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Lyft pays $2.1 million to settle case alleging the ride-hailing service deceived drivers

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SAN FRANCISCO (AP) — Lyft is paying $2.1 million to settle a lawsuit accusing the ride-hailing service of exaggerating how much money drivers could make while the company was trying to recover from a steep downturn in demand during the pandemic.

The agreement resolves a case filed by the U.S. Justice Department a week ago in San Francisco federal court on Oct. 25 — the same day that Lyft disclosed it had negotiated the terms of the settlement revolving around the same issues with the Federal Trade Commission.

U.S. Magistrate Judge Peter Kang signed an order formalizing the settlement Thursday before it was made publicly available Friday. Besides having to pay $2.1 million, Lyft also has been prohibited from engaging in the misleading practices flagged in the case.

Both the Justice Department and Federal Trade Commission have been investigating Lyft since uncovering evidence that it was advertising inflated compensation rates while trying to to recruit more drivers as the pandemic began to ease and ride-hailing demand perked up.

The lawsuit alleged Lyft exaggerated the amounts that its drivers could make in a variety of major U.S. cities from April 2021 through June 2022. Lyft advertised drivers could make more than $40 per hour in cities such as San Francisco, Los Angeles and Boston and more than $30 per hour in cities such as Atlanta, Dallas and Miami.

But those figures were based on the earnings among the top 20% of Lyft’s drivers, leaving them unattainable for most others who picked up passengers for the ride-hailing service, the lawsuit alleged. much as $44 per hour in San Francisco.

“The Justice Department will vigorously enforce the law to stop companies from misleading Americans about their potential earnings in the gig economy,” Principal Deputy Assistant Attorney General Brian M. Boynton said in a Friday statement.

Lyft has already changed many of the practices cited in the lawsuit and is now overseen by a CEO, David Risher, who came on board last year.

“We agreed to this settlement because we recognize the importance of transparency in maintaining trust in the communities we serve,” Lyft said last week when it first disclosed the agreement with the Federal Trade Commission.

The Canadian Press. All rights reserved.



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House Speaker Johnson says GOP may try to repeal CHIPS Act, then walks it back

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WASHINGTON (AP) — House Speaker Mike Johnson said Friday that Republicans “probably will” try to repeal legislation that spurred U.S. production of semiconductor chips, a statement he quickly tried to walk back by saying he would like to instead “streamline” it.

Johnson made the initial comment while campaigning for a vulnerable New York GOP congressman in a district that is anticipating a large new Micron semiconductor manufacturing plant.

A reporter asked Johnson whether he would try to repeal the bipartisan CHIPS and Science Act, which Republican presidential nominee Donald Trump had disparaged last week. “I expect that we probably will, but we haven’t developed that part of the agenda yet,” Johnson replied.

Democrats quickly jumped on the Republican speaker’s comments, warning that it showed how Johnson and Trump are pursuing an aggressive conservative agenda bent on dismantling even popular government programs. The White House has credited the CHIPS Act for spurring hundreds of billions of dollars of investments as well as hundreds of thousands of jobs. Vice President Kamala Harris has pointed to the legislation on the campaign trail as proof that Democrats can be entrusted with the U.S. economy.

Johnson, who voted against the legislation, later said in a statement that the CHIPS Act, which poured $54 billion into the semiconductor manufacturing industry, “is not on the agenda for repeal.”

“To the contrary, there could be legislation to further streamline and improve the primary purpose of the bill—to eliminate its costly regulations and Green New Deal requirements,” the speaker’s statement said.

It wasn’t the first recent comment Johnson has had to walk back. Earlier this week he had to clean up comments he made saying he wanted to “take a blow torch to the regulatory state” and make “massive” changes to the Affordable Care Act. After facing political blowback, he said that repealing the health care law was “not on the table.”

The incident was emblematic of Johnson’s struggle working closely with Trump and at the same time campaigning for his House colleagues, especially those locked in tough reelection battles that are crucial to Republicans holding a narrow majority. The speaker was campaigning for Rep. Brandon Williams, a New York Republican who worked in the tech industry before running for Congress and supported the CHIPS Act.

Williams said in a statement that he spoke privately with Johnson after he suggested that the act could be repealed.

“He apologized profusely, saying he misheard the question,” Williams said.

Williams’ district is anticipating a large new Micron semiconductor manufacturing plant. The company has said it received grants of $6.1 billion from the CHIPS Act to support its plans.

New York Gov. Kathy Hochul, a Democrat, said in a statement Friday, “Anyone threatening to repeal the CHIPS & Science Act is threatening more than 50,000 good-paying jobs in Upstate New York and $231 billion worth of economic growth nationwide.”

Democrats are hoping that the comments give them a late boost as they try to court working class voters in regions that depend on factory jobs. Harris, during a campaign stop in Saginaw, Michigan earlier this week, toured another semiconductor factory to bring attention to the 2022 law.

In response to Johnson’s comments Friday, a spokesperson for Harris’ campaign, Ammar Moussa, said, “Harris is running to bring manufacturing jobs back to America and make us competitive globally. The only way to guarantee these Republicans never get a chance to repeal these laws that are creating jobs and saving Americans money is to elect her president.”

As of August, the CHIPS and Science Act had provided $30 billion in support for 23 projects in 15 states that would add 115,000 manufacturing and construction jobs, according to the Commerce Department. That funding helped to draw in private capital and would enable the United States to produce 30% of the world’s most advanced computer chips, up from 0% when the Biden-Harris administration succeeded Trump’s presidency.

Viet Shelton, spokesperson for the Democratic Congressional Campaign Committee, said, “Most politicians usually go to a community promising to create jobs in the town they’re visiting… Mike Johnson, ever the trendsetter, decided to visit a town and promise to kill jobs in that town.”

The Canadian Press. All rights reserved.



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As data center industry booms, an English village becomes a battleground

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ABBOTS LANGLEY, England (AP) — Originally built to store crops from peasant farmers, the Tithe Barn on the edge of the English village of Abbots Langley was converted into homes that preserve its centuries of history. Now, its residents are fighting to stop a development next door that represents the future.

A proposal to build a data center on a field across the road was rejected by local authorities amid fierce opposition from villagers. But it’s getting a second chance from British Prime Minister Keir Starmer’s government, which is pursuing reforms to boost economic growth following his Labour party’s election victory in July.

Residents of Abbots Langley, 18 miles (30 kilometers) northwest of London, worry the facility will strain local resources and create noise and traffic that damages the character of the quiet village, which is home to just over 20,000 people. Off the main street there’s a church with a stone tower built in the 12th century and, further down the road, a picturesque circular courtyard of rustic thatched-roof cottages that used to be a farm modeled on one built for French Queen Marie Antoinette.

“It’s just hideously inappropriate,” said Stewart Lewis, 70, who lives in one of the converted houses in the 600-year-old Tithe Barn. “I think any reasonable person anywhere would say, ‘Hang on, they want a data center? This isn’t the place for it.’”

As the artificial intelligence boom fuels demand for cloud-based computing from server farms around the world, such projects are pitting business considerations, national priorities and local interests against each other.

Britain’s Deputy Prime Minister Angela Rayner has stepped in to review the appeals filed by developers of three data center projects after they were rejected by local authorities, taking the decision out of the hands of town planners. Those proposals include Abbots Langley and two projects in Buckinghamshire, which sits west of London. The first decision is expected by January.

The projects are controversial because the data centers would be built on “greenbelt” land, which has been set aside to prevent urbanization. Rayner wants to tap the greenbelt for development, saying much of it is low quality. One proposed Buckinghamshire project, for example, involves redeveloping an industrial park next to a busy highway.

“Whilst it’s officially greenbelt designated land, there isn’t anything ‘green’ about the site today,” said Stephen Beard, global head of data centers at Knight Frank, a property consultancy that’s working on the project.

“It’s actually an eyesore which is very prominent from the M25″ highway, he said.

Greystoke, the company behind the Abbots Langley center and a second Buckinghamshire project to be built on a former landfill, didn’t respond to requests for comment. In an online video for Abbots Langley, a company representative says, “We have carried out a comprehensive search for sites, and this one is the very best.” It doesn’t specify which companies would possibly use the center.

The British government is making data centers a core element of its economic growth plans, deeming them “critical national infrastructure” to give businesses confidence to invest in them. Starmer has announced deals for new centers, including a 10 billion pound ($13 billion) investment from private equity firm Blackstone to build what will be Europe’s biggest AI data center in northeast England.

The land for the Abbots Langley data center is currently used to graze horses. It’s bordered on two other sides by a cluster of affordable housing and a highway.

Greystoke’s plans to construct two large buildings totaling 84,000 square meters (904,00 square feet) and standing up to 20 meters (66 feet) tall have alarmed Lewis and other villagers, who worry that it will dwarf everything else nearby.

They also doubt Greystoke’s promise that it will create up to 260 jobs.

“Everything will be automated, so they wouldn’t need people,” said tech consultant Jennifer Stirrup, 51, who lives in the area.

Not everyone in the village is opposed.

Retiree Bryan Power says he would welcome the data center, believing it would benefit the area in a similar way as another big project on the other side of the village, the Warner Bros.’ Studio Tour featuring a Harry Potter exhibition.

“It’ll bring some jobs, whatever. It’ll be good. Yeah. No problem. Because if it doesn’t come, it’ll go somewhere else,” said Power, 56.

One of the biggest concerns about data centers is their environmental impact, especially the huge amounts of electricity they need. Greystoke says the facility will draw 96 megawatts of “IT load.” But James Felstead, director of a renewable energy company and Lewis’ neighbor, said the area’s power grid wouldn’t be able to handle so much extra demand.

It’s a problem reflected across Europe, where data center power demand is expected to triple by the end of the decade, according to consulting firm McKinsey. While the AI-fueled data boom has prompted Google, Amazon and Microsoft to look to nuclear power as a source of clean energy, worries about their ecological footprint have already sparked tensions over data centers elsewhere.

Google was forced to halt plans in September for a $200 million data center in Chile’s capital, Santiago, after community complaints about its potential water and energy usage.

In Ireland, where many Silicon Valley companies have European headquarters, the grid operator has temporarily halted new data centers around Dublin until 2028 over worries they’re guzzling too much electricity.

A massive data center project in northern Virginia narrowly won county approval last year, amid heavy opposition from residents concerned about its environmental impact. Other places like Frankfurt, Amsterdam and Singapore have imposed various restrictions on data centers.

Public knowledge about the industry is still low but “people are realizing more that these data centers are quite problematic,” said Sebastian Lehuede, a lecturer in ethics, AI and society at King’s College London who studied the Google case in Chile.

As awareness grows about their environmental impact, Lehuede said, “I’m sure we will have more opposition from different communities.”



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Japan plans automated cargo transport system to relieve shortage of drivers and cut emissions

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TOKYO (AP) — Japan is planning to build an automated cargo transport corridor between Tokyo and Osaka, dubbed a “conveyor belt road” by the government, to make up for a shortage of truck drivers.

The amount of funding for the project is not yet set. But it’s seen as one key way to help the country cope with soaring deliveries.

A computer graphics video made by the government shows big, wheeled boxes moving along a three-lane corridor, also called an “auto flow road,” in the middle of a big highway. A trial system is due to start test runs in 2027 or early 2028, aiming for full operations by the mid-2030s.

“We need to be innovative with the way we approach roads,” said Yuri Endo, a senior deputy director overseeing the effort at the Ministry of Land, Infrastructure, Transport and Tourism.

Apart from making up for a shrinking labor force and the need to reduce workloads for drivers, the system also will help cut carbon emissions, she said.

“The key concept of the auto flow-road is to create dedicated spaces within the road network for logistics, utilizing a 24-hour automated and unmanned transportation system,” Endo said.

The plan may sound like a solution that would only work in relatively low-crime, densely populated societies like Japan, not sprawling nations like the U.S. But similar ideas are being considered in Switzerland and Great Britain. The plan in Switzerland involves an underground pathway, while the one being planned in London will be a fully automated system running on low-cost linear motors.

In Japan, loading will be automated, using forklifts, and coordinated with airports, railways and ports.

The boxes measure 180 centimeters in height, or nearly six feet, and are 110 centimeters, or 3.6 feet, by 110 centimeters in width and length, about the size of a big closet.

The system, which is also intended for business deliveries, may be expanded to other routes if all goes well. Human drivers may still have to do last-mile deliveries to people’s doors, although driverless technology may be used in the future.

Japan’s shortage of truck drivers is worsening due to laws that took effect earlier this year that limit the amount of overtime drivers can log. That’s seen as necessary to avoid overwork and accidents and to make the jobs tolerable, but in Japanese logistics, government and transportation circles, it’s known as the “2024 problem.”

Under current conditions, Japan’s overall transport capacity will plunge by 34% by 2030, according to government estimates. The domestic transport capacity stands at about 4.3 billion metric tons, almost all, or more than 91%, by trucks, according to the Japan Trucking Association.

That’s a fraction of what’s moving in a massive country like the U.S. About 5.2 trillion ton-miles of freight are transported in the United States each year, and that’s projected to reach more than 8 trillion ton-miles of freight by 2050. A ton-mile measures the amount of freight shipped and how far it’s moved, with the standard unit being one ton being moved one mile.

Demand for deliveries from online shopping surged during the pandemic, with users jumping from about 40% of Japanese households to more than 60%, according to government data, even as the overall population keeps declining as the birth rate falls.

As is true in most places, truck drivers have tough jobs requiring them to be on the road for days at a time, work that most jobseekers find unappealing.

In recent years, annual fatalities from delivery trucks crashing on roads have hovered at about 1,000 deaths. That’s improved from nearly 2,000 deaths in 2010, but the Trucking Association, which groups some 400 trucking businesses and organizations in the nation, would like to make deliveries even safer.

The association is also urging consumers to hold back on delivery orders or at least bundle their orders. Some industry experts are urging businesses to limit free delivery offers.

Trucks carry about 90% of Japan’s cargo, and about 60% of Japan’s fresh produce, like fruits and vegetables, come from distant places requiring trucking, according to Yuji Yano, a professor at the Ryutsu Keizai University, which is funded? by deliveries giant Nippon Express Co., now called NX Holdings, and focuses on economics and liberal arts studies, including trucking problems.

“That means the 2024 problem isn’t just a transportation problem but really a people’s problem,” Yano said.

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Yuri Kageyama is on X:



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