Home Blog Page 1628

US judge rejects Amazon bid to get FTC lawsuit tossed over Prime program

REUTERS

 – A US judge in Seattle on Tuesday rejected Amazon.com’s request to dismiss a Federal Trade Commission lawsuit that accuses the company of enrolling millions of consumers into its paid Amazon Prime service without their consent.

Attorneys for Amazon had urged US District Judge John Chun to dismiss the FTC’s claims. Amazon did not immediately respond to a request for comment.

The FTC lawsuit filed in June 2023 accusing the retailer of deceptive practices. It argued Amazon made it hard to cancel and knew that a percentage of consumers accidentally signed up for Prime and that some consumers were charged for multiple months before they canceled their memberships.

Amazon urged Chun to dismiss the FTC lawsuit, arguing the company “prominently and repeatedly” disclosed key terms – including price and automatic renewal – to Prime customers. Amazon also accused the FTC of seeking to punish the company through “undefined concepts” such as “manipulative” website designs.

Amazon used “manipulative, coercive or deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically renewing Prime subscriptions,” the FTC said, which has sought civil penalties and a permanent injunction to prevent future violations.

The lawsuit is part of the Biden administration’s ongoing regulatory and enforcement squeeze on big technology companies.

In a separate lawsuit, the FTC in September accused Amazon of violating US antitrust law in business practices that restrict merchants from offering lower prices than Amazon’s. That case is also pending in Chun’s Seattle court and set for trial in October 2026.

The FTC’s Prime lawsuit said Amazon “under substantial pressure” from the FTC changed its cancellation process in April, before the agency filed its lawsuit. The complaint said “Amazon still requires five clicks on desktop and six on mobile for consumers to cancel from Amazon.com.”

A 10-day non-jury trial in the case is scheduled for February 2025. – Reuters

Mexico’s electricity demand hits record amid extreme heat and water shortages

 – Mexico has been consuming record amounts of electricity and occasionally more than its utility infrastructure can generate and transmit, official data showed, as scorching heat and water shortages raise the likelihood of power outages.

In the late afternoon on Monday, Mexico consumed 51,595 megawatts of electricity across the country, grid operator CENACE recorded. When demand exceeds supply, the country becomes much more prone to outages.

With some widespread outages so far this year already, and even hotter days forecast, water and electricity have become major election issues ahead of a national vote on Sunday.

Finding a sustainable solution that keeps up with rising demand will be a major challenge for the next president.

State-owned utility CFE, a near-monopoly that produces 99.47% of Mexico’s electricity, and state-owned grid operator CENACE are suffering from aging and insufficient infrastructure as well as inadequate efforts to modernize and invest in renewable power sources.

“There have been too many years now where demand was growing but there was an underinvestment in electricity generation and transmission,” said Paul Alejandro Sanchez, an independent energy consultant. “The challenge isn’t the average demand. It’s when demand spikes to such extremes.”

Heat has driven electricity consumption by both households and industries, but Mexico also keeps growing. Increasing supply in the short term is difficult, and hydroelectric plants in particular have also been hit by extreme water shortages.

Over the past six years, energy nationalist President Andres Manuel Lopez Obrador has prioritized CFE, which largely burns fuel oil, a residual waste product Pemex refineries are producing, to generate electricity.

Under Lopez Obrador, experts have criticized that electricity generation has become dirtier, more expensive and less sustainable.

He also curtailed growth of privately owned generators, many of which have seen their renewable energy plans stymied.

International organizations have said Mexico is ideally positioned to become a clean energy powerhouse given its high solar radiation, wind capacity and geothermal sources.

Mexico relied on fossil fuels for 77% of its electricity generation last year, according to Ember. Its largest source of clean electricity is solar, with 6%.

Lopez Obrador is barred from running for a second term in Sunday’s election. But the three candidates vying for the presidency of Latin America’s second-largest economy have vowed to tap the country’s vast solar, wind and water potential to generate more electricity.

Claudia Sheinbaum of Lopez Obrador’s ruling Morena party, who is leading the polls, and her closest opponent, Xochitl Galvez, have said they would focus on renewable energy to boost sustainability.

The National Autonomous University of Mexico forecasts new heat records in some states will lead to “an increase in energy demand, poor air quality and forest fires.” – Reuters

Musk’s Neuralink seeks to enroll three patients in brain implant study

Practicing thread insertions into a surgical proxy designed to mimic the physical properties of the human head, including skin, skull, and brain. Source: https://neuralink.com/

Neuralink, Elon Musk’s brain-chip company, aims to enroll three patients to evaluate its device in a study expected to take several years to complete, according to details on the US government’s clinical trials database.

The company had sought to enroll 10 patients when it applied to US regulators to begin clinical trials, Reuters reported last year. Neuralink is testing its implant designed to give paralyzed patients the ability to use digital devices by thinking alone, a prospect that could help people with spinal cord injuries.

Before Neuralink posted details of its trial this week, the company faced criticism from brain implant researchers and former regulatory officials for not sharing information about the study, as is common in the industry.

The US Food and Drug Administration, which approved the clinical trial, said it generally likes companies to publish information about their studies to enhance public trust and honor patients who participate.

The FDA declined to comment on Neuralink, and company executives did not respond to a request for comment.

Neuralink’s study is estimated to have a primary completion date of 2026, with the full study expected to be complete in 2031. The study will enroll patients between the ages of 22 and 75 years with conditions such as quadriplegia.

According to eligibility criteria posted on the database, patients must have limited mobility without improvement for at least one year, with a life expectancy greater than or equal to 12 months.

Eligible patients must have very limited or no hand, wrist, and arm movement due to spinal cord injury or a neurological disorder called amyotrophic lateral sclerosis (ALS).

The “first-in-human early feasibility study” began in January, according to the registry details posted on Monday.

Early feasibility studies are exempt from a requirement to post trial details on the US National Institutes of Health’s ClinicalTrials.gov website, but major medical journals often require trials be registered on the database.

Neuralink has for years fielded calls from interested patients, well before the company received approval last year to begin conducting trials in people, Neuralink sources said.

The study uses a robot to surgically place a brain-computer interface (BCI) implant in a region of the brain that controls the intention to move, Neuralink had said.

In January, Neuralink implanted the device in the brain of its first patient, Noland Arbaugh, who is paralyzed from the shoulders down due to a 2016 diving accident.

The device has allowed Arbaugh to play video games, browse the internet and move a computer cursor on his laptop by thinking alone, according to company blog posts and videos. – Reuters

US announces measures to give Cuban small business a boost

STOCK PHOTO | Image by CJ from Pixabay

 – The US Treasury Department on Tuesday announced regulatory changes to allow more American financial support for Cuba’s nascent private sector and bolster access to US internet-based services, modest but timely measures that officials said would help give the island’s budding small businesses a leg up.

The US said it would permit small entrepreneurs on the Communist-run island to open and access US bank accounts from Cuba for the first time in decades, following prohibitions put in place shortly after Fidel Castro’s 1959 revolution.

Cuban entrepreneurs would be allowed to use U.S.-based social media platforms, online payment sites, video conferencing and authentication services, previously unavailable to the sector and a major hurdle facing small businesses on the island.

The moves aim to fulfill a long-delayed pledge by President Joe Biden’s administration to help Cuba’s budding entrepreneurs, giving its small but fast-growing private sector deference despite the Cold War-era U.S. embargo that has for decades complicated financial transactions by the Cuban government.

“Today we’re taking an important step to support the expansion of free enterprise and the expansion of the entrepreneurial business sector in Cuba,” a senior U.S. official told reporters.

Johana Tablada, Cuba’s deputy director of U.S. affairs, told reporters late on Tuesday that an initial read suggested the measures to be “very limited” and difficult to implement.

The US has designated Cuba as a state sponsor of terrorism, together with Syria, Iran, and North Korea, a label that further complicates financial transactions for listed nations.

“The presence of Cuba on the list of state sponsors of terrorism will probably prevent the measures announced today from becoming a reality for the (private) sector that the United States government wants to favor,” she said.

But she said Cuba would not stand in the way of the measures aimed at bolstering the private sector.

US officials, who briefed reporters on condition of anonymity, signaled they had sought to balance the goal of bolstering the private sector with a desire to avoid benefit to Cuban authorities.

The measures would exclude Cuban officials, military officers and other government “insiders,” aiming to minimize resources that could benefit the Cuban government, the officials said.

The US officials declined to say whether the administration was conducting a formal review of Cuba’s continuing presence on the State Department’s list of state sponsors of terrorism.

Republican US Representative Maria Elvira Salazar, a Cuban American lawmaker from South Florida, quickly criticized the Democratic administration’s announcement.

“The Biden Admin is now giving the ‘Cuban private sector’ access to the US financial system,” she said in a post on X. “This would make a mockery of American law, considering no progress has been made toward freedom on the Island and repression has intensified.”

 

OPEN FOR BUSINESS

Cuba has long blamed the US embargo and associated sanctions for decades of economic crisis that have left it with little choice recently but to open its economy to small private business.

Such businesses – for decades taboo in Communist-run Cuba – are now booming on the island.

New Cuban laws put in place in 2021 have seen the establishment of upwards of 11,000 small businesses as of May, the government has said, ranging from corner grocers to plumbing, transportation and construction businesses.

The regulations announced by the US on Tuesday appear aimed at easing some of the complications faced by the growing private sector.

They authorize US banks to once again process so-called “U-Turn” fund transfers, allowing them to move money for Cuban nationals – including payments and remittances – so long as senders and recipients are not subject to US law.

Such measures are a step in the right direction, said John Kavulich, president of the US-Cuba Trade and Economic Council, but he noted a “glaring omission” in the policy: Cuban businesses are still handicapped by a requirement that they use banks in third countries to move their money.

“As long as financing, investment, and payments need to be routed through third countries, the Biden-Harris Administration will be constraining precisely the activity it professes to support,” Mr. Kavulich said in an email.

There was no sign that Tuesday’s announcement could foreshadow a more significant easing of U.S. sanctions and other restrictions on Cuba, beyond the modest steps that Mr. Biden has already taken since he became president.

Some analysts have attributed Mr. Biden’s cautious handling of Cuba issues to his concern that a softened approach to Havana could hurt him politically among strongly anti-communist Cuban American voters in Florida, a key swing state that he lost to Trump in the 2020 election. – Reuters

Russia proposes higher income taxes for the well-off

UNSPLASH

Russia’s finance ministry on Tuesday proposed introducing extra progressive income tax rates for those earning more than 2.4 million roubles ($27,100) annually, as well as raising the mineral extraction tax for fertilizer and iron ore producers.

The proposed amendments to Russia’s tax code would come into force from 2025 and, according to finance ministry estimates cited by the Interfax news agency, bring an additional 2.6 trillion roubles in budget revenues that year.

President Vladimir Putin proposed higher taxes for companies and wealthy individuals shortly before securing another six-year term in power in March, in an election widely condemned in the West as undemocratic. Russia is ploughing funds into the defense sector to fund its war in Ukraine.

Income tax is currently 13% for the majority of Russians, with some higher earners paying a rate of 15%. The finance ministry said in a statement that it had submitted proposed alterations to the tax system, with the 15% rate set to apply for annual incomes from 2.4 to 5 million roubles.

The rate would rise to 18% for income between 5 and 20 million roubles, to 20% for income between 20 million and 50 million roubles and 22% for earnings exceeding 50 million roubles.

“The tax changes will affect only 3.2% of the workforce, or 2 million people of the workforce of 64 million with annual income exceeding 2.4 million roubles,” the statement quoted Finance Minister Anton Siluanov as saying.

He said the increase would only apply to income above 2.4 million roubles and that about half of families with two or more children would benefit from a rebate.

The flat tax rate of 13% was introduced in Russia in 2001 at the beginning of Putin’s first term. From 2021, a rate of 15% was introduced for Russians with income exceeding 5 million roubles.

The lion’s share of personal income tax is credited to regional budgets. Last year, personal income tax receipts totalled 6.38 trillion roubles, according to the federal tax service, or 28.6% of taxes collected for Russia’s budget.

 

BUSINESS TAXES

The ministry proposed raising Russia’s corporate tax rate to 25% from 20%, with a promise to include a deduction for some investments, as requested by businesses.

The change would also see export duties linked to the rouble-dollar exchange rate abolished, as announced by Mr. Siluanov last week.

The ministry said corporate tax rates could increase because the share of profitable companies in the economy was growing.

The corporate tax hike would add 1.6 trillion roubles to the budget in 2025 and 11.1 trillion roubles by 2030, Interfax reported, citing an explanatory note from the finance ministry.

The proposed tax amendments also include an increase in taxes for fertilizer and iron ore producers. The mineral extraction tax for iron ore producers would increase by 1.15 times, for potash producers by 2.3 times and it would double for phosphorus fertilizer producers. – Reuters

Floods in southern Brazil leave students without classrooms for a month

STOCK PHOTO | Image by Tapani Hellman from Pixabay

 – Tens of thousands of students in southern Brazil have been gone a month without seeing their classrooms after catastrophic floods submerged some schools and turned others into shelters, raising concerns about their mental health.

Of Rio Grande do Sul state’s more than 2,000 public schools, nearly a fifth remain closed, affecting some 185,000 students.

“We have children who are completely traumatized. When it starts raining they panic,” said Rio Grande do Sul state Education Secretary Raquel Teixeira.

Rains that started in late April have swollen several rivers and lakes in Brazil’s southernmost state of Rio Grande do Sul to record highs, causing floods that killed at least 169 people and left more than 580,000 displaced, according to state officials.

In the northern part of state capital Porto Alegre, near the Guaiba river, which still is above flood levels, primary school Brasilia remains partially under water. The school’s soccer court is a pool, while classrooms and books are covered in mud.

“We have impacts on infrastructure, physical and material; we have pedagogical impacts; we have psychological, and we have emotional impacts”, Teixeira said.

Elsewhere in Porto Alegre, at Roosevelt school, principal Marcio Freitas said employees know they will be the emotional support for parents and about 800 students as soon as they get back for classes, which are expect to resume by early June.

“To have this situation (of flooding) in our last year of school, plus to have lost our last years of elementary school (to COVID-19), gives us … a very bad feeling,” said Sophia Souza Assumpcao, a high school senior at Roosevelt.

Freitas, the principal, said he has faced many challenges working in public education over the year, but none as big as this one. Still, he said education gives no time to suffer.

“If you fall you have to get up quickly. That’s life in education.” – Reuters

US Treasury sets $492 million minimum price for airline warrants auctions

PIXABAY

 – The US Treasury Department has set a minimum of $492 million in total it is seeking in next week’s auctions to sell warrants to purchase shares in US airlines the government received in exchange for COVID-19 assistance.

Congress approved $54 billion in COVID-19 air carrier bailouts in 2020 and 2021. Airlines were required to repay $14 billion of that total and Treasury received warrants to purchase stock at the share price of the time of the awards.

American Airlines received $12.6 billion in government assistance, followed by Delta Air Lines $11.9 billion, United Airlines $10.9 billion, and Southwest Airlines at $7.2 billion.

Seven other airlines received smaller awards, including $2.2 billion for Alaska Airlines.

Treasury plans to auction its warrants in the 11 airlines starting Monday. The air carriers declined comment or did not immediately answer if they plan to take part in the auction.

Treasury set reserve prices of $221 million for its Delta warrants, $159 million for United, $59 million for American Airlines, $30 million for SkyWest, $17 million for Alaska Air, $2.9 million for Hawaiian Airlines, $1.9 million for Frontier Group and $1.7 million for Southwest.

The Treasury is seeking at least $50,000 per airline for its warrants in Allegiant, Spirit Airlines, and JetBlue. Those warrants and others are priced below the current trading prices of the carriers’ stocks.

The warrants expire between April 2025 and June 2026.

The US government also extended $25 billion in low-cost loans to airlines. Treasury said “the proceeds of these sales will provide additional returns to the American taxpayer from the financial assistance and liquidity that Treasury provided to these airlines during the pandemic.”

The pandemic prompted a historic collapse in air travel demand. US air passenger travel fell by 60% in 2020 to its lowest since 1984, down more than 550 million passengers, as airlines slashed costs and struggled to survive.

Spending too much time on social media and doomscrolling? The problem might be FOMO

STOCK PHOTO | Image by David from Pixabay

Disclaimer: This asset – including all text, audio and imagery – is provided by The Conversation. Reuters Connect has not verified or endorsed the material, which is being made available to professional media customers to facilitate the free flow of global news and information.

SOURCE: THE CONVERSATION

 

by Kim M. Caudwell, Senior Lecturer – Psychology | Chair, Researchers in Behavioral Addictions, Alcohol and Drugs (BAAD), Charles Darwin University

For as long as we have used the internet to communicate and connect with each other, it has influenced how we think, feel and behave.

During the COVID pandemic, many of us were “cut off” from our social worlds through restrictions, lockdowns and mandates. Understandably, many of us tried to find ways to connect online.

Now, as pandemic restrictions have lifted, some of the ways we use the internet have become concerning. Part of what drives problematic internet use may be something most of us are familiar with – the fear of missing out, or FOMO.

In our latest research, my colleagues and I investigated the role FOMO plays in two kinds of internet use: problematic social media use and “doomscrolling”.

FOMO is the fear some of us experience when we get a sense of “missing out” on things happening in our social scene. Psychology researchers have been studying FOMO for more than a decade, and it has consistently been linked to mental health and wellbeing, alcohol use and problematic social media use.

Social media use becomes a problem for people when they have difficulty controlling urges to use it, try to cut back but fail, and find using it is having a negative effect on things like work, study and relationships.

Doomscrolling is characterized by a need to constantly look at and seek out “bad” news. Doomscrollers may constantly refresh their news feeds or stay up late to read bad news.

While problematic social media use has been around for a while, doomscrolling seems to be a more recent phenomenon. Researchers first saw it popping up during the pandemic.

In our study, we wanted to test the idea that FOMO was a cause of problematic social media use and doomscrolling. We tried a novel approach to see if we could find out just how FOMO leads individuals to engage in problematic internet use behaviors.

The key factor, we thought, was emotion regulation – our ability to deal with our emotions. We know some people tend to be good at this, while others find it difficult. In fact, greater difficulties with emotion regulation was linked to experiencing greater acute stress related to COVID.

However, an idea that has been gaining attention recently is interpersonal emotion regulation. This means looking to others to help us regulate our emotions.

Interpersonal emotion regulation can be helpful (such as “affective engagement” that teachers may try to foster with students) or unhelpful (such as the “co-rumination” that occurs when friends repeatedly rehash their problems together).

In our analyses, we sought to uncover how both intrapersonal emotion regulation (ability to self-manage our own emotional states) and interpersonal emotion regulation (relying on others to help manage our emotions) accounted for the link between FOMO and problematic social media use, and FOMO and doomscrolling, respectively.

Our findings indicated that people who report stronger FOMO engage in problematic social media use because of difficulty regulating their emotions (intrapersonally), and they look to others for help (interpersonally).

Similarly, people who report stronger FOMO are drawn to doomscrolling because of difficulty regulating their emotions intrapersonally (within themselves). However, we found no link between FOMO and doomscrolling through interpersonal emotion regulation.

We suspect this difference may be due to doomscrolling being more of a solitary activity, occurring outside the denser social context that lends itself to interpersonal regulation. For instance, there are probably fewer people with whom to share your emotions while staying up trawling through bad news.

While links between FOMO and doomscrolling have been observed before, our study is among the first to try and account for this theoretically.

We suspect the link between FOMO and doomscrolling may be more about having more of an online presence while things are happening. This would account for intrapersonal emotion regulation failing to help manage our reactions to “bad news” stories as they unfold, leading to doomscrolling.

Problematic social media use, on the other hand, involves a more complex interpersonal context. If someone is feeling the fear of being “left out” and has difficulty managing that feeling, they may be drawn to social media platforms in part to try and elicit help from others in their network.

Our findings suggest the current discussions around restricting social media use for young people, while controversial, are important. We need to balance our need for social connection – which is happening increasingly online – with the detrimental consequences associated with problematic internet use behaviors.

It is important to also consider the nature of social media platforms and how they have changed over time. For example, adolescent social media use patterns on different platforms can be used to predict a range of mental health and socialization outcomes.

Public health policy experts and legislators have quite the challenge ahead of them here. Recent work has shown how loneliness increases a person’s overall risk of death.

We have long known, too, that social connectedness is good for our mental health. Last year, the World Health Organization established a Commission on Social Connection to promote the importance of socialization to our lives.

The recent controversy in the United States around the ownership of TikTok illustrates how central social media platforms are to our lives and ways of interacting with one another. We need to consider the rights of individuals to use them as they please, but understand that governments carry the responsibility of protecting users from harm and safeguarding their privacy.

If you feel concerned about problematic social media use or doomscrolling, you can speak to a healthcare or mental health professional. – Reuters

Venus has more volcanism than previously known, new analysis finds

STOCK PHOTO | Image by Bruno Albino from Pixabay

 – Venus appears to be more volcanically active than previously known, according to scientists whose new analysis of decades-old radar images has spotted evidence of eruptions at two additional sites on the surface of Earth’s inhospitable planetary neighbor.

Radar images obtained by NASA’s Magellan spacecraft from 1990 to 1992 indicated large lava flows at these two locations in the Venusian northern hemisphere at the time of the observations, the researchers said. These findings, coupled with previous studies, indicate that the planet’s volcanic activity is comparable to Earth’s, they added.

Magellan mapped 98% of the Venusian surface. Advances in computing capability have made analyzing Magellan’s radar data easier in recent years.

“These findings significantly change our understanding of the degree to which Venus is volcanically active, suggesting it could be much more active than previously thought,” said planetary scientist Davide Sulcanese of d’Annunzio University in Pescara, Italy, lead author of the study published this week in the journal Nature Astronomy.

One of the two sites is a volcano called Sif Mons, which is about 200 miles (300 km) wide and situated in a region called Eistla Regio. The before-and-after radar images indicate a lava flow amounting to about 12 square miles (30 square km) of rock. The other site is a large volcanic plain in a region called Niobe Planitia. About 17 square miles (45 square kilometers) of rock was produced in this lava flow.

“Both Sif Mons and the volcanoes in Niobe Planitia are shield volcanoes, characterized by broad, gentle slopes formed by low-viscosity lava flows,” said d’Annunzio University planetary scientist and study co-author Giuseppe Mitri.

The new rock at both locations was estimated to have an average depth between about 10 and 66 feet (three and 20 meters).

“The lava flows observed along the western flank of Sif Mons exhibit linear features with sinuous patterns that follow the direction of the maximum slope, generally towards the west,” said planetary scientist and study co-author Marco Mastrogiuseppe of University Sapienza in Rome and Link Campus University in Rome.

“Regarding the flows in Niobe Planitia, the lava flows appear to originate near small shield volcanoes and extend towards the northeast, also following the direction of the slope,” Mr. Mastrogiuseppe added.

Venus is the second planet from the sun, and Earth the third. Venus has a diameter of about 7,500 miles (12,000 km), slightly smaller than Earth.

The new study builds on previous findings of ongoing Venusian volcanic activity. A 2023 study found that a volcanic vent on Maat Mons in a region called Atla Regio, near the equator, expanded and changed shape during the Magellan mission.

“Our study is the first to provide direct proof of lava flows formed during the Magellan mission period. By analyzing radar images from the Magellan spacecraft, we observed changes in surface morphology and radar data indicative of new lava flows,” Mr. Sulcanese said.

“This offers direct evidence of ongoing volcanic activity on Venus, building upon previous evidence such as atmospheric sulfur dioxide variations, surface thermal emissions data, and especially the evidence of deformation of a volcanic vent observed in Atla Regio,” Mr. Sulcanese said.

Studying volcanic activity provides a fuller understanding of a planet’s internal heat and geological processes.

“It provides insights into the planet’s thermal evolution, surface renewal processes and atmospheric interactions,” Mr. Mitri said.

The thick Venusian atmosphere, mainly carbon dioxide, traps in heat in a runaway greenhouse effect, making Venus our solar system’s hottest planet.

“Despite Venus and Earth being very similar in terms of size, mass, chemical composition and internal structure, there are fundamental differences that make Venus an infernal planet,” with a roasting surface temperature and crushing atmospheric pressure, Mr. Sulcanese said.

“The reason for this different evolution is still a subject of debate,” Mr. Sulcanese added, noting that planned NASA and European Space Agency missions in the coming years “will help us better understand why these two planets have met such different fates.” – Reuters

Cocolife announces Annual Stockholders’ Meeting via remote communication on June 26

 

 


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Ovialand celebrates 10th year anniversary

Ovialand, Inc. (“Ovialand”), a real estate developer that provides the Premier Family Living experience to Filipinos, is celebrating its 10th year anniversary by giving back to the communities it has served.

These activities include:

  • Supporting the education of 10 scholars who will be studying in vocational schools. These scholars are the children of construction workers who have been with Ovialand throughout the years.
  • Donating 10 brand-new classrooms to San Pablo Elementary School in Barangay Soledad in Laguna
  • Planting 10,000 trees across South Luzon and Central Luzon

“Since our incorporation in 2014, Ovialand has been a leader in the premium and affordable segment of the real estate market. We have done this by building homes that provide for the needs of Filipino families and that are financially accessible at the same time,” Pammy Olivares-Vital, President and CEO of Ovialand, said.

“At the same time, it is part of our company’s values to be proactive contributors in resolving our nation’s problems in our own way. This is why we are conducting these activities for our 10th year anniversary,” she added.

Throughout the years, Ovialand has built 2,399 homes and turned over 2,154 homes to Filipinos. Over the next 10 years, the company is targeting to build [double its annual capacity] as it pursues its long-term goal of expanding nationwide. 

“The past 10 years have been truly fruitful for Ovialand in fulfilling its promise of providing the Premier Family Living experience. With this in mind, we celebrate our 10th anniversary full of optimism of what we can achieve in the next 10 years — and even the years beyond them,” Ms. Olivares-Vital concluded.

 


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Recto backs lower tariffs on rice

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Reporter

FINANCE Secretary Ralph G. Recto said he is open to reducing tariffs on rice imports in order to help bring down prices of the food staple.

Mr. Recto told reporters on Monday that tariffs on imported rice could be slashed to 17.5% from the current 35%.

“You have to strike a balance between the farmers and consumers. It’s better to divide (the tariff rate) equally,” he said in mixed Filipino and English.

However, the Finance chief said he would leave the issue for the secretary of Agriculture to decide.

In December, the government approved the extension of the reduced most favored nation tariff rates on several commodities, including rice, until end-2024.

Tariff rates for imports of rice were kept at 35% for shipments within the minimum access volume quota and for those exceeding the quota.

Mr. Recto said an executive order adjusting the tariff rate can be issued during Congress’ recess.

“We want it lower. As much as possible, not only up to the end of the year. But possibly, the executive order will be only up to the end of the year… If we need to extend it, then we can extend it. What’s important is to reduce the prices of rice,” he said.

However, Mr. Recto did not agree with the proposal to bring down tariffs on rice imports to zero.

The Finance chief earlier said the retail price of rice could drop by as much as 20% by September due to reduced tariffs and increased production.

Latest data from the Philippine Statistics Authority showed that rice inflation, which contributed almost half to overall inflation, surged by 23.9% in April. 

Agriculture department data showed that the average price of local well-milled rice ranged from P48-P55 per kilogram as of May 27, higher than the P39-P46 range a year ago.

Meanwhile, regular milled rice ranged from P45-P53 to P34-P46 per kilogram.

Some analysts welcomed the proposal to lower rice tariffs as this would give consumers some relief.

“I agree with the proposal. Paddy prices will eventually go down perhaps to 2023 levels if tariff cut is big enough. Consumers will also have some relief from high rice prices,” Philippine Institute for Development Studies Senior Research Fellow Roehlano M. Briones said in a Viber message.

Roy S. Kempis, director of the Center for Business Innovation at Angeles University, said that the proposal to reduce the tariffs is the “right thing to do.”

“There needs to have some protection for farmers from cheaper imports or untamed importation that would erode their incentive to produce more and stay in rice farming,” he said in a Viber message.

These tariffs would also generate much-needed revenue and “discipline Filipinos to be responsible consumers.”

Mr. Kempis said the impact of reduced tariffs on farmers will also be positive.

“They will be protected from importation shocks in volume and in price per unit imported. Government is able to support local farmgate prices by way of the extent of the tariffs. Filipino farmers only need decent prices for their palay or rice to continue producing it for the consumers to enjoy,” he said.

On the other hand, Samahang Industriya ng Agrikultura (SINAG) Executive Director Jayson H. Cainglet said that the lower tariff regime in the past years has not brought down rice prices.

“Reduced tariff resulting to more imported rice has not reduced rice prices. Local rice prices are high precisely because global rice prices have been on the rise since last year,” he said in a Viber message.

Mr. Cainglet said that cutting tariff rates will hurt local producers and only favor importers and traders.

Data from the Bureau of the Plant Industry showed that rice imports have reached 1.89 million metric tons (MT) as of May 9.

The US Department of Agriculture projects Philippine rice imports to come in at 3.9 million MT this year.

“If the tariff is brought down further, there is no assurance that rice prices will go down proportionately, because experience shows that the importers, middlemen and retailers just pocket the savings,” Raul Q. Montemayor, national manager of the Federation of Free Farmers, said in a Viber message.

“On the other hand, when the undervalued and cheap imports come in, they are dumped in the wholesale (as against retail) market, and this has a depressing effect on palay prices because local traders who buy palay from farmers sell their milled rice in the wholesale market also,” he added.

Mr. Montemayor said this would discourage farmers from enhancing their own production.

“Allowing cheaper imports does not bring down prices for consumers, penalizes farmers, and benefits only the people in between,” he added.

Mr. Cainglet said the government should not just rely on importation but should boost local production.

“Extreme weather situations and global pandemics are the new normal; that have prodded the rest of the world to be food self-reliant,” he said.

“Most countries have prepared for it by increasing local production and supporting local producers.  Here, it is the reverse. Local producers are penalized and importers are rewarded and pampered with four straight years of reduced tariffs on rice, pork, corn and chicken.”

The House of Representatives earlier this month approved on second reading amendments to the Rice Tariffication Law. The amendments seek to allow the National Food Authority to sell rice at subsidized prices during emergencies.