. (Gabby Jones/Bloomberg via Getty Images)

(WASHINGTON) -- Senators from both sides of the aisle warned Wednesday that TikTok endangers millions of users in the United States -- as Congress continues to weigh how to protect U.S. national security amid growing concern that the Chinese social media platform is a propaganda tool that could have a lasting impact on the coming U.S. election.

"TikTok is a gun aimed at Americans' heads," Sen. Richard Blumenthal, D-Conn., warned following a classified briefing in the Capitol. "The Chinese communists are weaponizing information that they are constantly surreptitiously collecting from 170 million Americans and potentially aiming that information using it through algorithms at the core of American democracy."

Days after the House overwhelmingly passed bipartisan legislation to effectively ban TikTok in the United States if its Chinese owners do not sell the app, senior officials from the FBI, Justice Department and the Office of the Director of Intelligence held a classified briefing for members from the Senate Intelligence and Commerce committees.

"TikTok is a grave national security threat to Americans. It's a threat to your privacy and the security of your data on your phone if you use Tik Tok. It's also a threat for Chinese Communist propaganda," Sen. Tom Cotton, R-Ark., said. "Tik Tok and ByteDance and Chinese leaders go to great lengths to try to conceal what they're doing. But it's clear right there in the terms and conditions what they can do. And it's clear from two weeks ago, how TikTok is used to try to influence American politics."

Senators leaving the closed-door briefing also called for the relevant intelligence to be declassified.

"I will say very emphatically, the American people need and deserve to hear what we've just been told. Because they would be deeply frightened," Blumenthal said. "The American people should be told everything that we heard, there is absolutely no reason to keep it secret. There are no sources or methods that may be endangered. Its analysis by our people about what the Chinese communists are doing. They know what they're doing. We don't need to keep secret from them what they know they are doing right now. Only the American people don't know and they deserve to hear."

Senate Commerce Committee Chair Maria Cantwell, a Washington State Democrat, refused to put a timeline on advancing legislation through the Senate, though her committee would be expected to take the next step by holding a markup to make potential amendments to the House-passed measure.

"We're gonna resolve this one way or another for sure, because it's an important issue," Cantwell said. "This is the information age, we need some new tools."

Sen. Ted Cruz, the ranking Republican on the Commerce Committee, urged Cantwell to hold a mark-up on the House bill "expeditiously."

"The content on TikTok in China is pushing things like math and science and education and hard work and discipline. And here in the United States, the Chinese Communist Party is pushing things to our kids like self-harm and suicide," Cruz, R-Texas, said. "They're studying math and science and they're trying to get our kids to chew on Tide pods. That is deeply concerning."

While there were some early indications that the bill could die in the Senate, it now appears that there is momentum building to tweak the House-passed bill later this spring.

As a full-press lobbying effort continues on Capitol Hill, senators advocated for legislation that compels ByteDance, TikTok's parent company, to divest from Chinese ownership -- whether it's an American buyer or one from a country that is not hostile to the United States, such as Iran, North Korea, China and Russia.

"U.S. companies should buy TikTok and I think that we should pass the legislation promptly that will force ByteDance to sell TikTok to a company or a big group of investors or some entity that is not under the thumb of the Chinese Communist Party," Cotton said.

"It doesn't have to be an American," Sen. Marco Rubio, the top Republican on the Senate Intelligence Committee, added. "In my view, it has to be a company that is not subject to the national security laws of China."

Even though the social media platform has faced growing scrutiny from some government officials over fears that user data could fall into the possession of the Chinese government -- and that the app could be weaponized by China to spread misinformation --cybersecurity experts have told ABC News there is little evidence that TikTok has shared U.S. user data with the Chinese government or that the Chinese government has asked the app to do so.

TikTok denies security or privacy risks and says a firewall has been established to prevent that.

South Dakota Republican Sen. Mike Rounds pointed out the obvious reality that nothing will happen this week or even within the next three weeks, given the looming congressional recess that begins at the end of the week -- pending an averted government shutdown this weekend.

Congress returns from a two-week spring break on April 8.

Copyright © 2024, ABC Audio. All rights reserved.


Why you will likely see higher egg prices ahead of Easter

d3sign/Getty Images

(NEW YORK) -- After months of egg prices slowly falling, the staple Easter item is on the rise again in part due to a resurgence of Highly Pathogenic Avian Influenza (HPAI) in egg-laying flocks, commonly referred to as bird flu.

Since the start of November, the U.S. Department of Agriculture's Animal and Plant Health Inspection Service has reported 13.64 million table egg-laying hens lost to the disease.

Table egg prices are projected to increase as a result of the recent production losses, according to the USDA's latest Livestock, Dairy and Poultry Outlook.

Experts agreed in a 2024 Easter report and analysis from Wells Fargo Agri-Food Institute, adding that the latest wave of bird flu has made the market highly variable and unpredictable.

"Egg prices have always been volatile throughout history, but HPAI has amplified the market response because of lower supplies of eggs," Sector Manager Kevin Bergquist told ABC News' Good Morning America. "Until the time when the nation’s egg-laying flock size recovers from HPAI, egg prices are likely to remain very changeable from week-to-week, sometimes dramatically so."

Prices are also "historically higher" when seasonal demand spikes as Easter nears -- as kids dip hard boiled eggs into colorful dye to hide for an egg hunt.

"We expect this will probably be true again this year. Although it’s hard to say whether consumers will find sales or bargain-priced eggs before Easter at their local grocer, they may find that conventional eggs are comparatively less expensive than specialty eggs," Bergquist said.

With much uncertainty among farmers and their flocks, Bergquist added that consumers should "expect the unexpected" while egg prices "remain highly variable for the near future."

"Eggs are often considered an essential food item, and the demand can be inelastic at times," he said, adding "it’s a little hard to substitute anything else when dyeing Easter eggs, right?"

According to the USDA, an outbreak of HPAI physically reduces the number of egg-laying hens, and thus the available supply of eggs to the market.

The USDA data from the latest HPAI outbreak this winter shows that bird flu "is expanding at a similar pace to the previous major outbreak" widespread in regions across the U.S.

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