$1-Billion iTunes Gift Card Scams
Big Business for Apple?
Apple being sued for refusing to help iTunes gift card scam victims

Class action suit claims Apple is incentivized to allow the scam to continue because it reaps a 30% commission on all scammed proceeds

Apple is being sued for allegedly refusing to help those who have fallen victim to a iTunes gift card scam. An 11-count class action lawsuit has been filed against the company. Apple is accused of lying when it says that there is no way to trace or refund the value of the cards.

There are a large number of scams which involve pre-paid gift cards like store cards and iTunes gift cards. (Here's how the FTC describes them.)

With store cards, the scammers usually buy high-value products like laptops and smartphones, which are then sold. iTunes gift card scams usually work in a slightly different way, typically being used to buy paid apps owned by the scammers, so they receive 70% of the money when paid by Apple.

The lawsuit says that Apple tells scam victims there is nothing that can be done once the money has been spent, but argues that this isn't true. In fact, Apple holds 100% of the funds for a period of 4-6 weeks, between the apps being purchased and Apple paying the developer. During this time, the company is in a position to refund 100% of the card value. Additionally, Apple takes a 30% commission, so would always be in a position to refund this much, even after the scammer has been paid.

As Patently Apple notes, iTunes gift card scams are big business:

The overwhelming majority of victims do not report the scam to the Federal Trade Commission ("FTC"). Yet even the limited iTunes gift card scams reported to the FTC during 2015-2019 exceed $93.5 million, with the dollar amounts increasing significantly each year. These publicly reported dollar amounts include the losses of only the subset of victims who fill out a detailed online FTC form asking for their personal information. As a result, this $93.5 million figure appears to be only the tip of the iceberg.

Even if only 10% of scam victims report to the FTC (versus local police, attorney general offices, Apple, or nobody at all), the iTunes gift card scam would approach $1 billion, with Apple retaining $300 million in commissions.

Many scam victims are elders, so three of the eleven counts accuse Apple of being in violation of laws designed to protect elderly people from financial abuse. 9to5mac.com

Impacting America's CCTV's
Blacklisting of Chinese Firms Rattles American Supply Chains

Apple, Ralph Lauren, Tommy Hilfiger among customers of manufacturers
penalized over alleged links to human-rights abuses

The addition of 11 Chinese companies to a U.S. trade blacklist of entities Washington says are linked to human-rights abuses of the Uighur minority group in Xinjiang is entangling major brands and likely to further a reordering of supply chains that feed American consumers.

U.S. authorities on Monday punished the suppliers, which include textile makers and component suppliers that sell products to major Western firms, by blocking them from buying U.S. technology without a license. Among those to have done business with the targeted manufacturers are Apple Inc. and clothing marquees Ralph Lauren and Tommy Hilfiger, according to a report earlier this year.

The latest entries on the blacklist join more than three dozen entities that have been called out since October over alleged abuses in Xinjiang. The additions stand out in that some are more directly involved in the supply chains of U.S. firms, who in turn sell smartphones, accessories and clothing to American consumers. Those barred previously include surveillance-camera maker Hangzhou Hikvision Digital Technology Co., artificial-intelligence companies SenseTime Group Inc. and a number of Chinese public-security bureaus. wsj.com

Video Surveillance Industry Impact?
Latest U.S. Regulation on Chinese Manufacturers Offers Challenge to Retailers
Tensions between the U.S. and China continue to rise in the midst of the coronavirus pandemic, as the U.S. has issued a final rule revising the Federal Acquisition Regulation specifically to implement section 889(a)(1)(B), or "Part B." The rule was published in the Federal Register on July 14, and will go into effect on Aug. 13.

"This is being watched very closely in our industry due to the video surveillance equipment covered, but recently, many other industries have become quite concerned," said Jake Parker, senior director of government relations at the Security Industry Association (SIA).

Parker points out how widespread the use of video surveillance is across all sectors - almost every commercial building has a security system. And the Chinese video surveillance manufacturers specifically listed in the ruling - Huawei, ZTE, Hytera, Hikvision and Dahua - produce some of the most commonly used surveillance equipment on the market.

SIA and other industry associations believe the rule is not clear enough for companies to start following in August. sdmag.com
 

Violence & Protests

Portland, OR: Violence escalates overnight between feds, protesters
after thousands march downtown

Portland moms and dads marched in droves Monday night, joining downtown protesters in a demonstration that would later swell overnight amid escalating tensions with feds in the city, according to multiple reports.

On the 54th night of demonstrations, the group of parents dressed in yellow and orange marched from the downtown Waterfront to the Justice Center. They reportedly set off to meet up and protect protesters who they said had been gassed or injured by federal officers.

Portland has experienced weeks of unrest following the police-involved death of George Floyd in Minneapolis.

President Trump has insisted that federal troops are needed to protect government assets in Portland, but the city's mayor has called on Trump to remove federal agents sent there. foxnews.com

Day 54: On Portland's Streets, Chaotic Scenes Continue Tradition of Protest

Dozens of moms formed a human shield to protect protesters from officers outside a federal courthouse in Portland

'Barely worth discussion': DHS official dismisses uproar over use of unmarked vehicles in Portland

Trump Threatens Federal Enforcement in NYC and Other Big Cities
if Leaders Don't 'Do Something' About Gun Violence
President Trump suggested sending federal law enforcement into New York City and other cities "run by the same liberal Democrats" if the recent spikes in gun violence aren't quelled.

The subject arose in the Oval Office Monday after a reporter questioned the president on the use of federal troops in Portland, Oregon and his intention to implement similar tactics in other cities.

"New York was up 348 percent -- the crime rate. So the governor has to do something about it. And if the governor is not going to do something about, we'll do something about it," he said.

Data provided by the NYPD found 854 people injured from gun violence in New York City so far this year, that's a 78 percent from the 481 reported injuries from last year. nbcnewyork.com

NYPD Commissioner Rails Against "Cowards" Who Have
"Screwed This City Up" With Police Reforms
In a speech to top NYPD commanders, Commissioner Dermot Shea gave a pointed defense of his police department, and lashed out at the New Yorkers who have pushed for police reform over the past several months.

"We're not giving this god***n city back to criminals. We're not," Shea said in a Compstat meeting, according to video obtained by the Daily News. "I don't know if there's ever been a period like this where so many systems of government are literally cowards who won't stand up for what's right. They're failing at every possible measure to be leaders and they throw it on the backs of the men and women of this police department. And curse them with one hand and then blame them with the other. How dare they."

He added, "They have screwed this city up so much in a short period of time, it's gonna take some time to get our arms around it."

According to Gothamist, Shea and his commanders recently sought to blame an uptick in shootings and violent crime on police reforms and public health measures taken during the pandemic, but their own data contradicted these claims. gothamist.com

Workers Across the U.S. Strike Against Racial Inequality
Protests Call for More Support for Black Workers

Activists and union workers stage one-day strikes to push for an end to racism

Groups of activists and unionized workers across the country participated in a walkout on Monday, calling for an end to racism and for more corporate and government support for Black workers.

The constellation of one-day strikes joined by unions such as the Service Employees International Union, the International Brotherhood of Teamsters, the American Federation of Teachers, the United Farm Workers and dozens of other organizations aimed to bring attention to lower pay and poor treatment for workers of color, organizers said. The actions, which had been planned since earlier in July, continued nearly two months of heightened activism for racial equality after the police killing of George Floyd in late May.

The strikes highlighted the connection between poverty and racial injustice, said the Rev. William Barber II, a leader of Poor People's Campaign: A National Call for Moral Revival, one of the organizations that joined the protests.

In Chicago, fast-food workers and service workers and their supporters marched from the James R. Thompson Center, which houses state-government offices, to a McDonald's restaurant. McDonald's Corp. locations were the focal points of strikes in several cities, where protesters argued that the fast-food chain takes advantage of workers of color.

In Los Angeles, dozens of drivers for Uber Technologies Inc. and Lyft Inc. joined fast-food workers demanding broader employment protections, according to the Mobile Workers Alliance, which helped organize the gathering. Uber and Lyft are contesting a new California law that seeks to reclassify drivers as employees, eligible for benefits such as paid sick leave and health insurance.

In Manhattan, groups of workers gathered at the Trump International Hotel near Columbus Circle to support the Heroes Act, proposed legislation that would provide protective equipment and extend benefits to workers who haven't been able to work from home during the coronavirus pandemic. The bill has been passed by the Democratic-led House of Representatives but hasn't been taken up by the GOP-led Senate. wsj.com

Whole Foods fired the Cambridge worker who led protests over BLM masks.
Now, they're getting sued.
"This is a moment in history when companies need to walk their talk on racial equality."

After being disciplined for wearing Black Lives Matters masks during their shifts, Whole Foods workers in Cambridge are leading a national class-action lawsuit against the supermarket chain.

The lawsuit, filed Monday in federal court in Boston, argues that Whole Foods violated Civil Rights Act protections against workplace discrimination after it sent home - and, in one case, even fired - workers who wore face coverings supporting the Black Lives Matter movement. boston.com

Minneapolis, MN: Body found in pawnshop that was torched in George Floyd protests
A charred body was found in the wreckage of a Minneapolis pawnshop this week - nearly two months after the building was burned down in the protests that followed George Floyd's police-custody death. Investigators were acting on a tip when they found the man's body in the rubble of Max It Pawn on East Lake Street in south Minneapolis, Police Department spokesman John Elder told The Star Tribune. nypost.com

Mayor, NYPD Officials Fume After Bridge Assault Suspect Released Without Bail;
Commissioner Says 'The World... Seems Like It's Upside Down'

25-year-old busted in connection to brick attack on NYPD cop during protests

Bronx Community Leaders Encourage Unity With NYPD In Call To Curb Violence;
'It's Not Snitching, It's Caring'

Retired Seattle officer warns about risks of defunding police, encourages more training
 

US: Over 4M Cases - 144K Dead - 1.8M Recovered
Worldwide: Over 15M Cases - 615K Dead - 9M Recovered

Private Industry Security Guard Deaths: 154+   Law Enforcement Officer Deaths: 62
*Red indicates change in total deaths

'Less Optimistic' and 'More Cautious': Top C.E.O.s Fret as Virus Cases Rise
Many of the nation's business leaders are steeling themselves for a period of prolonged economic disruption and the prospect of a slow, halting recovery.

While retail sales have mostly rebounded to pre-crisis levels and the stock markets remain buoyant, business leaders and economists still see serious cause for concern. Tens of millions of Americans are out of work. Important parts of the economy - including live sports, movie theaters and many tourist attractions - remain largely shuttered. Business districts are still primarily empty as people continue working from home. And as the virus spreads, new lockdowns could cause further economic disruptions. nytimes.com

Want Customers? Get Safety Right 1st
Shoppers Avoiding Unsafe Stores
Two-thirds of shoppers say the safety measures a retailer has put in place to protect them from COVID-19 will determine where they spend their money, according to a recent survey conducted by business solutions company Cennox.

The survey also revealed that 46% of shoppers think safety measures put in place at supermarkets and retail stores have been inadequate or poorly managed, and only 7% said they have complete trust that retailers will keep them safe. Over two-thirds of shoppers (69%) said that they would consider switching from their regular supermarket if their in-store safety expectations were not met. supermarketperimeter.com

Then Comes Racism & Diversity
Masks, BLM Drive Retail Boycotts From Both Sides
Retail boycotts are on the rise, especially among younger consumers. Racism and mask policies stand as big reasons for those actions, with consumers on both sides taking stances.

The survey found that 38% of consumers are withholding their dollars from at least one company, up from 26% in January 2019. The main reason for those boycotts are political - that is, not about such other factors as poor customer service, return policies or mishandled payments.

Of those boycotting customers, 23% said they are avoiding companies because of accusations of racism leveled against them. "A similar number of consumers said the diversity of a company's executive suite factors into their decision to spend money with that company," according to the survey report.

As more retailers rush to implement masks requirements for shoppers, consumers appear divided on where they stand, according to this research. It found that "16% are withholding dollars from businesses that don't require shoppers to wear masks, but 15% are boycotting places that do require patrons to don face coverings." That battle appears to be turning in favor of mandatory mask policies for retail shoppers even though some states have resisted pressure to set their own requirements. progressivegrocer.com

Store Health Ambassadors
Wal-Mart stands its ground in the War on Masks
Monday marked the first day of Wal-Mart's nationwide mask decree: no mask, no service. How would that go over in Georgia, a state whose governor has not only shot down mask mandates but filed a lawsuit against them? That was the quest, and it began ... quietly.

"Only one person complained," said the greeter, who sported a Wal-Mart-blue mask. So what happened? "She put on a mask and went inside."

"As a company, Walmart has encouraged customers to wear protective facial coverings for the last several months," Wal-Mart said in a statement provided to Yahoo News. "Through a new role, store health ambassadors, we'll continue informing customers about the benefits of wearing protective coverings, whether it be for their safety as explained by the CDC, or by orders issued from elected officials."

(Update: since the initial publication of this article, I've heard multiple stories of ambassadors just letting customers walk into stores without masks. I've reached out to Wal-Mart for comment, but let's be honest: nobody wants to be the target in a social media tantrum video, and "bouncer" isn't in most Wal-Mart employees' job description.)

Legal CYA

It's also a bit of preemptive tail-covering. Coronavirus lawsuits are coming before long, as individuals try to pin the blame for their infection on outside entities. But even though such lawsuits have a flimsy-at-best chance of success, corporations know the best defense is anticipatory offense.

"Certainly, by requiring [masks], it's one step toward avoiding any negligence claim [from a customer]," "Stores and schools are going to want to err on the side of caution, and most of them are going by CDC guidelines as a demonstration of lack of negligence." yahoo.com

Covid-19 Prompts Walmart to Close Stores on Thanksgiving Day & Pays Another $428M Bonus
Walmart said it will close stores on Thanksgiving Day this year to avoid crowds.

Walmart to pay $428 million in staff bonuses Walmart also said Tuesday it will pay out another special cash bonus to store, club, distribution center and fulfillment center associates as a reward for serving customers during the coronavirus pandemic. wsj.com

Retailers Figuring Out How to Respond to COVID
REI Faces Staff Backlash Over Response to Covid-19 Cases
The co-op has raced to respond to criticism from store workers about how it has handled coronavirus cases at reopened locations.

Its previous approach to handling cases among employee was in compliance with guidelines from the Centers for Disease Control and Prevention, it changed its policy on Tuesday "to expressly give managers the authority to notify the full team at their store if there is a known Covid case," and when that employee was last at work, Rob Discher, an REI spokesperson, said in an email. That same day, Eric Artz, REI's chief executive, disclosed in a companywide meeting that there were 18 active coronavirus cases across the co-op, which has roughly 13,000 employees.

Retailers across the country are having to adjust to the surging pandemic and its effects on stores and employees. The rapid onset of the virus and shifting guidelines from the C.D.C. have forced retailers to figure out new safety protocols on the fly, from whether employees (and now customers) should be required to wear masks to deciding how to notify workers that they may have been exposed to the virus.

"Ethically, it would be appropriate to inform employees that someone tested positive but I don't think there is a uniform standard at this time," said Nicole Huberfeld, a public health expert and law professor at Boston University. "We need to figure it out - we're always running to stand still during this outbreak." wsj.com

Background Screeners Turn to COVID-19 Testing
Background-screening companies have begun offering COVID-19 testing and administration services as a natural extension of their existing business offerings. These providers, which conduct pre-employment background checks on job candidates, are leveraging relationships with nationwide laboratories, along with established technology platforms and compliance expertise, to help organizations test employees who are returning to the workplace.

New York City-based Sterling is one background screener now offering such end-to-end health testing services. shrm.org

Can your employer be held responsible if you get coronavirus when
you return to work?
Legal experts say employees probably will be limited to workers compensation claims, and those may be hard to secure.

Unless a person has a disability or medical condition that employers are legally required to accommodate, most Texans will have to return to work when their employers decide it's OK.

But what if you contract the virus after you return? Can your employer be held liable for your illness? Here's what you need to know about employees' rights during the COVID-19 outbreak.

Can you sue your employer if you get COVID-19 after you go back to work?

There's one exception to that trade-off: If the employer showed reckless disregard or negligence for the health and safety of its employees. dallasnews.com

U.S. Retailer Requiring Masks List Grows
Ingles Markets, Aldi, Meijer, Lowe's to require masks. Winn-Dixie reverses course and mandates masks, too.

UK - July 24th Face Masks Become Compulsory in Shops in England

L.A. County reports record number of coronavirus hospitalizations

American Hotel & Lodging Association (AHLA) Releases Safe Stay Guest Checklist
 

LexusNexis 2020 True Cost of Fraud Study: E-commerce/Retail Edition
The study included a comprehensive survey of 801 risk and fraud executives in Retail and E-commerce companies in the U.S. and Canada.

This research was conducted pre- and during the COVID-19 shutdown. Results have been analyzed by these time periods to understand any impacts on and challenges related to fraud detection and prevention during this unprecedented time.

Key Finding #1: Fraud continues to increase, with significant impacts to Mid / Large retailers and E-commerce merchants.

The cost of fraud has risen 7.3% across US retailers and e-commerce merchants. Every $1 of fraud now costs them $3.36 compared to $3.13 in 2019. This is significantly higher compared to $2.87 (USD) for Canadian retailers overall.

The average number of successful fraud attempts has increased more so for US Mid / Large retailers, by 43% - 48% since 2019.

Download the report

Tapestry CEO Resigns After Board Opened Investigation into His Personal Behavior
The parent company of Coach and Kate Spade said Mr. Zeitlin had resigned Tuesday for personal reasons after less than a year in the role.

The board hired the law firm Fried, Frank, Harris, Shriver & Jacobson LLP to investigate allegations raised by at least one woman, the people said. The woman accused Mr. Zeitlin of posing as a photographer under an alias to lure her into a romantic relationship more than a decade ago, the people said.

"In the past month, a woman I photographed and had a relationship with more than 10 years ago reached out to various media organizations to express her concerns about what had occurred," Mr. Zeitlin said in a statement Tuesday. "I felt compelled to resign today because I do not want to create a distraction for Tapestry, a company I care deeply about."

In 2007, Mr. Zeitlin and the woman, a model looking for headshots, met on an online site where he posed as a photographer under an alias, one of the people familiar with the situation said. Mr. Zeitlin and the woman entered into a romantic relationship, but he never disclosed his true identity, this person said. wsj.com

Nordstrom Lays Off 521 in Seattle
The department store has announced the closure of 16 full-line stores, its Trunk Club locations and three specialty stores, leaving off-price Rack intact, and has informed its landlords that it won't pay full rent for the rest of the year. retaildive.com

Tailored Brands Plans to Reduce 20% Corp. Headcount & Close Up to 500 Stores
Our brands include Men's Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G.

Aldi Hit 2,000th Store in U.S. & Opening 70 in 2020
Chipping Away at the Big Boys

Sephora Cuts 117 Jobs (7% of corp.) in Restructuring

Allied Universal Acquires Chicago-Based Phoenix Systems & Service

The Monitoring Association (TMA) 2020 Fall events pivot to virtual format

Kmart Store Count Down to 95 Now

LinkedIn to Lay off 6% (960 Jobs) of Workforce