šŸŽ'Tis the season to be cautious

Rite Aid banned from using facial recognition, Suez Canal disruptions, and more top stories.

Greetings from the Retailist team! With Christmas just around the corner this is the busiest and most crucial time for the e-commerce, retail, and Direct-to-Consumer (DTC) sectors. So, what can we expect in this bustling period?

We've handpicked a range of key news, developing trends, and upcoming opportunities from the world of retail over the last week. Dive in to explore the top stories:

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ā€˜Tis the Season to be Cautious: Mitigating Surging API Threats and Risks

It is during this season that many engineering teams find themselves under immense pressure to push applications out faster to capitalize on consumer demand. However, accelerated production timelines often lead to cutting security corners and can result in the delivery of insecure code to meet deadlines.

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In the news: Top headlines this week

VF Corp. shares fall amid cyberattack concerns. VF Corp., the owner of brands such as The North Face and Vans, experienced a sharp drop in its shares following a cybersecurity breach announcement. The company warns that the attack could significantly impact its business, particularly as this happened during the peak of the holiday season. [CNBC]

Retailers brace for post-holiday supply chain disruptions due to Suez Canal attacks. Although the retail sector remains largely unaffected by the recent Suez Canal attacks during the holiday season, challenges are anticipated in the new year. Escalating attacks by Iranian-backed Houthi rebels in Yemen are causing shippers to alter routes, leading to potential delays and increased costs. [Retail Dive]

Rite Aid banned from using facial recognition technology for 5 years. Rite Aid has been barred from using facial recognition technology for surveillance for the next five years, following a settlement with the Federal Trade Commission (FTC). The FTC criticized the company's "reckless" deployment of AI-based technology for tracking suspected shoplifters, which led to the collection and storage of images without consent and generated numerous false positives. This misuse of technology resulted in wrongful accusations, disproportionately affecting women and people of color. [AP]

Holiday shopping started early and is ending late this year. This year's holiday shopping kicked off notably early, with nearly half of the surveyed shoppers having started in October or earlier. Women and young parents are anticipated to spend more, influenced by the desire to economize for family gatherings on Christmas. Additionally, the rise of "buy now, pay later" options, which recorded $8.3 billion in transactions in November, reflects a changing approach to holiday spending. [CNBC]

Retailers gear up for peak returns season amid surge in e-commerce sales. Despite economic concerns, U.S. consumers have significantly boosted retail sales in 2023, particularly in Q4 with events like Black Friday and Cyber Monday contributing to a nearly 6% increase in November sales compared to last year. However, with the National Retail Federation reporting a return rate of 16.5% in retail, amounting to around $816 billion, and an even higher rate during the holidays, retailers must brace for the impact of these returns. [Retail Dive]

U.S. Senators call for regulatory vigilance over BNPL services. Three Democratic U.S. senators have expressed concern about the impact of 'buy now, pay later' services on financially vulnerable consumers, urging the Consumer Financial Protection Bureau (CFPB) for increased oversight. Senator Sherrod Brown, along with Senators Raphael Warnock and John Fetterman, emphasized the need for vigilance, especially during the holiday season, to prevent these financial tools from exploiting consumers. [Payments Dive]

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