Meta's scam-bot in Australia | McDonald's causes food poisoning | Michael Kors in the wars

Published Oct 27, 2024, 6:00 PM

Meta is planning to roll out new facial-recognition technology to stop celebrity impersonations that are scamming Aussies out of billions per year

McDonalds is in damage control after more than 75 people suffered from food poisoning from its burgers over the last week..and its share price dropped 7%

The owner of Coach and Kate Spade, named Tapestry, has been blocked from acquiring Capri, the owner of Michael Kors by US authorities

_

Head to helia.com.au/LMI to learn more.

Helia Insurance Disclaimer:

Information is of general information, and does not constitute legal, tax, credit or financial advice, and is not tailored to a home buyer’s specific circumstances. Home buyers should consider their own personal circumstances and seek advice from their professional advisers before making any decisions that may impact their financial position.

Lenders mortgage insurance (LMI) is insurance that protects the credit provider, not the home buyer, and cannot be provided to borrowers. Helia Insurance Pty Limited ABN 60 106 974 305 is the issuer of the LMI policy and holds an Australian Credit Licence Number 393269.

Helia credit activities are limited to credit activities engaged by it as an assignee in relation to providing lender's mortgage insurance (LMI) products or as a credit provider under the doctrine of subrogation in relation to providing LMI products. The information provided in this article does not refer to a credit contract with any particular credit provider.

_

Download the free app (App Store): http://bit.ly/FluxAppStore
Download the free app (Google Play): http://bit.ly/FluxappGooglePlay 
Daily newsletter: https://bit.ly/fluxnewsletter 
Flux on Instagram: http://bit.ly/fluxinsta 
Flux on TikTok: https://www.tiktok.com/@flux.finance 
—-
The content in this podcast reflects the views and opinions of the hosts, and is intended for personal and not commercial use. We do not represent or endorse the accuracy or reliability of any opinion, statement or other information provided or distributed in these episodes.

This is what the Flux.

I'm Brett and Justin and it's Monday, the twenty eighth to October.

Jusey boy, it is not a good time to be an office in CBDs around Australia right now because you may not be getting a lot of love.

Get this one.

The national CBD vacancy rate is still fifteen point one percent across Australia and the biggest culprit is you Melbourne CBD, which now hit a vacancy rate of nineteen point eight percent.

Ghost count alert yep Sadam.

If you're feeling stuck at the starting line of your investing journey, do not worry because we have got you. This month, we're partnering with Rays to roll out our Academy course Understanding the Share Market, where we break down share buying risk tolerances and also unlock the secrets of ets and the most exciting part. If you're at the top of the leaderboard at the end of this month's academy, you will get one hundred and fifty dollars bunded into your rai's investment accounts. Make sure to download the Flux app and check out the academy this month three.

Truly remarkable stories today, juzzy Boy, let's do it for our first. Meta is planning to roll out new facial recognition technology to stop celebrity impersonations that are scamming Australians out of billions per year.

Koshy Tweety Forests, Barefoot Investor. They almost be feeling quite relieved right now, So tell me more.

Well, we all know Meta, formerly known as Facebook, as the social media giant that owns Instagram, WhatsApp and of course Facebook and Juzzy Boy.

Don't you dare forget threads.

I don't know, I'm trying to forget it now. Meta seems to be constantly battling some kind of controversy.

Yep, juzzy Boy.

Turns out they've got another battle on their hands, and we're talking celebrity scam ads. Scammers have been using familiar faces to lure people into million dollar investments. Think Andrew Forrest, Gina, Ryan hart Koschi, even old Guy Sebastian and be Man.

These ads often take the Meta users to malicious websites where they're scammed and supposedly, Juzzy Boy, these ads have been difficult for Meta to actually detect, so now, Meta's rolling out new technology that will identify when the ad contains the image of a celeb's face.

How about this one.

Over about six months to December twenty twenty three, seventeen hundred new fraudulent ads were posted on Facebook.

And ten to fifteen of them we're using images of Andrew Twiggyboris.

Given metas ads business generates about ninety nine percent of its revenue, it needs to take these threats pretty pretty, pretty seriously.

So what is the key learning here?

When your business model starts turning into a commercial crime scene, it's time to clean things up or risk losing a lot.

Man. Scammers are not only using Meta's ad tech to run their scams, they're also leveraging metas ad targeting to reach just the right audience, all thanks to metas finally tuned algorithm.

How about this one? Jazy Boy.

Australian's lost two point seventy four billion dollars to scams in twenty twenty three, according to ACIK. But if this wasn't bad enough, there's maybe one more reason why Meta feels compelled to act right now.

Yep.

In July this year, Andrew twiggybrus took Meta to court about the scams with his face on them.

And the court said that maybe Meta is liable for allowing forgulent ads appearing on its platform.

And given the majority of metas one hundred and thirty four billion US dollars is tied to this ad platform, it kind of feels like it might be worth addressing right now.

Or our second story.

McDonald's is in damage control after more than seventy five people have had food poisoning from its burgers over the last week, and its share price has dropped over seven percent.

Macca's Golden arches, the big back itself is in a bit of a pickle here, b man, So tell me more.

All right.

So McDonald's aka Mackide, the land of the mcflurry and home of the McNugget, needs no introduction.

That's true.

Since nineteen forty been slinging burgers and fries to billions of people in over one hundred countries.

But now Josie Boy quarter Pounders have sent their share price tumbling away. There has been a potential E Coli outbreak linked to their quarter pounders in the US.

Yeah they reckon the I Cola was either in the beef all the onions of the quarter pounder burghers.

And there have been more than seventy five cases of the infection, including one death and be Man.

This news has spooked investors and Macca's share price has dropped seven percent.

And Josie Boy, the home of the McNugget, has already been struggling with declining sales in recent years. So this outbreak couldn't have come at a worse time. Very true, So what is the key learning here? In the hospitality industry? One big food mistake can leave a very taste in the mouth of investors and customers.

Maccus doesn't only face brand and reputational risk, but it also faces significant financial risk.

YEP, one of the affected customers, has already sued MACS for fifty thousand US dollars for negligence.

And be Man remembered happened to the US fast food Mexican chain at Chipotley.

I actually do it have an E Colli outbreak in about twenty fifteen and are lost over twenty percent in sales and forty five percent of its hap price.

And be Man.

Chipotley has bounced back from the debacle, but it took years to rebuild trust with its customers.

So now Macas is scrambling like an egg McMuffin in the fryar to reassure fans and investors that it's burgers are still good and it's.

Hoping it can dodge the major reputational hit that Chipotle faced.

For our third and final story, the owner of Coach and Kate Spade named Tapestry, has been blocked from acquiring the owner of Michael Kors by US authority.

Sometimes this love match isn't meant to be. So what is the story here, Well, Josy Boy.

Tapestry is an American fashion conglomerate which owns major brands like Coach, Kate Spade, Stuart Whitzman.

Tapestry was originally called Coach and it's been around since nineteen forty one.

And then we've got Capri, which is also a fashion conglomerate and owns brands like Michael Cores, Vasacei and Jimmy Choo.

Now be Man.

Last year, Tapestry had agreed to acquire Capri in a thirteen billion US dollar mega deal, but.

Now the US federal court has blocked this acquisition.

They reckon this acquisition would reduce competition in the accessible luxury handbag market.

That's because if the acquisition were to go through, Tapestry would own fifty nine percent of the accessible luxury handbag market and it.

Would be able to raise prices, which would harm consumers the judgy boy.

Surprise, surprise, Tapestry and Capri disagree. They're planning to appeal the verdict to get the deal over the line and be Man.

This court ruling is especially tough on Capri, which has been struggling for years to turn around its Michael Core's brand.

Once a luxury brand goes mainstream, it's really not easy to reverse.

That so true, So what is the key learning here?

Well, cats may have nine lives, but to luxury brands, often they only get one.

Juzzy boy, see be Man. Luxury brands gain their status by creating.

Exclusive Often that means they limit supply to amp up that precious demand.

And that exclusivity is how they're able to charge exorbitant prices for their products.

Looking at you omes with the Burken bags that started a lazy ten thousand dollars.

But the man.

When a luxury brand isn't able to balance its supply and demand, correctly, it can lose its air of exclusivity and appeal with customers.

Which is what we saw happen with Capri and It's Michael Core's brand.

Yeah, Michael Cars wanted to appeal to a broader demographic and that meant it kind of became everywhere, so no one wanted it anymore.

In fact, Michael calls.

So it's revenue dropped nearly ten percent for the twenty twenty four financial year, and the.

Man most brands don't recover their image once their luxury appeal is lost. Flux Sam, if you want a chance to have one hundred and fifty dollars or one hundred dollars or fifty dollars bunded in your raised investment account, there is.

Only one place to do it.

It's in the Flux Academy this month, where we're breaking down risk tolerances eachf share buying. Make sure to download the Flux app and compete in the Academy this month.

Thanks for listening and we'll see you on Wednesday,