The daily business briefing: December 19, 2019
An appeals court rules ObamaCare's insurance mandate unconstitutional, Uber settles complaint against its workplace culture, and more


1. Appeals court rules ObamaCare mandate unconstitutional
A federal appeals court on Wednesday ruled that the Affordable Care Act's individual insurance mandate is unconstitutional, striking down a key provision of ObamaCare. The 5th Circuit Court of Appeals ruled 2-1 that the ACA could not require people to have health insurance, but sent the case back to a lower court in Texas to determine what the decision means for the rest of the health-care law. The Supreme Court upheld the individual mandate in 2012, but because Congress repealed the tax law that allowed the mandate, and the Trump administration has opted not to defend the ACA, the mandate was re-examined. California Attorney General Xavier Becerra (D) vowed to appeal the ruling, so the Supreme Court could wind up hearing the case next year.
2. Uber settles EEOC sexual harassment investigation
Uber on Wednesday reached a settlement in the Equal Employment Opportunity Commission's investigation into complaints about the ride-hailing company's workplace culture. The EEOC said it "found reasonable cause to believe that Uber permitted a culture of sexual harassment and retaliation against individuals who complained about such harassment." Uber said that under its settlement with the agency it would establish a $4.4 million fund to cover payments to current and former employees subjected to sexual harassment at work. It also agreed to three years of monitoring to make sure it changes its ways. More than 20 employees have been fired since a former employee triggered scrutiny of Uber with an essay describing the problems. CEO Dara Khosrowshahi took over in 2017 promising to "do the right thing."
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3. Stock futures mixed after impeachment vote
U.S. stock index futures were mixed early Thursday in a sign of a muted initial reaction to President Trump's impeachment in the Democratic-led House. Several hours before the start of trading, futures for the Dow Jones Industrial Average were up slightly, futures for the Nasdaq were down a fraction, and futures for the S&P 500 remained unchanged. The Dow and the S&P 500 gave back early gains on Wednesday to close marginally lower, ending a five-day winning streak. The Nasdaq closed up by 0.05 percent to set a fresh record. Wall Street is continuing to follow developments in Washington, with investors widely expecting the Republican-controlled Senate to vote against removing Trump from office on abuse of power and obstruction of Congress charges.
4. 'Super Saturday' could top Black Friday with record sales
U.S. retailers are bracing for what is expected to be their busiest day of the year on Saturday, as shoppers try to finish their holiday shopping in a year with a shorter-than-usual Thanksgiving-to-Christmas shopping season. In recent years, sales have surged on the Saturday before Christmas as stores and online retailers continued offering deep discounts. Sales on so-called Super Saturday have been gaining on those of Black Friday, the day after Thanksgiving that traditionally kicks off holiday shopping. This year, retail analysts say, Super Saturday could become the biggest shopping day of the year. Craig Johnson, president at retail consultancy Customer Growth Partners, predicted sales of $34 billion in stores and online. Black Friday sales totaled $31.5 billion, he said.
5. Study: Coke downplayed soda's health risks to teens
Coca-Cola pushed a public relations effort to reduce teens' concerns about the health risks of drinking sugary sodas, which has been tied to rising obesity rates for children, according to a new paper in the International Journal of Environmental Research and Public Health. Child obesity rates have tripled since the 1970s, increasing children's risk of numerous health problems and resulting in $14 billion in annual health expenses. Internal documents showed that the company used public relations campaigns "to increase Coke brand health scores with teens" and "cement credibility in the health and well-being space." Kent Landers, Coke's vice president of public affairs and communications, said the internal documents dated to before the company expanded its focus to include water, juice, sports drinks, and other beverages.
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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
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