Privacy

Federal Appeals Court Finds Geofence Warrants Are 'Categorically' Unconstitutional (eff.org) 41

An anonymous reader quotes a report from the Electronic Frontier Foundation (EFF): In a major decision on Friday, the federal Fifth Circuit Court of Appeals held (PDF) that geofence warrants are "categorically prohibited by the Fourth Amendment." Closely following arguments EFF has made in a number of cases, the court found that geofence warrants constitute the sort of "general, exploratory rummaging" that the drafters of the Fourth Amendment intended to outlaw. EFF applauds this decision because it is essential that every person feels like they can simply take their cell phone out into the world without the fear that they might end up a criminal suspect because their location data was swept up in open-ended digital dragnet. The new Fifth Circuit case, United States v. Smith, involved an armed robbery and assault of a US Postal Service worker at a post office in Mississippi in 2018. After several months of investigation, police had no identifiable suspects, so they obtained a geofence warrant covering a large geographic area around the post office for the hour surrounding the crime. Google responded to the warrant with information on several devices, ultimately leading police to the two defendants.

On appeal, the Fifth Circuit reached several important holdings. First, it determined that under the Supreme Court's landmark ruling in Carpenter v. United States, individuals have a reasonable expectation of privacy in the location data implicated by geofence warrants. As a result, the court broke from the Fourth Circuit's deeply flawed decision last month in United States v. Chatrie, noting that although geofence warrants can be more "limited temporally" than the data sought in Carpenter, geofence location data is still highly invasive because it can expose sensitive information about a person's associations and allow police to "follow" them into private spaces. Second, the court found that even though investigators seek warrants for geofence location data, these searches are inherently unconstitutional. As the court noted, geofence warrants require a provider, almost always Google, to search "the entirety" of its reserve of location data "while law enforcement officials have no idea who they are looking for, or whether the search will even turn up a result." Therefore, "the quintessential problem with these warrants is that they never include a specific user to be identified, only a temporal and geographic location where any given user may turn up post-search. That is constitutionally insufficient."

Unsurprisingly, however, the court found that in 2018, police could have relied on such a warrant in "good faith," because geofence technology was novel, and police reached out to other agencies with more experience for guidance. This means that the evidence they obtained will not be suppressed in this case.

Printer

Stratasys Sues Bambu Lab Over Patents Used Widely By Consumer 3D Printers (arstechnica.com) 36

An anonymous reader quotes a report from Ars Technica: A patent lawsuit filed by one of 3D printing's most established firms against a consumer-focused upstart could have a big impact on the wider 3D-printing scene. In two complaints, (1, 2, PDF) filed in the Eastern District of Texas, Marshall Division, against six entities related to Bambu Lab, Stratasys alleges that Bambu Lab infringed upon 10 patents that it owns, some through subsidiaries like Makerbot (acquired in 2013). Among the patents cited are US9421713B2, "Additive manufacturing method for printing three-dimensional parts with purge towers," and US9592660B2, "Heated build platform and system for three-dimensional printing methods."

There are not many, if any, 3D printers sold to consumers that do not have a heated bed, which prevents the first layers of a model from cooling during printing and potentially shrinking and warping the model. "Purge towers" (or "prime towers" in Bambu's parlance) allow for multicolor printing by providing a place for the filament remaining in a nozzle to be extracted and prevent bleed-over between colors. Stratasys' infringement claims also target some fundamental technologies around force detection and fused deposition modeling (FDM) that, like purge towers, are used by other 3D-printer makers that target entry-level and intermediate 3D-printing enthusiasts.

Crime

Cyber-Heist of 2.9 Billion Personal Records Leads to Class Action Lawsuit (theregister.com) 18

"A lawsuit has accused a Florida data broker of carelessly failing to secure billions of records of people's private information," reports the Register, "which was subsequently stolen from the biz and sold on an online criminal marketplace." California resident Christopher Hofmann filed the potential class-action complaint against Jerico Pictures, doing business as National Public Data, a Coral Springs-based firm that provides APIs so that companies can perform things like background checks on people and look up folks' criminal records. As such National Public Data holds a lot of highly personal information, which ended up being stolen in a cyberattack. According to the suit, filed in a southern Florida federal district court, Hofmann is one of the individuals whose sensitive information was pilfered by crooks and then put up for sale for $3.5 million on an underworld forum in April.

If the thieves are to be believed, the database included 2.9 billion records on all US, Canadian, and British citizens, and included their full names, addresses, and address history going back at least three decades, social security numbers, and the names of their parents, siblings, and relatives, some of whom have been dead for nearly 20 years.

Hofmann's lawsuit says he 'believes that his personally identifiable information was scraped from non-public sources," according to the article — which adds that Hofmann "claims he never provided this sensitive info to National Public Data...

"The Florida firm stands accused of negligently storing the database in a way that was accessible to the thieves, without encrypting its contents nor redacting any of the individuals' sensitive information." Hofmann, on behalf of potentially millions of other plaintiffs, has asked the court to require National Public Data to destroy all personal information belonging to the class-action members and use encryption, among other data protection methods in the future... Additionally, it seeks unspecified monetary relief for the data theft victims, including "actual, statutory, nominal, and consequential damages."
Google

Google Just Lost a Big Antitrust Trial. But Now It Has To Face Yet Another.One (yahoo.com) 35

Google's loss in an antitrust trial is just the beginning. According to Yahoo Finance's senior legal reporter, Google now also has to defend itself "against another perilous antitrust challenge that could inflict more damage." Starting in September, the tech giant will square off against federal prosecutors and a group of states claiming that Google abused its dominance of search advertising technology that is used to sell, buy, and broker advertising space online... Juggling simultaneous defenses "will definitely create a strain on its resources, productivity, and most importantly, attention at the most senior levels," said David Olson, associate professor at Boston College Law School.... The two cases targeting Google have the potential to inflict major damage to an empire amassed over the last two decades.

The second case that begins next month began with a lawsuit filed in the US District Court for the Eastern District of Virginia by the Justice Department and eight states in December 2020... Prosecutors allege that since at least 2015 Google has thwarted meaningful competition and deterred innovation through its ownership of the entities and software that power the online advertising technology market. Google owns most of the technology to buy, sell, and serve advertisements online... Google's share of the US and global advertising markets — when measured either by revenue or impressions — exceeded 90% for "many years," according to the complaint.

The government prosecutors accused Google of siphoning off $0.35 of each advertising dollar that flowed through its ad tech tools.

Thanks to Slashdot reader ZipNada for sharing the article.
Security

Sellafield, World's Largest Store of Plutonium, Apologizes After Guilty Plea Over String of Cybersecurity Failings (theguardian.com) 27

Bruce66423 writes: Sellafield [U.K.'s largest nuclear site] has apologised after pleading guilty to criminal charges relating to a string of cybersecurity failings at Britain's most hazardous nuclear site, which it admitted could have threatened national security.

Among the failings at the vast nuclear waste dump in Cumbria was the discovery that 75% of its computer servers were vulnerable to cyber-attacks, Westminster magistrates court in London heard. Information that could threaten national security was left exposed for four years, the nuclear watchdog revealed, and Sellafield said it had been performing critical IT health checks that were not, in fact, being carried out.

The Guardian's investigation also revealed concerns about external contractors being able to plug memory sticks into Sellafield's system while unsupervised and that its computer servers were deemed so insecure that the problem was nicknamed Voldemort after the Harry Potter villain because it was so sensitive and dangerous.

The good news is that the problem has been spotted. The bad news is that there can be no meaningful punishment for a government owned company. One can only hope that they will do better in the future.

Bitcoin

Judge Fines Ripple $125 Million, Bans Future Securities Law Violations (coindesk.com) 12

Nikhilesh De writes via CoinDesk: A federal judge ordered Ripple to pay $125 million in civil penalties and imposed an injunction against future securities law violations on Wednesday. District Judge Analisa Torres, of the Southern District of New York, imposed the fine (PDF) after finding that 1,278 institutional sale transactions by Ripple violated securities law, leading to the fine. The $125.035 million fine is well below the $1 billion in disgorgement and prejudgment interest and $900 million in civil penalties the SEC sought. Wednesday's order on remedies follows the judge's July 2023 ruling in the case itself, finding that Ripple violated federal securities laws through its direct sale of XRP to institutional clients, though she also ruled that Ripple's programmatic sales of XRP to retail clients through exchanges did not violate any securities laws. The SEC tried unsuccessfully to appeal that portion of the ruling while the case was ongoing.
AI

Elon Musk Revives Lawsuit Against OpenAI and Sam Altman 47

Elon Musk has reignited his legal battle against OpenAI, the creators of ChatGPT, by filing a new lawsuit in a California federal court. The suit, which revives a six-year-old dispute, accuses OpenAI founders Sam Altman and Greg Brockman of breaching the company's founding principles by prioritizing commercial interests over public benefit.

Musk's complaint alleges that OpenAI's multibillion-dollar partnership with Microsoft contradicts the original mission to develop AI responsibly for humanity's benefit. The lawsuit describes the alleged betrayal in dramatic terms, claiming "perfidy and deceit... of Shakespearean proportions." OpenAI has not yet commented on the new filing. In response to Musk's previous lawsuit, which was withdrawn seven weeks ago, the company stated its commitment to building safe artificial general intelligence for the benefit of humanity.
Government

Artist and Musician Sue SEC Over Its NFT Regulatory Jurisdiction (decrypt.co) 32

"Five years ago, Brian Frye set an elaborate trap," writes Decrypt.co. "Now the law professor is teaming up with a singer-songwriter to finally spring it" on America's Security and Exchange Commission "in a novel lawsuit — and in the process, prevent the regulator from ever coming after NFT art projects again." Over and again, the SEC has sued cherry-picked NFT projects it says qualify as unregistered securities — but never once has the regulator defined what types of NFT projects are legal and which are not, casting a chill over the nascent industry... [In 2019] Frye, an expert in securities law and a fan of novel technologies, minted an NFT of a letter he sent to the SEC in which he declared his art project to constitute an illegal, unregistered security. If the conceptual art project wasn't a security, Frye challenged the agency, then it needed to say so. The SEC never responded to Frye — not then, and not after several more self-incriminating correspondences from the professor. But in due time, the agency began vigorously pursuing, and suing, NFT projects.
So 10 months ago, Jonathan Mann — who writes a new song every day and shares it online — crafted a song titled "This Song is A Security." As a seller of NFTs himself, Mann wrote the song "to fight back against the SEC, and defend his right — plus the rights of other artists like him — to earn revenue," according to the article: Frye, who'd practically been salivating for such an opportunity for half a decade, was a natural fit.... In the lawsuit filed against the SEC in Louisiana earlier this week, they challenged the SEC's standing to regulate their NFT-backed artworks as securities, and demanded the agency declare that their respective art projects do not constitute illegal, unregistered securities offerings.
More from the International Business Times: The complaint asked the court to clarify whether the SEC should regulate art and whether artists were supposed to "register" their artworks before selling the pieces to the general public. The complaint also asked whether artists should be "forced to make public disclosures about the 'risks' of buying their art," and whether artists should be "required to comply" with federal securities laws...

The Blockchain Association, a collective crypto group that includes some of the biggest digital asset firms, asserted that the SEC has no authority over NFT art. "We support the plaintiffs in their quest for legal clarity," the group said.

In an interview with Slashdot, Mann says he started his "Song a Day" project almost 17 years ago (when he was 26 years old) — and his interest in NFTs is sincere: "Over the years, I've always sought a way to make Song A Day sustainable financially, through video contests, conference gigs, ad revenue, royalties, Patreon and more.

"When I came across NFTs in 2017, they didn't have a name. We just called them 'digital collectibles'. For the last 2+ years, NFTs have become that self-sustaining model for my work.

"I know most people believe NFTs are a joke at best and actively harmful at worst. Even most people in the crypto community have given up on them. Despite all that, I still believe they're worth pursuing.

"Collecting an NFT from an artist you love is the most direct way to support them. There's no multinational corporation, no payment processor, and no venture capitalists between you and the artist you want to support."

Slashdot also tracked down the SEC's Office of Public Affairs, and got an official response from SEC public affairs specialist Ryan White.

Slashdot: The suit argues that the SEC's approach "threatens the livelihoods of artists and creators that are simply experimenting with a novel, fast-growing technology," and seeks guidance in the face of a "credible threat of enforcement". Is the SEC going to respond to this lawsuit? And if you don't have an answer at this time, can you give me a general comment on the issues and concerns being raised?

SEC Public Affairs Specialist Ryan White: We would decline comment.

Decrypt.co points out that the lawsuit "has no guarantee of offering some conclusive end to the NFT regulation question... That may only come with concrete legislation or a judgment by the Supreme Court."

But Mann's song still makes a very public show out of their concerns — with Mann even releasing a follow-up song titled "I'm Suing the SEC." (Its music video mixes together wacky clips of Mila Kunis's Stoner Cats and Fonzie jumping a shark with footage of NFT critics like Elizabeth Warren and SEC chairman Gary Gensler.)

And an earlier song also used auto-tune to transform Gensler's remarks about cryptocurrencies into the chorus of a song titled "Hucksters, Fraudsters, Scam Artists, Ponzi Schemes".

Mann later auctioned an NFT of the song — for over $3,000 in Ethereum.
Portables (Apple)

Apple Is Finally Sending Out Payments For Its Defective Macbook Butterfly Keyboards (9to5mac.com) 26

An anonymous Slashdot reader shared this report from the blog 9to5Mac: In 2022, Apple agreed to pay a $50 million dollar settlement for certain eligible 2015-2019 MacBook owners who experienced problems with their butterfly keyboards. The claims process opened in late 2022, and the settlement got final approval last May. Starting today, eligible MacBook owners are finally receiving their payouts...

Apple finally moved away from the butterfly keyboard on the 16-inch MacBook Pro in late 2019. By mid 2020, the 13-inch MacBook Pro and MacBook Air also moved to the new Magic Keyboard. However, that wouldn't be the end of the story for Apple... In mid 2022, Apple was required to pay a $50 million settlement. The claims process started later that year, although there were some caveats. For one, you could only claim this settlement if you lived in California, Florida, Illinois, Michigan, New Jersey, New York, or Washington. This excludes 43 US states, so a good number of people with butterfly keyboards weren't even covered. Additionally, the estimated payout amount varied depending on the severity of your keyboard problems:

- Up to $395 for 2 or more top case replacements
- Up to $125 for 1 top case replacement
- Up to $50 for keycap replacements

Obviously, this wasn't the most ideal outcome for customers, but if you were eligible and filed a claim (or multiple), you're in luck!

The original goal "was to make the keyboards thinner and the laptops slimmer," remembers ZDNet. This backfired spectacularly as MacBook owners started complaining that the keys would easily stick or get jammed by dust, crumbs, or other tiny objects. Noted tech blogger John Gruber even called the new keyboards "the worst products in Apple's history."
Gruber's headline? "Appl Still Hasn't Fixd Its MacBook Kyboad Problm"
The Courts

US Sues TikTok Over 'Massive-Scale' Privacy Violations of Kids Under 13 (reuters.com) 10

An anonymous reader quotes a report from Reuters: The U.S. Justice Department filed a lawsuit Friday against TikTok and parent company ByteDance for failing to protect children's privacy on the social media app as the Biden administration continues its crackdown on the social media site. The government said TikTok violated the Children's Online Privacy Protection Act that requires services aimed at children to obtain parental consent to collect personal information from users under age 13. The suit (PDF), which was joined by the Federal Trade Commission, said it was aimed at putting an end "to TikTok's unlawful massive-scale invasions of children's privacy." Representative Frank Pallone, the top Democrat on the Energy and Commerce Committee, said the suit "underscores the importance of divesting TikTok from Chinese Communist Party control. We simply cannot continue to allow our adversaries to harvest vast troves of Americans' sensitive data."

The DOJ said TikTok knowingly permitted children to create regular TikTok accounts, and then create and share short-form videos and messages with adults and others on the regular TikTok platform. TikTok collected personal information from these children without obtaining consent from their parents. The U.S. alleges that for years millions of American children under 13 have been using TikTok and the site "has been collecting and retaining children's personal information." The FTC is seeking penalties of up to $51,744 per violation per day from TikTok for improperly collecting data, which could theoretically total billions of dollars if TikTok were found liable.
TikTok said Friday it disagrees "with these allegations, many of which relate to past events and practices that are factually inaccurate or have been addressed. We are proud of our efforts to protect children, and we will continue to update and improve the platform."
Communications

US Court Blocks Biden Administration Net Neutrality Rules (ksl.com) 103

schwit1 writes: A U.S. appeals court on Thursday blocked the Federal Communications Commission's reinstatement of landmark net neutrality rules, saying broadband providers are likely to succeed in a legal challenge. The agency voted in April along party lines to reassume regulatory oversight of broadband internet and reinstate open internet rules adopted in 2015 that were rescinded under then-President Donald Trump.

The Sixth Circuit U.S. Court of Appeals, which had temporarily delayed the rules, said on Thursday it would temporarily block net neutrality rules and scheduled oral arguments for late October or early November on the issue, dealing a serious blow to President Joe Biden's effort to reinstate the rules. "The final rule implicates a major question, and the commission has failed to satisfy the high bar for imposing such regulations," the court wrote. "Net neutrality is likely a major question requiring clear congressional authorization."

Google

Google Defeats RNC Lawsuit Claiming Email Spam Filters Harmed Republican Fundraising 84

A U.S. judge has thrown out a Republican National Committee lawsuit accusing Alphabet's Google of intentionally misdirecting the political party's email messages to users' spam folders. From a report: U.S. District Judge Daniel Calabretta in Sacramento, California, on Wednesday dismissed the RNC's lawsuit for a second time, and said the organization would not be allowed to refile it. While expressing some sympathy for the RNC's allegations, he said it had not made an adequate case that Google violated California's unfair competition law.

The lawsuit alleged Google had intentionally or negligently sent RNC fundraising emails to Gmail users' spam folders and cost the group hundreds of thousands of dollars in potential donations. Google denied any wrongdoing.
AI

AI Startup Suno Says Music Industry Suit Aims to Stifle Competition (bloomberg.com) 42

AI music startup Suno is pushing back against the world's biggest record labels, saying in a court filing that a lawsuit they filed against the company aims to stifle competition. From a report: In a filing Thursday in federal court in Massachusetts, Suno said that while the record labels argue the company infringed on their recorded music copyrights, the lawsuit actually reflects the industry's opposition to competition -- which Suno's AI software represents by making it easy for anyone to make music.

"Where Suno sees musicians, teachers, and everyday people using a new tool to create original music, the labels see a threat to their market share," the Cambridge, Massachusetts-based company wrote in the filing, which also asked the court to enter judgment in Suno's favor.

The Courts

CrowdStrike Is Sued By Shareholders Over Huge Software Outage (reuters.com) 134

Shareholders have sued CrowdStrike on Tuesday, claiming the cybersecurity company defrauded them by concealing how its inadequate software testing could cause the global software outage earlier this month that crashed millions of computers. Reuters reports: In a proposed class action filed on Tuesday night in the Austin, Texas federal court, shareholders said they learned that CrowdStrike's assurances about its technology were materially false and misleading when a flawed software update disrupted airlines, banks, hospitals and emergency lines around the world. They said CrowdStrike's share price fell 32% over the next 12 days, wiping out $25 billion of market value, as the outage's effects became known, Chief Executive George Kurtz was called to testify to the U.S. Congress, and Delta Air Lines reportedly hired prominent lawyer David Boies to seek damages.

The complaint cites statements including from a March 5 conference call where Kurtz characterized CrowdStrike's software as "validated, tested and certified." The lawsuit led by the Plymouth County Retirement Association of Plymouth, Massachusetts, seeks unspecified damages for holders of CrowdStrike Class A shares between Nov. 29, 2023 and July 29, 2024.
Further reading: Delta CEO Says CrowdStrike-Microsoft Outage Cost the Airline $500 Million
Privacy

Meta To Pay Record $1.4 Billion To Settle Texas Facial Recognition Suit (texastribune.org) 43

Meta will pay Texas $1.4 billion to settle a lawsuit alleging the company used personal biometric data without user consent, marking the largest privacy-related settlement ever obtained by a state. The Texas Tribune reports: The 2022 lawsuit, filed by Texas Attorney General Ken Paxton in state court, alleged that Meta had been using facial recognition software on photos uploaded to Facebook without Texans' consent. The settlement will be paid over five years. The attorney general's office did not say whether the money from the settlement would go into the state's general fund or if it would be distributed in some other way. The settlement, announced Tuesday, does not act as an admission of guilt and Meta maintains no wrongdoing. This was the first lawsuit Paxton's office argued under a 2009 state law that protects Texans' biometric data, like fingerprints and facial scans. The law requires businesses to inform and get consent from individuals before collecting such data. It also limits sharing this data, except in certain cases like helping law enforcement or completing financial transactions. Businesses must protect this data and destroy it within a year after it's no longer needed.

In 2011, Meta introduced a feature known as Tag Suggestions to make it easier for users to tag people in their photos. According to Paxton's office, the feature was turned on by default and ran facial recognition on users' photos, automatically capturing data protected by the 2009 law. That system was discontinued in 2021, with Meta saying it deleted over 1 billion people's individual facial recognition data. As part of the settlement, Meta must notify the attorney general's office of anticipated or ongoing activities that may fall under the state's biometric data laws. If Texas objects, the parties have 60 days to attempt to resolve the issue. Meta officials said the settlement will make it easier for the company to discuss the implications and requirements of the state's biometric data laws with the attorney general's office, adding that data protection and privacy are core priorities for the firm.

United States

Justice Dept. Says TikTok Could Allow China To Influence Elections 84

The Justice Department has ramped up the case to ban TikTok, saying in a court filing Friday that allowing the app to continue operating in its current state could result in voter manipulation in elections. From a report: The filing was made in response to a TikTok lawsuit attempting to block the government's ban. The Justice Department warned that the app's algorithm and parent company ByteDance's alleged ties to the Chinese government could be used for a "secret manipulation" campaign.

"Among other things, it would allow a foreign government to illicitly interfere with our political system and political discourse, including our elections...if, for example, the Chinese government were to determine that the outcome of a particular American election was sufficiently important to Chinese interests," the filing said. Under a law passed in April, TikTok has until January 2025 to find a new owner or it will be banned in the U.S. The company is suing to have that law overturned, saying it violates the company's First Amendment rights. The Justice Department disputed those claims. "The statute is aimed at national-security concerns unique to TikTok's connection to a hostile foreign power, not at any suppression of protected speech," officials wrote.
The Courts

Courts Close the Loophole Letting the Feds Search Your Phone At the Border (reason.com) 46

On Wednesday, Judge Nina Morrison ruled that cellphone searches at the border are "nonroutine" and require probable cause and a warrant, likening them to more invasive searches due to their heavy privacy impact. As reported by Reason, this decision closes the loophole in the Fourth Amendment's protection against unreasonable searches and seizures, which Customs and Border Protection (CBP) agents have exploited. Courts have previously ruled that the government has the right to conduct routine warrantless searches for contraband at the border. From the report: Although the interests of stopping contraband are "undoubtedly served when the government searches the luggage or pockets of a person crossing the border carrying objects that can only be introduced to this country by being physically moved across its borders, the extent to which those interests are served when the government searches data stored on a person's cell phone is far less clear," the judge declared. Morrison noted that "reviewing the information in a person's cell phone is the best approximation government officials have for mindreading," so searching through cellphone data has an even heavier privacy impact than rummaging through physical possessions. Therefore, the court ruled, a cellphone search at the border requires both probable cause and a warrant. Morrison did not distinguish between scanning a phone's contents with special software and manually flipping through it.

And in a victory for journalists, the judge specifically acknowledged the First Amendment implications of cellphone searches too. She cited reporting by The Intercept and VICE about CPB searching journalists' cellphones "based on these journalists' ongoing coverage of politically sensitive issues" and warned that those phone searches could put confidential sources at risk. Wednesday's ruling adds to a stream of cases restricting the feds' ability to search travelers' electronics. The 4th and 9th Circuits, which cover the mid-Atlantic and Western states, have ruled that border police need at least "reasonable suspicion" of a crime to search cellphones. Last year, a judge in the Southern District of New York also ruled (PDF) that the government "may not copy and search an American citizen's cell phone at the border without a warrant absent exigent circumstances."

The Courts

California Supreme Court Upholds Gig Worker Law In a Win For Ride-Hail Companies (politico.com) 73

In a major victory for ride-hail companies, California Supreme Court upheld a law classifying gig workers as independent contractors, maintaining their ineligibility for benefits such as sick leave and workers' compensation. This decision concludes a prolonged legal battle and supports the 2020 ballot measure Proposition 22, despite opposition from labor groups who argued it was unconstitutional. Politico reports: Thursday's ruling capped a yearslong battle between labor and the companies over the status of workers who are dispatched by apps to deliver food, buy groceries and transport customers. A 2018 Supreme Court ruling and a follow-up bill would have compelled the gig companies to treat those workers as employees. A collection of five firms then spent more than $200 million to escape that mandate by passing the 2020 ballot measure Proposition 22 in one of the most expensive political campaigns in American history. The unanimous ruling on Thursday now upholds the status quo of the gig economy in California.

As independent contractors, gig workers are not entitled to benefits like sick leave, overtime and workers' compensation. The SEIU union and four gig workers, ultimately, challenged Prop 22 based on its conflict with the Legislature's power to administer workers' compensation, specifically. The law, which passed with 58 percent of the vote in 2020, makes gig workers ineligible for workers' comp, which opponents of Prop 22 argued rendered the entire law unconstitutional. [...] Beyond the implications for gig workers, the heavily-funded Prop 22 ballot campaign pushed the limits of what could be spent on an initiative, ultimately becoming the most expensive measure in California history. Uber and Lyft have both threatened to leave any states that pass laws not classifying their drivers as independent contractors. The decision Thursday closes the door to that possibility for California.

Communications

5th Circuit Court Upends FCC Universal Service Fund, Ruling It an Illegal Tax (arstechnica.com) 137

A U.S. appeals court has ruled that the Federal Communications Commission's Universal Service Fund, which collects fees on phone bills to support telecom network expansion and affordability programs, is unconstitutional, potentially upending the $8 billion-a-year system.

The 5th Circuit Court's 9-7 decision, which creates a circuit split with previous rulings in the 6th and 11th circuits, found that the combination of Congress's delegation to the FCC and the FCC's subsequent delegation to a private entity violates the Constitution's Legislative Vesting Clause. FCC Chairwoman Jessica Rosenworcel criticized the ruling as "misguided and wrong," vowing to pursue all available avenues for review.
The Courts

Lawsuit: T-Mobile Must Pay For Breaking Lifetime Price Guarantee (arstechnica.com) 30

An anonymous reader quotes a report from Ars Technica: Angry T-Mobile customers have filed a class action lawsuit over the carrier's decision to raise prices on plans that were advertised as having a lifetime price guarantee. "Based upon T-Mobile's representations that the rates offered with respect to certain plans were guaranteed to last for life or as long as the customer wanted to remain with that plan, each Plaintiff and the Class Members agreed to these plans for wireless cellphone service from T-Mobile," said the complaint (PDF) filed in US District Court for the District of New Jersey. "However, in May 2024, T-Mobile unilaterally did away with these legacy phone plans and switched Plaintiffs and the Class to more expensive plans without their consent."

The complaint, filed on July 12, has four named plaintiffs who live in New Jersey, Georgia, Nevada, and Pennsylvania. They are seeking to represent a class of all US residents "who entered into a T-Mobile One Plan, Simple Choice plan, Magenta, Magenta Max, Magenta 55+, Magenta Amplified or Magenta Military Plan with T-Mobile which included a promised lifetime price guarantee but had their price increased without their consent and in violation of the promises made by T-Mobile and relied upon by Plaintiffs and the proposed class." The complaint seeks "restitution of all amounts obtained by Defendant as a result of its violation," plus interest. It also seeks statutory and punitive damages, and an injunction to prevent further "wrongful, unlawful, fraudulent, deceptive, and unfair conduct."
The report notes that the lawsuit centers around T-Mobile's broken "Un-contract" promise made in January 2017, which assured customers that their T-Mobile One plan prices would never increase unless they decided to change their plans. Despite the guarantee, T-Mobile included a significant caveat in a FAQ on its website, stating they would only cover the final month's bill if the price was raised and the customer decided to cancel. Many customers missed this caveat, leading to confusion and frustration when prices were later hiked.

The lawsuit also addresses the transition from the "Un-contract" to a new "Price Lock" guarantee, which initially offered more protection but was later weakened, causing further dissatisfaction. The FCC said it has received around 1,600 complaints regarding these price hikes by late June.

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