1 00:00:05,200 --> 00:00:06,560 Speaker 1: This is what the flax. 2 00:00:06,600 --> 00:00:09,200 Speaker 2: I'm Brett and I'm Justin and it's Wednesday, the thirtieth 3 00:00:09,200 --> 00:00:09,560 Speaker 2: of July. 4 00:00:09,680 --> 00:00:13,560 Speaker 1: Douzyboy. Anset Australia, the Australian airline that went under about 5 00:00:13,560 --> 00:00:16,119 Speaker 1: twenty five years ago, is back, but not as you 6 00:00:16,160 --> 00:00:19,160 Speaker 1: know at this one. The trademark for Anset has recently lapped. 7 00:00:19,160 --> 00:00:21,880 Speaker 1: So now a local entrepreneur has created an AI powered 8 00:00:21,960 --> 00:00:26,040 Speaker 1: travel agency under the Anset names, essentially trying to leverage 9 00:00:26,040 --> 00:00:28,240 Speaker 1: that brand to grow a brand new business. 10 00:00:28,440 --> 00:00:31,360 Speaker 2: Bizarre. There are only two days left to do this 11 00:00:31,440 --> 00:00:34,040 Speaker 2: month's academy, where we are dishing out three hundred dollars 12 00:00:34,040 --> 00:00:36,400 Speaker 2: worth of prizes. It's all about getting into the property 13 00:00:36,400 --> 00:00:39,920 Speaker 2: market sooner, in particular learning about lender's mortgage insurance. So 14 00:00:39,920 --> 00:00:41,320 Speaker 2: if you want to learn more about how to get 15 00:00:41,360 --> 00:00:43,199 Speaker 2: into the market, make sure to check out the academy 16 00:00:43,200 --> 00:00:44,240 Speaker 2: and win some prizes. 17 00:00:44,360 --> 00:00:47,440 Speaker 1: Three generous stories today, Jussy Boy, let's do it for 18 00:00:47,479 --> 00:00:51,000 Speaker 1: our first Webjet has been fined nine million dollars by 19 00:00:51,040 --> 00:00:53,920 Speaker 1: the a Triple C after they admitted to misleading customers 20 00:00:53,960 --> 00:00:55,240 Speaker 1: with false advertising. 21 00:00:55,520 --> 00:00:57,920 Speaker 2: The Federal court wasn't on where Jet's list of top 22 00:00:57,960 --> 00:01:00,360 Speaker 2: travel destinations be man, So what is it? Story? 23 00:01:00,440 --> 00:01:02,760 Speaker 1: So Webjet was founded in nineteen ninety eight and it's 24 00:01:02,800 --> 00:01:05,960 Speaker 1: going to become one of Australia's largest online travel agency. 25 00:01:06,040 --> 00:01:08,360 Speaker 2: Now. Back in November twenty twenty four, the Atriable C 26 00:01:08,600 --> 00:01:11,920 Speaker 2: launched an investigation into webjets the misleading its customers. 27 00:01:11,959 --> 00:01:15,720 Speaker 1: Well jusiboy, Webjet has now admitted to excluding compulsory fees 28 00:01:15,800 --> 00:01:18,560 Speaker 1: from the price of flights advertised. Between twenty eighteen and 29 00:01:18,560 --> 00:01:19,760 Speaker 1: twenty twenty three. 30 00:01:19,520 --> 00:01:22,600 Speaker 2: Webjet was advertising airfares for as well as eighteen dollars, 31 00:01:22,600 --> 00:01:25,520 Speaker 2: but then the customers got whacked with extra fees at checkout. 32 00:01:25,560 --> 00:01:28,160 Speaker 1: But that's not all juzyboy. In some cases, Webjets sent 33 00:01:28,200 --> 00:01:31,520 Speaker 1: an email confirming the booking and then requested additional payments 34 00:01:31,560 --> 00:01:34,280 Speaker 1: averaging seven hundred and seventy dollars to complete the booking. 35 00:01:34,319 --> 00:01:36,920 Speaker 2: Surprise, surprise. This behavior does not live up to the 36 00:01:36,959 --> 00:01:39,640 Speaker 2: ariable c's standard a fair trade and competition. 37 00:01:39,800 --> 00:01:41,960 Speaker 1: So now the Federal court has hit Webjet with a 38 00:01:42,040 --> 00:01:43,280 Speaker 1: nine million dollar five. 39 00:01:43,080 --> 00:01:45,039 Speaker 2: And it's a strong reminder that when you make promises 40 00:01:45,080 --> 00:01:46,679 Speaker 2: to customers that you've got to follow through it. 41 00:01:46,720 --> 00:01:47,720 Speaker 1: So what's the key learning here? 42 00:01:47,800 --> 00:01:50,120 Speaker 2: False advertising might help land a quick sale, but in 43 00:01:50,160 --> 00:01:52,600 Speaker 2: the long run, damages brand reputation at big time. 44 00:01:52,640 --> 00:01:55,400 Speaker 1: In twenty twenty five, research shows that eighty one percent 45 00:01:55,440 --> 00:01:57,720 Speaker 1: of consumers need to trust a brand in order to 46 00:01:57,760 --> 00:01:59,280 Speaker 1: consider buying from them, So be man. 47 00:01:59,360 --> 00:02:02,160 Speaker 2: Competing on load prices can be a major value proposition 48 00:02:02,200 --> 00:02:03,360 Speaker 2: for businesses. 49 00:02:02,840 --> 00:02:04,920 Speaker 1: But luring in customers with prices that are too good 50 00:02:04,920 --> 00:02:08,120 Speaker 1: to be true can quickly backfire when customers realize they've 51 00:02:08,120 --> 00:02:08,560 Speaker 1: been faded. 52 00:02:08,800 --> 00:02:11,120 Speaker 2: Remember when Quantus was also called out by the ahable 53 00:02:11,160 --> 00:02:14,440 Speaker 2: C the misleading customers with ghost flight bookings. 54 00:02:13,960 --> 00:02:16,760 Speaker 1: For almost two years during COVID, Quantus continued to sell 55 00:02:16,800 --> 00:02:19,480 Speaker 1: tickets for flights they knew were getting canceled. 56 00:02:19,520 --> 00:02:22,040 Speaker 2: There is nothing worse than a canceled flight, nothing. 57 00:02:21,840 --> 00:02:24,320 Speaker 1: Yep, and Quantas paid the price for straight up deceiving 58 00:02:24,360 --> 00:02:24,960 Speaker 1: their customers. 59 00:02:24,960 --> 00:02:27,239 Speaker 2: The federal courts slapped Contus with a one hundred million 60 00:02:27,280 --> 00:02:27,920 Speaker 2: dollar five. 61 00:02:27,800 --> 00:02:30,440 Speaker 1: And shortly after a survey of field, Quantus dropped to 62 00:02:30,520 --> 00:02:33,200 Speaker 1: the second least trusted brand in Australia. 63 00:02:33,320 --> 00:02:35,240 Speaker 2: So while it might be tempting for businesses to do 64 00:02:35,280 --> 00:02:38,880 Speaker 2: things to increase their short term sales, the long term consequences. 65 00:02:38,320 --> 00:02:41,600 Speaker 1: Are simply not worth it for our second story, Three 66 00:02:41,760 --> 00:02:45,560 Speaker 1: major Australian banks will refund nearly sixty million bucks to 67 00:02:45,680 --> 00:02:49,680 Speaker 1: vulnerable customers after Acid found banks were charging customers fees 68 00:02:49,720 --> 00:02:50,560 Speaker 1: they couldn't afford. 69 00:02:50,560 --> 00:02:52,720 Speaker 2: Big day for Acid, Beeman tell me more well. 70 00:02:52,760 --> 00:02:55,440 Speaker 1: An zed at Westpac and Bendigo Bank are among Australia's 71 00:02:55,440 --> 00:02:56,600 Speaker 1: biggest retail banks. 72 00:02:56,600 --> 00:02:59,040 Speaker 2: They sell everything from bank accounts, some mortgages to business 73 00:02:59,160 --> 00:03:00,919 Speaker 2: lending across the whole of Australia. 74 00:03:01,000 --> 00:03:04,640 Speaker 1: Between them, they have over twenty million customers, so the man. 75 00:03:04,720 --> 00:03:07,919 Speaker 2: In July last year, ASIK, the financial watchhog and professional 76 00:03:07,919 --> 00:03:11,320 Speaker 2: bank party pooper released the report in investigated bank fees. 77 00:03:11,360 --> 00:03:15,200 Speaker 1: At first, they looked at unreasonable fees charged to vulnerable Australians. 78 00:03:14,639 --> 00:03:16,959 Speaker 2: But after digging a little deeper, ASCIK found that the 79 00:03:17,000 --> 00:03:19,359 Speaker 2: fee issue turned out to be much more widespread. 80 00:03:19,360 --> 00:03:22,400 Speaker 1: We're talking excessive fees charged to seven hundred and seventy 81 00:03:22,440 --> 00:03:24,480 Speaker 1: thousand low income customers. 82 00:03:24,000 --> 00:03:26,480 Speaker 2: And ACIK argues that the banks didn't act fairly and 83 00:03:26,600 --> 00:03:27,959 Speaker 2: ethically in charging these. 84 00:03:27,800 --> 00:03:30,800 Speaker 1: Fees, especially with many of these customers on Centrelink or 85 00:03:30,840 --> 00:03:32,120 Speaker 1: being pensioners. 86 00:03:31,639 --> 00:03:33,560 Speaker 2: And not using many of these account features. 87 00:03:33,560 --> 00:03:36,360 Speaker 1: So now the banks are coughing up nearly sixty million 88 00:03:36,360 --> 00:03:38,920 Speaker 1: bucks in refund and ANZ is the biggest, and yep, 89 00:03:38,960 --> 00:03:40,960 Speaker 1: that's on top of the thirty three million bucks they've 90 00:03:41,040 --> 00:03:42,080 Speaker 1: already refunded. 91 00:03:42,120 --> 00:03:45,080 Speaker 2: Then it's a reminder of the cross subsidization that happens 92 00:03:45,120 --> 00:03:47,000 Speaker 2: in one size fits all products. 93 00:03:47,120 --> 00:03:48,760 Speaker 1: Interesting, So what's the key learning here? 94 00:03:48,840 --> 00:03:52,240 Speaker 2: Cross subsidization is when a company charges many customers the 95 00:03:52,320 --> 00:03:55,200 Speaker 2: same flat fee, regardless of how much they use the features, 96 00:03:55,240 --> 00:03:57,640 Speaker 2: and that means some customers end up paying more than 97 00:03:57,640 --> 00:03:59,800 Speaker 2: their fair share to cover the costs for others. In 98 00:03:59,840 --> 00:04:02,800 Speaker 2: the case of banks, high fee transaction accounts often include 99 00:04:02,800 --> 00:04:06,960 Speaker 2: branch access ATM withdrawals, overdraft facilities, and these are expensive 100 00:04:06,960 --> 00:04:10,160 Speaker 2: for banks to maintain, so rather than pricing each feature separately, 101 00:04:10,280 --> 00:04:12,040 Speaker 2: banks apply a flat fee. 102 00:04:11,720 --> 00:04:14,920 Speaker 1: To everyone, including customers who rarely or even never use 103 00:04:14,960 --> 00:04:15,640 Speaker 1: those services. 104 00:04:15,680 --> 00:04:18,640 Speaker 2: In effect, lower income or less active customers end up 105 00:04:18,720 --> 00:04:20,640 Speaker 2: cross subsidizing higher cost users. 106 00:04:20,680 --> 00:04:23,040 Speaker 1: So now, Jazi Boyd, the banks are moving over more 107 00:04:23,080 --> 00:04:26,200 Speaker 1: than eight hundred thousand customers to lower fee accounts. 108 00:04:25,800 --> 00:04:28,760 Speaker 2: Which will save those customers more than forty million dollars annually, 109 00:04:28,839 --> 00:04:30,880 Speaker 2: which is great but also makes you wonder why didn't 110 00:04:30,880 --> 00:04:34,360 Speaker 2: the banks do this sooner? For our third and final story. Anthropic, 111 00:04:34,520 --> 00:04:37,440 Speaker 2: the AI startup backed by Amazon, is facing a class 112 00:04:37,480 --> 00:04:40,240 Speaker 2: action lawsuit from authors who claim their work was used 113 00:04:40,240 --> 00:04:40,960 Speaker 2: without permission. 114 00:04:41,040 --> 00:04:43,560 Speaker 1: Chatbot gets sued for knowing too much tell me more? 115 00:04:43,600 --> 00:04:46,640 Speaker 2: Okay. So. Anthropic is the San Francisco based AI company. 116 00:04:46,680 --> 00:04:49,120 Speaker 2: It was founded in twenty twenty one by Surprise, Surprise, 117 00:04:49,200 --> 00:04:50,320 Speaker 2: ex OpenAI staff. 118 00:04:50,400 --> 00:04:53,560 Speaker 1: Its crown jewel is a chatbot named Claude who's basically 119 00:04:53,680 --> 00:04:57,000 Speaker 1: out here boxing on against chat GVT and Perplexity for 120 00:04:57,080 --> 00:04:58,719 Speaker 1: the AI heavyweight title. 121 00:04:58,440 --> 00:05:01,680 Speaker 2: And be man. Despite being quite Anthropics raised billions in 122 00:05:01,720 --> 00:05:02,240 Speaker 2: funded yep. 123 00:05:02,240 --> 00:05:04,600 Speaker 1: They recently raised three and a half billion US dollars 124 00:05:04,600 --> 00:05:07,279 Speaker 1: and are now valued at more than sixty billion US dollars. 125 00:05:07,279 --> 00:05:10,560 Speaker 2: But while Claude's been getting smarter, authors have been getting angry. 126 00:05:10,360 --> 00:05:12,560 Speaker 1: At Juzzi Boy. A group of authors claim that Anthropic 127 00:05:12,600 --> 00:05:15,320 Speaker 1: downloaded as many as seven million pirated books to train 128 00:05:15,400 --> 00:05:16,040 Speaker 1: its AI. 129 00:05:15,920 --> 00:05:17,840 Speaker 2: Which violates copyright laws, and. 130 00:05:17,800 --> 00:05:20,159 Speaker 1: Now a US federal judge has ruled that the group 131 00:05:20,200 --> 00:05:23,280 Speaker 1: of authors can sue Anthropic as a class action, and that. 132 00:05:23,240 --> 00:05:25,320 Speaker 2: Means it would let all the authors in the US 133 00:05:25,360 --> 00:05:28,560 Speaker 2: whose books have been allegedly pirated get in on the class. 134 00:05:28,240 --> 00:05:30,520 Speaker 1: Action and Jazzy Boy. If it's ruled that Anthropic did 135 00:05:30,560 --> 00:05:34,719 Speaker 1: actually pirate these books, this class action could be extremely costly. 136 00:05:35,120 --> 00:05:37,240 Speaker 1: So what is the key landing year A class action 137 00:05:37,320 --> 00:05:39,960 Speaker 1: lawsuit is when a group of people with similar complaints 138 00:05:40,000 --> 00:05:43,200 Speaker 1: sue as one the business has been man These suits 139 00:05:43,240 --> 00:05:46,720 Speaker 1: can be extremely risky financially, and it's not just because 140 00:05:46,720 --> 00:05:49,640 Speaker 1: of potential payouts, but also because of the reputational damage. 141 00:05:49,720 --> 00:05:53,320 Speaker 2: In Anthropics case, the class action includes potentially every US 142 00:05:53,360 --> 00:05:55,800 Speaker 2: author whose work was scraped without permission. 143 00:05:55,920 --> 00:05:59,359 Speaker 1: And for high growth tech companies like Anthropy, these legal 144 00:05:59,400 --> 00:06:03,880 Speaker 1: risks can die directly impact valuations and partnerships and community trust. 145 00:06:03,960 --> 00:06:06,640 Speaker 1: For example, Jazi Boy remember in Meta formerly known as 146 00:06:06,720 --> 00:06:09,760 Speaker 1: Facebook was hit with the Cambridge Analytica class action. 147 00:06:09,680 --> 00:06:11,800 Speaker 2: I DO and it's market value dropped one hundred and 148 00:06:11,839 --> 00:06:14,120 Speaker 2: thirty four billion US dollars in just a few day. 149 00:06:14,120 --> 00:06:16,279 Speaker 1: And it ended up settling the case for seven hundred 150 00:06:16,279 --> 00:06:18,280 Speaker 1: and twenty five million US dollars and be man. 151 00:06:18,320 --> 00:06:20,839 Speaker 2: Anthropic isn't just facing lawsuits from author. 152 00:06:20,600 --> 00:06:23,599 Speaker 1: Now, They're also facing lawsuits from Universal Music and Reddit 153 00:06:23,680 --> 00:06:24,080 Speaker 1: as well. 154 00:06:24,120 --> 00:06:26,640 Speaker 2: So Anthropic's whole business could turn on its head if 155 00:06:26,640 --> 00:06:29,440 Speaker 2: the court's rule. It was built on pirated content, Huge 156 00:06:29,480 --> 00:06:31,400 Speaker 2: box Sam. There is cash to be one in the 157 00:06:31,440 --> 00:06:34,000 Speaker 2: Academy this month and knowledge to be learned. It's all 158 00:06:34,040 --> 00:06:36,720 Speaker 2: about getting into the property market, suit and learning how 159 00:06:36,800 --> 00:06:38,320 Speaker 2: Elmi can help you get there. So if you want 160 00:06:38,360 --> 00:06:40,080 Speaker 2: to learn more and with surprises and make sure to 161 00:06:40,160 --> 00:06:42,039 Speaker 2: check out the Academy for the last two days of 162 00:06:42,040 --> 00:06:42,360 Speaker 2: the month. 163 00:06:42,360 --> 00:06:44,640 Speaker 1: Thanks for listening and we'll see you on Friday.