Target Owes California $4M
Ever get to the register and feel like you’ve bought more than anticipated? Spent more than intended?
You may not be wrong.
Overcharging customers just landed Target Corporation in deep s-h-i….well, you get it. And the depth of that, ahem, stuff is valued at $4 million.
Related: Secrets of the Amazon (.com)
With 19 stores throughout the county of San Diego, Calif., consumer accusations of inflated costs is taken quite seriously, especially when the county is just one of many within the state—the consumer protection complaint filed by the San Diego City Attorney’s Office was done in conjunction with the District Attorney offices in Contra Costa, Fresno, Marin, Santa Cruz and Sonoma counties.
“Consumers should be able to trust that the price they see posted in the aisle will be the price charged at the register,” said San Diego City Attorney Jan Goldsmith. “This collaboration with district attorneys throughout the state is a big win for consumer protection, as it will bring Target into compliance with the law and protect the public from future overcharging.”
In specific, the retail conglomerate is accused of charging higher prices at check-out than what was listed in the aisles by not removing expired sales prices. Accusations also include falsifying the weight of pre-packaged food items.
As one example, Marin County Deputy District Attorney Andy Perez explained that the price Target charged its customers for bakery items also included the weight of the packaging—allegedly.
This isn’t Target’s first run-in with the compliance police – it’s the second major injunction brought against the American retail staple – and it has been going on since 2008—allegedly.
The $4 million required by the settlement terms includes the cost of penalties, investigation-based reimbursement and consumer restitution—but not accountability: The company admitted no wrongdoing but did agree to update compliance procedures within the 250 California-based stores to “help ensure price accuracy.”
Dell to sell cloud-based iPaaS Boomi in US$4bn deal
Global investment firm Francisco Partners and private equity platform TPG Capital have entered into an agreement with Dell Technologies to acquire cloud-based integration platform as a service provider Boomi in a cash deal valued at US$4bn. The deal is expected to complete this year.
“Boomi has flourished as part of Dell Technologies, growing exponentially since we acquired them in 2010. This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies.
“For us, we're focused on fuelling growth by continuing to modernise our core infrastructure and PC businesses and expanding in high-priority areas including hybrid and private cloud, edge, telecom and APEX. All designed to help organisations thrive in the do-from-anywhere economy.”
Dell’s Boomi sell-off follows VMware spin-off
This announcement comes just two weeks after Dell said it would spin-off its 81% equity ownership of VMware to form two standalone companies. This would result in an expected US$9.3bn cash dividend payment to Dell, which says it will use those funds to pay down debt.
When Dell acquired Boomi in 2010 for an undisclosed fee, Boomi offered the industry’s only pure SaaS application integration platform, powered by its revolutionary AtomSphere technology. Dell saw Boomi as addressing one of the top barriers to cloud adoption at that time, which was managing and integrating cloud-based applications with existing applications and databases.
Now, Boomi has more than 15,000 customers globally and is still seen as a leader when it comes to organisations connecting applications, processes and people across a range of locations and devices – a process that can take weeks rather than months.
“I am incredibly proud that through innovation, passion and relentless execution, the Boomi team has created a unified platform for the modern-day hybrid IT landscape that thousands of customers worldwide depend on to digitally transform their business,” said Chris McNabb, chief executive officer of Boomi.
“By partnering with two tier-one investment firms like Francisco Partners and TPG, we can accelerate our ability for our customers to use data to drive competitive advantage. In this next phase of growth, Boomi will be in a position of strength to further advance our innovation and market trajectory while delivering even more value to our customers.”
Francisco Partners has invested in more than 300 technology companies since its launch 20 years ago and has more than US$25bn in assets under management.
“The ability to integrate and connect data and workflows across any combination of applications or domains is a critical business capability, and we strongly believe that Boomi is well positioned to help companies of all sizes turn data into their most valuable asset,” said Dipanjan Deb, co-founder and chief executive officer, and Brian Decker, partner, at Francisco Partners
Nehal Raj, partner, and Art Heidrich, principal, at TPG Capital added: “The need for automation and data integration across applications has never been greater. Boomi's cloud-native platform enables enterprises to streamline business processes and is essential for driving digital transformation.”