uYotaPhone 2 Cancels U.S. Version, Offers Limited Refunds Insteadr

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• It’s easy to understand why gadget fans were interested in the Yotaphone 2: it’s an Android smartphone with a regular touchscreen on the front and an e-ink display that can display widgets or function as a power-saving regular screen on the back. When the company behind the phone announced in May that a U.S. version compatible with our LTE networks here in the US would become available, lots of people stepped up to place orders, including reader Steve.

  The company used Indiegogo for the pre-order process, and took in almost $300,000. The first 100 backers could reserve a phone for $500 each, and they cost $525 each after that. They would be unlocked GSM phones which would work with T-Mobile or AT&T or compatible MVNOs on their networks, such as Ting or StraightTalk. Most importantly, unlike the phone’s international versions, it would be compatible with LTE networks in the United States. The phones were supposed to ship next month…and then the company dropped the bad news.

  It’s important to note here that even though this was a crowdfunded pre-order process, the campaign was no sketchy crowdscam. Yota Devices is a fully-grown company that sells actual devices in other countries, and the YotaPhone 2 has been on the market elsewhere since May of this year. There were rumors that the company would be selling their phone through T-Mobile.

  They sent this update to backers:

  The reason for our cancelled launch is due to unforeseen delays including both production and delivery of the North American variant of YotaPhone 2 from our manufacturer. This despite spending months finalizing and securing the deal to bring to life the North American variant of YotaPhone 2, and when we launched this campaign we were confident our supplier would be able to follow through with their commitment. This was a shock to everyone at Yota Devices, and our leadership team, including our CEO, met with the manufacturer last week in a last-ditch effort to find a solution but the logistics were insurmountable and the device would simply arrive too late. In turn, we believe that the likelihood of a severe delay in these shipments would have created a conflict with our international road map for 2016, leaving Indiegogo supporters behind when customers in other regions will be offered a newer, cheaper and better YotaPhone.

  A later update to the IndieGoGo page gave users two options: to have the international phone shipped to them instead: it’s the same device, but not compatible with the LTE that we use in this country. While this is the most professionally-handled crowdfunding failure that we’ve ever seen, reader Steve, who let us know about this, pointed out one problem: they’re issuing refunds for customers who want them through Square Cash, a service that needs to be tied to a debit card to work. What if, like Steve, you don’t have a debit card?

  Steve made his pre-order pledge more than two months ago, so disputing the charge on his credit card is out of the question. He’s asked the company whether customers who don’t want to use Square have an alternative option, and we’ve contacted them too. We’ll update this post if we hear anything.

  YotaPhone 2 won’t be coming to the US [The Verge]

  
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by Laura Northrup via Consumerist

uMozilla Displeased That Windows 10 Changes User’s Default Browserr

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• Over at Mozilla HQ, they make web browsers that run on various platforms, including Windows. Over at Microsoft, they have their own new browser that is part of Windows, and they’d really like everyone to use it. According to Mozilla, the new version of Windows steamrolls over a user’s preferred app settings and makes Microsoft’s Edge browser the default. Mozilla is not fond of this change.

  In an open CEO-to-CEO letter, Mozilla CEO Chris Beard tells Microsoft CEO Satya Nadella that the Mozilla team was disappointed to learn that the the new version of Windows overrides current preferred apps by default, unless the user knows how to change this while installing Windows.

  “We appreciate that it’s still technically possible to preserve people’s previous settings and defaults, but the design of the whole upgrade experience and the default settings APIs have been changed to make this less obvious and more difficult,” Beard explains. Most people might be able to figure this out, but they don’t know that they’ll need to do it. That’s the reason for Mozilla’s campaign.

  The open letter is because Microsoft hasn’t responded to Mozilla’s queries about the situation or why Windows installation overrides the user’s current preferences.

  Windows 10 is a free upgrade for current home users of Windows 7 or 8, which means that it’s sure to be a popular upgrade. Mozilla has put together its own education campaign for users to show them how to get Mozilla’s Firefox back as their default browser if they’ve already upgraded: it’s less than a minute long, but not everyone would be able to figure this out intuitively.

  Safeguarding Choice and Control Online [Mozilla]
  An Open Letter to Microsoft’s CEO: Don’t Roll Back the Clock on Choice and Control [Mozilla]

  
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by Laura Northrup via Consumerist

uSling TV Says Comcast-Owned NBC Stations Are Blocking Its Adsr

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• 

  (Sling TV)

  There’s a rumble brewing in telecom town: Sling TV is accusing Comcast of keeping its ads off some NBC stations’ airwaves. Which is exactly what the big bad cable company in its recent marketing campaign would do, Dish Network-owned Sling says.

  Sling threw down the gauntlet in a blog post on Thursday by CEO Roger Lynch.

  “We recently learned that NBC blocked Sling TV’s new advertisements from airing on its owned and operated (O&O) stations. For anyone who needs a reminder, Comcast – the standard bearer for ‘Old TV’ in the U.S. – owns the NBC broadcast network, and by extension, its O&O stations across the country,” Lynch writes. “At this time, NBC’s O&O stations in San Diego, San Francisco and Washington, D.C. have rejected the ads.”

  In contrast, Lynch notes that Sling’s ads are currently running on ABC, CBS and Fox O&O stations and affiliates, “as well as independently-owned NBC affiliates (emphasis on ‘independently-owned,’ or in other words, not owned by Comcast).”

  The ad in question features pre-teen bullies employed by “Old TV” beating up on average customers: the meanies administer wedgies and wet willies, treat customers to scathing admonitions when they try to get out of contracts and literally beat down on folks who resist.

  Though Comcast is not named in the ad, Sling thinks it’s no coincidence that the company has responded this way, as it reinforces the campaign’s truth that traditional pay-TV players “just don’t get it,” Lynch says.

  “And what is it that they don’t get?” Lynch asks. “Innovation benefits customers.”

  He goes on to point out that many customers are sick of long-term contracts, expensive programming bundles, high prices and poor customer service.

  “Instead, we want TV on our terms. To come and go as we like. To watch great content, including sports, on the devices we own and use. And perhaps most importantly, we want rational pricing,” the post reads. “This is what our new commercials call out. This is what Comcast doesn’t want you to see.”

  It’s worth noting that Comcast recently announced its intention to test its own version of live TV that streams through the Internet, aptly enough called “Stream.”

  This would differ from Sling TV: Comcast says Stream would include stations like ABC, CBS, CW, FOX, NBC, PBS, Telemundo and Univision, that are freely available over the air for anyone with a decent antenna, as well as HBO.

  Sling, meanwhile, peddles a “Best of Live TV” lineup for $20/month with a slew of channels like A&E, Adult Swim, AMC, Bloomberg, Cartoon Network, CNN, Disney Channel, ESPN, ESPN2, Food Network, Lifetime, TBS, TNT and others in its base package, as well as various add-ons like HBO, available for $15 per month.

  In any case, Lynch sees Comcast’s move to ban Sling ads as a compliment.

  “Hey, if they’re going to go through the trouble of banning our ads, we must be doing something right,” Lynch says. “I hope you take our commercials and share them with your friends.”

  (H/T Wired.com)

  
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by Mary Beth Quirk via Consumerist

uRegulators Settle Charges That Reynolds, Lorillard Merger Would Be Anticompetitiver

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• 

  (MarteaDesignCo)

  A year after the No. 2 and No. 3 cigarette brands in the country first announced they were planning to go all-in on a $27.4 billion merger, regulators have approved an order settling charges that the deal would be anticompetitive for the U.S. cigarette market, paving the way for the merger to move forward.

  The Federal Trade Commission announced today it had approved an order stipulating that betrothed tobacco companies R.J. Reynolds American Inc. – the maker of Camel and Pall Mall – and Lorillard – the maker of Newport cigarettes – divest four cigarette brands to a UK-based company.

  The proposed combination of the two companies would create a formidable rival for current top cigarette company Altria Group, the maker of Marlboro. Altria currently accounts for 46% of the U.S. cigarette market, while Reynolds has about 25% and Lorillard about 12% of the market.

  Back in May, the regulator proposed [PDF] that Imperial Tobacco Group will buy three brands (Salem, Kool and Winston) from Reynolds and Lorillard’s Maverick brand in order to preserve competition.

  Imperial Tobacco Group currently has a competitive presence in about 70 countries, but a relatively small presence in the U.S. By taking over the four brands, the company will be a more substantial competitor for the merged companies and Altria, and become the third-largest cigarette maker in the U.S.

  According to the FTC’s complaint [PDF], the merger raised significant competitive concerns as it had the potential to eliminate current and emergent competition for Reynolds and Lorillard in the U.S. market.

  Additionally, the FTC determined that without divestiture there was a likelihood that the merger would unilaterally raise prices, and that coordinated interaction would occur between Reynolds and Altria.

  In addition to divesting the four cigarette brands, Reynolds must divest to Imperial the Lorillard manufacturing facilities in North Carolina and provide Imperial the opportunity to hire most of the existing management, staff and salesforce.

  The newly-merged companies must also provide Imperial with retail shelf space for a short period of time and provide other operational support during the transition.

  FTC Approves Final Order Preserving Competition in U.S. Market for Cigarettes [The Federal Trade Commission]

  
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by Ashlee Kieler via Consumerist

uInvestors Sue American Express After Loss Of Costco Agreementr

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• 

  (The.Comedian)

  Five months after American Express and Costco announced they would go their separate ways and end their exclusive relationship – essentially allowing members of the warehouse club to use other cards – shareholders for the credit card company have filed a lawsuit claiming it blindsided investors with the loss of the contract.

  The lawsuit [PDF], filed by Plumbers and Steamfitters Local 137 Pension Fund, accuses American Express of failing to reveal how significant the 16-year long contract with Costco had become to the business.

  According to the lawsuit, which seeks class-action status on behalf of all shareholders who bought stock between Oct. 16, 2014 and Feb. 11, 2015, American Express had accelerated its talks with Costco regarding renewal of its exclusive deal that was set to expire in March 2016 without the knowledge of investors.

  “Defendants never disclosed the financial impact of the U.S. Costco co-branding agreement on AmEx’s reported financial results,” the suit states.

  The investors contend that the U.S. Costco co-branding contract was “highly material to AmEx’s business,” representing 8% of the company’s revenues in 2014; 20% of its outstanding loans and 10% of its cards issued worldwide.

  “Because AmEx concealed throughout the class period just how material the U.S. Costco co-branding relationship was to AmEx’s business and financial prospects and thereby overstated the continuing revenue growth prospects of its all-important U.S. Card Services segment,” the lawsuit states.

  In December 2014, the shareholders claim AmEx’s stock traded at artificially inflated prices – reaching a high of $95 per share. Then without notice in February 2015, the company announced it had lost the Costco contract and stocks plummeted to $77.53 per share.

  The lawsuit, which asks for a jury trial, seeks unspecified damages.

  [via Reuters]

  
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by Ashlee Kieler via Consumerist

uJust Because You Find $150K Sitting Around Doesn’t Mean You Get To Keep It, Buy A New Carr

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• 

  (Tracy O)

  One might think that the average adult would be aware that the playground rule of “finders, keepers” doesn’t apply to most situations in life that aren’t scavenger hunts. But one would be wrong, if the police investigating the theft of a bag filled with $150,000 in cash are correct.

  Authorities say a man picked up the bag, which was left outside a New Jersey business by ATM workers on Monday, and took the money home, reports the Associated Press.

  Not content to simply rest on a pile of cash, police say he took some of that money and bought an SUV with it a few hours after the find. His time with the new Chevrolet Tahoe was short-lived, as police arrested him on Wednesday as one of two suspects they believe made off with the bag of moolah.

  Police said a white van caught on surveillance video pulling up to the loot had a passenger who hopped out to grab the cash. That same van was seen in another video where the suspects allegedly stole tires from an auto repair business.

  The suspect was arrested after police found the van. He said he was driving it and admitted that an SUV — valued at about $46,000 and found nearby — had been bought soon after the grab. He was charged with theft of mislaid property, or what we will call violating the “anti-finders keepers law.”

  Police issued a warrant for the arrest of the van’s passenger, who is also wanted for a probation violation.

  Cops: Man buys car after taking $150,000 left by ATM workers [Associated Press]

  
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by Mary Beth Quirk via Consumerist

uUnited Airlines CEO: Checked Bag Fees Are Here To Stay, Just Part Of Doing Businessr

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• 

  (Adam Fagen)

  Despite Southwest Airlines’ recent admission that charging for bags would be a financially irresponsible policy change, it doesn’t appear that other airlines feel the same way.

  Reuters reports that United Airlines, for one, has no plans to stop charging check bag fees, no matter what other airlines do.

  The airline’s CEO Jeff Smisek defended the fees, noting that some passengers have “difficulty recognizing that we’re now a business.”

  “They criticize us if we charge for more legroom. Let me tell you though: that’s what businesses do,” he said during an industry lunch on Thursday.

  Smisek said that customers should expect checked bag fees to be based on a sliding scale, like extras offered by other businesses.

  “If you want more data on your data plan so you can watch faster, better cat videos, you call AT&T, and they’re happy to increase your data plan,” he said. “And they charge you for it. That’s what businesses do.”

  Airline checked bag fees, which range from $15 to more than $25, have become an important source of revenue for many carriers. According to the U.S. Department of Transportation, the first three months of 2015 saw airlines collecting more than $864 million in revenue from the fees.

  Despite those proceeds, Southwest said earlier this week that it isn’t doing so bad without the added fees. The company’s net income increased nearly $143 million over the past year.

  Of course, hefty fees for checked bags could soon be a thing of the past, as legislators recently introduced the Baggage Fee Fairness Act of 2015 that would limit checked-baggage charges to just $4.50/bag.

  United Airlines CEO: Checked bag fees are here to stay [Reuters]

  
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by Ashlee Kieler via Consumerist