Business

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Time Bandits

15 Billion

Time theft happens when companies get employees to work hours for which they are not paid. A new study from the University of Oregon says it’s happening more and more and workers are losing billions of dollars in wages every year.

This often happens through mandated breaks that workers can’t actually take or through timekeeping software that rounds to the nearest quarter hour.

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Frozen Food Fan? As Sales Rise, Studies Show Frozen Produce Is As Healthy As Fresh

Frozen vegetables are displayed for sale at an Aldi supermarket in Hackensack, N.J.

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Americans are rediscovering the coldest aisle in the supermarket.

According to a new report, sales of frozen foods, including vegetables and prepared foods, are now on the rise following a multi-year slump.

The uptick is new — and modest. But growth “is accelerating as consumers begin to see freezing as a way to preserve food with fewer negatives,” concludes a report from RBC Capital Markets.

At a time when two-thirds of Americans say they want to eat more vegetables, 85 percent of consumers fail to eat the minimum recommended amount. It’s “one of the widest disconnects in the world of eating,” concludes the RBC report. Perhaps innovations in the frozen aisle could help narrow this divide.

Frozen produce already has several factors going for it: “its affordability and its convenience,” says Phil Lempert, editor of Supermarketguru.com. And given that the typical American family tosses out $1,500 worth of food yearly — normally after it goes bad in the fridge — frozen foods, which have a much longer shelf life, could help cut back on waste. “People are more concerned about waste than ever before,” Lempert says.

Big food companies are offering up new options in the frozen aisle. The RBC report points to the development of products such as veggie tots, an alternative to carbohydrate-heavy tater tots, and veggie rice, which is seen as a healthier alternative to white rice, which is a refined starch that can spike blood sugar.

Pinnacle Foods, which owns Birds Eye, has launched new pastas made from vegetables. And Green Giant, owned by B&G Foods, has introduced Veggie Spirals, made from beets, butternut squash, zucchini and carrots. Options like these may help “increase vegetable eating occasions” — and help maintain the growth momentum for frozen foods, the report concludes.

But, there are still headwinds facing the frozen food sector. Many Americans have heard the message that fresh is best. And the texture of frozen vegetables turns some people off.

“Fresh and local is what they say tends to be healthier,” shopper Olivia Mitchell told me as she shopped the aisles of a Trader Joe’s with her baby in tow. Mitchell says she prefers to buy fresh produce, and she recently joined a CSA, so she’s looking forward to deliveries of local produce this summer.

However, with two kids and a busy schedule, Mitchell acknowledges the convenience of frozen food. “I buy frozen peas and okra,” she says. She also buys frozen entrees that her husband takes for lunch.

As for the assumption that fresh is healthiest, it turns out that frozen produce can pack a punch when it comes to nutrition.

When you freeze fruits and vegetables, it locks in nutrients, and several studies have shown that this helps retain high levels of vitamins.

“You can store them in the freezer for a year and the nutrient level pretty much stays the same,” says plant scientist Hazel MacTavish-West, who is a food industry consultant.

She says many factors influence the nutritional content of fruits and vegetables, but frozen produce tends to hold up pretty well.

Food scientists at the University of California, Davis, designed a study to compare the nutritional value of fresh and frozen produce. They measured the nutrients in samples of eight different kinds of fresh and frozen fruits and vegetables — including carrots, broccoli, spinach, peas and berries.

“We were quite surprised to find there were no significant differences,” says study author Diane Barrett, an emerita professor in the Department of Food Science & Technology at UC Davis.

“Overall, the frozen was as good as fresh, and in some cases the frozen fruits and vegetables were better than fresh,” Barrett says. For instance, most of the frozen fruits and vegetables had higher levels of vitamin E.

That study was funded by the Frozen Food Foundation, part of the American Frozen Food Institute. However, Barrett says the foundation did not dictate any of the parameters of the study. “I designed the study, determined which analytical procedures to use, and interpreted the results,” Barrett explains.

Barrett says frozen produce does lose some nutrients during processing, when it’s blanched or steamed. But she says part of the reason the nutrition holds up well in frozen fruits and vegetables can be explained by how quickly it’s frozen after harvest. “Typically, the freezing facilities are very close to where the vegetables are grown, so within hours, [the vegetables] are frozen,” she says.

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Federal Agency Investigates Tesla Crash; Driver Says Car Was On Autopilot

The driver of the Tesla Model S told police the car was in Autopilot mode as it rammed into a Utah fire department truck on May 11 in South Jordan, Utah.

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The National Highway Traffic Safety Administration announced Wednesday it has launched an investigation into a rear-end collision involving a Tesla in South Jordan, Utah, the Associated Press reported. It marks at least the third investigation into crashes involving the company’s cars since March.

The driver of the Tesla Model S told police the car was in Autopilot, a semi-autonomous mode, and that she was staring at her phone when the sedan plowed into the back of a Utah fire department truck stopped at a red light. The 28-year-old driver, who said she was going about 60 mph, sustained a broken ankle while the truck’s driver suffered minor injuries.

“Consistent with NHTSA’s oversight and authority over the safety of all motor vehicles and equipment, the agency has launched its special crash investigations team to gather information on the South Jordan, Utah, crash. NHTSA will take appropriate action based on its review,” the agency said, as quoted by CNBC.

Car company owner, Elon Musk said in a tweet Tuesday, “It’s super messed up that a Tesla crash resulting in a broken ankle is front page news and the ~40,000 people who died in US auto accidents alone in past year get almost no coverage.”

It’s super messed up that a Tesla crash resulting in a broken ankle is front page news and the ~40,000 people who died in US auto accidents alone in past year get almost no coverage https://t.co/6gD8MzD6VU

— Elon Musk (@elonmusk) May 14, 2018

Minutes later he added, “What’s actually amazing about this accident is that a Model S hit a fire truck at 60mph and the driver only broke an ankle. An impact at that speed usually results in severe injury or death.”

The electric car company cautions drivers to keep their hands on the wheel and remain vigilant even while the vehicle is in semi-autonomous mode.

Just last week, the agency opened investigation into a Florida crash where the same model Tesla caught fire, trapping and killing two men and injuring a third after ramming into a concrete wall.

“The vehicle immediately caught on fire, becoming fully engulfed in flames. The speed of which the vehicle was traveling is believed to have been a factor in the crash,” Fort Lauderdale Police said in a statement.

Meanwhile, NHTSA investigators are still scrutinizing the conditions leading to fatal wreck in March in California, where Tesla’s Autopilot system was in use. In that case, the Model X SUV collided head-on into a roadside barrier and caught fire. The driver was pulled out of the car but did not survive.

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States Eye New Revenues After Supreme Court Backs Legal Sports Betting

People watch coverage of the NCAA college basketball tournament at the Westgate SuperBook on March 15 in Las Vegas. Several states are expected to allow sports gaming after Monday’s Supreme Court ruling.

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Now that the Supreme Court says it’s OK, states are free to legalize betting on sports if they want to. As a once under-the-table economy moves into the open, it creates some large business opportunities — and the potential for millions in new tax revenues.

But first comes the nitty-gritty part: writing the rules for how sports fans can bet on their favorite games — the legal age, where people can bet, licensing requirements, software standards for mobile apps, and money laundering safeguards.

“We also have to establish what the tax structure will be,” says New Jersey Assemblyman John Burzichelli. “That’s very important. We’re actually in our budget cycle now.”

He says the tax rate is still being negotiated, but will be between 8 percent and 15 percent of revenue after winnings are paid out. He says New Jersey can get these rules written in about four weeks.

This puts the state neck and neck with Delaware and Mississippi. Close behind them — and just in time for football season — are Pennsylvania, West Virginia and Connecticut. These are all states with an established gaming industry, all trying to be the first to take legal sports bets.

“Markets of this size don’t just come into being on a regular basis,” says Chris Grove, a gaming analyst for the research firm Eilers & Krejcik.

He expects 32 states to eventually allow sports gaming, worth roughly $6 billion annually. But, he says, that may not come so easily.

“There’s an existing black market. It’s entrenched. It’s attractive. It offers a number of advantages that regulated betting sites will never be able to offer: the lack of having to fill out tax forms and have your winnings reported, the ability to bet on credit,” Grove says.

But new entrants into the gaming industry don’t expect much competition from the black market.

“I think most people would prefer to do things in a legal manner if given the option,” says Jason Robins, CEO of the daily fantasy sports company DraftKings.

He compares illegal sports betting to the pirating of music. Most people shifted to legal products when streaming services came along. He contends something similar will happen in sports gambling.

Some analysts warn that profit margins might not be as plush as investors hope. A lot depends on how heavily sports betting is taxed.

And on top of taxes, there’s what professional sport leagues want.

After years of fighting against sports betting, the NFL, Major League Baseball and other leagues have changed their approach. Over the last few months they’ve been going state to state, lobbying aggressively for a special fee to pay for policing against cheating, like an athlete intentionally throwing a game.

In New Jersey, leagues tried to get a fee between 2 percent and 3 percent of gross wagers. But lawmakers balked.

“They’re not paying that in Nevada and their not paying that to the illegal sportsbooks.” Burzichelli says. “That’s a nonstarter as far as I’m concerned.”

In statements Monday, the major sport leagues said they will be looking to Congress for a “regulatory framework” to protect the “integrity” of their games.

U.S. Rep. Frank Pallone of New Jersey is sponsoring one bill, which would establish a legal framework for consumer protections and give the Federal Trade Commission some oversight. But he acknowledges it’s not getting passed anytime soon.

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Trump Administration Doubles Worksite Investigations To Combat Illegal Immigration

U.S. Immigration and Customs Enforcement agents gather before serving a employment audit notice at a 7-Eleven convenience store in Los Angeles in January.

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The Trump administration announced Monday that it has dramatically increased the number of worksite investigations and audits to make sure that American businesses do not employ people who are in the U.S. illegally.

Immigration officials say they have launched more than 3,500 worksite investigations, already doubling the number of cases compared to the previous fiscal year. Similarly, 2,282 employer audits were conducted between Oct. 1 and May 4 (with five months remaining in FY18). Over the course of last fiscal year, only 1,360 audits were launched.

“An audit is a review of business records,” said Immigration and Customs Enforcement spokesperson Danielle Bennet. “An investigation can include an audit and is conducted because of suspicion that the law in being violated and can result in criminal charges and/or civil fines.”

A 1986 federal law requires employers to verify that their employees are legally authorized to work here. Employers have to document the eligibility of their hires using Form I-9.

In a statement, U.S. Immigration and Customs Enforcement said it is working to ensure that American businesses maintain “a culture of compliance.”

“Our worksite enforcement strategy continues to focus on the criminal prosecution of employers who knowingly break the law, and the use of I-9 audits and civil fines to encourage compliance with the law,” said Acting Executive Associate Director for Homeland Security Investigations, Derek N. Benner. “HSI’s worksite enforcement investigators help combat worker exploitation, illegal wages, child labor and other illegal practices.”

Thus far, 594 employers have been arrested for criminal violations of the immigration law, that’s four times the number of arrests last fiscal year.

According to the Associated Press, ICE plans to ramp up its audit campaign this summer.

“Derek Benner, head of ICE’s Homeland Security Investigations unit, told The Associated Press that another nationwide wave of audits planned this summer would push the total ‘well over’ 5,000 by Sept 30. ICE audits peaked at 3,127 in 2013.

“The agency has developed a plan to open as many as 15,000 audits a year, subject to funding and support for the plan from other areas of the administration, Benner said.

“The proposal calls for creation of an Employer Compliance Inspection Center to perform employer audits at a single location instead of at regional offices around the country, Benner said. Electronically scanning the documents will help flag suspicious activity, and the most egregious cases will be farmed out to regional offices for more investigation. Audit notices will be served electronically or by certified mail, instead of in person.”

The ICE statement says that in FY17, “businesses were ordered to pay $97.6 million in judicial forfeitures, fines and restitution, and $7.8 million in civil fines.”

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82 Women Walk Cannes Red Carpet In Protest

Women gathered on the red carpet at the Cannes Film Festival to bring attention to gender inequality in the film industry. NPR’s Lakshmi Singh speaks with one of the demonstrators Melissa Silverstein.



LAKSHMI SINGH, HOST:

We’d like to introduce you to the number 82, an especially significant number at this year’s Cannes Film Festival because 82 is the number of female directors who’ve been selected to compete at Cannes – 82 compared with more than 1600 male directors selected since Cannes started in 1946.

So yesterday, 82 women from the film industry walked the red carpet in solidarity to make a statement about gender inequality in their respective fields. The demonstration featured speeches and appearances by Hollywood stars, including Kristen Stewart, Cate Blanchett and Salma Hayek.

Melissa Silverstein was also among the demonstrators. She’s the founder of the initiative Women and Hollywood, a website and blog that advocates for gender diversity in the global film industry. Melissa joins us here today. and Melissa, thank you for joining us.

MELISSA SILVERSTEIN: Happy to be here.

SINGH: So describe the scene yesterday on the red carpet. What was it like, Melissa?

SILVERSTEIN: It was one of those moments that’s kind of surreal that when you’re in it, you don’t realize how monumental it is. And then, you know, a couple of hours later, you’re like, wow, that was just amazing. And it’s really historical for the Cannes Film Festival because it has had such a problem with dealing with women and gender. And so for them to stand up with the French women of the 50/50 by 2020 coalition and to say we are going to make a statement here that we are going to be better in the future is quite meaningful.

SINGH: Why do this at the Cannes Film Festival? It seems it’s a much more systematic problem, as you know, about who is making movies, who gets financed, which movies are approved. I mean, it’s much broader than Cannes Film Festival. Why was staging this demonstration, this expression of solidarity so important to do at Cannes at this time?

SILVERSTEIN: Well, from my understanding, Cannes has the worst numbers. And so what the French women wanted to do – and all of us wanted to do and have been doing for many years – is to say that this is unacceptable, and we are holding you accountable, and you need to figure out a way to have more transparency about how you pick the films, that we will no longer accept this false narrative that there are not enough women at the top of the business to compete against the men.

SINGH: Tell me about some of the demands that this group was making. What are some of the immediate steps that can be taken, you believe, in this industry?

SILVERSTEIN: I think the first thing is you hire women. The studies have shown that once you have women in positions of power and leadership, firstly, the stories change. There are more women in the stories. And also, the people working behind the scenes changes. So when you add women – you add inclusion and diversity – it’s just the way that women operate in the world, having been kind of marginalized for so many years. And really, one of the biggest issues is the access to opportunity for women of color.

SINGH: That was Melissa Silverstein, founder of the initiative Women and Hollywood. She joins us from Cannes Film Festival.

Melissa, thank you so much for spending time with us.

SILVERSTEIN: Thanks, Lakshmi.

Copyright © 2018 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

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New Orleans Pressured To Reconsider Permit For Power Plant Backed By Paid Actors

In New Orleans, activists who spoke in favor of a proposed gas plant turned out to be paid actors. Environmentalists are calling on the city council to reconsider its approval of a plant permit.



LAKSHMI SINGH, HOST:

In New Orleans, a contentious debate over a proposed power plant was not what it seemed. It came out this past week that the company building the gas plant paid actors to attend city council meetings. Now some are calling on the council to reconsider its overwhelming approval of the project.

Tegan Wendland of member station WWNO has our story.

TEGAN WENDLAND, BYLINE: The New Orleans City Council held several heated public meetings before approving the plant proposed by Entergy New Orleans Corp., a regulated monopoly that operates the city’s electric grid. This spring, they heard from people like Johnny Rock.

(SOUNDBITE OF ARCHIVED RECORDING)

JOHNNY ROCK: I decided to stay and help fight and bring the city back to a thriving city. I am for the power plant. I believe it’ll improve the economy, create jobs.

WENDLAND: It turns out Rock, who’s been in movies with Jim Carrey and Jack Black, was paid $200 to read that script. He’s just one of about 100 people paid to support the new power plant at public meetings. That’s according to an investigation by The Lens, a local nonprofit news organization.

SYLVIA SCINEAUX RICHARD: Oh, I was floored. I was floored.

WENDLAND: Sylvia Scineaux Richard is the president of a New Orleans East neighborhood association and has lived here for more than 30 years, just a few miles from where the new plant is to be built. She was at the meetings to speak against the plant and saw some of the actors but had no idea they were getting paid.

RICHARD: I could not believe. I just – I couldn’t imagine that someone would go to that extent to sway opinion.

WENDLAND: The meetings were so packed with apparent supporters that many opponents couldn’t even get in the room. And that’s a problem, says Monique Harden, a lawyer for the Deep South Center for Environmental Justice. The group is suing the city over the plant, which is slated for a neighborhood that’s largely African-American and Vietnamese.

(SOUNDBITE OF ARCHIVED RECORDING)

MONIQUE HARDEN: We had huge concerns with the gas plant application because it would continue the pattern of environmental racism and injustice in Louisiana, and it would release pollution that is scientifically known to cause premature deaths, cancers, respiratory damage.

WENDLAND: The opposition at city council meetings was overshadowed by the support, much of which was artificial. That’s troubling for council president Jason Williams, and his concerns extend beyond this one debate.

(SOUNDBITE OF ARCHIVED RECORDING)

JASON WILLIAMS: This could have happened before. It’s certainly very possible that people are going to try to do it again.

WENDLAND: He wants new rules to at least identify paid speakers at public meetings. But some First Amendment advocates worry that attempts to prevent this kind of deception could unintentionally create barriers for true public comment. Entergy declined an interview request. In a statement, it says it hired a PR firm, which in turn hired Crowds on Demand, a Los Angeles-based company that provides just that. Entergy says it didn’t know they hired the actors and has severed ties with the groups. But council member Williams worries about the broader implications.

(SOUNDBITE OF ARCHIVED RECORDING)

WILLIAMS: Are we living at a time when corporate America has figured out a way to co-opt grass-roots organizing, which is something that this country has been founded on?

WENDLAND: Scineaux Richard drives down a gravel road to where Entergy plans to build the new power plant. Behind a big fence, workers are driving heavy equipment around, leveling the dirt lot.

RICHARD: I guess they’re working a clearing the ground for the new plant. It’s heartbreaking.

WENDLAND: Even as city council and the public try to make sense of what just happened, the company appears full steam ahead on the new plant.

For NPR News, I’m Tegan Wendland in New Orleans.

Copyright © 2018 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

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Episode 841: The Land Of Duty Free

A good haul.

Sergei Bobylev/Sergei Bobylev/TASS

In the 1940s, if you were flying from New York City to London or Paris you would find yourself making a pit stop for fuel on the western coast of Ireland. The Shannon airport at the time wasn’t much to look at, but the passengers arriving there were movie stars and celebrities, basically the super rich. And the people of Shannon realized pretty quickly that they needed to upgrade the local amenities for their wealthy clientele. They hired a man named Brendan O’Regan to make it happen.

Being the quick-thinking entrepreneur that he was, O’Regan convinced the Irish government to create a tax loophole. And thus, duty free stores were born. Today on the show, we follow the surprising origin of duty free, and try to answer the question: Are they really saving you any money?

Music: “Chu Chu” and “Lady Surfing.”

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Why A Scramble To Top Search Results Ends With Random Packages On Doorsteps

Strange unordered packages are showing up on doorsteps across the country. Often, they are the byproduct of an e-commerce scheme to influence search results rankings.



MARY LOUISE KELLY, HOST:

People across the country are finding packages they haven’t ordered inside their mailboxes. Nick Fountain from our Planet Money podcast investigates.

NICK FOUNTAIN, BYLINE: When did you first get a weird package?

CELINA SALAS: About three years ago.

FOUNTAIN: This is Celina Salas – Chicago resident, retail worker and strange package recipient. The first thing she noticed about the package was that the shipping label was written in Chinese. Like, the box had come all the way from China, which wasn’t that weird. She had ordered stuff from China before.

SALAS: So I open the box, and it’s just this watch wrapped in some plastic.

FOUNTAIN: A watch that she hadn’t ordered, but it was addressed to her – weird.

SALAS: Maybe my mom sent me this as a joke to, like – time to grow up. Get a watch.

FOUNTAIN: She checked. It wasn’t her mom, and that was just the start of the strange deliveries. A few months later, another package.

SALAS: And inside is, like, a braided friendship bracelet.

FOUNTAIN: Like you would do in first grade or…

SALAS: Yes.

FOUNTAIN: …Something like that?

SALAS: Yep.

FOUNTAIN: She got a package with a little ring, a headphone case with no headphones, a fluffy key chain, a piggy bank and some Silly Putty.

SALAS: Oh, there was Silly Putty. I completely forgot about that. When did that come? That came after the piggy bank.

FOUNTAIN: Salas isn’t the only person getting a bunch of random packages. This is happening all over the country – all over the world. And Salas has a lot of questions.

SALAS: Who, when, where, why? Why me? Why these things? Who are you, and where is it coming from?

FOUNTAIN: Hey, Mark. Are you in the office right now?

MARK NATKIN: I am.

FOUNTAIN: Looking for some answers, I called up Mark Natkin. He’s an investment adviser in Beijing, and I told him all about the strange packages full of random junk showing up on people’s doorsteps.

What does that sound like?

NATKIN: (Laughter) I mean, it sounds like, you know, somebody who’s gaming a system.

FOUNTAIN: Natkin says there’s a war going on out there on e-commerce sites to be at the top of the search results.

NATKIN: If your company is showing up on page 20, you might as well not be showing up at all.

FOUNTAIN: There are a few ways to up your ranking, but one way to do it – and this is what Natkin thinks might be happening here – is when vendors fake entire transactions. Natkin says in China, there’s even a word for this. It’s called brushing.

Do you think if we tried to talk to brushers, they would talk to us?

NATKIN: (Laughter) I mean, I guess I suspect it’d be difficult.

FOUNTAIN: Fair enough.

We knew that it would be a long shot to find a brusher, but we asked our Beijing bureau to take a look into it. And just a few days later…

MA HA QIAN: Hello, can you hear me?

FOUNTAIN: Yeah. Is this Qian?

QIAN: Yes.

FOUNTAIN: This is Ma Ha Qian – goes by Qian for short. She lives near Shanghai and works in tech. But in her free time, she’s a brusher.

What sort of items have you bought and given reviews for?

QIAN: (Through interpreter) Mostly clothing and shoes – sometimes cosmetics.

FOUNTAIN: Talking to Qian really opened up this crazy world. She does 10 or 15 of these a month, gets paid about a dollar per job. And the job is she’s supposed to buy a product, the sellers will reimburse her and sometimes she’s supposed to review it. But e-commerce sites are trying to crack down on this. They are looking out for fraudulent activity. So Qian tries to look like a regular shopper – like an indecisive shopper.

QIAN: (Through interpreter) I search the keyword and randomly click into several different links and scroll down the page, then go back, then click the right link.

FOUNTAIN: And then they ship something to her – not the thing she ordered. That would be a real purchase – something cheap and small because if the sellers don’t send it, it’s not a verified purchase. Qian can’t write a verified review. Sellers like this, who want to do business in the United States, have to get their packages overseas. And they might not have a partner here, so they might send stuff to unsuspecting recipients like Celina Salas. This is the world of e-commerce right now – a scramble to get to the top of the search results to get five-star ratings. And sometimes there is some sketchy stuff that goes down in that scramble – some sketchy stuff that means you might just come home to a random package on your doorstep. Nick Fountain, NPR News.

(SOUNDBITE OF WYNTON KELLY’S “PORTRAIT OF JENNY”)

Copyright © 2018 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

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Worries That A Federal Student Loan Watchdog Will Be Defanged

Mick Mulvaney, acting director of the CFPB, testifies at a House hearing.

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It’s a single line in an email:

“The office of ‘Students & Young Consumers’ … will be folded into the office of ‘Financial Education.’ “

Words sent Wednesday morning by the Consumer Financial Protection Bureau’s acting director, Mick Mulvaney, announcing various staffing changes at the bureau.

Why did this bureaucratic-sounding announcement trigger a sheaf of critiques from consumer groups, California’s attorney general and at least two U.S. senators?

Because student loans just crossed the $1.5 trillion mark. They are the biggest category of borrowing after mortgages. And since 2012, when college students are mistreated or misled, the CFPB’s Student and Young Consumer division has been there to help:

Students and Young Consumers, until recently, was a parallel program office to the office of Financial Education, so this reorganization looks an awful lot like a demotion. Staffers at the bureau, who declined to use their names for fear of losing their jobs, tell NPR they believe this is a move to weaken their ability to protect student loan borrowers and other young people.

A former senior CFPB attorney agrees. “This is an appalling step,” says Christopher Peterson, a law professor at the University of Utah and a former enforcement lawyer and special advisor at the CFPB. “This has been an office that’s been out there protecting consumers when student loan debt collectors, predatory schools, and other companies have been violating the law.”

The CFPB’s spokesman John Czwartacki told NPR: “This is a very modest organizational chart change to keep the Bureau in line with the statute but the office is still operating within the same division. The work of the office continues, personnel are all on the job and working on the same material as they were before. The bottom line is there is no functional or even practical change.”

Here’s a recap of the context. President Trump named Mulvaney, who is still the director of the Office of Management and Budget, concurrently to this post at CFPB last fall. The only problem was, Obama appointee Richard Cordray had already named his deputy, Leandra English, to be his successor. In fact just last month the two were in court fighting about it. As a U.S. Representative, Mulvaney criticized the agency and voted both to muzzle it and to get rid of it entirely. Also last month, he faced off against Sen. Elizabeth Warren, D-Mass., in a banking committee hearing; she blasted him for his lack of regulatory verve since assuming the post, saying, “You are hurting real people to score cheap political points.”

Meanwhile, it’s getting lonely out there for those trying to hold shady lenders, servicers and colleges accountable.

“Now, I’m less convinced that there’s going to be somebody in Washington who is paying attention to whether or not these businesses are doing what they’re supposed to,” says Peterson.

The Department of Education stopped cooperating with CFPB on student loan enforcement last fall, and in March, they issued guidance telling states to back off too.

This story has been updated with the CFPB’s response.

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