WASHINGTON - In what's being called a "huge blow to all Internet users," a federal court ruled Tuesday in favor of Verizon, striking down Federal Communications Commission rules that regulate the Web.

The ruling from the U.S. Court of Appeals for the District of Columbia means broadband providers such as Verizon could charge content providers such as Netflix or ESPN higher prices for faster download speeds, creating Internet "fast lanes."

Josh Levy, Internet campaign director for the watchdog group Free Press, said Verizon revealed a broader goal in its court arguments in the case against the FCC.

"It actually said that it has the right to treat the Internet as a newspaper, and it would be the editor of that newspaper," Levy said. "It would have the right to block or not block whatever content flows over its pipes."

The FCC's new commissioner, Tom Wheeler, said the agency might appeal the ruling.

The court's decision opens the door to the FCC drafting new and different rules, said Levy, adding that he thinks a public outcry to protect net neutrality - such as that which nearly brought the Internet to a halt two years ago over the proposed Stop Online Piracy Act, or SOPA - could be another reaction.

"We think this is a huge blow to all Internet users, who can now expect Internet service providers to block any content on the Internet at will," Levy said. "Right now, there's no 'cop on the beat' that will be able to stop them from doing so."

The court acknowledged that the FCC has the authority "to promulgate rules governing broadband providers' treatment of Internet traffic." Levy said that gives the agency a chance to rewrite the provisions.

"They were struck down because they weren't passed in the right way," he said, "and so, what we need is for the FCC to pass strong protections for Internet users in the right way."

Two years ago this week, Wikipedia, Google and hundreds of other websites coordinated a one-day Internet blackout in opposition to SOPA, a government effort to fight copyright infringement and counterfeiting. SOPA was seen as a threat to Internet freedom. Levy said this week's court ruling will be viewed in the same way.


get more stories like this via email

Consumer groups are accusing major grocery retailers - like Amazon, Kroger and Walmart - of price gouging, both during and after the pandemic.

The allegation of corporate greed comes after a new report from the Federal Trade Commission found profits for grocery chains jumped sharply, at rates that could not be justified by supply chain disruptions.

Angela Huffman is president of the nonprofit Farm Action.

"It's one thing to raise your prices to cover higher expenses, but what these companies did is use the pandemic as an excuse to exploit the American people who needed to put food on their tables," said Huffman. "And the FTC report shows that they're still doing it, here in 2024."

The report found that retailer profits rose to 6% over total costs in 2021, and 7% in the first three quarters of 2023 - compared to 5.6% in 2015.

According to a report from Help Advisor, California households pay the highest grocery costs in the country, averaging almost $300 a week - about $27 more than the national average.

The Food Industry Association blames today's high prices on high labor costs and credit card payment fees.

Huffman said she thinks the feds should take anti-trust action to increase competition - and consider forcing the grocery behemoths to break up.

"That would be the ideal outcome is to take away their excessive power," said Huffman. "But other than that, these companies can be fined for this kind of price gouging. And that's another action we would support. There needs to be some kind of consequences."

The FTC staff report recommends "further inquiry by the commission and policymakers," but doesn't propose specific remedies.




get more stories like this via email

Air travelers could face fewer obstacles in securing a refund if their flight is canceled or changed under new federal rules announced Wednesday.

The moves are being praised by watchdog groups. The Department of Transportation said airlines are now required to promptly provide passengers with automatic cash refunds when they are owed one.

Teresa Murray, consumer watchdog director for the U.S. Public Interest Research Group, said some carriers have not adhered to standards, leaving passengers in a bind.

"They would drag their feet, and they would say, 'Well, you bought your ticket from a ticket agent, so we don't know where your money is. Or, here, have a voucher,'" Murray explained.

Amid higher complaint volumes, companies will be forced to act quickly. The new rules, which are being phased in, provide clearer definitions for travel disruptions, including delays of at least three hours on a domestic flight and six hours on international flights. A key industry group responded to the announcement by touting transparency efforts among carriers.

Murray acknowledged most people are not frequent flyers, and it is hard for them to keep up on all the least practices and policies among airlines.

"The average person only flies once every 18 months," Murray pointed out. "This will just bring transparency to that process and it kind of evens the playing field."

Murray added it could come in handy for Midwestern customers when a winter storm wreaks havoc on air travel. The new rules also require refunds for baggage fees when a piece of luggage is delayed by 12 hours or more for domestic flights. And there must be upfront disclosure on fees for first and second checked bags and carry-on bags.


get more stories like this via email

Wisconsin lawmakers recently debated reforms for payday loans. Efforts to protect consumers come amid new research about financial pain associated with cash advances offered through smartphone apps. The Center for Responsible Lending is out with findings that detail how "earned wage advances" from digital platforms come with extra costs disguised as things like tips. Traditional payday lenders are often criticized for charging excessive interest rates on loans that are usually around $500.

Lucia Constantine, a researcher with the Center for Responsible Lending, said customers are usually seeking smaller amounts from the apps, but she warns they can be just as costly.

"They are trapping consumers in a cycle of borrowing that is similar to that of a payday loan, " she said.

The report said after using these financial products, customers are seeing overdrafts on their checking accounts increase by 56% on average. Industry leaders deny they're barraging consumers with hidden fees, stressing that features such as suggested tips are optional. More broadly, a bipartisan payday loan reform bill in the Wisconsin Legislature failed to advance this month.

Constantine said like longstanding payday lenders, these cash advance apps can be hard to regulate. Meanwhile, she urged those in a bind to explore other options.

"[They should] try talking to their friends and family as a first source. The other option which I would recommend is reaching out to their credit union or banking institution to see if they can get some sort of small-dollar loan," she said.

She noted places such as credit unions typically provide more transparency on loan costs. According to the report, three-quarters of consumers took out at least one advance on the same day or day after a re-payment was posted.


get more stories like this via email