Latest news with #Koerner
Miami Herald
18 hours ago
- Business
- Miami Herald
Lululemon rival facing $150 million lawsuit (blame influencers)
After months of seeing the same brand pop up again and again on Instagram, I finally caved. Everyone from fitness influencers to lifestyle creators seemed to be wearing the same sleek sweatpants and cropped sweatshirt set. I wanted in. I didn't just stumble upon it - I made a special trip to the store just to try it on. The influencers had done their job: I already felt like I needed it. At first, it lived up to the hype. The fabric was buttery soft, and I found myself reaching for it constantly. Related: Lululemon's latest viral product reveals something much bigger But after one wash, the magic faded. The softness disappeared, replaced by an average feel that left me a little disappointed. I still wear the set because it's cute (and let's be honest, I paid a premium for it), but it no longer feels like heaven against my skin. Now? It's just... meh. Experiences like mine aren't uncommon in the influencer era. But now, one popular yoga brand is facing more than just a few dissatisfied customers. A newly filed $150 million class action lawsuit accuses the company (and more than a dozen influencers) of misleading consumers through undisclosed paid endorsements. The message? Trust is expensive. And this brand may soon learn that the hard way. Image source: Koerner/Getty Images Turns out, I'm not the only one rethinking that hype-driven purchase. The lawsuit, filed last week, targets none other than Alo Yoga. Plaintiffs argue Alo's rise was fueled by influencers blurring the line between paid promo and personal praise. Personally, I call it sexy deception. The 38-page complaint alleges Alo has built its brand and customer base primarily through social media marketing, according to Lexology, Roughly 90% of the company's revenue is attributed to online sales and its Alo Moves platform-and much of that success, plaintiffs claim, comes from influencer promotions that misrepresent paid endorsements as authentic, unpaid opinions. Related: Nike's house is not in order, and customers may pay the price Plaintiffs say they purchased Alo products after seeing Instagram posts from influencers they trusted. The posts included glowing endorsements and tagged Alo products-but allegedly lacked the legally required material connection disclosures. The plaintiffs argue that they paid a premium based on the perceived impartiality of these influencers, only to later feel misled about the true value of the products. In short: this isn't some slap-on-the-wrist lawsuit. If the plaintiffs succeed, Alo and its influencers could be on the hook for more than $150 million-and a big chunk of their brand equity. This lawsuit is more than a legal headache - it's a gut punch to Alo's brand image. It's also a huge flashing red warning sign for every influencer-heavy brand out there. Transparency in influencer marketing isn't just an ethical best practice, it's a legal requirement. The Federal Trade Commission (FTC) mandates clear, conspicuous disclosures of material connections between brands and influencers. Anything less can open the door to lawsuits, regulatory fines, and loss of consumer trust. And let's be real: too many brands (and influencers) still play fast and loose with those pesky disclosure rules. In the relentless pursuit of growth, the temptation to make paid content feel "organic" is strong. But as this case shows, the legal and reputational costs of cutting corners can be enormous. This case isn't an outlier. It's a preview. Brands should take note: clear disclosures don't have to ruin the authenticity of influencer content. In fact, they can enhance it-building credibility with increasingly savvy audiences. Failing to do so, however, risks turning a viral marketing win into a $150 million cautionary tale. As class actions targeting influencer marketing continue to rise, the message to brands is simple: get your house in order, or brace for the kind of backlash money can't fix. Related: Steve Madden files wild lawsuit against Adidas The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
3 days ago
- Yahoo
ETCOG secures $250k grant for veteran transportation services
TYLER, Texas (KETK) — The East Texas Council of Governments (ETCOG) received a $250,00 grant that will provide GoBus transportation to veterans in over 14 East Texas counties. Gov. Abbott names new leaders to Texas Parks and Wildlife Commission The Texas Veterans Commission awarded 213 grants to many Funds for Veteran' Assistance programs which will aid about 40,000 veterans. ETCOG will put this money toward funding a GoBus system. GoBus is a rural public transit system in East Texas that provides rides to daily destinations such as grocery stores, meetings and health appointments. The GoBus trips are available to veterans as well as veterans' spouses, dependents survivor spouses and active military personnel. For more information about GoBus and their services visit their website: East Texas residents asked to donate fans for summer relief 'It is an honor to receive this funding award from the Texas Veterans Commission and Chair Koerner, which allows us to continue our mission to support all East Texas veterans,' said Vince Huerta, GoBus Director. 'We are dedicated to growing the program and look forward to assisting more veterans this year.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Miami Herald
23-04-2025
- Lifestyle
- Miami Herald
Customer loyalty tested: the call to boycott Alo Yoga
They wore it to yoga, to brunch, to Coachella. Alo Yoga wasn't just about leggings - it was a lifestyle. Endorsed by celebrities and influencers, the brand marketed itself as a pillar of wellness: clean aesthetics, mindfulness, and movement. Related: Fans of giant yoga brand are walking away: here's why But under that carefully curated image, some customers and employees now say things aren't so serene. On Reddit, one former loyalist has called for a boycott, although it does not seem like there's much momentum behind that actually happening. The reasons? Declining product quality, rising prices, and disturbing allegations about the company's internal culture. Image source: Koerner/Getty Images Across multiple threads on r/aloyoga, users shared frustration with how the brand's products are holding up, given what they're paying for them. "Insanity is buying from them after all the posts here about poor quality," wrote Pure-Act1143. Edlo9596 added: "It's a shame the quality is so bad.... I'll never buy anything from the Accolade line again." Even resale workers are taking note. "I work at a thrift store," wrote Preston, "The amount of Alo I have almost thrown away during sorting because I genuinely thought it was SHEIN." Related: Popular fitness tracker's latest update outrages users But it's not just the products. On platforms like Glassdoor and Indeed, former employees describe an environment that contrasts sharply with the brand's tranquil public image. One manager described Alo as having "high turnover and toxic" energy, citing "incompetence and lack of communication from upper management." Another employee said, "It's all smoke and mirrors - the company cares more about image than actual well-being." A former HQ product manager added, "If you value your mental health, dignity, career, or livelihood, I strongly recommend not joining Alo." Criticism spans departments - from retail associates to corporate roles - with several ex-employees mentioning a mismatch between the company's wellness message and internal operations. The disconnect is hard to ignore. A brand once seen as a beacon of modern wellness is now being called a corporate catfish - serene on the surface, but falling apart at the seams. Alo isn't the first lifestyle company to face backlash, and it won't be the last. But what makes this moment different is how deeply the criticism cuts across both product and principle. People aren't just questioning the stitching on a pair of leggings. They're questioning whether Alo is what it says it is. And in today's consumer landscape, that kind of disconnect can be more damaging than a defective item. Alo hasn't publicly addressed the boycott, and it continues to post daily affirmations and influencer content on social media. But behind the curated calm, the brand faces a test more difficult than any yoga pose: regaining the trust of a customer base that's beginning to turn away. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
04-04-2025
- Business
- Yahoo
German industry grapples with AI at trade fair
Artificial intelligence is set to bring sweeping change to modern life, but at an industrial fair in Germany many companies wonder how they fit into the tech revolution. "We use ChatGPT a bit," shrugged one business representative, from a metals processor based in southern Germany, at this week's Hannover Messe. The expo grouping 4,000 firms promised visitors ways to "experience the future" and explore AI's "practical applications in areas such as production, robotics and energy, all at their own pace". One eye-catching display -- a gigantic Rolls-Royce aircraft engine whose production was optimised by AI from Microsoft and German company Siemens -- drew many curious onlookers. But on the sidelines, the small and medium enterprises (SMEs) that are the backbone of Germany's economy -- the so-called Mittelstand -- often had less to say on the subject. Andrea Raaf of Herz Aetztechnik, which uses lasers to make vehicle and electronics parts, said AI was not up to the job. "The parts we manufacture are very individual, so we can't really see the point of AI," she told AFP. Others have been more engaged, including family-owned Koerner Electric, which said it has been using AI for the past three years. Standing in front of custom-built circuit boards, its technical director Dennis Koerner said AI had helped with the manufacturing process and to analyse optical and electrical measurements. "We have written a small AI with which we can generate programming much faster," said Koerner. "It was necessary to get faster and more stable results without needing several employees for the job." - Lagging behind - Once a byword for high technology, German industry knows that it is lagging behind US and Chinese competition when it comes to the digital technologies that will dominate the next century. Many German firms remain unsure how to use the rapidly evolving technology in the kind of high-end engineering they specialise in. "It's important not to shy away from introducing AI," said Agnes Heftberger, managing director of Microsoft Germany. "Otherwise Germany will find itself lagging behind in the face of international competition." Also featured at the fair were so-called "AI agents", systems which autonomously perform tasks from writing code to assisting with conversations. Microsoft offers systems to put machine data into simple language and identify maintenance needs in advance. But Loke Olsen, an automation engineer at Confirm A/S, a Danish subcontractor to the pharmaceutical industry, was somewhat sceptical about AI's potential errors and ability to correct itself. "We have to be sure that AI works 100 percent because we have to comply with very strict health regulations," he told AFP. For some, cost is an issue. Koerner said that it seems like "we can hardly afford" some of the AI products being showcased at the fair. - 'Game changer' - Almost half of German industrial firms use AI for some business functions, a Microsoft survey found, but most are far more reluctant to use it to develop their products. Only seven percent of machine builders plan to adopt generative AI to help with product design, said a study by the machinists' association VDMA. "There are some initial attempts, but investment is still too low," said Guido Reimann, VDMA's deputy managing director of software and digitalisation. The study found that GenAI, by optimising efficiency and boosting sales, could raise the sector's annual profits by many billions of euros. But although 52 percent of managers saw AI as a potential "game changer", it said, "its use has so far often been limited to experimental or proof-of-concept projects". The top concerns listed were a lack of data quality, shortages of AI specialists and technical challenges. Germany's Fraunhofer research institute has been touring Germany since 2023, showing manufacturers concrete AI applications from carpentry to healthcare. "It often helps to network smaller companies with each other because AI always works with data," said institute spokeswoman Juliane Segedi. "The more data you have, the better an AI can become. And if you have a similar problem that needs to be solved, you can pool the data to come up with a solution that is good for everyone." Other challenges remain. Many people fear AI will one day steal their job. An important step, Segedi said, will be convincing labour unions to not "see AI as a threat but as something that can contribute to their ideas". kas-vbw/fz/rl/jfx
Axios
03-04-2025
- Business
- Axios
Charlotte will host the 2027 Military World Summer Games
The 2027 CISM Military World Summer Games have been awarded to the United States by the International Military Sports Council (CISM) with Charlotte as the host city. Why it matters: This will be the first time the CISM Military World Summer Games will be held in the United States. Plus, hosting the Games could bring the state $3 billion, the Observer reported. Context: The Military World Games take place every four years and are held the year before the Olympics. The goal of the Games is to use sport to foster friendship and peace among nations. Roughly 10,000 military athletes from more than 100 countries will compete in 25 sports, ranging from traditional Olympic sports like swimming and basketball to military-specific events, like parachuting. What they're saying: "A lot of people don't even know these games exist," U.S. Performance Center co-founder/co-owner David Koerner tells Axios. Between the lines: The U.S. Department of Defense signed the games over to Charlotte's local organizing committee to run the games, which includes USPC, plus state and local government agencies. Koerner and his USPC co-founder, Ike Belk, are members of the local organizing committee, which is now in the process of contracting venues. "The citizens of North Carolina are all going to benefit from the massive sport tourism money coming into our state," Belk tells Axios. "This for me was a dream (which sometimes seemed like a battle!), but we are heartened by the way all parties came together to make this a reality." Zoom in: CISM says Charlotte was selected due to its "outstanding sports infrastructure, its experience in hosting international sporting events, and its strategic position as a leading hub for sports tourism," per a press release.
