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Chrysler to Provide Trailer Hitches to Late-Model Jeeps


PRNewsFoto/Chrysler Group LLC(NEW YORK) -- Chrysler said Tuesday that due to customers’ “raised concerns” it would add or replace trailer hitches on some older-model Jeeps now at the center of a safety debate between the automaker and the U.S. government.

Mike Palese, a Chrysler spokesman, told ABC News Tuesday that the trailer hitch would “provide more ability to absorb some crash forces” in rear-impact accidents.

The National Highway Traffic Safety Administration had been seeking a recall of the Jeep Grand Cherokee, model years 1993 to 2004, and Jeep Liberty, model years 2002 to 2007.

In its initial findings, the NHTSA said that at least 51 people had died in the vehicles involving rear-impact crashes and fires. The problem, according to the government, is the location of the fuel tank.

It is situated behind the rear axle, and slightly below the bumper. That makes it vulnerable to rupture when the vehicle is hit from behind.

Chrysler’s action covers fewer model years of the Grand Cherokee, only those from 1993 to 1998, leaving out some vehicles covered by the government’s initial recall request.  Chrysler told ABC News that owners of those vehicles do not need fixes, unless they have an after-market trailer hitch on the car. Then they should come to the dealer for an inspection and possible replacement of the hitch.

The company still insists that the government’s analysis is incomplete and the vehicles are safe and have no defect. The automaker called Tuesday’s move a “voluntary campaign,” not a recall.

Clarence Ditlow, executive director of the Center for Auto Safety, said his group was “skeptical.”

“It is a safety recall,” he said. “We’re no longer arguing over whether there is a recall but what the remedy is. [The] NHTSA has the ability to approve the remedy. What NHTSA needs to do is test the remedy.”

Ditlow said his group also wanted Chrysler to expand the recall to include Jeep Cherokees, model years 1993 to 2001. Those vehicles have the gas tank in the same location as the ones subject to the automaker’s voluntary campaign. The NHTSA had been investigating that model but had not asked Chrysler to recall it.

Ditlow’s group had wanted a shield over the fuel tank as well as a new check valve system to shut off the flow of gasoline if the filler hose is yanked out of the tank in a crash.

Chrysler said it would not be adding shields over the fuel tank or changing the fuel nozzle.

In a statement on Tuesday, the NHTSA said it was pleased with the actions taken by Chrysler.

“Consumers impacted by the safety recall and customer satisfaction campaign should have their vehicles serviced promptly....We will continue our investigation into this issue,” the group said.

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City of San Jose Sues Major League Baseball over Oakland A's


Thearon W. Henderson/Getty Images(SAN JOSE, Calif.) -- The city of San Jose filed a lawsuit in federal court on Tuesday against Major League Baseball, accusing the league of taking part in an illegal conspiracy to limit competition by blocking the Oakland Athletics from moving to San Jose.

The San Francisco Giants own territorial rights to San Jose and have objected to the potential move. The A’s claim those territorial rights were temporarily given to the Giants when they were trying to build a ballpark in San Jose in the early '90s. The lawsuit claims that territorial rights reduce competition and harm consumers.

“The lawsuit is an unfounded attack on the fundamental structures of a professional sports league," MLB said in a statement. "It is regrettable that the city has resorted to litigation that has no basis in law or in fact.”

The A’s have been playing in Oakland since 1968, when they moved there from Kansas City.

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US Stocks Add to Gains


iStockphoto/Thinkstock(NEW YORK) -- Ahead of Wednesday's big quarterly news conference from Federal Reserve Chairman Ben Bernanke, the Dow Jones Industrial Average posted its second triple-digit surge of the week. The Dow finished the day up 138 points, closing at 15,318 -- a gain of 238 points in the last two days.

The Nasdaq Composite added 30 points for the day to finish at 3,482. The S&P 500 rose 13 points, closing at 1,652.
 
This week’s rally is a bit puzzling in that the markets are moving so strongly higher ahead of the Fed’s decision on rates and Wednesday’s presser with Ben Bernanke. Most analysts expected investors would sit on their hands and do nothing ahead of the chairman’s comments.
 
So what should we expect to hear Wednesday? Right now the feeling is that Mr. Bernanke and his band of policy makers will announce that they will start pulling back some of the stimulus for the economy by the fall. And that it will be quite a long time before all of that money comes out of the system.
 
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Chrysler Complies, Will Recall 2.7 Million Older-Model Jeeps


PRNewsFoto/Chrysler Group LLC, Lily Kesselman(NEW YORK) -- After initially refusing to issue a recall because it disagreed with the government, Chrysler Group now says it will recall older Jeep Grand Cherokee and Jeep Liberty SUVs that could be at risk of fuel tank fires.

The National Highway Traffic Safety Administration had called on Chrysler Group LLC to recall approximately 2.7 million Jeep Grand Cherokee and Jeep Liberty model cars after reports of numerous fuel tank fires in rear-end collisions.

The vehicles in question include Jeep Grand Cherokees built between 1993 and 2004, and Jeep Liberty model years 2002 to 2007.

The problem, according to the government, is the location of the fuel tank. It is situated behind the rear axle, and slightly below the bumper. That makes it vulnerable to rupture when the vehicle is hit from behind.

The NHTSA has said gas tanks on the SUVs can rupture, causing fires, and that 51 people have died.

Chrysler says its dealers will inspect the vehicles and add upgrades if necessary, but maintains that its older SUVs are not defective.

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Starbucks to Post Calorie Counts on Menu Boards, Pastry Cases


Andrew Giammarco/Starbucks(SEATTLE) -- Do you know what's in that Cinnamon Dolce Latte you're drinking? Starbucks is about to tell you.

If you don't live in a place like New York or California where restaurant chains already have to show calorie counts on their menus, it may shock you that a blueberry scone at Starbucks has 460 calories or that 300 calories are in a small Frappuccino.   

Now Starbucks says it will begin posting calorie counts on its menu boards nationwide next week.

It's trying to get out ahead of federal regulations that would require it to do so.

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Ben Bernanke to Step Down as Fed Chairman When Term Ends?


Alex Wong/Getty Images(WASHINGTON) -- President Obama is sending a strong signal that Ben Bernanke will step down as chairman of the Federal Reserve when his term ends early next year.

“He’s already stayed a lot longer than he wanted or he was supposed to,” the president told Charlie Rose in an interview on PBS.  “Ben Bernanke’s done an outstanding job.”

Bernanke, who has been trying to prop up the U.S. economy since the end of the recession and financial crisis, is widely expected to leave his job at the end of January. 

Fed Vice Chairman Janet Yellin appears to be the leading contender to replace him.

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Netflix Goes After Streaming Newbies with Netflix Families


Netflix(NEW YORK) -- Video streaming service Netflix sees a 30 percent uptick in usage during the summer months, partly because kids are out of school and families go on road trips.

But the company is hoping to see an even bigger spike in family and children's video streaming this summer.  Starting on Tuesday, a new section of the website, called Netflix Families, will provide a breakdown of the Netflix basics for newbies and lists of family-friendly video content that's available through the service.

Available at www.netflix.com/families, the site will contain a series of video tutorials about what video streaming is, as well as different lists of content, including an "Are We There Yet" playlist, which includes shows like Scooby Doo for watching in an airport.

Another list called "TV for Curious Kids" contains shows like How It Is Made and The Planets, which are intended to provide educational programming for kids in the summer months when kids are out of school.

But the real intention of Netflix Families is to get more people using the service and streaming.

"We know families are really using Netflix more during the summer -- we see that going up," Netflix Director of Public Relations Jenny McCabe told ABC News.  "We want to make that easy for people who aren't using Netflix yet.  We are trying to appeal to those people who are still using DVDs and haven't gotten into streaming yet."

McCabe said Netflix's fastest growing area is kids and family content.

On Monday, Netflix announced it was partnering with DreamWorks Animation to provide original kids programming -- including new shows and movie releases -- through the service.  There will be more than 300 hours of video added to Netflix through the deal, which begins in 2014.

Netflix is accessible on computers through Netflix.com and various mobile devices through the Netflix apps.  The service is also available through Internet-connected set-top boxes, TVs and gaming consoles, like the Xbox or Wii U.  The subscription service costs $7.99 a month and includes unlimited streaming of movies and TV episodes.

But if all that sounds overwhelming, the new tutorials on Netflix Families will explain how to access the service and the whole idea of streaming vs. downloading videos.  Netflix has created videos with young mothers and fathers to demonstrate how to set up an account and get started.

Netflix plans to offer new features to make the service enticing to families and its more than 36 million users.  In August, it will add a new user profile feature, allowing parents to set up a profile for themselves for their personal adult content and another for their kids.  With that, Netflix's recommendation engine will be able to provide more tailored and appropriate recommendations to families that share one account.

But when it comes to streaming kids content, there might be a major reason from some parents to hold out: the lack of Dora the Explorer or Spongebob.  The company lost access to Nickelodeon programming earlier this year.  Amazon, its lead competitor in the space, continues to provide access to Viacom's popular kids programming.

Still, Netflix says it is well suited to appeal to both kids and adult users and is trying to capture both those key markets by just getting families in the door.  Unlike Netflix.com, which requires that you log in to see content and options, Netflix.com/families won't require users to log in to see titles or browse videos.

"This is for people who want to know more about Netflix," McCabe said.  "You don't have to be a member for the Families page -- we really want people to play around with this."

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Gordon Ramsay’s LA Restaurant Sued for Alleged Unpaid Wages


Michael Lavine/FOX(LOS ANGELES) -- Celebrity chef Gordon Ramsay has found himself in a kitchen nightmare. Former employees of his Los Angeles eatery are suing him for what they say are unpaid wages.

Four former employees of The Fat Cow restaurant filed a class-action lawsuit Thursday in Los Angeles Superior Court, claiming, among other things, that they were forced to work grueling eight-hour shifts without a meal break. They’re also alleging that hourly employees weren’t always paid their minimum wage of $8 an hour and denied overtime pay.

The plaintiffs say they were not provided with proper documentation for their hours worked and their compensation.

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“There were hand-written paychecks sometimes. There was … no accounting at all,” attorney Lauren Abrams, who is representing the group of former employees, said.

Ramsay, 46, has built an empire shouting expletives at aspiring chefs and struggling restaurant owners on reality-TV shows Kitchen Nightmares and Hell’s Kitchen. His fiery temper has contributed to his media appeal, but has also been the subject of much criticism.

A representative for Ramsay acknowledged the issue but pointed to previous management. “We are aware there was a problem with previous management, which has since been changed, but this is totally unacceptable if any truth to it,” the representative told ABC News.

Ramsay, who earned $38 million last year, does not run day-to-day operations at The Fat Cow, which opened in September.

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Ford Bringing Back Knobs, Buttons to Dashboards


Ford Motor Company(NEW YORK) -- Ford is giving up on touch screens, bringing back traditional knobs and buttons to its interactive dashboards.

Introduced three years ago with much fanfare, MyFordTouch put selections for entertainment, navigation and heating on a touch-screen interface.  The hi-tech features also responded to voice commands.

But the system received poor reviews from Consumer Reports magazine and others who complained that “simple tasks have been made time-consuming and distracting.”

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Upstart Rental Car Company Undercuts Hertz, Avis


CEO Rujul Zaparde, 18, is one of three co-founders who launched FlightCar. (Courtesy Rujul Zaparde)(NEW YORK) -- Last year, three teenagers contemplated going to college or up-ending the airport rental car business.  They opted for the latter.

They were so positive that they had happened on a better business model than Hertz or Avis, that they turned their backs, respectively, on Harvard, Princeton and MIT -- the three institutions to which they had been offered admission.

The idea was this: At every major airport, acres of cars sit idle, left parked by owners who have jetted off.  Why couldn't these same cars be rented to arriving travelers?  Rates could be dramatically cheaper than those charged by traditional car rental companies, since, under this model, the rental company wouldn't have to pay for or maintain the fleet.

Owners would have a fourfold incentive to participate: free parking, a free car wash, a cut of the rental fee and a guarantee their car would be waiting for them when they returned.

With financing from investors, FlightCar, the trio's brainchild, began renting cars in February to passengers arriving at San Francisco International Airport (SFO), for rates starting as low as $21 a day, depending on the make and model of the car.

CEO Rajul Zaparde, 18, one of FlightCar's co-founders, tells ABC News the company already has signed up 1,400 owners and has arranged 1,500 rentals.

Until Zaparde hit rental car pay dirt, he had been headed to Harvard.  Now, he and co-founders Shri Graneshram, 19, and Kevin Petrovic, 19, have launched a second operation at Boston's Logan Airport.

"We're shooting for one more airport before the end of this year," says Zaparde.

Foes of FlightCar, however, have started to shoot back.

It's easy to see how traditional rental companies might not be amused to have their prices undercut.  But San Francisco International is crying foul, as well.

Doug Yakel, public information officer for SFO, tells ABC News that FlightCar refuses to play by the rules that govern other rental car companies.  It doesn't pay the same fees, he says, and it doesn't abide by the same regulations.

SFO's objections have taken the form of a complaint filed last month against FlightCar by the city attorney of San Francisco.

Zaparde says the airport's lawsuit stems from a disagreement over how to define FlightCar.

"They want to put us in the same bucket as traditional rental companies," he says.

FlightCar is a different animal from Avis or Hertz, he adds, and thus not subject to the same strictures.

For example, SFO wants FlightCar to pay it 10 percent of its gross profit and a $20 fee for each rental car transaction -- the same as what the airport gets from every other rental car company.

The fact that FlightCar operates from a base outside airport property, Yakel says, makes no difference: SFO has three other rental companies that also operate off-property.  According to the complaint, those three paid SFO over $2 million in fees in 2012.  FlightCar, too, should pay, thinks Yakel.

The fact that it does not gives FlightCar "an unfair advantage over similarly situated businesses that are forced to charge higher prices in order to operate lawfully and fairly," according to the complaint.

Deputy City Attorney Jennifer Choi tells ABC News that FlightCar's response is due on July 1, and that, if no resolution is reached by then, a court will decide if the company is in violation of California's Unfair Competition Law.  If found to be in violation, the company could be fined and/or shut down.

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Majority of Drivers Say GPS Has Led Them Astray


Comstock/Thinkstock(NEW YORK) -- GPS has certainly taken the pressure off drivers from having to ask for directions when they don’t know where they’re going, but a new survey reveals the technology is often inaccurate.

A survey of 2,220 adults conducted by Harris Interactive for Michelin Travel and Lifestyle finds 63 percent say GPS has led them astray at least once by pointing them in the wrong direction or creating confusing and complex travel routes.

Overall, drivers who use GPS say it has taken them off track an average of 4.4 times.  Younger drivers between the ages of 18 and 34 say they have been misdirected by GPS an average of 6.3 times.  Seven percent of U.S. drivers who use GPS have been led astray by the technology more than 10 times.

Ther survey also finds that GPS is the primary travel aid for 30 percent of U.S. adults, but it ranks second to a combination of resources that includes maps, printed directions and guide books.  That combination of physical resources is relied on primarily by nearly 40 percent of Americans who travel to unfamiliar destinations.

The survey found that 19 percent of drivers rely on a smartphone or tablet device, while 6 percent say they rely on verbal directions they get from locals.  Three percent say they rely on nothing at all to find their way around unfamiliar locations.

Additional findings:

  • Using GPS as a primary guide is most popular in the Northeast, with 35 percent of drivers using it to navigate when traveling.  Just 25 percent of drivers in the West rely primarily on GPS.
  • 46 percent of U.S. drivers still keep road maps and atlases in their vehicles.
  • Male drivers are more likely to primarily use GPS than women when traveling to a new location, 35 percent compared to 26 percent, respectively.

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Chilean Nanny's Alleged 'Slave' Experience Highlights Labor Abuse


iStockphoto/Thinkstock(NEW YORK) -- Chilean nanny Felicitas del Carmen Villanueva Garnica, 50, says she was forced into "involuntary servitude" by a Manhattan couple who denied her food, medicine and fair pay.

Villanueva, who told the New York Post she was residing in the country illegally, filed a lawsuit against the Upper East Side couple who are originally also from Chile, Malu Custer Edwards, 28, and Micky Hurley, 35. Villanueva claimed that she had been "trafficked," forced to work 12-hour days and paid only $2 an hour. She also says that she was locked in a room with the couple's three children who often hit her and once "slammed a refrigerator door on her head so hard she nearly lost consciousness." The couple's lawyer refuted the claims of the lawsuit in an interview with the New York Post, calling them "completely without merit."

Whether or not Villanueva's claims are substantiated will be decided by the courts. But, exploitation of undocumented laborers is common in the United States and many victims, often scared to come forward for fear of deportation, lack means and incentive to fight abusive employers.

Take Josue Melquisedec Diaz, for example. An undocumented construction worker in New Orleans, Diaz says that when he complained to his boss that he and fellow undocumented laborers weren't provided safety gear to handle toxic materials that other workers were provided, his wages were cut in half. And when he pushed further, organizing a strike, his boss called in the police and strikers were placed in deportation proceedings.

A study by the National Domestic Workers Alliance found that 25 percent of domestic workers in California such as maids and nannies are paid below the state's minimum wage, and 24 percent of the workers who had been fired were discharged for complaining about unsafe working conditions.

For many exploited workers who are undocumented, there is no clear path for justice. Some find some relief in the U Visa, a program which provides temporary status to those who have suffered "substantial physical or mental abuse as a result of having been a victim of a qualifying criminal activity." But many labor abuses don't fall squarely in the U visa category, typically used to provide relief to women of domestic abuse.

For that reason, there's a provision in the immigration bill currently in Congress that would expand U visa qualifying crimes to include labor crimes, including workplace abuse and exploitation, known as the POWER Act.

Senator Robert Menendez, D-N.J., who co-sponsored the POWER Act, says that such legislation would not only protect undocumented immigrants but also help cut down on exploitative labor practices generally.

"When some workers are easy to exploit," Menendez told the Los Angeles Times, "conditions for all workers suffer."

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US Stocks Close Higher


Hemera/Thinkstock(NEW YORK) -- U.S. stock trading was volatile on Monday in anticipation of a two-day Federal Reserve policy meeting this week.

The Dow Jones Industrial Average, which had been up as much as 191 points earlier Monday, gained 110 points to close at 15,180. The Nasdaq Composite rose 29 points, closing at 3,452. The S&P 500 closed up 12 points to finish the session at 1,639.

Stocks picked up steam after a better-than-expected report on the health of the housing market. The National Association of Homebuilders reported that builder confidence soared to a seven-year high, while investors applauded the end of uncertainty over the Fed's next move on bond-buying.

Markets have been roiled by fears that a massive bond-buying program that has kept interest rates low and money flowing may be nearing an end.

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Judge: Sex Tapes Violated Waffle House Chairman's Privacy


iStockphoto/Thinkstock(COBB COUNTY, Ga.) -- A former housekeeper violated the Waffle House chairman's privacy by recording sex tapes of the two in an attempt to show that he allegedly demanded sex acts from her, a Georgia judge ruled.

"The defendant's arguments that she was a victim of the crime of sexual battery and was permitted to record plaintiff's actions to gather evidence of a crime is extremely unpersuasive to the court," Cobb County Court Judge Robert Leonard II wrote in the order.

Joe Rogers Jr.'s former housekeeper accused him last year of demanding that she perform sex acts on him as part of her duties over an eight-year period.

Rogers has admitted to an affair with the woman but denied assault claims and said he was a victim of blackmail.

As part of the case, the judge seized sexual recordings of the two that included a video and about 15 audio recordings, according to court documents.

The videotape was viewed in a closed court hearing before the judge decided it was unlawfully recorded and did not show a sexual assault, court documents filed Friday, June 14 show.

"The video recording makes it clear that defendant was a willing participant in the sexual encounter and is not the victim of sexual battery," the judge wrote.

The judge's order allows for Rogers' attorneys to take a deposition from the woman, whom ABC News is not identifying because of the sexual harassment claims, to ask her specifically about the recordings.

"It's not a conclusive or final ruling," David Cohen, one of the woman's attorneys, told ABC News. "It's a preliminary ruling, and we will take a look at it and decide how to proceed forward."

"Our job as counsel is to fulfill our client's wishes to let her story be heard by a jury," he said.

For the first time, details of how the woman recorded the sexual encounter were revealed.

The court document says that the defendant's attorneys met with her in a private investigator's office where the investigator ordered her a "spy camera" -- a camera disguised as a cellphone -- that would be used for the recording.

The judge said that the court did not make any findings about the attorneys' involvement in making the recording but said the court might look into it.

Rogers' attorney did not immediately respond to ABC News' request for comment.

The former housekeeper accused Rogers of forcing her to perform "various sexual acts on him as a condition of her employment," according to the police report filed Sept. 28, 2012.

Rogers said in a statement that over a nearly eight-year period in which he was "separated, single and remarried," he had a "series of infrequent consensual encounters" with the woman.

"That was wrong of me, and I am very sorry for the pain and embarrassment I've caused my wife and family," he said. "There is no excuse for what I have done."

Rogers said the housekeeper worked for him from 2003 until 2008, when she was let go. He said that she reapplied for her job and was rehired as his house manager in late 2009, working in that position until she resigned in June 2012.

Rogers said that in July 2012, he received a letter from the woman's attorney's "containing false allegations and strong threats," and wanting "millions of dollars" from him.

Rogers claimed that he shared a "threatening blackmail letter" with his wife and hired attorneys to investigate. He said he initiated court proceedings in September 2012 and that the housekeeper and her attorneys responded with false allegations and a false police report.

The Waffle House chain was started in the 1950s by Rogers' father, Joe Rogers Sr., in Decatur, Ga., and has more than 1,500 restaurants. It is privately held.

Copyright 2013 ABC News Radio

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7-Eleven Stores Operated 'Modern Day Plantation System,' Feds Claim


Tim Boyle/Getty Images(NEW YORK) -- The owners of 7-Eleven franchises in New York and Virginia created a "modern day plantation system" in which undocumented workers were furnished with stolen identities and forced to work 100 hours a week for a fraction of their wages, according to federal authorities.

Ten stores in New York and four in Virginia were seized Monday as part of the federal investigation, which found undocumented workers from Pakistan were given identities stolen from children and the deceased, according to federal prosecutor Loretta E. Lynch.

"The 7-11 franchises seized today will be better known for their big fraud than their Big Gulp," said James Hayes, special agent in charge of the Immigration and Customs Enforcement's office of investigations in New York.

Nine people, including store owners and managers, were charged Monday with conspiring to commit wire fraud, stealing identities and harboring undocumented immigrants, Lynch said.

The workers, who are said to be from Pakistan, were also forced to live in boarding houses and pay rent to their employers, according to federal authorities, who said at least 18 undocumented workers were found Monday and could be deported.

The investigation, which is one of the largest criminal immigrant employment investigations ever by the Department of Justice and the Department of Homeland Security, began when several of the employees tipped off police, authorities said.

"These defendants ruthlessly exploited their immigrant employees, stealing their wages and requiring them to live in unregulated boarding houses, in effect creating a modern day plantation system," Lynch said.

The federal probe is expected to widen with at least 40 franchises in seven states being inspected Monday, authorities said.

A spokeswoman for Dallas-based 7-Eleven said it is cooperating with authorities.

"7-Eleven is aware of today's activity and has been cooperating with federal authorities during their investigation," said Margaret Chabris, director of Corporate Communications for 7-Eleven. "We will have no further comment until we learn more."

Copyright 2013 ABC News Radio

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