Amidst a steady increase in subprime auto loans, lenders are utilizing new surveillance technologies to mitigate their risk. Finance companies, credit unions, and auto dealers use GPS tracking to monitor borrower’s locations and “kill switches” to remotely disable vehicles. Lenders say these devices allow them to extend loans to more Americans with poor credit as they can locate the vehicle if a borrower defaults on payments and repossession is necessary.
Auto Lenders’ Use of GPS Tracking and Kill Switches Prompts FTC Investigation
Uber to Pay $20 Million to Settle FTC Case
On January 19, 2017, Uber Technologies Inc. entered into a settlement agreement with the U.S. Federal Trade Commission (FTC), whereby the San Francisco-based startup agreed to pay $20 million dollars to its drivers. How the refunds will be distributed has yet to be determined, but the consumer-protection agency has ordered the company to work closely with its officials on the matter.
EpiPen Maker Accused of Anti-Competitive Practices
The EpiPen is a necessity for people who are at risk of anaphylaxis, a life-threatening type of allergic reaction. They are a common item in kids’ backpacks and home first-aid kits, and the name has become a generic term that refers to epinephrine auto-injectors. Yet the product itself is only available as a brand-name product that costs hundreds of dollars.
US Regulators to Crack Down on Anti-Poaching Agreements
In a joint press release, the Department of Justice (DOJ) and Federal Trade Commission (FTC) announced an intent to criminally prosecute companies engaged in antitrust violations, such as wage-fixing and no-poaching agreements. In addition, the federal regulators issued new guidance for human resources professionals designed to educate those in hiring positions about the applicability of antitrust laws in the context of employment decisions.
GM Entering the Race toward the Future of Driverless Cars
With places like California, Nevada, Florida, Michigan, and D.C. already allowing autonomous car testing and federal legislation being considered to make such cars safer, driverless cars are in our near future. Google has been eager to dominate this untapped market, but it’s starting to see competition from large automakers. General Motors’ Cadillac CT6 will be the first GM model to be equipped with Super Cruise, a semi-autonomous system that permits hands-free driving on the highway.
Ex-Morgan Stanley Adviser Pleads Guilty in Connection with Data Breach
A former financial advisor for Morgan Stanley, Galen Marsh, pleaded guilty last week to one count of unauthorized computer access in connection with one of the largest data breaches of a private wealth management company.
Between 2011 and 2014, Marsh uploaded sensitive financial information—including names, addresses, bank account numbers, and investment information—of over 350,000 Morgan Stanley clients to his private computer.
In late 2014, data from 900 Morgan Stanley clients appeared online at Pastebin.com, an open file sharing website known for leaking confidential information, including the hacking of Sony Pictures. The breached data did not include “critical” information such as social security numbers or account passwords, but cyber security expert Darren Hayes of Pace University told the Wall Street Journal that it could provide an “important first step” for identity thieves to create duplicate identities. According to Morgan Stanley, there have been no reports of financial loss from the breach.
New Zealand Approves Staples-Office Depot Merger, Challenges Remain at Home
On February 4, 2015, Staples, Inc. announced its global acquisition of Office Depot, Inc. Staples’ Chairman and CEO, Ron Sargent, announced:
“We expect to recognize at least $1 billion of synergies as we aggressively reduce global expenses and optimize our retail footprint. These savings will dramatically accelerate our strategic reinvention which is focused on driving growth in our delivery businesses and in categories beyond office supplies.”
Staples has offered $6.3 billion to forge the deal with an expectation of creating a retail chain worth $39 billion in revenue and with thousands of stores. Staples is financing the deal with a $3 billion ABL credit facility and a $2.75 billion six-year loan from Barclays and Bank of America Merrill Lynch.
Sysco Offers Divesture Package to Appease FTC in US Foods Merger
Sysco, the nation’s largest food distribution company, has offered to divest 11 US Foods distribution centers with $4.6 billion in annual revenue, in order to gain approval from the Federal Trade Commission (FTC) and move forward in its $3.5 billion merger with chief rival US Foods. The sale of the 11 facilities to a far smaller rival, Performance Food Group, is contingent on the consummation of the proposed merger. Despite the divesture, Sysco estimates that it will still be able to achieve net annual synergies of at least $600 million in four years and consequently provide new value to its customers, including lower costs.
Antitrust Concerns Stem From Merger Frenzy in Healthcare Industry
Mergers and acquisitions within the healthcare industry have become increasingly common since the implementation of the Patient Protection and Affordable Care Act (PPACA) in March 2013. Parties to the individual merger transactions often cite the need to comply with and survive under the PPACA as a justification for the unification between otherwise-competitors in the healthcare services market. In the view of the Federal Trade Commission (FTC), however, the consolidation of competing healthcare service providers raises anticompetitive concerns that must be monitored and regulated to ensure compliance with Federal antitrust laws.
FTC Advises Congress to Regulate Data Brokers
On Tuesday, the Federal Trade Commission (FTC) released a report which advises Congress to require the data broker industry to be more transparent about how they accumulate and market consumer information. The FTC advocates for regulation which would help consumers control the significant amount of personal information collected by data brokers.
The FTC’s 110-page report, which was launched in late 2012, is the result of a study of nine data brokers like Axicom and Corelogic and how they collect and distribute user data.