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Question of sales tax on online purchases goes to high court
Headline News |
2018/04/15 05:39
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Online shoppers have gotten used to seeing that line on checkout screens before they click "purchase." But a case before the Supreme Court could change that.
At issue is a rule stemming from two, decades-old Supreme Court cases: If a business is shipping to a state where it doesn't have an office, warehouse or other physical presence, it doesn't have to collect the state's sales tax.
That means large retailers such as Apple, Macy's, Target and Walmart, which have brick-and-mortar stores nationwide, generally collect sales tax from customers who buy from them online. But other online sellers, from 1-800 Contacts to home goods site Wayfair, can often sidestep charging the tax.
More than 40 states are asking the Supreme Court to reconsider that rule in a case being argued Tuesday. They say they're losing out on "billions of dollars in tax revenue each year, requiring cuts to critical government programs" and that their losses compound as online shopping grows. But small businesses that sell online say the complexity and expense of collecting taxes nationwide could drive them out of business.
Large retailers want all businesses to "be playing by the same set of rules," said Deborah White, the president of the litigation arm of the Retail Industry Leaders Association, which represents more than 70 of America's largest retailers.
For years, the issue of whether out-of-state sellers should collect sales tax had to do mostly with one company: Amazon.com. The online giant is said to account for more than 40 percent of U.S. online retail sales. But as Amazon has grown, dotting the country with warehouses, it has had to charge sales tax in more and more places.
President Donald Trump has slammed the company, accusing it of paying "little or no taxes" to state and local governments. But since 2017, Amazon has been collecting sales tax in every state that charges it. Third-party sellers that use Amazon to sell products make their own tax collection decisions, however.
The case now before the Supreme Court could affect those third-party Amazon sellers and many other sellers that don't collect taxes in all states — sellers such as jewelry website Blue Nile, pet products site Chewy.com, clothing retailer L.L. Bean, electronics retailer Newegg and internet retailer Overstock.com. Sellers on eBay and Etsy, which provide platforms for smaller sellers, also don't collect sales tax nationwide.
States generally require consumers who weren't charged sales tax on a purchase to pay it themselves, often through self-reporting on their income tax returns. But states have found that only about 1 percent to 2 percent actually pay.
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Zuckerberg Flubs Details of Facebook Privacy Commitments
Headline News |
2018/04/13 12:14
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Over two days of questioning in Congress, Facebook CEO Mark Zuckerberg chief revealed that he didn’t know key details of a 2011 consent decree with the Federal Trade Commission that requires Facebook to protect user privacy.
With congressional hearings over and no immediate momentum behind calls for regulation, the biggest hammer still hanging over Facebook in the U.S. is a fresh FTC investigation . The probe follows revelations that pro-Trump data-mining firm Cambridge Analytica acquired data from the profiles of millions of Facebook users. Facebook also faces inquiries in Europe.
The 2011 agreement bound Facebook to a 20-year privacy commitment , and any violations of that pact could cost Facebook a ton of money, even by its flush-with-cash standards. If Zuckerberg’s testimony before Congress is any indication, the company might have something to worry about.
Zuckerberg repeatedly assured lawmakers Tuesday and Wednesday that he believed Facebook is in compliance with that 2011 agreement. But he also flubbed simple factual questions about the consent decree.
“Congresswoman, I don’t remember if we had a financial penalty,” Zuckerberg said under questioning by Colorado Rep. Diana DeGette on Wednesday.
“You’re the CEO of the company, you entered into a consent decree and you don’t remember if you had a financial penalty?” she asked. She then pointed out that the FTC doesn’t have the authority to issue fines for first-time violations.
In response to questioning by Rep. Mike Doyle of Pennsylvania, Zuckerberg acknowledged: “I’m not familiar with all of the things the FTC said.”
Zuckerberg also faced several questions from lawmakers about how long it takes for Facebook to delete user data from its systems. He didn’t know.
The 2011 consent decree capped years of Facebook privacy mishaps, many of which revolved around its early attempts to follow users and their friends around the web. Any violations of the 2011 agreement could subject Facebook to fines of $41,484 per violation per user per day. To put that in context, Facebook could theoretically owe $8 billion for one single day of a violation affecting all of its American users.
The current FTC investigation will look at whether Facebook engaged in “unfair acts” that cause “substantial injury” to consumers.
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North Carolina court allows case against dance instructors
Headline News |
2018/04/09 12:25
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North Carolina's highest court says dance instructors who glided away to a competing dance studio can still be sued by the employer who wrangled the foreign-born pair's permission to work in the United States.
Happy Dance Inc. studio owner Michael Krawiec said Wednesday he's not yet discussed with his lawyer how to proceed after last week's ruling by the state Supreme Court.
The court decided breach of contract and other claims can continue against two dance instructors from Bosnia and Serbia, but the Charlotte studio that hired them away is largely out of the woods.
U.S. dance studios face a chronic search for instructors and have filled the gap by importing foreign workers from Eastern Europe and other countries where learning to waltz or tango is part of growing up. |
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Ohio court to decide if ex-player can sue over concussions
Headline News |
2018/04/07 12:25
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The Ohio Supreme Court will decide whether the widow of a former University of Notre Dame football player can sue the school and the NCAA over allegations her husband was disabled by concussions from his college career in the 1970s.
Steve Schmitz was suffering from dementia and early onset Alzheimer's disease when he and his wife, Yvette, filed a lawsuit in Cuyahoga County in October 2014. The lawsuit alleged both institutions showed "reckless disregard" for the safety of college football players and for their failure to educate and protect players from concussions.
The lawsuit said the link between repeated blows to the head and brain-related injuries and illnesses had been known for decades, but it was not until 2010 that the NCAA required colleges to formulate concussion protocols to remove an athlete from a game or practice and be evaluated by doctors.
Steve Schmitz died in February 2015. The lawsuit said the Cleveland Clinic diagnosed him in 2012 with chronic traumatic encephalopathy, or CTE, a brain disease attributed to receiving numerous concussions.
A judge ruled that too much time had passed for Schmitz to sue, a decision overturned by a state appeals court. The state's high court planned to hear arguments from both sides on Wednesday.
A ruling in favor of Schmitz's widow would allow her to return to court and argue the specific allegations regarding the impact of concussions on her husband, a running back and receiver.
Notre Dame and the NCAA argue the statute of limitations for Schmitz to have sued date back to his playing days when he first realized he suffered head injuries. As such, the two-year window for filing a personal injury claim had long passed, the institutions say. |
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Court to decide if drug use while pregnant is child abuse
Headline News |
2018/04/06 12:26
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Pennsylvania's highest court will decide whether a woman's use of illegal drugs while pregnant qualifies as child abuse under state law.
The Supreme Court recently took up the case of a woman who tested positive for suboxone and marijuana at the time she gave birth early last year at Williamsport Hospital.
A county judge ruled that did not qualify as child abuse under the state's Child Protective Services Law, but the intermediate Superior Court said drug use while pregnant can make bodily injury to a child likely after birth.
Court records indicate the child spent 19 days in the hospital being treated for drug dependence, exhibiting severe withdrawal symptoms.
"Mother's actions were deplorable but this court must follow the law," wrote Clinton County Judge Craig Miller in May, ruling the county child welfare agency had not established child abuse occurred.
The mother's lawyers argue lawmakers never intended the child protection law to apply to acts during pregnancy.
"No one thinks using drugs while pregnant is good, but using the criminal justice system and the civil child abuse system to punish people for doing so just makes a bad situation much, much worse," said the woman's lawyer, David S. Cohen.
Amanda Beth Browning, lawyer for the Clinton County Department of Children and Youth Services, declined comment.
In a filing with Supreme Court, the woman's lawyers said most states, with a few exceptions, "have taken a non-punitive approach to the issue."
"Almost every major medical and public health organization has recognized that punishing women for drug use during their pregnancies is counterproductive to public and private health," wrote lawyers for the mother, identified by initials in court records. |
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Court rules in favor of fired transgender funeral director
Headline News |
2018/03/04 21:58
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A woman was illegally fired by a Detroit-area funeral home after disclosing that she was transitioning from male to female and dressed as a woman, a federal appeals court ruled Wednesday.
The 6th U.S. Circuit Court of Appeals said R.G. & G.R. Harris Funeral Home in Garden City discriminated against director Aimee Stephens by firing her in 2013.
In a 3-0 decision, the court said "discrimination against employees, either because of their failure to conform to sex stereotypes or their transgender and transitioning status, is illegal under Title VII" of federal civil rights law.
The court overturned a decision by U.S. District Judge Sean Cox, who said the funeral home had met its burden to show that keeping Stephens "would impose a substantial burden on its ability to conduct business in accordance with its sincerely held religious beliefs."
The lawsuit was filed by the U.S. Equal Employment Opportunity Commission.
"The unrefuted facts show that the funeral home fired Stephens because she refused to abide by her employer's stereotypical conception of her sex," said judges Karen Nelson Moore, Helene White and Bernice Donald.
The EEOC learned that the funeral home, until fall 2014, provided clothing to male workers dealing with the public but not females. The court said it was reasonable for the EEOC to investigate and discover the "seemingly discriminatory clothing-allowance policy."
Stephens said in a statement released by the American Civil Liberties Union that nobody "should be fired from their job just for being who they are," adding "I'm thrilled with the court's decision."
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