(NEW YORK) -- Tipping has seen a shift, especially compared to pre-pandemic, when the cost of food and everything else was lower, but one man's recent experience that went viral on social media has sparked new questions around gratuities.

Mark O'Brien shared a video on Instagram showing an electronic screen that displayed the suggested tip percentages on his $27 check total. The problem he said, "15% of $27 is not $6, 18% of 27 is not $7, 20% is not $8."

The fuzzy math prompted hundreds of varied comments from viewers, with some writing that "restaurants need to pay their employees, not us," and one person arguing that "tipping is out of control."

The payment device in the video, however, displays a disclaimer that states "tip is calculated after tax and before discounts."

The unnamed restaurant said that O'Brien received a discount for the cost of an entree, which he sent back to the kitchen. And while he wasn't charged for that item, the discounted cost was included in the tipping calculations.

"This is not a scam. We have a disclaimer that alerts guests that the tip is calculated before discounts. We also allow for a custom tip for guests' convenience," a representative for the restaurant told ABC News.

O'Brien claimed the discount wasn't made clear to him.

"I just want people to be alert to it," he told ABC News about why he chose to speak out. "But definitely don't take it out on the servers for sure, because they're just trying to make a living like everybody else."

John Waldmann, founder and CEO of restaurant software Homebase, told ABC News the confusion and frustration surrounding tipping these days is not totally surprising.

"Part of the consumer frustration is the expectations and behaviors around tipping changed dramatically in the last four years," Waldmann said. "I think that that has really confused a lot of people."

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- Looking for a unique vacation destination?

Airbnb is offering customers an opportunity to stay in famous homes and places such as a re-creation of the Up house from Pixar's 2009 animated movie.

Photos show the Up house, home to the fictional Carl Fredricksen and his late wife Ellie, brought to life with photos of the couple and just like in the movie, held up by 8,000 balloons among the red rocks of Abiquiu, New Mexico.

The Up house is part of Airbnb's new "Icons" series, launched May 1, with 11 special locations. Airbnb expects to offer additional listings later this year.

"Icons take you inside worlds that only existed in your imagination—until now," Airbnb co-founder and CEO Brian Chesky said in a statement. "As life becomes increasingly digital, we're focused on bringing more magic into the real world. With Icons, we've created the most extraordinary experiences on Earth."

Alongside the Up house, Airbnb has listings for stays at the headquarters from Disney and Pixar's Inside Out, Prince's Purple Rain house in Minneapolis, Marvel's X-Mansion from the X-Men franchise in Westchester, New York, Kevin Hart's pop-up Coramino Live Lounge and more, including a few abroad, such as the Musée d'Orsay in Paris and Ferrari Museum in Maranello, Italy.

Airbnb customers can request to book "Icons," which are free or under $100, but listings are limited to "lucky guests" who are chosen to receive one of over 4,000 digital golden tickets.

The Walt Disney Company is the parent company of ABC News, "Good Morning America" and Pixar.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- Martinelli's has voluntarily recalled a single lot of its apple juice that was distributed to five major retailers after it tested for arsenic levels higher than U.S. Food and Drug Administration standards.

S. Martinelli & Co. stated in a recall notice dated April 16, 2024, that the recall was initiated as "a result of sampling by the State of Maryland that found samples from one production lot of Martinelli's apple juice, sold in one-liter glass bottles, tested above the guidance action level for inorganic arsenic in apple juice set by the FDA in June 2023."

Last year the FDA issued guidance that lowered the industry action level for inorganic arsenic in apple juice from 23 parts per billion to 10 ppb, which is in line with the requirements for water.

"The Maryland Department of Health reported that test results for the March 2023 production lot at issue showed 11.6 ppb for inorganic arsenic, which is 1.6 ppb higher than the industry action level," the company said.

S. Martinelli & Company sent the letter to alert retail partners of the affected products, which include 33.8-ounce bottles with a "Best By" date of March 9, 2026, or March 10, 2026, as seen on the front of the bottle above the label.

"The product was shipped between March 13, 2023, and September 27, 2023, with the majority of the product shipped before July 28, 2023," the company said.

As of time of publication, no illnesses or complaints tied to the recalled products had been reported, according to the company. No other production dates or Martinelli products are impacted by this recall.

The California-based beverage producer did not immediately respond to ABC News' request for comment.

According to the store locator on Martinelli's website, the 1-liter glass bottles are sold at Kroger, Publix, Target, Winn-Dixie and Whole Foods.

The beverage maker asked partners in its letter to examine inventory and "immediately discontinue distributing and selling the identified lot."

"If any of this lot remains in your stores, please remove it from your shelves," the company added.

Consumers with additional questions or concerns about the recall can call Martinelli's toll free at 1-800-662-1868.

Copyright © 2024, ABC Audio. All rights reserved.

(WASHINGTON) -- The Federal Reserve decided to hold its benchmark interest rate steady on Wednesday, postponing highly anticipated rate cuts as elevated inflation continues to burden U.S. households.

The announcement arrives days after new government data showed that the economy is cooling off.

The slowdown has coincided with a months-long stretch of stubborn inflation, putting pressure on the Fed to keep interest rates high despite a risk of hindering economic activity with expensive borrowing costs.

"The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the Federal Open Market Committee, the Fed's decision-making body on interest rates, said in a statement on Wednesday.

Due in part to a lack of recent progress in lowering inflation, the FOMC said it does not anticipate cutting interest rates until it retains confidence that inflation is moving sustainably downward.

"So far the data has not given us that greater confidence," Fed Chair Jerome Powell said at a press conference in Washington D.C. on Wednesday. "It is likely that gaining such greater confidence will take longer than previously expected."

In the run up to the Fed's decision, some observers raised the possibility of an interest rate hike in the coming months before the central bank moves forward with cuts. In his remarks on Wednesday, Powell downplayed the likelihood of such a move.

"It is unlikely that the next policy rate move will be a hike," Powell said.

At its previous meeting, in March, the Fed stuck to a projection of three rate cuts by the end of 2024, even as it opted to hold interest rates steady for the fifth consecutive time.

That approach has amounted to a prolonged pause of the aggressive rate hiking cycle that began roughly two years ago when the central bank sought to rein in rapid price increases.

Inflation has fallen significantly from a peak of 9.1% but it remains more than a percentage point higher than the Fed's target rate of 2%.

Interest rate cuts would lower borrowing costs for consumers and businesses, potentially triggering a burst of economic activity through greater household spending and company investment.

But the Fed risks a rebound of inflation if it cuts interest rates too quickly, since stronger consumer demand on top of solid economic activity could lead to an acceleration of price increases.

The recent economic cooldown, meanwhile, could complicate the posture taken up by the Fed.

The U.S. economy slowed dramatically at the outset of 2024, though it continued to grow at a solid pace, according to data released by the U.S. Commerce Department last week.

Gross domestic product, a measure of all the goods and services produced in the economy, recorded 1.6% annual growth over the first three months of the year, the Commerce Department said this week.

That figure came in well below expectations, marking a steep slowdown from a 3.4% annual rate measured over the final quarter of last year.

In March, before the latest GDP data, Powell said a combination of elevated inflation and economic fortitude offered the Fed an opportunity to hold rates steady at highly elevated levels, since the central bank ran little immediate risk of triggering a downturn.

"On inflation, it's too soon to say whether the recent readings represent more than just a bump," Powell told a business conference at Stanford University.

"Given the strength of the economy and progress on inflation so far, we have time to let the incoming data guide our decisions on policy," Powell added.

Economists who recently spoke to ABC News downplayed any alarm raised by GDP finding last week, saying resilient consumer spending continues to propel stable growth.

But, they added, the Fed could face a difficult position if a gradual cooldown persists alongside elevated inflation. That trend could force the Federal Reserve to keep interest rates high even as the economy falters.

The Fed Funds rate stands between 5.25% and 5.5%, matching its highest level since 2001.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- For anyone still in planning mode for summer vacation, some experts say right now may be the best time to book the trip.

Founder of The Points Guy Brian Kelly explained to ABC News' Good Morning America that the best booking timeframe, known as the goldilocks window, can offer travelers serious savings.

"When traveling internationally, you wanna book at least 60 days in advance and domestic, the sweet spot is usually 45 days," he said.

While airlines are already bracing for record travel this summer, Kelly said to go with the deals rather than the specific destination.

"Demand for travel is strong, especially intergenerational travel," he said. "I recommend -- choose the destination where the deals are so you can spend less on airfare and hotels and spend more at your destination."

Whether you prefer road trips or all-inclusive resorts or cruises, travel experts are seeing deals across the board if you know where to look.

"We've seen great airfares this summer to Hawaii -- JFK to Honolulu we're seeing in the $400 [range] which is 40% below historical prices," Kelly said.

International hotspots this summer like Europe, for example, has airfare that's 10% less on average than the same time last year, according to travel booking site Hopper. The average summer airfare, Hopper found, is $325 domestically and $1,000 internationally.

Hot summer airfare deals this week

Boston to Barcelona can be booked for as low as $493 round trip.

Chicago to Paris has airfare as low as $571 round trip.

And Kelly reminded travelers that the key to getting the best deal is knowing how and where to save.

"There's not one day of the week where cheap fares magically appear. If you travel on Tuesdays and Saturdays in general, those days are cheaper than flying on a Thursday, Friday or Sunday," he said.

Golden rule for booking flights: Advanced purchase requirement

Travel expert Scott Keyes of Going.com and formerly Scott's Cheap Flights, regularly reminds people to follow his golden rule of air travel: back-timing when to book based on your departure date, in order to align with an airline's "advanced purchase requirement" found in the fine print of the fare terms and conditions.

"Pull up a calendar and circle 21 days before your travel date," he said. "That needs to be your sort of drop-dead date to get your flights booked by."

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- It's been nearly one month since California raised the minimum wage at certain restaurants, which has put a spotlight on a course correction that many see as long overdue.

But for some -- and not just fast food franchise owners -- the newly raised bar for compensation also marks a pivotal point for restaurants to remain competitive in an already difficult post-pandemic landscape. The industry with famously thin margins is once again being pushed to make monetary and operational adjustments to stay afloat, all without compromising consumer expectations.

Some customers have already felt the pinch of costs being passed onto them, as recently reported by the Wall Street Journal, which restaurant owners and executives at chains like Chipotle and McDonald's warned could come as a result of the state voting to increase the minimum from $16 to $20 an hour at restaurant chains with at least 60 locations nationwide.

Market-research firm Dataessential provided ABC News with menu price analysis at 70 limited-service restaurants (LSR), which includes both fast-food and fast-casual chains, that showed California eateries have increased prices by 10% overall since September and has outpaced all other states.

"I know that we are course correcting from a minimum wage that hasn't kept up with the cost of living index and has not kept up with inflation. The pendulum is swung to kind of make up for a lot of inactive and stagnation with wages. But for restaurants to be the first industry to bear the brunt of this is really tough," Briana Valdez, founder and CEO of HomeState in Southern California, told ABC's Good Morning America.

"Coming out of a time where restaurants, who were essential workers during the pandemic and fought so hard to keep their doors open and to keep teams employed, now have another major impact on our ability to keep our teams happy and to keep our doors open, and to continue to offer affordable options for our diners," she continued. "It's another massive challenge on the heels of just kind of getting our feet back on the ground."

Valdez, who's placed equity and wellbeing at the forefront of her business, first brought a taste of Texas food and hospitality to Hollywood, California with house-made flour tortillas, breakfast tacos, queso, and brisket back in 2013 and has since expanded to eight restaurant locations across Southern California with 350 employees.

While her restaurant group doesn't meet the same volume as restaurants in the LSR category mandated in the new law, the daughter of first-generation Mexican American parents told GMA frankly that "$20 an hour now it's not competitive -- it's just the starting point now for most restaurants that are competing for the same talent pool."

"All things being equal," she said thinking of potential applicants, "most people are going to apply for the job that has a higher rate, so you really start to compete directly with people who are mandated by [AB 1228] to have a $20 an hour starting wage -- It drives everybody's wages up."

Valdez, who previously worked in fine dining at Thomas Keller's Bouchon in Beverly Hills, opened "with a pooled house and that was groundbreaking at the time," she said of the equitable pay structure that divides tips between the kitchen and service staff evenly.

On average last year, Valdez's employees netted nearly $24 per hour, which is how she said they've "been able to stay competitive." But since that can't be listed as a starting wage due to tips, she's had to get creative with how to present the overall work experience with appealing benefits "to make the work-life balance really healthy," such as telehealth for $5 a paycheck that extends to employees' families, pet insurance, family meal, and two days off in a row.

On top of the immediate public-facing challenges that come from this all-at-once financial change, restaurant owners are also left to juggle rising food costs and other variables in the supply chain that can greatly impact a restaurant's overhead and bottom line.

"Our vendors are all under the same pressures that we are -- they're all fighting to keep their relationships intact with their restaurants -- but their costs are all going up as well," Valdez pointed out. "So as restaurants, we're on the last end of all those commodities and markets that have come before us," such as farmers, harvest labor, transit of crops, food storage, packing, and distribution.

"We're being as transparent as we can because cost has gone up," she continued, sharing for example that HomeState is "losing money every time we sell a brisket taco."

Ultimately, Valdez said this culmination of increased costs for operators have to go somewhere: "It's going to shift the landscape for the diner -- we are going to see increased menu prices and that is just a byproduct of of this."

Even Michaela Mendelsohn, who was appointed to Gov. Gavin Newsom's Fast Food Council last fall before AB 1228 was signed into law, is seeing the immediate financial impact on her restaurants.

The CEO of Pollo West Corporation, one of the largest franchisees of the fast casual California restaurant chain El Pollo Loco, told GMA they preempted price raises in February before the minimum wage law took effect on April 1 to test the waters and "had a 3% decline in transactions."

"It's become really clear to us that our customers are [experiencing] sticker shock and price fatigue," Mendelsohn said. "With inflation, we've had to increase too many times and it's not the answer anymore or else we'll just keep reducing our business to less and less people."

"We quickly shifted from being profitable to losing money on April 1," the former president of the El Pollo Loco Franchise Association of nine years said frankly. "We're in a tough position right now where we're pretty much having to accept the fact that we're making no money for a while until we figure this out."

To cut costs and stay afloat, Mendelsohn said their restaurants have had to reduce hours by roughly more than 10%, simplify menus, and implement new technologies such as automated ordering kiosks, which she explained can have a long learning curve for customers and hasn't helped save any money in the short term.

"We're also looking at the possibility of certain stores opening later or closing earlier -- because those fringe hours are often not profitable. And now they've become that much less profit," she added. "AI will be the next big step, we'll be one of the test stores -- to start testing automation in our drive thru," but in the meantime an employee still needs to be on headset to monitor each transaction.

Mendelsohn, who's owned El Pollo Loco franchises for 36 years, said this "is a throwback to the recession" when the business "had double digit declines for three years." 

"This was supposed to be something I was wanting to leave to my kids -- but I'm not sure what's gonna be left. I'm fighting to keep something there that's valuable for them," she said.

The mother of five and transgender activist who has worked closely with the California Legislature on an array of business policies, said, "I'm sad to say this law was so ill advised in my eyes and many others to have it just focus on 500,000 fast food workers, but there's 40 million people that live in the state. When you just choose one industry, that's a good size of the state but certainly just a small piece in the totality, why isn't everybody getting $20 an hour and why isn't it being done over a period of time so that everybody can adjust accordingly? I don't see it as a solution."

While it's still too early to know how the wage increase has impacted specifics on hiring or staffing, according to a representative from the National Restaurant Association, tangible data will be available from the Bureau of Labor Statistics next month in the April jobs report which can help paint a clearer picture of the new law's inaugural impact. 

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- Amazon Prime Day is making its annual return in July.

The retailer previously announced the return of its biggest shopping event of the year along with plans to include even more savings than it has in years past.

"I'm thrilled to share that Prime Day will be back this July," Doug Herrington, Amazon CEO of Worldwide Amazon Stores, wrote in the caption of a recent Instagram post. "This will be Amazon's 10th Prime Day, and I'm excited for Prime members around the world to discover some of the best deals of the summer."

What is Amazon Prime Day?

Prime Day is a 48-hour shopping event that gives Amazon Prime members exclusive access to deals on Amazon.com across all categories including fashion, home, kitchen products and more.

When is Amazon Prime Day 2024?

According to a blog post on Amazon's website, Prime Day 2024 will be held in July. This will be Amazon's 10th Prime Day event, according to the company.

"Prime Day will take place in the following countries: Australia, Austria, Belgium, Brazil, Canada, Egypt, France, Germany, India, Italy, Japan, Luxembourg, Mexico, Netherlands, Poland, Portugal, Saudi Arabia, Singapore, Spain, Sweden, Turkey, the United Arab Emirates, the U.S., and the UK," the company stated.

Best Prime Day deals and what to expect

Last year's event included discounts on brands such as Lancôme and Kérastase, as well as Amazon-exclusive deals that you couldn't find anywhere else.

Amazon devices such as Echo systems, Fire TV Sticks, and Kindles, have also traditionally gone on sale. It's also a great time to make purchases of electronics that you have been waiting to snag at a lower price.

There were also loads of back-to-school, fashion and tech deals.

How do I score the best deals during Prime Day?

During the sale, there will be multiple discounts to explore. Be sure to look out for what Amazon calls "Flash Deals" or "Lightning Deals," which are time-sensitive. While some items are on sale all day long, Lightning Deals will only last as long as selected products remain in stock.

Do I need to have a Prime membership?

Yes, Prime Day is for Amazon Prime members only. Not a member just yet? Amazon offers a 30-day free trial of Prime membership for shoppers who want to be able to participate in Prime Day. If you are looking to make the most of this sale, signing up for a membership is the best way to go. For those online shopping lovers who are looking to save all year round, the membership is $14.99/month or $139/year. Students can register at half price for $7.49 per month.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- Southwest Airlines famously allows passengers to select their own seats upon boarding, but the low fare carrier could be changing course.

Earlier this week, after the Dallas-based carrier reported a $231 million net loss from the first quarter of 2024, CEO Bob Jordan commented on the "disappointing" results and said they are "evaluating options to enhance our Customer Experience" which he said includes "onboard seating."

"We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations," he continued.

On a webcast recording of the earnings call, Jordan said, "It's been several years since we last studied this in-depth, and customer preference and expectations change over time."

Jordan later spoke about the potentially massive shift to its open seating cabins as a means to drive up revenue, CNBC first reported.

"We’re looking into new initiatives, things like the way we seat and board our aircraft," Jordan told CNBC.

While Southwest offers priority boarding groups for an additional fee, the company's all-Boeing 737 fleet of single economy class aircraft is known by consumers and among airline competitors for its simplistic and affordable experience.

Southwest did not respond to ABC News' request for additional comment and pointed to the quarterly earnings report.

Related Topics

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- In an exclusive and far-reaching interview with ABC News, John Furner, president and CEO of Walmart U.S., talked about the retail giant’s push to hire more non-college degree workers for high-paying corporate jobs at the company.

Currently, 75% of Walmart’s salaried managers began as hourly associates. High-performing Walmart managers at the store’s Supercenters now have the ability to earn more than $400,000 a year, which includes a new stock grant rewards program. Some of those managers have college degrees, while others do not -- it is not required for the job.

“While college is great for some, it’s not exactly the right answer for everyone,” Furner told ABC News.

This year, Walmart says it has doubled the number of skills certificates it offers to help people move into higher-paying careers within the company, such as software engineers, data scientists, and opticians. Walmart says certificate programs take associates about four months on average to complete, compared to years for a degree.

“Let's say you wanted to be a technician and work on HVAC, or if you wanted to be a truck driver, or robot tech, or a pharmacy tech. We have those programs where you can do that on the job while you're working, and they lead to great careers,” Furner said.

Businesses are increasingly removing college degree requirements from some job descriptions and shifting to skills-based hiring. But a recent report from the Burning Glass Institute and Harvard Business School found that most companies that say they are adopting skills-first hiring are not actually translating that into practice.

The report found that Walmart was among the 37% of firms analyzed that, on average, hired 18% more non-degree workers for roles for which they removed the requirement for a college degree. Other so-called skills-based hiring leaders included Apple, Cigna, ExxonMobil, General Motors, Target, Tyson Foods, and Yelp.

In a first for the company, Walmart hosted an Opportunity Summit in Washington, D.C. this month, where it brought together executives from over a dozen major companies -- including Accenture, Home Depot, McDonald’s, PepsiCo and Verizon -- to discuss how they can coordinate efforts and make good on their promise to offer higher-paid jobs to non-degree workers.

The shift to skills-based hiring comes as the cost of a college education continues to rise. Boston University, Tufts and New York University are among the schools that now cost nearly $100,000 a year to attend.

“A lot of the skills that we're talking about are also applicable across a number of companies in a number of industries,” said Furner. “What we hope for is that our associates learn more and stay with us, but we know sometimes they're going to go on to other things, and if they can take those skills with them collectively, we'll all be better off.”

Job growth is expected to continue at Walmart as it looks to open its first new stores in three years. The retailer plans to open 150 new stores and remodel 650 existing locations over the next five years.

Retail theft and the future of self-checkout

Furner acknowledged that the prevalence of shoplifting and organized retail crime across the country remains a challenge for retailers of all sizes. He says shrinkage -- the industry term for merchandise loss due to theft -- has increased at Walmart over the past two years. In response, the big-box retailer has been selectively removing self-checkout counters from some locations where there are more instances of shoplifting and mis-scanned items, but Furner told ABC News that self-checkout is not going away at Walmart.

“There are a few stores where we've made the decision that they'll come out of, but we haven't made that decision in every store,” he said. “Over the next few years, we're really going to lean into new types of technology that can make the checkout process even better for customers.”

Target recently announced it would limit the number of items shoppers can buy at self-checkout lanes, while Dollar General plans to pull self-checkout counters from 300 of its stores.

“For the industry, the concern is it causes prices to go up and it can cause stores to close,” Furner said of the problem. “Retailers need to work with state and local law enforcement, with federal enforcement to keep our communities safe for our customers and to keep the cost of goods down."

"Deflation" is showing up at Walmart

On the inflation front, Furner says he continues to see improvement: “At Walmart, we are now seeing prices that are in line with where they were 12 months ago. I haven’t been able to say that for a few years now.”

Furner also sees deflation in big categories like general merchandise, where some prices are below where they were a year ago. 

“The last few weeks, we've taken even more prices down in areas like produce and meat and fresh food," Furner said.

Yet despite a recent rise in overall inflation in the past three months, Furner says he remains optimistic.

“What I've learned in the last few years is, it's really hard to predict," Furner said. "I’m feeling much better about inflation in terms of pricing versus a year ago, but we're not finished.”

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- California lawmakers have pushed forward a new piece of legislation aimed at changing the way third-party security screening companies like CLEAR help expedite customers through security at the airport.

An annual CLEAR membership that costs $189 allows travelers to skip the onerous security lines and instead verify their identity with biometric data at a kiosk, then get escorted by an agent to the front of the line bypassing TSA and TSA PreCheck.

But California Senate Bill 1372, which passed 8-4 in the Senate Transportation Committee on Tuesday, would ban CLEAR from expanding at California airports unless the security company utilizes its own dedicated security lines.

"This bill would prohibit a public airport that provides commercial services, beginning January 1, 2025, from entering into a new agreement that authorizes a private third-party vendor that provides expedited security screening to use the standard security lane or the Transportation Security Administration PreCheck security lane," a summary of the bill states.

CLEAR currently operates at nine airports in the Golden State.

The first-of-its-kind bill in the U.S. was introduced by Democratic state Sen. Josh Newman. It now moves to the Senate Appropriations Committee, after which the bill could be brought for a vote before the full California Senate and state assembly before potentially making it to Gov. Gavin Newsom's desk.

In a press release on his official website, Newman described the proposed bill as offering "a more equitable experience at airport security checkpoints."

"Despite what some have said, SB 1372 doesn't seek to terminate the CLEAR concierge service at California airports. Instead, it seeks to have CLEAR and other third-party screening services operate separate lines for subscribers, eliminating the friction and frustration created by the current system," Newman clarified in a written statement.

The bill has several opponents including the California Chamber Of Commerce and California Travel Association, and major airline carriers including Alaska Airlines, Delta Airlines, Hawaiian Airlines, JetBlue and Southwest Airlines.

The publicly traded expedited screening service provider, which was founded in 2010, is in use at more than 55 airports across the U.S., as well as sports stadiums and other large venues.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- Peak summer travel season is fast approaching, and some cities abroad have already implemented fees in an attempt to protect popular destinations from potential damage from increased tourism.

Bustling European cities from Barcelona to Amsterdam that get flooded with tourists, especially at historical hotspots during the high season, have used tourist taxes to help raise revenue without taxing local citizens.

Now, the city of bridges is following in the footsteps of Spain, Greece and Germany, which have all utilized a similar fee-based approach, testing a new entry fee for any visitors who come to Venice just for the day.

Earlier this year, the coastal city, known for it's lagoon, hand-blown glass and close proximity to the heart of Italy's popular Prosecco region, announced a new reservation system that would charge day trippers 5 euros to enter and enjoy Venice.

With nearly 40,000 visitors on average per day -- nearly double the city's population -- local authorities hope this move will help protect the UNESCO World Heritage Site from the influx of tourists.

Starting Thursday, travelers can download an app to pay and attain a QR code, which will be checked by inspectors to enter the city as a visitor. If someone traveling for the day in Venice is caught without the code, they may face a fine of up to 300 euros.

"It is not a revolution, but the first step of a path that regulates the access of daily visitors. An experiment that aims to improve the liveability of the city, who lives there and who works there. We will carry it forward with great humility and with the awareness that there may be problems," Venice Mayor Luigi Brugnaro said in a statement on X regarding the announcement.

"The margins of error are wide, but we are ready, with humility and courage, to make all the changes that will serve to improve the procedure. Venice is the first city in the world to implement this path, which can be an example for other fragile and delicate cities that must be safeguarded," he continued.

Simone Venturini, Venice city councilor for tourism, told ABC News that the smart control center is within the most important part of the city -- Piazza San Marco, or St. Mark's Square.

"Authorities will use the new QR codes, plus cell phone data and the roughly 700 cameras around Venice to track and potentially regulate visitors," he explained. "We are switching to action after 60 years of only debate... our ultimate goal is to find a new balance between the needs of the residents and the needs of tourists."

Venturini told ABC News local officials had "a lot of discussion" with leaders in other cities who have worked to combat overtourism, including Amsterdam, Barcelona and Kyoto.

"We are talking together just to find the solution," he said.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- Good news for airline travelers: the Department of Transportation on Wednesday announced it is rolling out new rules that will require airlines to automatically give cash refunds to passengers for canceled and significantly delayed flights.

The delays covered would be more than three hours for domestic flights and more than six hours for international flights, the agency said. This includes tickets purchased directly from airlines, travel agents and third-party sites such as Expedia and Travelocity.

"This is a big day for America's flying public," said Transportation Secretary Pete Buttigieg at a Wednesday morning news conference. Buttigieg said the new rules -- which require prompt refunds -- are the biggest expansion of passenger rights in the department's history.

Airlines can now decide how long a delay must be before a refund is issue -- however, these new rules define "significant" delay standards that trigger refunds.

The DOT rules lay out that passengers will be "entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered."

DOT will also require airlines to give cash refunds if your bags are lost and not delivered within 12 hours.

The refunds must be issued within seven days, according to the new DOT rules, and must be in cash unless the passenger chooses another form of compensation.

Airlines can no longer issue refunds in forms of vouchers or credits when consumers are entitled to receive cash.

Airlines will have six months to comply with the new rules.

"Passengers deserve to get their money back when an airline owes them -- without headaches or haggling," Buttigieg said in a statement.

The DOT said it is also is working on rules related to family seating fees, enhancing rights for wheelchair-traveling passengers for safe and dignified travel and mandating compensation and amenities if flights are delayed or canceled by airlines.

Buttigieg said the DOT is also working to protect airline passengers from being surprised by hidden fees -- a move he estimates will have Americans billions of dollars every year.

The DOT rules include that passengers will receive refunds for extra services paid for and not provided, such as Wi-Fi, seat selection or inflight entertainment.

The rules come after the agency handed Southwest Airlines a record $140 million fine for its operational meltdown during the 2022 holiday travel season.

Buttigieg said Southwest's fine sets a "new standard" for airlines and passenger rights.

"To be clear, we want the airline sector to thrive. It is why we put so much into helping them survive the pandemic and honestly it's why we're being so rigorous on passenger protection," he said.

Buttigieg reiterated that refund requirements are already the standard for airlines, but the new DOT rules hold the airlines to account and makes sure passengers get the "refunds that are owed to them."

"Airlines are not enthusiastic about us holding them to a higher standard," Buttigieg said, adding that he "knows they will be able to adapt to this."

Airlines for America, the trade association for the country's leading passenger and cargo airlines, told ABC News in a statement that its members "offer a range of options -- including fully refundable fares." Is said consumers are "given the choice of refundable ticket options with terms and conditions that best fit their needs at first search results."

The group said the 11 largest U.S. airlines issued $43 billion in customer refunds from 2020 through 2023.
 

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- As the surge of summer travel draws near, the race to book a great vacation is on.

"If you're looking to travel domestically within the U.S., I think you should be booking now for summer travel," Clint Henderson, travel expert and managing editor of The Points Guy, told ABC News' Good Morning America.

Earlier this month while reporting quarterly earnings, Delta Airlines CEO Ed Bastian projected "record advance bookings for the summer," telling CNBC that the carrier's credit card data and bookings show customers are highly interested in air travel.

An increase in budget airline routes that has created more competition, paired with an easing of the post-pandemic revenge travel surge, means travelers could see more deals.

"Overall prices are down from where they were when we just had that boom out of the pandemic," Henderson said. "So things are more reasonable."

Hopper, the flight booking app, has shown predicted fares for flights to Europe will be down 10% in price from the same time last year.

Google recently announced its top 20 trending summer destinations, which saw a few newcomers on the list and Paris rose to the No. 2 spot.

With the Olympics taking place there from July 26 through Aug. 11, an uptick in airfare and hotel pricing is expected during the Games.

But those willing to wait out the Olympics could find big savings for flights to the host nation.

The Points Guy has featured deals from Atlanta, Dallas and Charlotte to Paris for as low as $515 from August through the fall.

Amsterdam, Prague, Spain and Iceland are among the most reasonably priced European destinations, as seen on Hopper.

Tips for booking summer travel

Don't forget to stay flexible with travel dates and keep midweek in mind for possibly lower fares.

There's also a time during the post-summer rush known as "shoulder season," between September and October, when fares could drop by as much as 30%.

When it comes to airfare purchase timing, the experts at The Points Guy have found prices dip eight to four weeks before the outbound flight, but after the one-month mark, prices will creep back up.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- Counterfeit luxury handbags have become a social media phenomenon. Instead of cheaply made knockoffs, the latest crop of counterfeit handbags, known as "superfakes," looks very similar to the authentic luxury item.

As high-end luxury brands including Hermes, Chanel, and Prada have boosted their prices in recent years, many consumers turned to deceivingly high-quality replicas for a fraction of the price.

The precision and attention to detail put into making replica handbags have made it easier for them to pass off as genuine luxury products, with hardly any noticeable differences to the untrained eye.

“Twenty years ago, counterfeits were terrible. Those things were $25… [Now,] some counterfeit Birkins are $6,000 plus, handmade,” Sarah Davis, president and founder of Fashionphile, a high-end consignment boutique, told Impact x Nightline, which takes a look at the counterfeit luxury goods market. This episode is now streaming on Hulu.

“[With] technology, the ability to make a superfake is easier now than ever before,” said Frank Russo, U.S. Customs and Border Protection (CBP) Director of Field Operations.

According to the agency’s reports, counterfeit goods comprise a staggering 2.5% of global trade. Luxury goods are the most commonly counterfeited items. Last fiscal year, Russo’s team seized nearly 23 million counterfeit goods nationwide worth over $2 billion in estimated retail value, calculated as if they were authentic.

Even some celebrities have been sporting the superfake merchandise. The Real Housewives of Salt Lake City star Jen Shah made headlines when federal agents seized dozens of counterfeit handbags found in her possession, after her arrest in 2021 for a telemarketing fraud scheme.

Despite counterfeit sellers conducting business publicly, law enforcement said it’s difficult to crack down on their activity. ABC News contacted over 50 sellers based in China. While most declined to respond, one seller disclosed that the operation is often exceedingly discreet, with each link of the process isolated from the others.

Buying, however, is an easier process. During the COVID-19 pandemic, Amy X. Wang, assistant managing editor for the New York Times Magazine, reported on the superfake industry.

“It's not really a secretive process,” said Wang, “[It’s] almost disappointingly easy,” Wang said.

Wang discovered an online ecosystem of replica handbags that paralleled luxury brands, making counterfeit goods easily accessible. On Reddit forums such as “r/Wagoonladies,” interested buyers can find detailed purchase guides, thorough customer reviews, and contact lists for sellers primarily based in China.

"Some people think it's an embarrassing secret," Wang said. "But to the other people, it's fun. It's subversive. It's actually really edgy that they have a fake bag maybe.”

Despite the increased prevalence of counterfeit luxury goods, authentic luxury brands continue to be solid investments. Resale data from Rebag indicates that popular styles from brands such as Louis Vuitton, Chanel, and Hermes are being resold second-hand for prices higher than their original purchase price. Luxury brands are keeping their goods exclusive and their prices high.

Sarah Davis, president and founder of Fashionphile, has created a resale platform that sells pre-owned luxury handbags, allowing consumers to buy authentic bags, in most cases, for a fraction of the retail price.

"The truth is, there's never been more counterfeits that are better, the superfakes, like today," Davis said. "And yet the luxury brands have never been stronger."

Dallas-based leather expert and social media personality, Volkan Yilmaz, who calls himself Tanner Leatherstein, has a popular YouTube series dedicated to demystifying leather in luxury handbags. He deconstructs designer purses and comes up with his own cost estimates.

“Is it worth the price? Well, it's up to you,” Leatherstein told Impact x Nightline.

He draws a line at counterfeits. 

“Somebody's stealing the brand's property, that intangible prestige…which is insanely difficult to create,” Leatherstein said. “But I'm no one to judge.”

In November 2023, federal agents executed the largest seizure of counterfeit goods in U.S. history. Authorities announced the seizure of around 219,000 counterfeit bags, clothes, shoes, luxury products, and other items. The total estimated manufacturer’s suggested retail price of these items was approximately $1.03 billion.

“China and Hong Kong are [the origins of] probably closer to 70% of all the counterfeit goods that we see,” CBP Director Russo said. 

“Counterfeit goods are a direct link to terrorist organizations,” said Russo.

When CBP was asked for evidence linking counterfeits to terrorism in the U.S., they cited the 1993 attack on the World Trade Center as an example. Additionally, they asserted that "other terrorist organizations have engaged in the sale of counterfeit goods and stolen cultural artifacts to help fund their organization."

Terrorists responsible for the 2015 terror attack in France on employees of the magazine Charlie Hebdo financed their weapons partly by selling fake Nike sneakers, according to authorities.

The department declined to provide specifics when Impact x Nightline asked for evidence linking counterfeits to terrorism in the United States.

“I would say to people who are thinking, ‘well, I'm just buying a purse,’ it's still the same issue,” Marc Miller, senior vice president of the International AntiCounterfeiting Coalition, told ABC News. “One, it's a crime. Two, it's bad for the economy. But three, they're also giving their financial information to organized crime.”

"Counterfeiting is a major problem throughout the United States," said Michael Alfonso, who heads the division investigating large-scale counterfeiting networks for Homeland Security Investigations in New York. "Our law enforcement task force looks at a lot of different factors. We look at the scope of the organization. Are they importing? Are they distributing? Where are they importing from? Where's there money moving from? And that's how we scale our investigations."

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) -- The natural diamond industry has been fueled by a glittering marketing strategy for decades, but is the sustainability of modern, lab-grown diamonds as clear-cut as consumers believe?

Since De Beers Group's 1940s "a diamond is forever" advertising campaign, dubbed by Advertising Age as the "slogan of the 20th century" in 1999, the natural diamond industry exploded into a multi-billion-dollar industry and cemented itself into modern culture.

"Diamonds are very ingrained in our culture," Paul Zimnisky, a leading diamond industry analyst, told ABC News. "I think, as humans, we just desire these rare, precious gemstones and metals. It's not practical, but it makes us feel good."

In 2022, the global natural diamond market was valued at $100.4 billion and is projected to reach $155.5 billion by 2032, according to Allied Market Research.

However, the natural, mined diamond industry has been disrupted by a just as shiny and substantially less expensive competitor -- lab-grown diamonds.

General Electric first produced lab-grown diamonds in 1954, according to the International Gem Society (IGS), using a high-pressure belt press to subject small seed crystals to temperatures of 2,912 Fahrenheit and atmospheric pressures of 100,000 atm.

Over the next several decades, researchers in the United States, China and Russia adopted varied methods of the initial GE patent to create lab-grown diamonds that exceed mined, natural diamonds in carat size, color and clarity, according to IGS.

Demand for lab-grown diamonds has increased every year but gained mainstream attention in 2017, according to Zimnisky.

"Production has just absolutely skyrocketed," Zimnisky said. "The production technologies in the production capacity have rapidly advanced in just the last three, four years. And because of that, the cost of production is dropped, and the cost to the consumer has dropped."

To the naked eye, lab-grown diamonds are identical to their mined counterparts but cost 40% to 50% less. A one-carat lab-grown diamond costs about $1,200, depending on quality, while a similar natural diamond can cost $4,200, according to The Diamond Pro.

In 2022, the global lab-grown diamonds market was valued at $24 billion and is projected to reach $59.2 billion by 2032, according to Allied Market Research.

How are lab-grown diamonds made?

Lab-grown diamonds share identical chemical and physical properties with natural diamonds, Dr. Ulrika D’Haenens-Johansson, senior manager of Diamond Research at the Gemological Institute of America, told ABC News, the difference is the origin in which they were made: In a lab vs. being mined after forming 150 miles below the Earth's surface.

"Laboratory-grown diamonds have the same composition and crystal structure as natural diamonds, resulting in essentially the same physical, chemical and optical properties," D’Haenens-Johansson said. "While laboratory-grown and natural diamonds may appear identical to the naked eye, they fundamentally differ in several ways: their age, the way that they grew, and the environment in which they formed."

Lab-grown diamonds mimic the conditions natural diamonds are formed in, where carbon is compressed due to extreme temperatures and pressures.

The manufactured stones are created in two ways: through high pressure/high temperature (HPHT) and chemical vapor deposition (CVD) processes, according to IGS.

Both HPHT and CVD lab-grown diamond productions require recreating temperatures over 1,472 Fahrenheit and atmospheric pressures up to 70,000 atm, according to IGS.

Are lab-grown diamonds sustainable?

The variation in the production of lab-grown diamonds is where the sustainability of the man-made product comes into question, according to Zimnisky, who notes, "Man-made diamonds require an enormous amount of energy."

"You could go to a producer that's using coal-fired, grid power, or a producer that's using hydropower or solar power," Zimnisky said. "Obviously, the environmental impact is going to be different depending on the source of energy."

The production of laboratory-grown diamonds is an energy-intensive process, according to D’Haenens-Johansson, who notes, many -- if not most -- lab-grown diamond producers use electricity from fossil fuels such as coal.

Additionally, D’Haenens-Johansson explained that the raw materials that are used for lab-grown diamond growth, such as methane gas and graphite are "generally intrinsically tied to mining processes."

On average, producing one polished carat of lab-grown diamond releases approximately 511 kg of greenhouse gases, according to IGS.

Amid the lab-grown diamond industry boom, China and India have risen as the top-producing and exporting countries, relying largely on coal to produce lab-grown diamonds, according to the Natural Diamond Council.

Over 60% of lab-grown diamonds are produced in China and India where 63% and respectively 74% of grid electricity results from coal, the council said in its 2023 analytical report.

"India and China right now are by far the largest producers of the man-made diamond," Zimnisky said. "I expect them to continue to be the largest producers."

In 2019, the Federal Trade Commission (FTC) warned eight jewelry marketers that some of their online advertisements of jewelry made with lab-grown diamonds "may deceive consumers," in violation of the 2018 FTC Act -- updated Guides for the Jewelry, Precious Metals, and Pewter Industries.

According to the FTC press release, "the companies in question advertised their jewelry as 'eco-friendly,' 'eco-conscious,' or 'sustainable,' and that such terms can be interpreted to imply certain specific environmental benefits."

The FTC "admonished" the companies, saying it's "highly unlikely that they can substantiate all reasonable interpretations of these claims," according to the release.

Environmental and ethical impact of mined diamonds

Mined diamonds are collected through open-pit, underground and marine mining, which can disrupt ecosystems and release carbon and other greenhouse gases into the atmosphere, according to IGS.

Clean Origin compares the environmental footprint between mined and lab-grown diamonds, claiming one carat of mined diamond equates to nearly 100 square feet of disturbed land and nearly 6,000 pounds of mineral waste.

Meanwhile, one carat of lab-grown diamond disrupts just 0.07 square feet of land and results in 1 pound of mineral waste, according to Clean Origin.

Diamond mines are also dangerous for workers, with the mines being vulnerable to collapse and explosions, according to Clean Origin, which notes increased cancer risk, hearing loss, lung problems and other health issues are associated with diamond mining.

The term "blood diamonds," also known as conflict diamonds, originated in the African countries Angola, the Democratic Republic of the Congo and Sierra Leone in the 1990s, according to Britannica.

Rebel groups used forced labor in lucrative diamond mining war zones to finance armed conflicts, which led to widespread human rights abuse, according to Britannica.

In 2003, the Kimberly Process was enacted to stop the illegal trade of conflict diamonds and protect the legitimate diamond trade, according to Britannica, which notes the agreement involves 49 participating countries including the European Union.

Why brands and consumers believe in lab-grown diamonds

Alexander Weindling, a third-generation diamond jeweler and CEO of Clean Origin, a completely lab-grown diamond company, told ABC News the ethos and affordability of lab-grown diamonds motivate his business.

Weindlings says a one-carat mined diamond can retail for $4,000 or $5,000, while Clean Origin offers what appears to be an identical stone for under $1,000.

However, regarding the sustainability and environmental effect of the industry, Weindling was careful to dub lab-grown diamonds "green-ish."

"How many greenish alternatives are less expensive than the old technology they're displacing?" Weindling asked. "A Tesla costs more than a Ford, and an organic apple costs more than a Costco apple."

"So we have, what I believe to be, if not a more sustainable than a far less disruptive product on so many levels. And it's less expensive," Weindling said, adding, "It's a win-win."

Melissa Jawaharlal, the co-owner of STEM Center USA and bride-to-be in Southern California, told ABC News choosing an engagement ring with less ethical and environmental impact was important to her.

"We all make a footprint, and I know every one of my choices has implications," Jawaharlal said. "Choosing a lab-grown diamond was a way to still have that sparkle, have that symbol of love -- but do it in a way that wasn't going to feel ethically compromising."

In terms of "eco-friendly" and "sustainable" marketing, Jawaharlal believes "clarity and transparency in marketing is always so important."

"If it's not done that way, it's just going to hurt the industry more later on," she added.

Looking to the future of the lab-grown diamond industry, Weindling believes that advances in sustainability are on the horizon, but in the meantime, "Don't let the perfect be the enemy of the good."

"Evolution is perfect," Weindling added.

Copyright © 2024, ABC Audio. All rights reserved.