the ftc has told us that there were 127,000 imposter scams last year alone. so how many of these cases were prosecuted in response to the chairman, you mentioned just one case in 2012. how many? >> right. we don't track specific numbers regarding, say, a grandparent scam or a particular individual who has been targeted. but we have investigated a wide variety of individuals in regard to these types of fraud which have taken place. we have have had a number of convictions related to those. we're pursuing them. it certainly is a priority for us as i noted in regard to the establishment of ic3 to target this threat and to dedicate the resources that we can with our interagency partners against this threat. >> what worries is what i'm hearing sounds very bureaucratic. it sounds like there are a lot of task forces going on and there's a lot of discussion back and forth. but 127,000 imposter scams last year alone, 9 million scams of various kinds reported to the ftc, 9 million cases like mr. w. where trusting seniors lost thousands of dollars. what i'm hearing from

the ftc has told us that there were 127,000 imposter scams last year alone. so how many of these cases were prosecuted in response to the chairman, you mentioned just one case in 2012. how many? >> right. we don't track specific numbers regarding, say, a grandparent scam or a particular individual who has been targeted. but we have investigated a wide variety of individuals in regard to these types of fraud which have taken place. we have have had a number of convictions related to those. we're pursuing them. it certainly is a priority for us as i noted in regard to the establishment of ic3 to target this threat and to dedicate the resources that we can with our interagency partners against this threat. >> what worries is what i'm hearing sounds very bureaucratic. it sounds like there are a lot of task forces going on and there's a lot of discussion back and forth. but 127,000 imposter scams last year alone, 9 million scams of various kinds reported to the ftc, 9 million cases like mr. w. where trusting seniors lost thousands of dollars. what i'm hearing from

we asked you on twitter if the ftc should regulate internet.anlike a tax grab to me. david: we didn't talk about all the tax implications. he says government should keep their hands off the internet. liz: greg says, government no way. please don't. please. how many is that five as in please. we bring back brian sossi. brian. david: one thing. >> feel like ryan seacrest hustle through fossil's earnings tomorrow. two reasons. one will give insight to macy's and nordstrom. fossil's is eyes and ears of department stores. i want to see if they see impact of looming apple iwatch. david: do you have any expectations about it and what the consumer will do leading into the holidays? >> kohl's and jcpenney are any indication they both warned i think fossil will be soft believe it or not. liz: michael kors is hot in the rose-colored chunky watches. kors is a interesting retail play after superhot growth. who is standout? we certainly watched nike for example, but who else? >> i think michael kors will continue to watches and keep eye out on kate spade bel

the company has been besieged by a class action suit and ftc investigation.e midst of distractions the company is set to report earnings monday after the bell. now, the options market is looking for a massive 14% move on the event. our next guest said in addition to earnings the stock could move so much, because it may announce a settlement in its class action lawsuit. we should mention that our guest is a part-time consultant with post holdings whose ceo is one of herbal life's biggest shareholders. tim, welcome to the show. >> thanks so much. >> why do you think a settlement is coming? >> well, there are really two issues here. one is the bostic class action where both sides have been in productive negotiations, and recently petitioned the court for a two-week extension that ends on november 10th. so sometime between now and november 10th, there's a reasonable chance we get the bostic put to bed, but i think that's important for the stock. could happen monday, but no reason monday is particularly sacred from that stand. standpoint. >> i'm cure, tim, in term

and 99% of them said, don't do that crazy ftc plan.ct real net neutrality. >> that's a poor way to make policy. >> by listening to the public? >> yes. will have lobbying groups and seen it lots of times in different places and the head of the fcc to his credit basically said that today. once again, i'll argue. free market competition, whatever it is, benefits the consumer. and those prices will come down as discoveries are made and inventions are made. >> they have never come down before but only going up and up and up some more and that's why we need it so much. >> it's so much cheaper. >> maybe nominal terms but getting more than we did in the past. here's the poll as it's closing and asking the viewers, should the internet be treated like a public utility? very split opinion on this one, to be sure, though. craig, thank you for being here. >> thank you. >> ceo of free press. >>> we have breaking news on juniper networks. dom? >> that's right. shares are down about 2.25% after hours on a lighter trade. 48,000 shares. the ceo has resi

obama wants the ftc to regulate the internet the way it would a public utility. he also wants them banned from dealers. >> internet providers have a legal obligation not to block or limit your access for websites. cable companies can't decide which online stores you can shop at or which streaming service you can use. and they can't let any company pay for priorities over its competitors. >> at&t is threatening legal action if the ftc adopts the president's plan. house speaker john boehner called the plan misguided and will come at the cost of jobs. >>> the president's comments sent cable companies plummeting. another record day the dow and s&p up higher the nasdaq as well. >>> today is singles day. it's a manufactured online shopping day in china is many times more lucrative than black friday or cyber monday. the retailer alibaba invented this day back in 2009. investors are anxious to see how alibaba performs this year. its first as a publicly created marketplace. alibaba will top about $10 billion for the day. >>> mcdonald's is recalling a whistle in its packag

comment on anything substantive until its over. >> you know what's going on you have dealings with the ftccorrect? >> we're not going to comment on anything with respect to the inquiry until its over. >> within that context, i'm sorry, liz, i won't step on you again here. within that context of not telling me that anything's wrong, you feel confident, continue to stay confident that business model, even with the changes you made right now is a-ok and you're going to come out of this okay, correct? >> so what we've said is the same from the beginning is we're very confident in the business. i don't know why it's news we keep saying that. >> because i said it, i reported it. >> right, you said it, and we tell investors that, but we tell the public that. we said it on january 2012 investor day and march 2013, 2014. >> is it possible bill ackman did have impact on bottom line by raising this much stuff you on guys, and now you have to conform to new regulations and practices hurting the bottom line where you missed two earnings? >> i think we're a better company and a stronger company today th

the ftc called it deceptive. >> according to the ftc, the only way that users could respond to that e-mailo sign up for a paid membership of 10 to $30 a month. some users were also charged automatically to renew their subscriptions without their >> not nice. >> no, not nice at all. >>> you've got a serious warning for patients at 5:00. >> there's a new push for keeping your kids safe when it comes to window covering cords. we sat down with one local family whose son became en tangled in the cord of a window blind which his mom says resulted in a traumatic brain injury. >> if this message gets out and one person's child is saved, his injuries are worth it to us. to see other people's kids survive, and not have to go through this. >> very emotional interview. you're going to hear more about this new push and what the industry has to say about it, coming up tonight at 5:00. if you've got a story idea for the consumer watch, send us an e-mail to consumer watch at nbcwashington.com. yon see our phone number also listed on the screen. we would love to hear from you. >> all right, erika, thanks s

now, the ftc says it's up to each state's attorney general to go after telemarketers within their statesla harris' office admits it's not a high priority here. the best way to stop calls, hang up. but you can pick up the phone call. you also don't want to press the button when they say press one to opt out. all that does is let them know that you are a valid phone number with someone there to answer. >> so frustrating. >> keeps ringing and ringing. >> exactly. >> all right. thank you. >>> we'll be right back. ,,,,,, female announcer: when you see this truck, it means another neighbor is going to sleep better tonight. because they went to sleep train's ticket to tempur-pedic event. choose from a huge selection of tempur-pedic models, including the new tempur-choice, with head-to-toe customization. plus, get 36 months interest-free financing, two free pillows, and free same-day delivery. are you next? but don't wait! sleep train's ticket to tempur-pedic is ending soon. ♪ your ticket to a better night's sleep ♪ >>> i'm veronica de la cruz in the kpix 5 newsroom. here's what's new at 6:00 to

the justice department and the ftc split jurisdiction and telecom is a justice department function. the only reason i would give it an administrative role, it would be quicker, i think, to do it than having a bigger investigation. i wanted to get that point in there. you could do it under section 5. >> i like that concession. >> no, i could see. no, i could concede that, but i would still -- and one final thing and i'll shut up. i want to make clear i get the fcc and a merger review, back to the public interest standard. i give that to the justice department. there is no reason why in my opinion we single out the telecom industry for special anti-trust review and have joint jurisdiction between the justice department and the fcc. now, i recognize there's joint jurisdiction in the banking industry, i'd get rid of that, too. there's joint jurisdiction in the transportation industry, i'd get rid of that, too. even the ftc or the justice department reviews, they review the anti-trust implications of mergers. let's follow that principle. and let's try to streamline our government. >> and

the justice department and the ftc split jurisdiction and telecom is a justice department function. the only reason i would give it an administrative role, it would be quicker, i think, to do it than having a bigger investigation. i wanted to get that point in there. you could do it under section 5. >> i like that concession. >> no, i could see. no, i could concede that, but i would still -- and one final thing and i'll shut up. i want to make clear i get the fcc and a merger review, back to the public interest standard. i give that to the justice department. there is no reason why in my opinion we single out the telecom industry for special anti-trust review and have joint jurisdiction between the justice department and the fcc. now, i recognize there's joint jurisdiction in the banking industry, i'd get rid of that, too. there's joint jurisdiction in the transportation industry, i'd get rid of that, too. you take every other industry in the economy, either the ftc or justice department reviews, they review the antitrust implications and the mergers. let's follow that principle. an

some press reports of said you are close to some sort of settlor with the ftc. you've said that herbalife will be completely exonerated. where do you stand? >> we are confident in our business model and our members. inquiry is confidential. we respect the integrity of the inquiry. we are not going to comment quickly until that inquiry is over. why salesalk about are down. specifically in china and south america. obesity is at an all-time high. you have a nutrition supplement company. why are sales down? >> sales are up. the growth rate has declined. but we are still growing. the sales growth in the third quarter is a record sales number for third-quarter sales. actually 2.5%, excluding venezuela which is a unique market, we would be up 7%. we are still growing, just at a rate below what we have historically grown. that is temporary. >> what do you attribute that to, specifically in china? the manage decline? >> china's of 23% in this quarter. >> that's less than you thought it would be. >> china's not less than we thought it would be. to year growth rates are on

>> it's got to be either the fda or the ftc.both those agencies are probably underfunded and don't want to take normal responsibility so right now it's up in the air who's going to take care of that. >> bottom line what does this mean by the consumer? who's most affect ied by the pre increase? >> everyone is affected. if you are paying a co-pay, the chances are your co-pay is going to go up if the drug price went up and the pharmacist is caught in the middle. right away our cost goes up. unfortunately the pharmacy benefit matters, ultimately set the reimbursement prices that we get lag in reimbursement months and months, before they increase the price so we're often caught right in the middle. >> i guess the million dollar question is what do we do? we don't go for the brand name drugs because they're costly. we go for the generics, they are cheaper. what is the alternative? do we have to have options? >> you still need to stick with the generics, they are less expensive but they are raising in price by astronomical amounts, it

what does the ftc want we maxed. >> these fitness trackers and smart watches have been around for a littleof them track your steps, some tractor sleep, others track your heart rate. so this is getting more personal in terms of the data that these devices are collecting about us. what apple has done is actually built a system those two things can not share the same data breaking down walls between things and it's kind of a potential vector for losing privacy. that being said, the apple security. gerri: to bring everything together and i can see an insurer would one to be ther and buy it, all kind of people. people that do research into different cancers might want this information. i can see a lot of people may want to be very valuable. >> there is a huge interest. and if i go for a run on my own that doesn't count. but theoretically it would counter that wasakg to be choice that i want to share this with them to get that benefit. gerri: whatever happened to hipaa? >> this is an interesting gray area because apple and google and others, they have a big health initiative that they have devel

what do you think the ftc will do in this situation? >> yeah.ould say a lot of investors we talked to are surprised by today's announcement. i think at the end of the day the ftc really proposed an interesting reclassification or light classification of broadband for a hybrid version where there's going to be some sort of regulation on the commercial side. but really you're leaving the residential customers alone. >> is it possible that the stocks are overreacting? because if if they do act in this situation, amy, maybe it takes quite a long time to actually get anything implemented. i would imagine there's pushback along the way. >> a lot of pushback and not too surprising that charter, at&t, time warner cable have come out and said something kind of against what obama is proposing. i think it takes one to two years at best if there was going to be a reclassification of broadband and a lot of m & an activity in the area. so there's a lot at stake here. >> yeah. in fact, we focused on the big names like comcast, our parent company, public stocks

first was ftc investigation. second an investigation by the eu and finally, they said the chinese underreporters an the royalty side, that problem starting to grow for them. threes are three things that put hair on the name. qualcomm is a wonderful franchise. they own the market at the high end where the real money is. qualticomm is a name you should own under 70. >> the stock is basically flat for the year. don about 14%. today was a terrible day. what has changed in your mind, in your modeling that makes qualtime look more attractive today given the three grenades you say have been dropped on it. >> when this was in the 40s or 50s, we've had a long track record with this stock. this is one quarter. it's two probably pretty poor quarters in a row. but it's not the end of the story. it's not the end of 4g, lte. this is a base band cellular connected world in which we live and this is one of the top ways to play at connectivity. >> i'll play devil's advocate. this quarter says the losing market share to intels and

if it was any other industry, they would have been fined by the ftc. insurers are not regulated by the ftc. they are regulated by you. so who holds these insurers accountable for these flawed lists? >> the department of managed healthcare holds insurers accountable against california law. >> reporter: do these lists violate law? >> the law allows that list to be subject to change without notice. and it requires the health plan to update it quarterly. >> reporter: one would assume that they provided an updated quarterly list to "covered california" so who is checking on a quarterly basis on at all? >> we do spot checks. those lists of providers that the plan represents are in contract with them. >> reporter: did you find any knack was sis? we're finding so many i find it hard to believe that you wouldn't have found any inaccuracies. >> we, uhm -- >> reporter: they later admitted it had not begun checking for inaccuracies but internal agency emails revealed shortly after people inside the agency began echoing our concern. now nine months later there's on

i mean, aside from potentially settling with the class action lawsuit there could be the ftc investigation. that could be another catalyst. what are some of the fundamental catalysts that will drive it to your price target? >> sure. we follow eson health sciences i think that was up 26% earlier this week on the day they announced, and that was really all about the strength of their china business. they showed 85% growth in associates and 66% growth, i believe, in sales in china. china's a big operating opportunity for herbalife as well, so that's a number we'll certainly be watching closely. china will surpass the u.s. in terms of contribution to the company sometime in the next few quarters. >> all right. and, tim, i've got to ask you this as well because you used to work for d.a. davidson and you were known as being one of the biggest herbalife bulls on the street. right now you're working for pivotal but you're also getting a paycheck essentially from one be of herbalife's biggest shareholders. do you actually consider yourself an objective research analyst at this point? >> of course.

senator richard plumen that you will asking the ftc to open an investigation. what have they done? >> the ftc, unfortunately, has done nothing. >> reporter: to see what we would find my producer and i shopped at an outlet mall in new jersey. >> can i return this to a regular saks? >> no. >> reporter: our first stop, saks fifth avenue. >> this line is actually produced for the off 5th stores only. >> reporter: it's a mission tur made for outlet and overflow from the regular store but from the neiman-marcus -- >> is this made for just this store or the -- they said their clearance stores receive overflow but last call studio stores are all made for outlet clothing. we brought the items we bout to textile professor dr. janesss devine. first wool sweaters. >> there's differencing in the seaming and finishing details right away apparent. you'll notice there's a slight puckering here in the seam of the one from the outlet and the one from the regular store there's just some of those finer details. >> reporter: check out where each is made. >> the one from the outlet is made in behind and

. >> host: i find that again horrifying that the ftc is closing down the shop, taking the paper, not doing anything with respect to imagine that debtors that are involved on the other side of the paper because they don't know what's going on with their debt. they don't know it's going somewhere else. they could conceivably whether it's that paper or other paper be getting calls from collection agencies that bought it, stole it, whatever that they've never heard of that they never had a transaction with. you mentioned, for example, chase and washington mutual, two banks at the top of the food chain have papers, different from the rincon example. but at some point chase stops selling its debt because of regulations that have come into effect after the financial crisis and with a dodd-frank act. how does that impact -- first of all, why do they do at? where their lawsuits they could begin with bated what to do with how did that impact this whole chain of other characters that were involved in debt collection? >> guest: right. so the title of the book is trenchant and that paper is paper

. >> now, the ftc is considering legal action as the super cookies could violate portions of the law. to find out if your cell phone carrier is tracking you, go to kpix.com and click "links and numbers." there you will find a link that when clicked on from your phone will tell you if your phone is being tracked. i did it and it turns out mine is. >> nothing you can do? >> reporter: well, now, experts say you can use a vpn. a virtual private network is primarily used by businesses to connect securely to the company intranet although there are many consumer vpn products out there. in fact, at&t offers one but even with the vpn, you can't guarantee that your carrier isn't tracking you. >> somebody is watching you somewhere. >> reporter: just assume no matter what everybody is under surveillance. >> thank you. >>> did you know the state is tracking every gallon of water you use? water systems across california are now sending in monthly reports aimed at improving conservation efforts. the latest found that the statewide conservation rate is leveling off after months of steady decline. cal

the ftc has been very clear on this as have many peer reviewed journals. consolidation trends increase costs by as much as 20% with no counter balancing increase in quali quality. no leverage for health plans that negotiate the lower price for consumers. the latest to hit the market is -- at 1,125 a pill. $95,000 for a 12-week course of treatment for hepatitis c. reasonable incentives to develop more effective medicines are appropriate. but 95,000? really? is that reasonable? with many more high priced specialty medicines in the pipeline, this is clearly not sustainable for congress assu c depend on medicare, medicaid and private health insurance. in a 2008 health affairs article, joe new haugs and richard frank called this patent protection on steroids. their solution, binding arbitration. let's form a solution, put price controls on other stake holders that ignore the price of the drug and their responsibility. in fact the aca includes limits on what con excuse sumers have out of pocket. today, 6%, 6% of $95,000 is what a consumer enrolled in a silver pl

. >> host: i find that, again, horrifying that the ftc is closing down a shop, taking that paper -- >> guest: up. >> host: -- not doing anything with respect to, i imagine, the debtors involved on the other side a of that paper because they don't know what's been shut and moved, going to somewhere else. and they could conceivably whether it's for that paper or other paper be getting calls from collection agencies that bought it, stole it, whatever that they've never heard of that they never had a transaction with. you mention, for example, chase and washington mutual as two banks that at the top of a food chain sort of -- >> guest: right. >> host: had papers. but at some point chase stops selling -- >> guest: correct. >> host: -- its debt because of willinglations that have come into -- regulations that have come into effect after the financial crisis and with the dodd frank act. >> guest: correct. >> host: how did that impact, why did they do it? >> were there other motives, lawsuits they could have been dealing with, and also how did that impact this whole chain of other characters

what we do know is that the ftc reports that imposter scams have double doubled between 2009 and 2013. and so today we're going to hear from a distinguished panel on what authorities are doing to detect and prosecute such crimes and how seniors can protect themselves. we are also going to hear about private industry's role in combating these scams. the bottom line is that the government alone cannot prevent these types of scams. private companies that sell prepaid debit products or offer wire services are the last line of defense for consumers before their money is sent and then it's lost forever. now, fortunately, some of these large retailers are beginning to take proactive steps to protect their customers. in addition to issuing consumer warnings about scams, many companies are now training their employees to identify and warn potential victims. and we have some good news today from the green dot corporation. it makes a product that has been one of the cards of the choice for fraud people in many of the schemes. we heard about it in the jamaican lottery scan. green dot announced pl

. >> what is your sense of where the ftc will come down? they don't report to the president. will they fall? >> if they have heard from over 4 million americans who care about this issue -- this has never happened before. this is not an easy process to navigate -- the fcc website crashed. 4 million people thought it was important enough to have their voices heard. we would like to see the fcc act this year. this has to be addressed right away. it they will go against what the president wants? >> i think they will do the right thing to protect internet users. the right thing are the kinds of roles the president outlined. include mobile, make sure there is not this commission or blocking. the jurisdictional question -- >> a company like comcast feels like they are the victim. >> i don't think comcast is a victim. the victims are the users and the new startups trying to reach their customers. >> you guys are backed by facebook, some of the biggest companies. including netflix. to benefit from using their power and their money to keep a new competitor from showing up at the front

senator richard blumenthal asking the ftc to open an investigation. what have they done?to see what we would find, my producer and i shop at an outlet mall in new jersey. >> could i are undreturn this t regular sak's? >> no, no, no no. >> reporter: they say their store is a mix of regular items and outlet stores. is this made just for the outlet or is this made for the regular store. >> no, wee don't -- we're studios. >> reporter: they say they receive overflow from neiman marcus. and at gap. >> can i return those at a regular store? >> no, it has to be gap factory. >> reporter: we brought the items we brought to a textile professor at north carolina state university. first, sak's men's wool swerts. >> there are dimps in seaming and finishing details. you'll notice there a slight puckering here in the seam of the one from the outlet. the one from the regular store, just some of their finer details. >> reporter: check out where they're made. >> reporter: the one from the outlet is made in china. the one there the regular store, italy. >> reporter: with the gap jeans? >> th

the ftc is suing that carrier over its unlimited data plan. millions of people who signed up at least four years ago still had that plan but officials say they're not getting what they paid for. if you use too much of your unlimited data, the high speed on the smart phone could take a serious slow down. so joining us now on skype to answer some of your questions, we've got our tech expert answering questions. good morning. >> good morning. >> let's get to our first question. conspiracy. question. are all companies in on it, are they controlling our data usage, and for what gain? >> yeah. actually all companies do do some sort of data throttling. it's not illegal to do that, because to manage the network a little better and to make sure all the of your customers get the best experience possible, you may have to deal some of those folks back who are heavy data users. you may have to do a little bit of balancing out. but what at&t has done is they've not let their customers know that they are engaging in this practice. so the ftc is getting them

host: what does the ftc do in these fields? guest: well, they have long been our privacy federal agency. they have investigated online fraud in online data privacy since the beginning of the internet. they have various powers to investigate and protect information, but they do not have authority over the banking system. only the banking regulators have authority there. when senator warren came up with the idea -- the idea for the consumer protection bureau, it also gained authority over some of the space. the ftc together with to investigate and protect consumers from online frauds. i should point out, i mentioned credit monitoring. monitoring is a very expensive $10-$20 per month product that banks and credit bureaus sell to make enormous profits on. processes by the ftc is collecting money and sending it back to the summers for this. host: and you said that you can get this for free? guest: you get credit a company sometimes has been breached. take it for free. but at the end of the year, rep up all the letters that say do co

michael powell, coming up, former se -- ftc chairman talking about what will happen with the internet"after the bell" starts right now.

ftc. >> it's a mixture of the technologies of two cultures. now, what the european has is a very severe, straightforward action. what the filipino has is a graceful flowing rhythmic well timed movement. that is able to deliver the techniques of the europeans, in the signature way of the ballet. >> reporter: it is also an efficient self defense mechanism. more than just the discipline the sport brings something else to the country with athletes saying filipinos now have a sport they can finally identify with. jamal are allen do-gan on our website. >> you can check that out, nor there on lieu itsing hamilton's section roirnlt. beings they look like getting to sign another newings lodge term contract, being aljazeera.com/sports. >> andrew thank you very much. >>> a museum has decided to accept a collection of a man. nick spike e-spicer from berlin. >> masterpieces from matisse, chchagal and picasso. a billion dollar hoard with a dark past. about a third of the artworks may have been taking from juice facing nazi persecution. left his entire inher

senator richard blumenthal, asking the ftc to open an investigation. what have they done?ee what we would find, my producer and i shopped at at outlet mall in new jersey. >> could i return this to a regular sak's? >> no, no, no, no. >> reporter: first up, saks fifth avenue off smith. >> reporter: they say their store is a mix of regular items and outlet stores. is this made just for the outlet or is this made for the regular store? >> no, we don't -- we're studios. >> reporter: they tell us their last call clearance stores receive overflow from neiman marcus, but last call studio stores all made for outlet clothing. and at gap. >> can i return those at a regular store? >> no, it has to be gap factory. rtd gap says its outlet stores only carry made for outlet clothing. we brought the items we bought to a textile professor at north carolina state university. first, sak's men's wool sweaters. >> there are differences in seaming and finishing details that are noticeable right away to me. you'll notice there a slight puckering here in the seam of the one from the outlet. the on

the ftc has been very clear on this. as have many studies in peer review journals. the robert wood johnson foundation study found that consolidation trends increase costs by as much as 20% with no counterveiling increase in quality. another significant challenge, high-priced specialty medicines that have no competitors. no leverage for health plans to negotiate a lower price for consumers. the latest to hit the market is hermoni, at $11,235 a pill. 95,000 for a 12-week course of treatment for hepatitis-c. reasonable incentives to develop more medicines is appropriate but $95,000? really? is that reasonable. with many more high-priced specialty medicines in the pipeline this is clearly not sustainable for consumers that depend on medicaid, medicare, and private health insurance. in a 2008 health affairs article, joe newhouse and richard frank called this type of pricing is patent protection on steroids. their owe solution? defining arbitration. what is pharma's solution? put price controls on other stakeholders, ignore the price of the drug and their responsibility.

what does the ftc want? what are they after? >> all of them tote ability to tote your steps, your sleep, some have potential to track other things like your heart rate. this is getting more personal in terms of the data these devices are collecting about us. apple has done a brilliant thing, they built a system if you have job own fitness tracker and want to use the nike app, they can share the same data, the thing is this sharing breaking down the walls between things, kind of a potential vector for losing privacy. that said, apple security designed with security might miss but why the nature of this beast you are putting your data in more places than you were before. gerri: so it is apple software bringing everything together and presumably i can see it, they would want to know what i was doing, all kinds of people who do research into different cancer might want this information. i can see a lot of people wanting it, it would be very valuable. people are not comfortable with sharing this, how do you make sure apple is not sel

now members of congress, including richard blumenthal, are asking the ftc to open an investigation. unfortunately they have done nothing. >> to see what we would find, my producer and i shopped at an outlet mall in new jersey. >> can i return this to a regular saks fifth avenue? this line is actually produced for the outlet stores only. >> they say that their store is a mixture of overflow and made for outlet. at the nieman marcus studio? >> is this made for the regular store? lastey tell us that their call clearance stores receive overflow from neiman marcus, but are alll studio stores outlet clothing. at the gap? to the regular store? >> they say their stores only carry me for outlet clothing. to a professor at the university. >> you can see differences that are writable -- right away apparent to me. here is a slight puckering in the seam of the one of the outlet. in the regular store, there are finer details. >> check out where each one is made. >> the one from the outlet is made in china. one from the regular store is made in italy. toshe points out an easy way find they are mad

the ftc has been very clear on this, as have many studies in p-reviewed journals. journals.viewed another significant challenge, high-price especially nodicines that have leverage for health plans to negotiate a lower price for consumers. is latest to hit the market $95,000 fora fill, a 12-week treatment for hepatitis c. incentives to develop more effective medicines are appropriate, but $95,000? really? is that reasonable? with many more high-priced ty medicines in the pipeline, this is not -- 2008, it was in called this type of pricing patent protection on steroids. their solution, binding arbitration. that's form a solution. put price controls on other stakeholders and ignore the price of the drug and their responsibility. the aca includes limits on what consumers have to pay out of pocket. of $95,000 is what a consumer and rolled in a silver plan pays out of pocket for a 12-week course of this medicine. the plan pays 94%. individuals with incomes of 17,500 pay 1%. why? -- average maximum limit on 5000 $730,plant is and it is $1300 for those with incomes of 150%

the ftc says the language was not understandable and they failed to disclose.disclosures. >> they haven't done a single thing that they should have done which is tell consumers at the point of sale that they were going to be throttled. >> reporter: the electronic frontier foundation applauded the lawsuit and questions how at&t goes about throttling. is throttling saying we're going to throttle you. >> reporter: at&t called it baseless and says its practiceses are fully transparent. at&t discontinued its unlimited data plan. 4 million customers currently on the plan were grand fathered in. i'm michael finney, 7 on your side. >>> lisa is here now and, you know, we've the showers sticking around which is a good thing for us. >> yes, especially in the south bay and the peninsula picking up more rain. moisture and instability is the name of the game. offshore, a shower here. looking gray in the 50s now so a cooler day and showers not for everyone. i'll explain next. >>> also ahead, his heart is in san francisco. will panda's bat be here next year? larry beil has you

the ceo of an app called path did that, attracting attention of the ftc after his app uploaded your contactthout telling you. and that led to questions for apple and this got the senate's attention. washington could get very interested in ride sharing because of a mistake that one person made. >> wow, what a mistake. >> it was a big mistake. >> thank you very much, scott. a story developing right now by the meinute, more and more snow blanketing buffalo, new york. the area could see another three feet or more of snow, this as frozen locals are struggling to just dig out from the storm that dumped nearly six feet of snow on new york. so far the storm is blamed from at least seven deaths. many of them from heart attacks. the weather is expected to warm up this weekend. that means the snow will melt and now officials fear it could cause severe flooding. >> let's look at our own microforecast this morning, taking a peek outside, that's a pretty glow. can you see the moisture in the air this morning. we're tracking a series of storms. christina's been busy at the weather station this morning. >>

based on what the3 company has been telling people, a lot recently, they expect to settle with the ftc. armageddon. like there will be some sort of, they will not close them down. they may face some fines, some penalties. this is not going to be end of the world. that is far cry from what bill ackman said this is massive fraud. listen, if this was massive fraud, and have a significant class-action suit you don't settle for 15 million wwthout admitting or denying any wrongdoing. melissa: they missed earnings last quarter. the stock has fallen 20% since then. >> i should point out in my last story, a lot of investors think they will miss again tonight. that could drive the stock way up or way down. melissa: dan, go ahead. >> miss of the expectations is in the stock. it is priced right. if they clean this up with this political -- >> that is even bigger. >> media problem. >> if they say something. >> if he say something. sales are declining over last four quarters. that could change dramatically after this report. melissa: emotional milestone taking place in new york. one world trade cent

. >>, you know, investors are still waiting to see how the ftc is going to rule, john. know you as well as the other executives are. have you had any settlement conversations at all with the government. >> we've made two points consistently since the inquiry started. first extremely confident in our business model and members. and second we'll respect the integrity and confidential nature of the inquiry. and we'll have no substantive comments until the inquiry is over. >> why did you tell the reporter last week you thought you guys were doing to be totally exonerated. >> i was trying to communicate we were completely confident in our business model and members. >> there have been reports as well that you are telling your own investors that you expect to be exonerated. maybe a fine but not a shut down. that true. >> what we tell investors is what i told you is that we're very confident in our business model and our means behavior. i think there is a lot of different agendas out there people try to read in different comments. but we've said it since the day the inquiry op

they recently settled a class-action suit and hired an ex-ftc person to oversee some of the practicesdering the role that will play. >> kate, you know, even the class-action lawsuit that's settled over the weekend or announced late friday, that's a class-action lawsuit. spin it any which way you want. not you but the company and anyone around it. i'll come back to it as i've said from the start on this thing. all that matters is the ftc and seeing slowing growth for the second quarter in a row and that's -- that's probably disconcerting i would suspect to the bulls and until you dig through the numbers, really, this is not easy stuff. very complicated. you won't know what's really going on and that's what's really going to be important here. >> just curious, i see they have an accompanying announcement that a decade-long director le roy barnes is stepping down. do you read anything into that? i'm not as familiar with the board composition. >> he was not the board member i was looking for. to see if he was stepping down. seeing the headline, i peeked at it. you know, any time you have

social engineering, you can report it back to the company it is pretending to be as well as to the ftcr the fbi, those are great ways to make sure everybody else is aware these attempts are happen. gerri: if you open it, this is what it will look like. thhs is with the e-mail to myy% senior producer looked like, you have a new voicemaill and there's a button to play. fortunately we have a super serious program here at fox that catches all this stuff. content blocked by your organiiation. robert, to you. you can't necessariiy rely on this kind of security when you are at home so you have to be super vigilant as an individual, right? >> that is correct get e-mails like this will be coming in every single day. these are advanced persistent threats where these criminals have nothing but time on her hands and their job is to communicate through social, your e-mail, they will find your friends and family and send them the communication is good so really have to e on guard 24/7, never click on the e-mails and recognize t is up to you to protect yourself because nobody else is going to do it f

but the ftc says the language was not understandable and that at&t failed to disclose the thresholdsost important, says gold, were the timing of at&t disclosures. >> they shouldn't done what they should have done which was tell consumers at the point of sale that they were going to be throttled. >> the san francisco bay's electronic frontier foundation applauded the lawsuit and questions how at&t goes about throttling. >> at&t is throttling regardless of whether or not the cell site you're congested to, and you've used so much data and we'll throttle you. >> at&t called the lawsuit basele baseless. >> it continued its unlimited data plan in 2011 and the customers currently on the plan were grandfathered in. i'm michael finney, 7 on your side. >>> we're seeing showers out there this morning. when i was driving i got hit with a big shot of it. south of san francisco will be the more favorable spot. right now in the city we're dry at 56 degrees and with showers off the coast and the active radar this morning and possible thunderstorms, as well. i'll have it all for you when we return. >

in addition, the program has affected only about 3% of our customers, but the ftc says the language wasfailed to disclose the thresholds of which people would be throttled. most important says, gold, was the timing of at&t's disclosures. they haven't done the single thing that they should have done which was tell consumers at the point of sale that they were going to be throttled. >> the san francisco bay's electronic frontier foundation applauded the lawsuit and questions how at&t goes about throttling. >> at&t is throttling regardless of whether or not the cell site you're connected to is congested. it's just saying you've used so much data and we'll throttle you. >> at&t called the lawsuit baseless and says its practices are fully transparent. >> at&t discontinued its unlimited data plan in 2011. the 14 million customers currently on the plan were grandfathered in. i'm michael finney, 7 on your side. >> we are getting throttled by the showers that came in from half moon bay. >> heavy downpours and right now the view looks pretty nice out there, but 44 degrees on top of it and much of