Connect with us

Business

AmazonBasics Products Dangerous, Start Fires & Explode: Report

Published

on

  • A report by CNN has found that dozens of AmazonBasics items are dangerously flawed, leading to fires and explosions.
  • 1500 reviews were found across 70 items citing dangerous flaws in the products between 2016-2020, despite Amazon saying many of these items were investigated and found to be safe.
  • Currently, dozens of items are still available on the site that have been flagged by users as dangerous and potential fire hazards.

AmazonBasics Burn

Ever seen a listing for a common everyday item on Amazon and thought, “that price is too good to be true?” Well, that may be the case. CNN reported on Thursday at least 70 items that are part of Amazon’s AmazonBasic line are fatally flawed; particularly electronics which are reported to have started hundreds of fires.

One story from Wethersfield, Connecticut features a young man who was burned after being awoken by a chair in his bedroom that was on fire. Firefighters determined that a white AmazonBasics USB cord used to charge his phone had shorted and started the fire. Other items sold under the AmazonBasics label — which was set up in 2009 and sells thousands of everyday items for cheap — have been reported in reviews to catch fire. A microwave sold under the label has over 150 reviews describing safety concerns over the device, notably pointing out its proclivity to catch fire.

CNN obtained a few defective devices from customers and sent them off to a lab in Maryland to be tested and find out why it happens so often. That research was cut short because of the COVID-19 pandemic, but in the case of the burning microwaves, initial findings revealed that they featured a fatal design on a panel that covered a heating device and could start fires.

Other common items that were reported to have caught fire include power strips and car chargers. Overall, according to CNN, 1,500 reviews between 2016 and 2020 by US customers identified safety concerns from AmazonBasics products, with 10% of reviews specifically mentioning the items catching fire.

“Safe to Use”

Amazon’s initial response to the report is that some of the items identified were investigated and found to be “safe to use.”

We take several steps to ensure our products are safe including rigorous testing by our safety teams and third party labs,” the company said in a statement to The HIll. “The appliance continues to meet or exceed all certification requirements established by the FDA, UL, FCC, Prop 65, and others for safety and functionality.”

“We’re continuously refining our processes and leveraging new technologies to ensure that AmazonBasics products are safe for their intended use. We want customers to shop our products with confidence, and if there’s ever a concern, you can contact our customer service team and we’ll promptly investigate,” The company added in a blog they posted as a response to the CNN report.

Currently, about 30 items with three or more reviews that identified dangerous flaws remain on the site. This could lead to large legal problems for the company. In the past, various courts have ruled and upheld that Amazon is not liable for defective items sold by third-party vendors on the platform. However, AmazonBasics are branded in-house items (although Amazon doesn’t manufacture these items). 

Being in-house items may mean that unlike third-party vendors, Amazon possibly is not shielded by the same protections and could be liable for the destruction caused by said devices.

See What Others Are Saying: (CNN) (The Hill) (The Verge)

Business

NFL Reaches Agreement to End Race-Norming, New Testing Formula Remains Unclear

Published

on

The practice, which was adopted by the league in the ’90s, assumes that Black players operate with a lower cognitive function than players of other races. 


NFL Ends Race-Norming

The U.S. District Court of Philadelphia uploaded a confidential proposed settlement between the NFL and former players on Wednesday that confirms the league’s plans to abolish race norming. 

The NFL previously halted the use of race-norming in June as part of a$1 billion settlement with retirees Kevin Henry and Najeh Davenport, but details of the deal weren’t supposed to be released until it underwent review from a federal judge. 

In fact, it currently seems as if someone in the court accidentally uploaded the document, as it was deleted hours later. 

Among the details reaped from the settlement, it was revealed that the league plans to modify cognitive tests over the next year as part of a short-term change regarding how it verifies dementia-related brain injury claims. Previously, it used race-norming — the practice of assuming Black players have a lower cognitive function than players of other races — to test whether retirees seeking financial compensation had sustained brain injuries from the sport. 

Black retirees who were denied access to compensation originally will also have their tests automatically re-evaluated over the course of the next year, if the settlement pushes through. 

The NFL has additionally agreed to develop a long-term replacement system with the help of experts and players’ lawyers.

Still, the exact formula behind these new testing metrics, which will be designed as race-neutral per the agreement, is unknown. For example, retirees don’t know how the new changes will affect their scores or if they might potentially need to take additional tests before becoming eligible for compensation.

The Issue With Race-Norming

Race-norming was first adopted by the league back in the ’90s, and in theory, it was meant to help offer better treatment to Black retirees who had developed dementia from brain injuries related to football.

Essentially, the thought process was to take socioeconomic factors into account since Black people come from disadvantaged communities at higher rates; however, that quickly became a major issue since Black players were held to a higher standard of proof than players of other races. 

For example, since the tests assumed Black people have less cognitive skill, Black retirees seeking claims needed to score lower to be granted compensation. That then led to many having their claims denied because they tested too high — even if they would have tested within the range to receive compensation had they been white. 

See what others are saying: (Associated Press) (The Washington Post) (ABC News)

Continue Reading

Business

Facebook Plans Name Change as Part of Rebrand

Published

on

News of the alleged rebrand came the same day Facebook was fined nearly $70 million for breaching U.K. orders related to the company’s 2020 acquisition of Giphy, as well as the same day it reached a $14 million discrimination settlement with the U.S. Justice Department.


Facebook Allegedly Plans To Debut New Name

Facebook, Inc. is planning to announce a new company name next week, according to a Tuesday report from The Verge. 

The rebrand would reportedly align with CEO Mark Zuckerberg’s vision to shape the company into a full-fledged “metaverse” — AKA a virtual reality space where users can interact with one another in real-time. 

The new name is currently unknown, but it would likely not affect the social media platform Facebook. Instead, the change would target its parent company, Facebook, Inc. — similar to how Alphabet became the parent company of Google following a 2015 restructure. 

On Monday, Facebook said it is currently planning to hire 10,000 people in the European Union to help make its metaverse goal a reality. 

Still, plans for the metaverse have not gone uncriticized, especially given the recent weeks of increased scrutiny regarding Facebook’s dominance over people’s daily lives. “Metaverse” was first coined in 1992 by American author Neal Stephenson in his novel “Snow Crash,” which depicts a corporate-owned virtual world.

Twitter CEO Jack Dorsey even cited one user who referenced the novel, agreeing that Stephenson was right in his prediction of “a dystopian corporate dictatorship.”

Facebook To Pay Fine and Settlement

Also on Tuesday, regulators in the United Kingdom fined Facebook nearly $70 million for breaching orders related to its 2020 acquisition of Giphy. 

While that’s only a fraction of the $400 million it paid to purchase Giphy, UK regulators warned that they could eventually order Facebook to sell off Giphy if they find proof the acquisition has damaged competition.

In the U.S., the Justice Department said the same day that Facebook has agreed to pay up to $14.25 million to settle discrimination allegations brought by the agency under the Trump administration. 

In December, the department accused the company of favoring foreign workers with temporary work visas over what it described as thousands of qualified U.S. workers. 

“Facebook is not above the law and must comply with our nation’s federal civil rights laws, which prohibit discriminatory recruitment and hiring practices,” Kristen Clarke, an assistant attorney general at the department, said. 

Notably, this settlement is the largest ever collected by the department’s Civil Rights Division.

See what others are saying: (The Verge) (Engadget) (The New York Times)

Continue Reading

Business

SEC Releases Long-Awaited Report on January Memestock Frenzy, Pokes Hole in “Short Squeeze” Narrative 

Published

on

Among other findings, the SEC said hedge funds weren’t broadly damaged by January’s unprecedented trading event.


SEC Publishes Findings

The Securities and Exchange Commission released a long-awaited, 44-page report on Monday detailing its findings regarding this year’s “Memestock Frenzy,” which involved companies such as GameStop and AMC.

During the frenzy in late January, the share prices of those companies soared exponentially. According to one of the key narratives of the situation, smaller investors piled onto GameStop as a way to directly attack hedge funds that were actively betting against GameStop’s success and future. As CNBC reported at the time, those “hedge funds and other players had to rush in to cover their bets against the stock.” 

What followed were reports that hedge funds had lost billions of dollars all at once. In fact, one notable hedge fund, Melvin Capital, received what many described as a nearly $3 billion bailout. Meanwhile, in June, it was reported that the London-based White Square Capital had shut down its main fund due to the losses it suffered in January.

However, now, the SEC has said there is no real evidence to support some of the key pillars of this narrative, including that hedge funds were substantially hurt in the long run.

“Staff believes that hedge funds broadly were not significantly affected by investments in GME and other meme stocks,” the agency said in its report. “Staff did not observe that any advisers to private funds and registered funds experienced liquidity issues or difficulties with counterparties.”

On the whole, hedge funds even saw a 1.2% increase in profits in January, according to data from the HFRI Fund Weighted Composite index.

The agency also noted that GameStop purchases to cover bets were just “a small fraction of overall buy volume,” adding that “GME share prices continued to be high after the direct effects of covering short positions would have waned.”

“The underlying motivation of such buy volume cannot be determined,” the agency concluded. “Perhaps it was motivated by the desire to maintain a short squeeze. Whether driven by [that] desire… or by belief in the fundamentals of GameStop, it was the positive sentiment, not the buying-to-cover, that sustained the weeks-long price appreciation of GameStop stock.”

SEC Not Currently Issuing Any Recommendation

The agency did not offer any policy recommendations with this report, though it did stress that a number of small-time investors who either initially bet against GameStop’s success or tried to ride the wave of gains saw significant losses.

Given that the number of investors trading GameStop rapidly jumped from 10,000 at the beginning of January to 900,000 by the end of the month, it’s not surprising that the FTC confirmed heavy losses for many.

With that in mind, the SEC aligned its next focus on commission-free trading apps and the way in which they promote potentially excessive trading. Notably, that includes apps such as Robinhood and Webull, both of which faced controversy during the frenzy for severely restricting users’ ability to trade so-called memestocks. 

“Consideration should be given to whether game-like features and celebratory animations that are likely intended to create positive feedback from trading lead investors to trade more than they would otherwise,” the SEC said in its report.

SEC Chair Gary Gensler said Tuesday that by April, the agency could propose rules limiting how those apps make money from each trade, which is known as “payment for order flow.”

See what others are saying: (The LA Times) (The Washington Post) (The Wall Street Journal)

Continue Reading