Google Spits in the Face of Online Payday Lenders; This Trump’s For You; Mega Merger Nixed

Well if Google’s doing it…

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Image courtesy of Geerati/FreeDigitalPhotos.net

Google has been able to do what politicians couldn’t. Which might mean that its up to Google to Make America Great Again. In any case, online payday lenders are officially getting the boot from Google.  Come July 13, companies that deal in online payday loans wont get their ads displayed above search results under Google’s AdWords program. If you think that’s awfully harsh, then consider that payday loans are often due in 60 days and carry annual interest rates of at least 36%. Other types of loans and lenders will still be able to keep their ads in place, though. For now. Facebook has been banning payday loan ads since last summer, while Yahoo has still yet to catch on. A payday lender trade group called Google’s new policy “discriminatory and a form of censorship.” However, the Consumer Financial Protection Bureau (CFPB) has its own thoughts about the online payday lending industry. The CFPB’s cold hard research highlights the numerous hidden risks, costly banking fees and account closures resulting from these loans. The industry also tends to disproportionately target minorities. The CFPB found that a staggering one third of borrowers had their accounts closed by their banks while half of the borrowers paid an average of $185 in back penalties. And that’s before you even get to the annual percentage rate of 391% that are placed on these types of loans

 

This America’s for you…

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Image courtesy of digitalart/FreeDigitalPhotos.net

Next time you reach for an icy cold brew, you might just be wondering why it looks a little different. Riding the fiscal wave of patriotism, Budweiser will be rebranding its cans “America.” Instead of the slogan “King of Beers,” beer drinkers will find the slogan “E Pluribus Unum” on the cans. And in case it matters, Donald Trump is taking the credit that companies are inspired by his “Make America Great Again” campaign slogan. Really. During an interview on Fox News, Trump said, “They’re so impressed with what our country will become. They decided to do this before the fact.” Never mind that Budweiser’s parent company, Anheuser Busch InBev is Belgian. That’s just a minor detail. Anheuser-Busch InBev NV, along with Hershey’s, Coca Cola, Wal-Mart and even Carl’s Jr. are using patriotic marketing campaigns that are expected to last well past election season. To be fair, Hershey is utilizing this tactic because the company is an official sponsor of the Olympic U.S. team. For the first time in 122 years, the coloring on Hershey bars will be different , as red, white and blue will feature prominently on the confection’s wrappers. As for Wal-Mart, the gigantic retailer made a pledge back in 2013 to buy $250 billion worth of products that are “made in the U.S.A.” And let’s forget that minor hiccup when the chain was investigated by the FTC for mislabeling products that were, in fact, not made domestically.

Lay off my stapler!

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Image courtesy of digitalart/FreeDigitalPhotos.net

Shares of Staples and Office Depot took a nasty beating after a Federal judge ruled that the two companies cannot merge in fiscal blissful matrimony. The $6.3 billion merger was nixed since the judge felt that a huge merger between the two largest office supplies suppliers would be a horrible thing for consumers. The Federal Trade Commission thought the merger was as anti-competitive as it gets and couldn’t be more pleased with the judge’s ruling. Both the judge and the FTC felt competitive pricing, quality and service would be tossed aside as consumers would look on helplessly as they handed over their hard-earned cash. Office Depot said it won’t appeal the ruling. And why should it? It’s now going to get a $250 million break up fee from Staples. But that $250 million pales in comparison to the revenue it would have seen and the money it would have saved had the merger gone through. This was the second time, since 1997, that the two companies tried to merge. Shares of Staples fell 20% on the news at one point during the day, while Office Depot tanked about 40%. Staples and Office Depot continue to take massive hits from the other competition, Amazon. Amazon’s business to business division is but a year old, yet it already racked up more than a billion dollars in sales. And that’s while Staples and Office Depot were hit with massive losses.

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