Google will pay Arizona $85 million over illegally tracking Android users

Google will pay Arizona $85 million to settle a 2020 lawsuit, which claimed that the search giant was illegally tracking Android users, Bloomberg reports. At the time, Arizona Attorney General Mark Brnovich argued that Google continued to track users for targeted advertising, even after they turned off location data settings. If this sounds familiar, it’s because Google is also being sued by attorneys general in Texas, Washington, D.C., and Indiana over similar data tracking complaints. Brnovich’s office also notes that the $85 million settlement is the largest amount Google has paid per user in a privacy lawsuit like this. 

But given that Google is currently seeing quarterly revenue over $69 billion, the punishment may seem like a drop in the bucket. It’s nothing compared to the $1.7 billion Google was fined by the EU over abusive advertising practices. In a statement, Google spokesman José Castañeda said the suit was related to older product policies that have been changed. “We provide straightforward controls and auto delete options for location data, and are always working to minimize the data we collect,” he said. “We are pleased to have this matter resolved and will continue to focus our attention on providing useful products for our users.”

Brnovich, meanwhile, says he’s “proud of this historic settlement that proves no entity, not even big tech companies, is above the law.”

Apple faces US labor complaint over union busting

Apple’s alleged union busting has prompted federal action. As The New York Timesreports, the National Labor Relations Board has issued a complaint against Apple following accusations it broke multiple laws trying to thwart union organizers at the World Trade Center store in New York City. The Communications Workers of America (CWA) union claims Apple surveilled and questioned staff, limited access to pro-union fliers and made employees listen to anti-union speeches.

The NLRB found enough merit in two of the claims. A judge will hold a hearing on December 13th if there’s no settlement.

We’ve asked Apple for comment. In a statement to The Times, a spokesperson said the iPhone maker disputed CWA’s allegations and was anticipating “presenting the facts.” In the past, Apple has maintained that unionization would hinder labor improvements and prevent “direct engagement” between the company and store workers. Apple told staff it would increase pay, but also that unionization could lead to fewer promotions and fixed hours.

There’s no certainty the NLRB complaint will lead to change in Apple’s labor practices. However, it comes as teams at multiple US stores have made unionization bids. While people at an Atlanta location gave up their efforts, Towson, Maryland workers voted to unionize this spring. Oklahoma City employees vote next week. There’s mounting pressure on Apple to act, if just to minimize similar complaints.

Activision Blizzard found to have withheld raises from unionizing Raven Software workers

After investigating an unfair labor practice charge against Activision Blizzard, the National Labor Relations Board found that the company withheld raises from quality assurance workers at Call of Duty support studio Raven Software. The agency attributed this withholding to the workers’ union activity.

The Communications Workers of America (CWA) filed a complaint on behalf of the workers in June. It accused Activision Blizzard of retaliating against those who were attempting to unionize in a number of ways, including by laying some off and dismantling the studio’s QA department by moving workers to separate teams. The CWA also said that Activision Blizzard leadership solicited grievances, which the NLRB concurred with. The agency is still looking into some aspects of the original complaint, as The Washington Post notes.

The CWA filed an amended version of the complaint on Monday. It claimed that Activision Blizzard is continuing to violate labor laws by keeping QA workers at the studio separated without their own department.

In April, Activision Blizzard gave 1,100 QA testers full-time jobs and higher base pay. However, it said QA workers at Raven were not eligible for pay bumps “due to legal obligations under the National Labor Relations Act.” At the time, Raven QA workers were working toward a union election. They voted to unionize in May. Contract negotiations between Activision Blizzard and the Game Workers Alliance (the Raven QA workers’ union) are ongoing.

“Despite their best efforts, Activision’s constant attempts to undermine its workers’ and impede our union election have failed,” CWA and the Game Workers Alliance told Engadget in a statement. “We’re glad the NLRB recognized that Activision acted illegally when they unequally enforced policies by withholding company-wide benefits and wage increase from Raven workers for organizing. We want the company to bargain a fair contract in good faith and to move past all of the cheap — and illegal — tricks they tried to pull to prevent us from forming our union.”

“Due to legal obligations under the [National Labor Relations Act] requiring employers not to grant wage increases while an election was pending, we could not institute new pay initiatives at Raven because they would be brand new kinds of compensation changes, which had not been planned beforehand,” Activision Blizzard spokesperson Rich George told The Washington Post. “This rule that employers should not grant these kinds of wage increases has been the law for many years.”

FCC will start kicking voice providers out of its robocall database

Telecoms slow to adopt anti-robocall measures could soon face stiff punishment in the US. The Federal Communications Commission (FCC) now plans to remove seven voice service providers from its Robocall Mitigation Database for failing to comply with required anti-spam efforts, such as implementing STIR/SHAKEN call authentication to prevent spoofing. The companies have 14 days to “show cause” why they shouldn’t be removed. If they don’t, all their customers will be blocked from making calls. Effectively, their voice businesses are finished.

The companies include Akabis, Cloud4, Global UC, Horizon Technology, Morse Communications, Sharon Telephone and SW Arkansas. In all cases, the companies failed to share their anti-robocall plans even after the FCC warned them about violations. The FCC noted that STIR/SHAKEN is necessary for any provider with an IP-based network, and those without IP still have to show that they’re mitigating illegal robocalls.

The FCC required that all carriers use STIR/SHAKEN by the end of June 2021. Major carriers like AT&T and Verizon (Engadget’s former owner) were quick to adopt the technology. Small providers received extensions, but only so long as they detailed how they’d limit robocalls.

Removals aren’t likely to significantly stem the tide of spam calls. However, the FCC’s move (along with a campaign from state attorneys general) could discourage telecoms that either skimp on anti-robocall defenses or knowingly profit from scammers and telemarketers.

Kim Kardashian will pay $1.26 million to settle SEC charges over a crypto post

Kim Kardashian will pay $1.26 million to settle charges from the Securities and Exchange Commission over a cryptocurrency ad she posted on Instagram Stories. The socialite and reality TV megastar received $250,000 to post about EthereumMax’s EMAX tokens but didn’t disclose that she was paid to do so, according to the agency. 

The SEC determined that Kardashian violated the anti-touting provision of federal securities laws. She didn’t admit or deny the charges, though agreed to pay a $1 million penalty and around $260,000 in disgorgement, which the SEC said covers the fee she received for the ad plus prejudgement interest. In addition, Kardashian pledged not to promote cryptocurrency assets for three years.

“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” SEC chair Gary Gensler said. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”

Earlier this year, a class-action suit took aim at Kardashian and Floyd Mayweather for promoting EthereumMax tokens. It accused the defendants of participating in a pump and dump scheme, in which investors promote an asset and sell their interest in it after the value rises. The suit claimed the value of the token soared by 632 percent after Mayweather and former NBA player Paul Pierce (another defendant in the case) promoted it.

According to a survey, 19 percent of people who heard about an Instagram Story from Kardashian that mentioned the cryptocurrency invested in EthereumMax. The lawsuit asserts that the value of the token nosedived by 98 percent the day after Kardashian’s post.

This is far from the first time that Kardashian has been accused of publishing sponsored posts without disclosing that they’re ads. Federal Trade Commission guidelines suggest that those who are paid to endorse something on social media should include the #Ad hashtag or include terms like “Sponsored,” “Promotion” or “Paid ad.”

In an incredible case of serendipity, a new podcast narrated by Kardashian, who is studying to become a lawyer, premiered on Spotify on Monday. The System: The Case of Kevin Keith is a true-crime podcast.

Twitter says it inadvertently ran ads on profiles containing CSAM

Twitter is still having trouble curbing the spread of CSAM (child sexual abuse material). Insider has learned (subscription required) that Twitter inadvertently ran ads on profiles either selling or soliciting CSAM. In an email to marketers, the social network said it had suspended all ads on profiles, updated its detection systems, banned accounts that broke its rules and launched an investigation. Reutersnotes Coca-Cola, Disney and NBCUniversal were some of the brands whose ads appeared next to the offending content.

Existing technology had already blocked over 91 percent of accounts like these, Twitter said. In its most recent transparency report, the company said it took action against 31 percent more CSAM-related accounts in the second half of 2021.

A Twitter spokesperson confirmed the incident and investigation in a statement. On top of existing work to catch CSAM, the company said it was ensuring it had the “right models, processes and products” to protect both advertisers and users.

The news is ill-timed for Twitter. It comes just weeks after The Verge reported that Twitter ditched efforts to build an OnlyFans clone over concerns it couldn’t effectively catch CSAM and other forms of sexual abuse. It’s also emerging as the social media continues to fight with Elon Musk over the fate of his potentially cancelled $44 billion acquisition. Musk has focused most of his objections on alleged misreporting of fake account data.

There’s been an immediate financial impact as well. Reuters added that big names like Dyson and Mazda had either frozen their marketing campaigns or pulled ads from some areas on Twitter. More might be coming — Coca-Cola and Disney both said they considered the activity unacceptable, while NBCUniversal told Twitter to remove ads that ran against CSAM.

SEC sues former MoviePass executives for fraud

The US Securities and Exchange Commission has filed a lawsuit against two former MoviePass executives. In a federal complaint seen by Bloomberg, the agency accused Theodore Farnsworth and Mitch Lowe on Monday of misleading investors about the viability…

Boeing to pay $200 million to settle charges over ‘misleading’ crash statements

Boeing has agreed to pay $200 million to settle charges from the Securities and Exchange Commission. The agency found that Boeing made “materially misleading public statements” related to crashes involving its 737 Max aircraft. The company’s former CEO Dennis Muilenburg will also pay $1 million to settle charges. The SEC alleged that Boeing and Muilenburg violated the antifraud provisions of federal securities laws. They neither admitted to nor denied the agency’s findings.

The SEC alleged that, after the first crash in October 2018, which caused the death of 189 people, Boeing and Muilenburg were aware that the anti-stall Maneuvering Characteristics Augmentation System (MCAS) posed an ongoing safety concern. However, the company told the public that the 737 Max was “as safe as any airplane that has ever flown the skies.” 

After a second crash in March 2019, in which 157 people died, the company and Muilenburg claimed “there were no slips or gaps in the certification process with respect to MCAS, despite being aware of contrary information,” the SEC said in a statement. Following the crashes, all 737 Max planes were grounded for over 18 months.

“There are no words to describe the tragic loss of life brought about by these two airplane crashes,” SEC Chair Gary Gensler said. “In times of crisis and tragedy, it is especially important that public companies and executives provide full, fair and truthful disclosures to the markets. The Boeing Company and its former CEO, Dennis Muilenburg, failed in this most basic obligation. They misled investors by providing assurances about the safety of the 737 Max, despite knowing about serious safety concerns.”

The settlement “fully resolves the SEC’s previously disclosed inquiry into matters relating to the 737 Max accidents,” Boeing told CNN. “Today’s settlement is part of the company’s broader effort to responsibly resolve outstanding legal matters related to the 737 Max accidents in a manner that serves the best interests of our shareholders, employees, and other stakeholders.”

Boeing previously reached a $2.5 billion settlement with the Department of Justice to avoid criminal charges. Last year, a grand jury indicted Boeing’s former chief technical pilot, Mark A. Forkner, on fraud charges. Forkner, the only Boeing employee who has faced a criminal indictment in relation to the crashes, was accused of deceiving the FAA’s Aircraft Evaluation Group during evaluation and certification of the 737 Max. Following a four-day trial earlier this year, a jury found Forkner not guilty.

Meta ordered to pay $175 million in patent infringement case

Meta is facing a hefty bill after losing a patent infringement lawsuit. A federal judge in Texas has ordered the company to pay Voxer, the developer of app called Walkie Talkie, nearly $175 million as an ongoing royalty. Voxer accused Meta of infringing its patents and incorporating that tech in Instagram Live and Facebook Live.

In 2006, Tom Katis, the founder of Voxer, started working on a way to resolve communications problems he faced while serving in the US Army in Afghanistan, as TechCrunch notes. Katis and his team developed tech that allows for live voice and video transmissions, which led to Voxer debuting the Walkie Talkie app in 2011.

According to the lawsuit, soon after Voxer released the app, Meta (then known as Facebook) approached the company about a collaboration. Voxer is said to have revealed its proprietary technology as well as its patent portfolio to Meta, but the two sides didn’t reach an agreement. Voxer claims that even though Meta didn’t have live video or voice services back then, it identified the Walkie Talkie developer as a competitor and shut down access to Facebook features such as the “Find Friends” tool.

Meta debuted Facebook Live in 2015. Katis claims to have had a chance meeting with a Facebook Live product manager in early 2016 to discuss the alleged infringements of Voxer’s patents in that product, but Meta declined to reach a deal with the company. The latter released Instagram Live later that year. “Both products incorporate Voxer’s technologies and infringe its patents,” Voxer claimed in the lawsuit.

Meta denied Voxer’s claims in a statement to TechCrunch. It plans to fight the ruling. “We believe the evidence at trial demonstrated that Meta did not infringe Voxer’s patents,” a spokesperson said. “We intend to seek further relief, including filing an appeal.”