Texas Attorney General Ken Paxton has won a $1.4 billion settlement from Facebook parent Meta over charges that it captured users’ facial and biometric data without properly informing them it was doing so.

Paxton said that starting in 2011, Meta, then known as Facebook, rolled out a “tag” feature that involved software that learned how to recognize and sort faces in photos.

In doing so, it automatically turned on the feature without explaining how it worked, Paxton said — something that violated a 2009 state statute governing the use of biometric data, as well as running afoul of the state’s deceptive trade practices act.

‘Unbeknownst to most Texans, for more than a decade Meta ran facial recognition software on virtually every face contained in the photographs uploaded to Facebook, capturing records of the facial geometry of the people depicted,’ he said in a statement.

As part of the settlement, Meta did not admit to wrongdoing. Facebook discontinued how it had previously used face-recognition technology in 2021, in the process deleting the face-scan data of more than one billion users. 

The settlement amount, which Paxton said is the largest ever obtained by a single state against a business, will be paid out over five years.

“This historic settlement demonstrates our commitment to standing up to the world’s biggest technology companies and holding them accountable for breaking the law and violating Texans’ privacy rights,’ Paxton said. ‘Any abuse of Texans’ sensitive data will be met with the full force of the law.”

A Meta spokesperson said in a statement that the company was ‘pleased to resolve this matter’ and that it looks forward to ‘exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers.”

Paxton, an outspoken conservative who was nearly forced out as attorney general last year after he was impeached by the state’s House on abuse-of-power charges, has long railed against large tech companies while closely aligning himself with right-leaning figures in Silicon Valley like Elon Musk.

As a result, he has been floated as a potential U.S. attorney general in a second Trump administration, even as he still faces a federal investigation.

Starbucks on Tuesday reported quarterly revenue that missed analysts’ expectations as both its U.S. and international cafes faced weaker demand.

Shares of the company rose more than 1% in extended trading.

Here is what the company reported compared to what Wall Street was expecting, based on a survey of analysts by LSEG:

The coffee giant reported fiscal third-quarter net income attributable to the company of $1.05 billion, or 93 cents per share, down from $1.14 billion, or 99 cents per share, a year earlier.

Excluding items, Starbucks earned 93 cents per share.

Net sales dropped 1% to $9.11 billion. The company’s same-store sales fell 3% in the quarter, fueled by a 5% decline in transactions.

Traffic to its U.S. stores fell again this quarter, dropping 6%. Domestic same-store sales fell 2%, boosted by an increase in average ticket. Last quarter, executives discussed plans to revive the lagging U.S. business that included leaning on discounts and new drinks to bring back customers who had abandoned the chain.

Outside of North America, same-store sales slid 7%. In China, Starbucks’ second-largest market, same-store sales tumbled 14% as both average ticket and transactions shrank. Starbucks has faced stiffer competition in China from local coffee shops that undercut the coffee giant on price.

Starbucks opened 526 net new stores in the fiscal quarter.

The company will discuss its outlook for fiscal 2024 on its upcoming conference call. Last quarter, Starbucks slashed its forecast, projecting revenue growth of a low single-digit percentage and earnings per share growth in a range of flat to a low single-digit percentage.

Amid surging summer heat, the earth reached a new hottest day on record on July 22.

That day, the global average temperature was almost 63 degrees Fahrenheit, and was surrounded by similar high temperature days.

Across the U.S. this summer, many areas have experienced unrelenting heat waves.

As a result, many Americans face a tough tradeoff between paying higher cooling costs or suffering in the heat to save money, research finds.

This year, extreme heat is projected to lead home cooling to cost an average of $719 from June through September — up nearly 8% from $661 for the same period in 2023 — the National Energy Assistance Directors Association and the Center for Energy, Poverty and Climate estimate.

Home cooling costs have risen in the past decade as higher temperatures require more electricity.

And those higher temperatures are expected to get worse, with the U.S. by the end of the century projected to have at least 50 days per year with maximum temperatures above 95 degrees, according to new research from the JPMorgan Chase Institute.

“We’re seeing more and more high heat days and the impact of climate change,” said Heather Higginbottom, head of research, policy and insights for corporate responsibility at JPMorgan Chase. “That’s another expense that families and households have to manage.”

Low-income households may be poised to suffer most amid rising temperatures.

During hot days, low-income households tend to go without cooling to save money. They spend 37% to 45% less on air conditioning than high-income households, JPMorgan Chase Institute found, based on an analysis of anonymized firm data.

For most households, the higher electricity bills have limited effects on other spending. In Houston, an extra 95-degree day contributes to less than $1 in foregone spending for the average family, according to the JPMorgan Chase Institute’s research.

In two other cities the research evaluated — Los Angeles and Chicago — there was no statistically detectable effect.

“Lower-income households will spend less on air conditioning than middle- or higher-income households on high heat days, and essentially just go without cooling their homes as effectively for financial reasons,” Higginbottom said.

Rising energy prices have a greater impact on lower-income families because those increases take up a larger share of their budgets, according to Mark Wolfe, executive director of the National Energy Assistance Directors Association.

For a high-income family, higher energy bills may push those costs from 3% to 3.1% of their budgets, a difference that likely won’t substantially impact their lives, Wolfe said.

But for low-income families, the share of those costs in their budgets may go from 8.3% to 11%, and substantially limit their discretionary income, he said.

Those low-income families tend to disproportionately include young children, elderly or disabled individuals, which means higher heat also poses a significant health risk, Wolfe said.

While policies can help those vulnerable populations, it is a race against time, as temperatures rise faster than expected, he said.

“We’re having extended periods of very high temperatures, and we’re not prepared for it,” Wolfe said.

Two policy approaches can help, according to Wolfe — immediate help for people pay their cooling bills and long-term efforts to retrofit housing for low-income families so they can access affordable and modern cooling systems.

In the meantime, many families may be at risk of shut offs if they can’t pay their bills.

Turning up the temperature on the thermostat — say from 72 degrees to 78 degrees — can help reduce cooling costs. Installing more insulation can also result in savings, according to experts.

But this summer is a “wake up call” that bigger changes need to happen, Wolfe said.

“This is going to be expensive to adapt,” Wolfe said. “There’s no inexpensive solution.”

Amazon must notify customers about and remove products deemed dangerous that it sells through its website, federal regulators ruled Tuesday.

In a unanimous decision, the Consumer Product Safety Commission said that as a ‘distributor,’ Amazon ultimately bears legal responsibility for affected products’ recalls, even if they are sold in the first instance by third-party sellers using the Fulfilled by Amazon (FBA) program.

‘Amazon failed to notify the public about these hazardous products and did not take adequate steps to encourage its customers to return or destroy them, thereby leaving consumers at substantial risk of injury,’ the commission said.

More than 400,000 products sold on Amazon.com, including faulty carbon monoxide alarms and potentially flammable children’s pajamas and hair dryers, are subject to the order, though Amazon has already removed and notified customers about many of them.  

“We are disappointed by the CPSC’s decision,’ an Amazon spokesperson told NBC News, saying the company will appeal the commission’s decision.

‘When we were initially notified by the CPSC three years ago about potential safety issues with a small number of third-party products at the center of this lawsuit, we swiftly notified customers, instructed them to stop using the products, and refunded them,’ the spokesperson said.

Amazon must now develop and submit proposals about how it will notify purchasers and the broader public about future product hazards, and to provide refunds or replacements for the products, the CPSC said. 

The Amazon spokesperson said there are ‘proactive measures in place to prevent unsafe products,’ adding that the company continuously monitors listings in its store.

‘If we discover an unsafe product available for sale, we address the issue immediately, and refine our processes.”

The agency had sued Amazon in July 2021, forcing the company to recall hundreds of thousands of hazardous products sold on its platform via the FBA program, which accounts for approximately 60% of all sales on its platform.

In response, Amazon said it had removed a “vast majority” of such products from its store and refunded customers even as it maintained that it only provides logistics services to independent merchants and is not a distributor.

The CPSC disagreed with that argument.

“Amazon cannot sidestep its obligations under the [Consumer Product Safety Act] simply because some portion of its extensive services involve logistics,” its decision states. “Amazon must therefore comply with the CPSA to protect consumers from injury.”

Separately, the U.S. Food and Drug Administration said it had last week issued a warning letter to Amazon over its distribution of potent chemical peel drug products that violated the Federal Food, Drug, and Cosmetic Act.

While the best state to retire in the U.S. is also one of the smallest in the country, the worst state to retire is the largest.

Alaska ranks as the worst state in the U.S. to retire for the third year in a row, according to Bankrate’s study of the best states to retire in 2024.

To compile its list of the best and worst places to retire in the U.S., Bankrate ranked all 50 states across five weighted categories:

Bankrate analyzed datasets from a number of sources, including the Council for Community and Economic Research, the U.S. Census Bureau, the Tax Foundation and the National Oceanic and Atmospheric Administration.

Here are the 10 worst states to retire, according to Bankrate.

Notably, Alaska ranks last in the weather category. Although temperatures in Alaska can range from 45 degrees to 75 degrees Fahrenheit in the summer, they can sink as low as negative 10 degrees Fahrenheit in the winter.

Alaska can be an expensive place to live, especially for retirees with a fixed income. On average, the cost of living in Alaska is about 30% higher than the rest of the country, according to RentCafe. Housing costs are about 17% higher than the national average, and utilities and health-care expenses are both nearly 50% higher.

On the upside, Alaska can be a very tax-friendly location for retirees. The state doesn’t have income tax, estate taxes or inheritance taxes and doesn’t tax pension payments or retirement benefits from Social Security.

Lack of affordability appears to be a common thread among the other low-ranking states on the list, which include New York, Washington and California — all known for being relatively pricey.

However, just because a state has a higher cost of living doesn’t necessarily mean you should write it off as a potential retirement destination. You may just need to plan to set aside more money for retirement than you would if you were planning to retire somewhere less expensive.

CNBC Make It’s retirement calculator can help you estimate how much you’ll need to save for retirement based on factors like your current age, savings, income and when you’d like to stop working.

And while living costs can be a key determinant in deciding where you may want to retire in the future, it’s also good to keep other non-financial aspects in mind. For example, access to social and community-building activities is an important, but often overlooked, consideration for retirees, according to Bankrate.

“Having that sense of community and human connection is huge to healthy aging,” Kerry Hannon, a retirement expert and Author of “In Control at 50+: How to Succeed in the New World of Work,” says in Bankrate’s study.

“Isolation and loneliness are not something you want to move toward, so look for your community,” she says.

Boeing has named Robert “Kelly” Ortberg to replace CEO Dave Calhoun, picking a longtime aerospace veteran from outside the company as the manufacturer struggles to regain its footing from its safety and manufacturing crises. He will start Aug. 8.

Ortberg, 64, previously led major aerospace supplier Rockwell Collins, which later became Collins Aerospace, leading major acquisitions, including one early in his tenure. The business is now part of industry behemoth RTX. He retired in 2021, though he was most recently on RTX’s board and resigned on Wednesday.

The appointment of the more-than-three-decade aerospace veteran shows Boeing is seeking a steady hand that knows the industry — but also a company outsider. Jefferies analyst Sheila Kahyaoglu said in a July 29 note that at Collins, Ortberg was a “tough negotiator dealing with a diverse set of customers and suppliers and managing the complexity of its diverse customer base,” including Boeing.

Ortberg, who has a mechanical engineering degree, will face a host of challenges to turn Boeing around: persistent losses, additional regulator scrutiny, supply chain strains, a crisis of confidence from airline customers whose planes are delayed, and tense labor talks that now include the threat of a strike.

Boeing said in March that Calhoun would step down by year’s end, part of a broader company shake-up that also included the departure of its then-chairman and the replacement of its head of commercial aircraft unit. The changes came after a door plug blew out of a nearly new 737 Max 9, heightening federal scrutiny of Boeing just as it was trying to move on from two fatal crashes of its bestselling plane.

Boeing announced Ortberg’s appointment alongside a wider-than-expected quarterly loss and a 15% drop in sales.

“Kelly is an experienced leader who is deeply respected in the aerospace industry, with a well-earned reputation for building strong teams and running complex engineering and manufacturing companies,” Boeing chairman Steven Mollenkopf said in note to employees on Wednesday.

Ortberg will also join Boeing’s board.

Boeing has in recent months tried to move past its production and safety crises, including the continued fallout from two deadly crashes of its Max planes in 2018 and 2019 that killed 346 people.

Earlier this month it pleaded guilty to a federal fraud charge that said it misled regulators about the Max planes before they were certified. The agreement requires an independent corporate monitor at the company for three years.

As CEO, Ortberg will have to ensure quality of Boeing’s products that depend on a strained and massive supply chain. The company, which employs some 170,000 people, has to train thousands of new employees who replaced more experienced staff who left in the pandemic, a challenge Boeing’s suppliers are also facing.

The midair door plug blowout put Boeing’s leaders back in crisis mode, though there weren’t any serious injuries among passengers or crew. Bolts to hold the door panel in place weren’t installed at Boeing’s Renton, Washington, factory, according to early accident reports.

That accident was the most serious of a host of manufacturing flaws that also included misdrilled holes and incorrect spacing on fuselages, problems that have slowed deliveries, depriving the company of cash and customers of new planes.

Boeing reached a deal earlier this month to buy Spirit AeroSystems, its fuselage supplier it previously owned. Many of the recent problems originated there and Boeing’s leaders have said the acquisition Boeing’s leaders have said will help them get a better handle on quality after years of outsourcing, a practice that outgoing CEO Calhoun said earlier this year likely went “too far.”

“One person cannot turn around a company, but Kelly should be able to cast a wider net for talent than a Boeing insider could,” Bank of America aerospace analyst Ron Epstein said in a note Wednesday. “Also, we note that Rockwell Collins fostered a strong culture, something that we think Boeing is in dire need of now.”

DETROIT — Automaker Stellantis plans to once again reduce its U.S. employee headcount through a broad voluntary buyout, as the company attempts to reduce costs and boost profits.

In an email to employees Tuesday morning, the company said it would offer a voluntary separation program to non-union U.S. employees at the vice president level “and below in certain functions.”

The company, which reported disappointing first-half results last week, said if not enough employees participate in the buyout program, involuntary terminations could follow. The message said eligible employees will be sent an email in mid-August with instructions on how to access their individualized offers.

Stellantis confirmed the buyout program, which was first by Automotive News, early Tuesday afternoon.

“As Stellantis continues to address inflationary pressures and, importantly, provide consumers with affordable vehicles at the highest quality, we remain focused on taking the necessary actions to reduce our costs to protect the long term sustainability of the company,” the company said in an emailed statement.

Stellantis CEO Carlos Tavares has been on a cost-cutting mission since the company was formed through a merger between Fiat Chrysler and France’s PSA Groupe in January 2021. It’s part of his “Dare Forward 2030” plan to increase profits and double revenue to 300 billion euros by 2030.

The cost-saving measures have included reshaping the company’s supply chain and operations as well as earlier headcount reductions.

“With our commitment to executing our Dare Forward 2030 strategy, we must continue to adapt by streamlining operations and finding efficiencies that will enhance our competitiveness to ensure our future sustainability and growth,” the company said in the email Tuesday, which was viewed and verified by CNBC.

Several Stellantis executives previously described the earlier cuts to CNBC as difficult but effective. Others, who spoke on the condition of anonymity due to potential repercussions, described them as grueling to the point of excessiveness.

Tavares last week pushed back on the claim that the company’s massive cost-cutting efforts had created problems at the automaker.

“When you don’t deliver for any reason … you may want to use a scapegoat. The budget cut is an easy one. It’s wrong,” Tavares said.

Stellantis has reduced headcount by 15.5%, or roughly 47,500 employees, between December 2019 and the end of 2023, according to public filings. Additional job cuts this year involving thousands of plant workers the U.S. and Italy have drawn the ire of unions in both countries.

Stellantis last conducted a voluntary buyout program in November, offering the deals to roughly half of its U.S. white-collar employees.

Boeing has named Robert “Kelly” Ortberg to replace CEO Dave Calhoun, picking a longtime aerospace veteran from outside the company as the manufacturer struggles to regain its footing from its safety and manufacturing crises. He will start Aug. 8.

Ortberg, 64, previously led major aerospace supplier Rockwell Collins, which later became Collins Aerospace, leading major acquisitions, including one early in his tenure. The business is now part of industry behemoth RTX. He retired in 2021, though he was most recently on RTX’s board and resigned on Wednesday.

The appointment of the more-than-three-decade aerospace veteran shows Boeing is seeking a steady hand that knows the industry — but also a company outsider. Jefferies analyst Sheila Kahyaoglu said in a July 29 note that at Collins, Ortberg was a “tough negotiator dealing with a diverse set of customers and suppliers and managing the complexity of its diverse customer base,” including Boeing.

Ortberg, who has a mechanical engineering degree, will face a host of challenges to turn Boeing around: persistent losses, additional regulator scrutiny, supply chain strains, a crisis of confidence from airline customers whose planes are delayed, and tense labor talks that now include the threat of a strike.

Boeing said in March that Calhoun would step down by year’s end, part of a broader company shake-up that also included the departure of its then-chairman and the replacement of its head of commercial aircraft unit. The changes came after a door plug blew out of a nearly new 737 Max 9, heightening federal scrutiny of Boeing just as it was trying to move on from two fatal crashes of its bestselling plane.

Boeing announced Ortberg’s appointment alongside a wider-than-expected quarterly loss and a 15% drop in sales.

“Kelly is an experienced leader who is deeply respected in the aerospace industry, with a well-earned reputation for building strong teams and running complex engineering and manufacturing companies,” Boeing chairman Steven Mollenkopf said in note to employees on Wednesday.

Ortberg will also join Boeing’s board.

Boeing has in recent months tried to move past its production and safety crises, including the continued fallout from two deadly crashes of its Max planes in 2018 and 2019 that killed 346 people.

Earlier this month it pleaded guilty to a federal fraud charge that said it misled regulators about the Max planes before they were certified. The agreement requires an independent corporate monitor at the company for three years.

As CEO, Ortberg will have to ensure quality of Boeing’s products that depend on a strained and massive supply chain. The company, which employs some 170,000 people, has to train thousands of new employees who replaced more experienced staff who left in the pandemic, a challenge Boeing’s suppliers are also facing.

The midair door plug blowout put Boeing’s leaders back in crisis mode, though there weren’t any serious injuries among passengers or crew. Bolts to hold the door panel in place weren’t installed at Boeing’s Renton, Washington, factory, according to early accident reports.

That accident was the most serious of a host of manufacturing flaws that also included misdrilled holes and incorrect spacing on fuselages, problems that have slowed deliveries, depriving the company of cash and customers of new planes.

Boeing reached a deal earlier this month to buy Spirit AeroSystems, its fuselage supplier it previously owned. Many of the recent problems originated there and Boeing’s leaders have said the acquisition Boeing’s leaders have said will help them get a better handle on quality after years of outsourcing, a practice that outgoing CEO Calhoun said earlier this year likely went “too far.”

“One person cannot turn around a company, but Kelly should be able to cast a wider net for talent than a Boeing insider could,” Bank of America aerospace analyst Ron Epstein said in a note Wednesday. “Also, we note that Rockwell Collins fostered a strong culture, something that we think Boeing is in dire need of now.”

Private job growth slowed further in July while the pace of wage gains hit a three-year low, payrolls processing firm ADP reported Wednesday.

Companies added just 122,000 jobs on the month, the slowest pace since January and below the upwardly revised 155,000 in June. Economists surveyed by Dow Jones had been looking for a gain of 150,000.

ADP also reported that wages for those who stayed in their jobs increased 4.8% from a year ago, the smallest increase since July 2021 and down 0.1 percentage point from June.

“With wage growth abating, the labor market is playing along with the Federal Reserve’s effort to slow inflation,” said ADP chief economist Nela Richardson. “If inflation goes back up, it won’t be because of labor.”

Futures tied to major stock indexes added to gains following the report while Treasury yields fell.

There was more positive inflation news Wednesday, as the Labor Department’s Bureau of Labor Services reported that the employment cost index, an indicator Fed officials watch closely, increased just 0.9% in the second quarter, according to seasonally adjusted figures.

That was below the 1.2% acceleration in the first quarter and the Dow Jones estimate for a 1% increase.

Both reports could add to the likelihood that the Fed will signal a September rate cut when it concludes its two-day meeting later in the day.

Job growth was heavily concentrated in two sectors — trade, transportation and utilities, which added 61,000 workers, and construction, which contributed 39,000. Other sectors seeing gains included leisure and hospitality (24,000), education and health services (22,000) and other services (19,000).

Several sectors reported net losses on the month. They included professional and business services (-37,000), information (-18,000) and manufacturing (-4,000). Companies that employ fewer than 50 people also registered a loss, down 7,000 in June.

Geographically, the job gains were concentrated in the South, which saw a gain of 55,000, while the Midwest added just 17,000..

The ADP report comes two days before the Labor Department’s Bureau of Labor Services releases its nonfarm payrolls count, which, unlike the ADP tally, includes government jobs. The two reports can differ substantially, with ADP overshooting the BLS estimate of 136,000 for private payrolls in June.

Economists expect job growth of 185,000 in July, down from 206,000 in June, with the unemployment rate holding steady at 4.1%.