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United States

Delta Air Lines CEO Questions Financial Strategy of Low-Cost Carriers (businessinsider.com) 43

Delta Air Lines CEO Ed Bastian had stark words for competing airlines that depend on selling low-priced tickets to stay alive. From a report: "You cannot, if you are on the lower end of the industry's food chain, continue to post losses, particularly given the health of the demand set we've seen over these last couple of years," Bastian said as Delta reported disappointing second-quarter financials and warned things could get even worse.

Airlines that can't break even "will not be given the opportunity to continue to run business models they have," he added. Bastian's comments came in response to a question about the potential for structural changes within the industry as many airlines struggle to remain profitable. [...] A big contributor to the lower profits was lower airfares and extra capacity, especially in economy class,

United States

FBI Has 'Gained Access' To the Trump Rally Shooter's Phone [UPDATE] (theverge.com) 948

UPDATE 7/15/24 3:05 p.m. EDT: In a press release published this afternoon, the FBI said they "successfully gained access to Thomas Matthew Crooks' phone, and they continue to analyze his electronic devices." The bureau added that it has completed its search of the subject's residence and vehicle, and "conducted nearly 100 interviews of law enforcement personnel, event attendees, and other witnesses."

Original Story: July 15, 16:45 UTC: Investigators are working to break into the phone of the man who shot at former President Donald Trump at a Pennsylvania rally on Saturday. The Verge: The FBI said in a statement that it had obtained the shooter's phone "for examination." Officials told reporters in a conference call on Sunday, as reported by The New York Times, that agents in Pennsylvania were unable to break into the phone. It's been shipped to the FBI's lab in Quantico, Virginia, where the FBI hopes to get past the phone's password protection, the Times reported.

Investigators are still looking for insight into the motives of Thomas Matthew Crooks, a 20-year-old from Bethel Park, Pennsylvania, who they identified as the gunman. Kevin Rojek, the FBI special agent in charge in Pittsburgh, told the Times and other outlets that the agency has access to some of Crooks' text messages, but they haven't shed much light on his beliefs.

Communications

Nation's Last Morse Code Station Comes Back To Life On Annual 'Night of Nights' In Point Reyes (mercurynews.com) 20

On July 12, 1999, the last Morse code message was sent from a Bay Area radio station, marking the end of an era. Every July 12, the Historic KPH Maritime Radio Receiving Station in Point Reyes revives the golden age of maritime radio, with volunteers exchanging Morse code messages worldwide. The Mercury News reports: Friday's "Night of Nights" event, which commemorates the long-gone stations and the skilled radiotelegraph operators who linked ships to shore, starts at 5:01 p.m. -- precisely one minute after the 1999 message ended. Operators will keep working until 11 p.m. "We're carrying on," said historical society president Richard Dillman, 80, who learned Morse code as a boy. "Morse code is not dead."

The event, based at KPH's stations that are now part of the wild and windswept Point Reyes National Seashore, northwest of San Francisco, is not open to the public. But amateur radio operators around the world can participate by sending messages and exchanging greetings. The operating frequencies of the historical society's amateur station, under the call sign K6KPH, are 3550, 7050, 14050, 18097.5 and 21050. Radiogrammed messages arrive from as far away as New Zealand and Europe, rich with memories of rewarding careers or poignant tributes to lost loved ones. "Dear dad, we love you and we miss you so much," said one. The station uses the original historic KPH transmitters, receivers, antennas and other equipment, carefully repaired and restored by the society's experts. [...]

All over the Pacific coast, stations closed. KPH's receiving headquarters -- an Art Deco cube built between 1929 and 1931, its entrance framed by a tunnel of cypress trees -- was acquired by the National Park Service in 1999. Its transmission station is located on a windswept bluff in Bolinas. [Historical society president Richard Dillman] and friend Tom Horsfall resolved to repair, restore and operate KPH as a way to honor the men and women who for 100 years had served ships in the North Pacific and Indian Ocean. "It was a brotherhood," said Dillman. "There was camaraderie -- a love of Morse code and the ability to do a job well." [...] They pitched their ambitious plan to the National Park Service.

"At first, I was skeptical about their proposal," said Don Neubacher, the Seashore's former Superintendent. "But over time, I realized the Maritime Radio Historical Society, led by Richard Dillman, was a gift for the National Park Service." "I was impressed by the overwhelming knowledge of early wireless and ship-to-shore communication," he said, "and their lifelong commitment to saving this critical piece of Point Reyes history." With a dozen society volunteers from all over the Bay Area -- all over the age of 60, self-described "radio squirrels" -- they went to work. They meet on Saturday mornings over coffee and breakfast "services" dubbed "The Church of the Continuous Wave," sometimes ogling over radio schematics. Then, for a few hours, they broadcast news and weather.

AT&T

AT&T, Verizon Tangle Over 5G Service for Emergency Responders (wsj.com) 17

Two of the nation's major telecommunications companies are feuding over a plan to boost service for police, firefighters and other state and local agencies -- a move Verizon says would amount to a $14 billion gift to rival. From a report: AT&T and its allies are asking regulators to provide more wireless frequencies to FirstNet, a cellular network launched in 2017 to connect emergency responders and other public-sector groups. The Dallas-based telecom giant holds an exclusive 25-year contract to run the network for the federal FirstNet Authority, which oversees the project.

Rival telecom companies say the proposal would let AT&T's commercial business piggyback on those airwaves free. Verizon, which vies with FirstNet for public-safety contracts, called the proposal a giveaway of spectrum valued at around $14 billion that would give its competitor a "substantial windfall." T-Mobile US likewise urged regulators to avoid a "FirstNet takeover" of the spectrum. The carrier hasn't made its case as forcefully as Verizon, whose chief executive traveled to Washington twice in recent weeks to lobby regulators.

Government

Admiral Grace Hopper's Landmark Lecture Is Found, But the NSA Won't Release It (muckrock.com) 68

MuckRock is a U.S.-based 501(c)(3) non-profit collaborative news site to "request, analyze and share government documents," according to its web site.

And long-time Slashdot reader schwit1 shared their report about a lecture by Admiral Grace Hopper: In a vault at the National Security Agency lies a historical treasure: two AMPEX 1-inch open reel tapes containing a landmark lecture by Admiral Grace Hopper, a giant in the field of computer science. Titled 'Future Possibilities: Data, Hardware, Software, and People,' this lecture, recorded on August 19, 1982, at the NSA's Fort Meade headquarters, and stored in the video archives of the National Cryptographic School, offers a rare glimpse into the mind of a pioneer who shaped the very fabric of technology. Yet this invaluable artifact remains inaccessible, trapped in an obsolete format that the NSA will not release, stating that the agency is unable to play it back.
"NSA is not required to find or obtain new technology (outdated or current) in order to process a request," states the official response from the agency. But MuckRock adds that on June 25, "responding to a follow-up request, the NSA at least provided an image of the tape labels," leading MuckRock to complain that the NSA "is well-positioned to locate, borrow and use a working VTR machine to access Admiral Hopper's lectures... The NSA, with its history of navigating complex technological landscapes and decrypting matters of national significance, does not typically shy away from a challenge." The challenge of accessing these recordings is not just technical, but touches on broader issues around preserving technological heritage.... It is our shared obligation to safeguard such pivotal elements of our nationâ(TM)s history, ensuring they remain within reach of future generations. While the stewardship of these recordings may extend beyond the NSAâ(TM)s typical purview, they are undeniably a part of Americaâ(TM)s national heritage.
Earth

Across the US, Heat Keeps Breaking Records (opb.org) 185

The western United States is experiencing an unprecedented heat wave, with multiple states breaking temperature records in recent weeks. Palm Springs, California has been particularly affected, shattering its all-time high temperature record when it reached 124F (51.1C) last Friday. The National Weather Service reported that Palm Springs hit 122F (50C) on July 8, the highest temperature ever recorded for that date.

This extreme heat is not isolated to Palm Springs, as Arizona, Oregon, and Nevada have also seen record-breaking temperatures. Climate scientists attribute this intensifying heat to human-caused climate change. The heat wave comes as global temperatures continue to rise. According to the European Union's Copernicus Climate Change Service, the world has been at or above the 1.5 degree Celsius threshold for 12 straight months as of June, a key marker in climate change discussions.
United States

Silicon Valley Wins Few Government Contracts (wsj.com) 54

The federal government has spent $22 billion in recent years on technology from the top 100 national-security startups, a paltry portion of overall contract spending and less than half of what venture capitalists have invested in those same companies. WSJ: The gap underscores the discrepancy between the surge of venture capital funding for defense technology and the U.S. government's spending on substantial contracts to startups. The new numbers come from a report released Thursday by Silicon Valley Defense Group, a nonprofit that started a decade ago with the aim of bringing more startup innovation to the Defense Department.

According to the report, the top 100 venture capital-backed national security startups have raised a combined $53 billion in private funding since their inception, $11 billion of which has come in the past 12 months. Those same startups have collectively earned $22 billion in revenue from federal awards, $6 billion of which came from the Defense Department. The organization ranked the startups based on head count growth, total capital raised and other factors.ÂTraditional defense contractors receive hundreds of billions in awards every year.

China

China Outspends the US on Fusion in the Race for Energy's Holy Grail (wsj.com) 75

A high-tech race is under way between the U.S. and China as both countries chase an elusive energy source: fusion. From a report: China is outspending the U.S., completing a massive fusion technology campus and launching a national fusion consortium that includes some of its largest industrial companies. Crews in China work in three shifts, essentially around the clock, to complete fusion projects. And the Asian superpower has 10 times as many Ph.D.s in fusion science and engineering as the U.S. The result is an increasing worry among American officials and scientists that an early U.S. lead is slipping away.

JP Allain, who heads the Energy Department's Office of Fusion Energy Sciences, said China is spending around $1.5 billion a year on fusion, nearly twice the U.S. government's fusion budget. What's more, China appears to be following a program similar to the road map that hundreds of U.S. fusion scientists and engineers first published in 2020 in hopes of making commercial fusion energy. Scientists familiar with China's fusion facilities said that if the country continues its current pace of spending and development, it will surpass the U.S. and Europe's magnetic fusion capabilities in three or four years.

Businesses

FTC Study Finds 'Dark Patterns' Used By a Majority of Subscription Apps and Websites (techcrunch.com) 35

The U.S. FTC, along with two other international consumer protection networks, announced on Thursday the results of a study into the use of "dark patterns" -- or manipulative design techniques -- that can put users' privacy at risk or push them to buy products or services or take other actions they otherwise wouldn't have. TechCrunch: In an analysis of 642 websites and apps offering subscription services, the study found that the majority (nearly 76%) used at least one dark pattern and nearly 67% used more than one. Dark patterns refer to a range of design techniques that can subtly encourage users to take some sort of action or put their privacy at risk. They're particularly popular among subscription websites and apps and have been an area of focus for the FTC in previous years. For instance, the FTC sued dating app giant Match for fraudulent practices, which included making it difficult to cancel a subscription through its use of dark patterns.

[...] The new report published Thursday dives into the many types of dark patterns like sneaking, obstruction, nagging, forced action, social proof and others. Sneaking was among the most common dark patterns encountered in the study, referring to the inability to turn off the auto-renewal of subscriptions during the sign-up and purchase process. Eighty-one percent of sites and apps studied used this technique to ensure their subscriptions were renewed automatically. In 70% of cases, the subscription providers didn't provide information on how to cancel a subscription, and 67% failed to provide the date by which a consumer needed to cancel in order to not be charged again.

United States

US Officials Uncover Alleged Russian 'Bot Farm' (bbc.com) 211

An anonymous reader quotes a report from the BBC: US officials say they have taken action against an AI-powered information operation run from Russia, including nearly 1,000 accounts pretending to be Americans. The accounts on X were designed to spread pro-Russia stories but were automated "bots" -- not real people. In court documents made public Tuesday the US justice department said the operation was devised by a deputy editor at Kremlin-owned RT, formerly Russia Today. RT runs TV channels in English and several other languages, but appears much more popular on social media than on conventional airwaves.

The justice department seized two websites that were used to issue emails associated with the bot accounts, and ordered X to turn over information relating to 968 accounts that investigators say were bots. According to the court documents, artificial intelligence was used to create the accounts, which then spread pro-Russian story lines, particularly about the war in Ukraine. "Today's actions represent a first in disrupting a Russian-sponsored generative AI-enhanced social media bot farm," said FBI Director Christopher Wray. "Russia intended to use this bot farm to disseminate AI-generated foreign disinformation, scaling their work with the assistance of AI to undermine our partners in Ukraine and influence geopolitical narratives favorable to the Russian government," Mr Wray said in a statement. The accounts now appear to have been deleted by X, and screenshots shared by FBI investigators indicated that they had very few followers.

The Courts

Oregon County Seeks To Hold Fossil Fuel Companies Accountable For Extreme Heat 220

An anonymous reader quotes a report from Ars Technica: Northwest Oregon had never seen anything like it. Over the course of three days in June 2021, Multnomah County -- the state's most populous county, which rests in the swayback along Oregon's northern border -- recorded highs of 108, 112, and 116 degrees Fahrenheit. Temperatures were so hot that the metal on cable cars melted and the asphalt on roadways buckled. Nearly half the homes in the county lacked cooling systems because of Oregon's typically gentle summers, where average highs top out at 81 degrees. Sixty-nine people perished from heat stroke, most of them in their homes. When scientific studies showed that the extreme temperatures were caused by heat domes, which experts say are influenced by climate change, county officials didn't just chalk it up to a random weather occurrence. They started researching the large fossil fuel companies whose emissions are driving the climate crisis -- including ExxonMobil, Shell, and Chevron -- and sued them (PDF).

"This catastrophe was not caused by an act of God," said Jeffrey B. Simon, a lawyer for the county, "but rather by several of the world's largest energy companies playing God with the lives of innocent and vulnerable people by selling as much oil and gas as they could." Now, 11 months after the suit was filed, Multnomah County is preparing to move forward with the case in Oregon state court after a federal judge in June settled (PDF) a monthslong debate over where the suit should be heard. About three dozen lawsuits have been filed by states, counties, and cities seeking damages from oil and gas companies for harms caused by climate change. Legal experts said the Oregon case is one of the first focused on public health costs related to high temperatures during a specific occurrence of the "heat dome effect." Most of the other lawsuits seek damages more generally from such ongoing climate-related impacts as sea level rise, increased precipitation, intensifying extreme weather events, and flooding. [...]

The Multnomah County lawsuit says that Exxon, Shell, Chevron, and others engaged in a range of improper practices, including negligence, creating a public nuisance, fraud, and deceit. The suit alleges that the companies were aware of the harms of fossil fuels and engaged in a "scheme to rapaciously sell fossil fuel products and deceptively promote them as harmless to the environment, while they knew that carbon pollution emitted by their products into the atmosphere would likely cause deadly extreme heat events like that which devastated Multnomah County." "We know that climate-induced weather events like the 2021 Heat Dome harm the residents of Multnomah County and cause real financial costs to our local government," Multnomah County Chair Jessica Vega Pederson said in a statement. "The Court's decision to hear this lawsuit in State Court validates our assertion that the case should be resolved here -- it's an important win for this community."
In the suit, officials in Portland's Multnomah County said that they will ultimately incur costs in excess of $1.5 billion to deal with the effects of the 2021 heat dome.

"We allege that this is just like any other kind of public health crisis and mass destruction of property that is caused by corporate wrongdoing," said Simon, partner in the law firm of Simon Greenstone Panatier. "We contend that these companies polluted the atmosphere with carbon from the burning of fossil fuels; that they foresaw that extreme environmental harm would be caused by it; that some of them, we contend, deliberately misled the public about that."
Spam

FCC To Block Phone Company Over Robocalls Pushing Scam 'Tax Relief Program' (arstechnica.com) 27

The Federal Communications Commission said it is preparing to block a phone company that carried illegal robocalls pushing fake programs that promised to wipe out consumers' tax debt. From a report: Veriwave Telco "has not complied with FCC call blocking rules for providers suspected of carrying illegal traffic" and now has two weeks to contest an order that would require all downstream voice providers to block all of the telco's call traffic, the FCC announced yesterday.

Robocalls sent in the months before tax filing season "purported to provide information about a 'National Tax Relief Program' and, in some instances, also discussed a 'Tax Dismissal Program,'" the FCC order said. "The [Enforcement] Bureau has found no evidence of the existence of either program. Many of the messages further appealed to recipients with the offer to 'rapidly clear' their tax debt." Call recipients who listened to the prerecorded message and chose to speak to an operator were then asked to provide private information. Nearly 16 million calls were sent, though it's unclear how many went through Veriwave.

United States

US Nuke Agency Buys Internet Backbone Data (404media.co) 24

A U.S. government agency tasked with supporting the nation's nuclear deterrence capability has bought access to a data tool that claims to cover more than 90 percent of the world's internet traffic, and can in some cases let users trace activity through virtual private networks, according to documents obtained by 404 Media. From the report: The documents provide more insight into the use cases and customers of so-called netflow data, which can show which server communicated with another, information that is ordinarily only available to the server's owner, or the internet service provider (ISP) handling the traffic. Other agencies that have purchased the data include the U.S. Army, NCIS, FBI, IRS, with some government clients saying it would take too long to get data from the NSA, so they bought this tool instead. In this case, the Defense Threat Reduction Agency (DTRA) says it is using the data to perform vulnerability assessments of U.S. and allied systems.

A document written by the DTRA and obtained by 404 Media says the agency "has a requirement to support ongoing assessments of the vulnerability of critical U.S. and allied national/theater mission systems, networks, architectures, infrastructures, and assets." The tool "is capable of following communications between servers, even private servers," which allows the agency to identify infrastructure used by malicious actors, the document continues. That contract was for $490,000 in 2023, according to the document. 404 Media obtained the document and others under a Freedom of Information Act (FOIA) request.

Crime

What Happens If You Shoot Down a Delivery Drone? (techcrunch.com) 152

An anonymous reader quotes a report from TechCrunch: As deep-pocketed companies like Amazon, Google and Walmart invest in and experiment with drone delivery, a phenomenon reflective of this modern era has emerged. Drones, carrying snacks and other sundries, are being shot out of the sky. Incidents are still rare. However, a recent arrest in Florida, in which a man allegedly shot down a Walmart drone, raises questions of what the legal ramifications are and whether those consequences could escalate if these events become more common. [...] While consumer drones have been proliferating for well over a decade, the question of legal ramifications hasn't been wholly clear. The Federal Aviation Administration (FAA) gave us a partial answer following a 2016 drone shooting in Arkansas. At the time, the FAA pointed interested parties to 18 U.S.C. 32. The law, titled "Aircraft Sabotage," is focused on the wanton destruction of "any aircraft in the special aircraft jurisdiction of the United States or any civil aircraft used, operated or employed in interstate, overseas, or foreign air commerce."

At first glance, the law appears primarily focused on manned aircraft, including a provision that "makes it a Federal offense to commit an act of violence against any person on the aircraft, not simply crew members, if the act is likely to endanger the safety of the aircraft." In responding to the Arkansas drone shooting, however, the FAA asserts that such protections can be interpreted to also include UAVs (unmanned aerial vehicles). The language does, indeed, appear broad enough to cover drones. That means, in turn, that the penalties are potentially as stiff. The subject was revived after a 2020 incident in Minnesota. In that case, the suspect was hit with felony charges relating to criminal damage and discharging a weapon within city limits. Those would likely also be the charges in most scenarios involving property, rather than bodily damage, drone or not. Even with these examples, there is not a rigid rule that predicts if or when prosecutors might also introduce a federal charge like 18 U.S.C. 32.

As the legal blog Above the Law notes, in most cases, the federal government has deferred to state law for enforcement. Meanwhile, in most cases where 18 U.S.C. 32 has been applied, if a human crew/passengers are involved, there could be other potential charges like murder. It certainly can be argued that shooting a large piece of hardware out of the sky in a heavily populated area invites its own potential for bodily harm, though it may not be prosecuted in the same manner. As drone delivery increases in the U.S., however, we may soon have an answer to the role federal legislation like 18 U.S.C. 32 will play in UAV shootings. Adding that into the picture brings penalties, including fines and up to 20 years in prison, potentially compounding those consequences. What is clear, though, is that the consequences can be severe, whether it is invoked.

United States

Chinese Self-Driving Cars Have Quietly Traveled 1.8 Million Miles On US Roads (fortune.com) 65

An anonymous reader quotes a report from Fortune: On February 1st last year, Montana residents gawked upwards at a large white object hovering in the sky that looked to be another moon. The airborne object was in fact a Chinese spy balloon loaded with cameras, sensors, and other high-tech surveillance equipment, and it set off a nationwide panic as it drifted across the midwestern and southern United States. How much information the balloon gathered -- if any -- remains unknown, but the threat was deemed serious enough that an F-22 U.S. Air Force jet fired a Sidewinder missile at the unmanned balloon on a February afternoon, blasting it to pieces a few miles off the coast of South Carolina. At the same time that the eyes of Americans were fixed on the Chinese intruder in the sky, around 30 cars owned by Chinese companies and equipped with cameras and geospatial mapping technology were navigating the streets of greater Los Angeles, San Francisco, and San Jose. They collected detailed videos, audio recordings, and location data on their surroundings to chart out California's roads and develop their autonomous driving algorithms.

Since 2017, self-driving cars owned by Chinese companies have traversed 1.8 million miles of California alone, according to a Fortune analysis of the state's Department of Motor Vehicles data. As part of their basic functionality, these cars capture video of their surroundings and map the state's roads to within two centimeters of precision. Companies transfer that information from the cars to data centers, where they use it to train their self-driving systems. The cars are part of a state program that allows companies developing self-driving technology -- including Google-spinoff Waymo and Amazon-owned Zoox -- to test autonomous vehicles on public roads. Among the 35 companies approved to test by the California DMV, seven are wholly or partly China-based. Five of them drove on California roads last year: WeRide, Apollo, AutoX, Pony.ai, and DiDi Research America. Some Chinese companies are approved to test in Arizona and Texas as well.

Fitted with cameras, microphones, and sophisticated sensors, self-driving cars have long raised flags among privacy advocates. Matthew Guariglia, a policy analyst at the digital rights nonprofit Electronic Frontier Foundation, called self-driving cars "rolling surveillance devices" that passively collect massive amounts of information on Americans in plain sight. In the context of national security however, the data-hungry Chinese cars have received surprisingly little scrutiny. Some experts have compared them to Chinese-owned social media site TikTok, which has been subjected to a forced divestiture or ban on U.S. soil due to fears around its data collection practices threatening national security. The years-long condemnation of TikTok at the highest levels of the U.S. government has heightened the sense of distrust between the U.S. and China.

Some Chinese self-driving car companies appear to store U.S. data in China, according to privacy policies reviewed byFortune -- a situation that experts said effectively leaves the data accessible to the Chinese government. Depending on the type of information collected by the cars, the level of precision, and the frequency at which it's collected, the data could provide a foreign adversary with a treasure trove of intelligence that could be used for everything from mass surveillance to war planning, according to security experts who spoke withFortune. And yet, despite the sensitivity of the data, officials at the state and federal agencies overseeing the self-driving car testing acknowledge that they do not currently monitor, or have any process for checking, exactly what data the Chinese vehicles are collecting and what happens to the data after it is collected. Nor do they have any additional rules or policies in place for oversight of Chinese self-driving cars versus the cars in the program operated by American or European companies. "It is literally the wild, Wild West here," said Craig Singleton, director of the China program at the Foundation for Defense of Democracies, a conservative-leaning national security think tank. "There's no one in charge."

United States

Boeing Will Plead Guilty To Fraud Related To Fatal 737 Max Crashes (cnbc.com) 86

Boeing agreed on Sunday to plead guilty to conspiring to defraud the government in a case linked to crashes of its 737 Max jets in Indonesia and Ethiopia that killed 346 people -- a stunning turn for the aerospace giant after the Justice Department determined that Boeing failed to live up to terms of a 2021 deal to avoid prosecution. Washington Post adds: Prosecutors alleged that two Boeing pilots concealed key information from the Federal Aviation Administration about a new automated control system on the Max. The system was implicated in both crashes, causing uncontrollable dives. By agreeing to plead guilty to the single felony count just before a midnight deadline Sunday, the company will avoid going to trial in the high-profile case.

The Justice Department filed documents related to the deal in federal court in Texas late Sunday night, setting up a planned hearing where family members -- who have criticized the pending agreement -- will be permitted to speak out. The court subsequently must decide whether to accept the plea agreement. Boeing had already agreed to $2.5 billion in penalties and payouts in 2021. As part of the new deal, the company will pay an additional $487.2 million in penalties, agree to oversight by an independent monitor, spend at least $455 million to strengthen compliance and safety programs and be placed on supervised probation for roughly three years, according to a Justice Department official. The agreement also included one thing crash victims' families long sought: a meeting with Boeing's board of directors.

Businesses

Federal Judge Partially Blocks US Ban On Noncompetes (npr.org) 136

ZipNada writes: A federal court in Texas has partially blocked the government's ban on noncompete agreements that was set to take effect September 4. An estimated 30 million people, or one in five American workers, are bound by noncompetes. The employment agreements typically prevent workers -- everyone from minimum wage earners to CEOs -- from joining competing businesses or launching ones of their own.

In its complaint, Ryan LLC accused the FTC of overstepping its statutory authority in declaring all noncompetes unfair and anticompetitive. Judge Brown agreed, writing, "The FTC lacks substantive rulemaking authority with respect to unfair methods of competition." Through a statement Wednesday evening, the FTC said its authority is supported by both statute and precedent. "We will keep fighting to free hardworking Americans from unlawful noncompetes, which reduce innovation, inhibit economic growth, trap workers, and undermine Americans' economic liberty," wrote FTC spokesman Douglas Farrar. The FTC has long argued that noncompetes hurt workers.

United States

FTC Warns Three PC Tech Companies of Potential Warranty Violations (pcworld.com) 22

The FTC has issued warnings to several tech firms, including PC manufacturers ASRock, Gigabyte, and Zotac, regarding potential violations of the Magnuson-Moss Warranty Act. The agency expressed concerns that the companies' warranty and repair policies may be infringing on consumer rights. PCWorld adds: While the specific concerns vary by company, the FTC reminded the three companies that they can't, for example, place stickers on a laptop that caution consumers that opening or repairing the laptop violates warranty policies.

Neither can they state or imply that their products can only be repaired via an authorized service from the company. In the letter sent to Gigabyte (PDF), the FTC said that its staff is "concerned" by the Gigabyte written warranty, which includes the phrase: "If the manufacturing sticker inside the product was removed or damaged, it would no longer be covered by the warranty."

United States

Supreme Court Ruling Will Likely Cause Cyber Regulation Chaos (csoonline.com) 408

An anonymous reader shares a report: The US Supreme Court has issued a decision that could upend all federal cybersecurity regulations, moving ultimate regulatory approval to the courts and away from regulatory agencies. A host of likely lawsuits could gut the Biden administration's spate of cyber incident reporting requirements and other recent cyber regulatory actions. [...] While the Court's decision has the potential to weaken or substantially alter all federal agency cybersecurity requirements ever adopted, a series of cyber regulatory initiatives implemented over the past four years could become the particular focus of legal challenges. Parties who previously objected to these initiatives but were possibly reluctant to fight due to the Chevron deference will likely be encouraged to challenge these regulations.

Although all existing regulations are still in effect, the upshot for CISOs is almost certainly some degree of uncertainty as the legal challenges get underway. A host of conflicting decisions across the various judicial circuits in the US could lead to confusion in compliance programs until the smoke clears. CISOs should expect some court cases to water down or eliminate many existing cybersecurity regulatory requirements. A host of recently adopted cyber regulations will likely be challenged following the Court's ruling, but some recent regulations stand out as leading candidates for litigation. Among these are:

United States

Biden Administration Provides $504 Million To Support 12 Tech Hubs Nationwide (apnews.com) 119

The Biden administration said Tuesday that it was providing $504 million in implementation grants for a dozen technology hubs in Ohio, Montana, Nevada and Florida, among other locations. From a report: The money would support the development of quantum computing, biomanufacturing, lithium batteries, computer chips, personal medicine and other technologies. The Democratic administration is trying to encourage more technological innovation across the country, instead of allowing it be concentrated in a few metro areas such as San Francisco, Seattle, Boston and New York City.

"The reality is there are smart people, great entrepreneurs, and leading-edge research institutions all across the country," Commerce Secretary Gina Raimondo said in a call previewing the announcement. "We're leaving so much potential on the table if we don't give them the resources to compete and win in the tech sectors that will define the 21st century global economy."

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