Business news in brief
By The Associated Press
FDA warns about more ground cinnamon tainted with lead
U.S. health officials are warning that several types of ground cinnamon sold at certain discount and specialty grocery stores are contaminated with high levels of lead and should be discarded.
The Food and Drug Administration has issued its third alert this year, adding at least 10 types of packaged ground cinnamon sold at popular outlets including Dollar Tree, Patel Brothers and Eurogrocery stores in several states.
The FDA has recommended that companies recall the products. In the meantime, consumers should throw away and avoid buying these ground cinnamon products. No illnesses have been reported in connection with these products, the agency said.
The FDA issued its latest alert Tuesday, naming these brands of cinnamon: El Chilar, Marcum, SWAD, Supreme Tradition, Compania Indillor Orientale, ALB Flavor, Shahzada, Spice Class and La Frontera.
Boeing names next CEO while posting a quarterly loss
Boeing has a new chief executive. The company says aerospace industry veteran Robert “Kelly” Ortberg will take over as CEO next week, replacing David Calhoun. Boeing announced Ortberg’s hiring on Wednesday as it reported a second-quarter loss of more than $1.4 billion. The company’s revenue was even lower than Wall Street’s dismal expectations.
Ortberg is former CEO of aerospace manufacturer Rockwell Collins. He is coming to Boeing at a tumultuous time. The company is the subject of multiple investigations into its safety culture and manufacturing quality. Boeing agreed to plead guilty this month to a federal fraud charge in connection with its 737 Max jetliner and two crashes that killed 346 people.
CarShield to pay $10M to settle deceptive advertising charges
CarShield will pay $10 million to settle charges that its advertisements and telemarketing for its extended auto warranty plans are deceptive and misleading, the Federal Trade Commission said.
Many customers found that repair claims were often not covered despite making payments of up to $120 per month, the FTC said Wednesday. The FTC also alleged that CarShield’s celebrity and consumer endorsers made false statements in its ads.
The FTC complaint states that CarShield advertises and sells vehicle service contracts in a monthly price range of about $80 to $120. Its ads have featured celebrities including sports commentator Chris Brown and actor and rapper Ice-T.
—From AP reports
