Cracker Barrel reverses decision to pull Duck Dynasty products

Phil Robertson, patriarch of the Robertson family and the "Duck Commander."

NEW YORK (CNNMoney)

The popular Duck Dynasty television show and Duck Commander products took center stage in a controversy over comments made by Phil Robertson. As patriarch of the family and founder of the company, he stars in the A&E reality show based on his Louisiana life and company.

Cracker Barrel (CBRL), a chain of over 600 Southern-themed restaurants and stores, said Friday it "removed selected products which we were concerned might offend some of our guests while we evaluate the situation."

Two days later, it had evaluated the situation.

"Our intent was to avoid offending, but that's just what we've done," the company announced. "Today, we are putting all our Duck Dynasty products back in our stores."

It cited messages of support, including on social media, for Robertson, a hunter who is known as the Duck Commander and for 40 years has sold the duck calls he designed.

"You told us we made a mistake," Cracker Barrel said. "And, you weren't shy about it."

Within hours, a version of the announcement posted to Facebook had been shared tens of thousands of times.

Related: Duck Dynasty is a retail powerhouse

Cracker Barrel's website doesn't list the calls, which look like whistles and retail on the Duck Commander website for between $10 and $150. But Cracker Barrel does sell t-shirts, a talking keychain and camouflage jelly beans with the Duck Commander logo. It also stocks Robertson's autobiography, his wife's cookbook and a mug bearing his catchphrase: "Happy happy happy."

Jeff Eller, a spokesman for Cracker Barrel, said products with the television show branding had been pulled but were now in stock again. He said stores offer a broader selection of Duck Dynasty products than does the website.

Robertson stirred controversy with comments he made in a GQ interview about homosexuality, bestiality and race.

A&E said he was indefinitely suspended from the show, but did not clarify what that meant for the announced January debut of a fifth season. It said the fourth season premiere had nearly 12 million viewers, making it the no. 1 nonfiction series in cable history.

First Published: December 22, 2013: 4:49 PM ET

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Apple inks China Mobile deal

HONG KONG (CNNMoney)

The two companies said the iPhone 5s and 5c will be available there beginning January 17. The mobile company and Apple (AAPL, Fortune 500) will take pre-registrations starting on Wednesday. The companies did not announce prices for the phones, which went on sale in the U.S. in September.

Completion of the deal greatly expands Apple's reach in the world's most populous country and provides access to a previously untapped revenue stream.

Related: Coolest gadgets of 2013

China Mobile (CHL) is the world's largest carrier by subscribers, with around 700 million users -- or more than twice the population of the U.S. Apple executives have long courted the mobile carrier, and analysts have deemed the partnership a must-have for Apple as it seeks to gain devoted fans among China's rapidly growing middle class.

The country of 1.3 billion is Apple's largest market outside the United States, but the iPhone maker has stumbled there, losing ground in the smartphone race to rivals including Xiaomi that offer cheaper phones.

Even before the deal was struck, analysts at Cantor Fitzgerald estimated that 35 million to 40 million iPhones were in use on China Mobile's network. Cantor estimated that Apple could sell an additional 20 to 24 million iPhones to China Mobile over the first calendar year of a deal.

Related: Apple supplier under scrutiny over death

Apple is No. 1 or No. 2 in almost all other countries where it sells the iPhone, but has lagged behind its competitors in China. Samsung and Nokia, for example, both typically beat Apple in terms of smartphone sales in China. A host of local brands, including Lenovo, Coolpad, Huawei and ZTE have also topped Apple in recent quarters.

Smartphones are popular in China, but 4G data service has been slow to arrive. The first 4G networks in China were only recently powered up. China Mobile said it would have 4G services in 16 cities by the end of this year, and expand to 340 cities next year.

Even in the face of intense competition, Apple CEO Tim Cook has maintained his optimism about Apple's business in the region.

"I continue to believe that in the arc of time here, China is a huge opportunity for Apple," Cook said earlier this year.

-- Sophia Yan contributed reporting.

First Published: December 22, 2013: 5:31 PM ET

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Military competition shows off the latest robots

Homestead, Fla. (CNNMoney)

They're slow. They trip and fall. Some even break their ankles or wrists.

The latest in robotics was on display the past few days at a racetrack just south of Miami, Fla., part of a $2 million competition funded by the U.S. military.

Engineering teams from high-tech companies and top universities showed off their designs, ranging from crawling models that look like spiders to heavy, hulking humanoids.

In all, 13 teams were competing for a $2 million award from the U.S. Defense Advanced Research Projects Agency to be handed out next year.

Related: Google moves into military robotics

Competitors ranged from well-funded researchers at the Massachusetts Institute of Technology to hobbyists with Team Mojavaton in Colorado. They even came from abroad, including the Japanese startup Schaft (recently bought by Google (GOOG, Fortune 500)) and Hong Kong University.

Throughout the demonstrations, the smell of oil hung in the air as robots made their way across test tracks. The aim was to test how well the machines could open doors, turn valves and keep their balance on uneven terrain.

The engines of some of the robots made a low hum, while others let off a high-pitched wail.

There were seven copies of the Atlas robot -- a two-legged, 300-pound creation by Boston Dynamics, which was acquired by Google last week. All looked alike, but each performed differently, because the software teams had designed different versions of its brain.

Related: 7 robots too expensive (or lethal) to own

A robot called Thor, built by Virginia Tech, looked oddly human while driving a four-wheeled buggy through a winding track -- its right arm turning the steering wheel and its left arm hanging casually off the side.

In fact, many engineers are racing to build robots with human-like dimensions and functionality so they can step through doorways, climb ladders and turn pressure valves.

The need for such robots was made urgent in the aftermath of the Fukushima nuclear power plant disaster in Japan, when cleanup crews needed machines to venture into zones too dangerous for humans, said Arati Prabhakar, head of DARPA.

Engineers say robots able to perform simple human tasks would lead to applications well beyond rescue and disaster mitigation, however.

The scientists building these bots see a robust future for robotics in home health care and precision manufacturing, but they are leery to predict when that will happen.

Even if robotics has a long way to go, Google's entry was seen by those at the DARPA challenge as a sign the field is about to explode with advancement.

"This robotics challenge will change the way people perceive humanoid robots," said Dennis Hong, a mechanical engineering professor at Virginia Tech. "I envision them doing dishes, talking out the trash, doing the laundry. The future is quite near, but we've got a long way to go."

First Published: December 22, 2013: 8:30 PM ET

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Online retailer Overstock to accept Bitcoin

Overstock.com CEO Patrick Byrne is endorsing Bitcoin. His company is the first major U.S. retailer to do so.

NEW YORK (CNNMoney)

Byrne said customers will be able to use the virtual currency to make purchases on Overstock.com (OSTK), which sells everything from digital cameras and bed sheets to patio furniture and even cars. The company is expected to have total revenue of $1.3 billion for 2013, according to FactSet Research.

"We think there's going to be a market in Bitcoin, and we want to get in front of it," said Byrne. "We want to be the first major e-tailer that accepts them." Byrne first made comments about Overstock.com accepting Bitcoin in an interview with Bitcoin blog newsBTC and later in the Financial Times.

Overstock plans to begin accepting Bitcoin near the end of the second quarter of 2014. Byrne said the move stems partly from his background in the Austrian School of economics, which is associated with the Libertarian party in the United States.

"We're the guys who like gold," he said. "We think the monetary base should not be something that a government can create with a stroke of a pen."

Unlike traditional currencies, Bitcoin is not backed by any government authority or central bank. It exists only on the internet and is "mined" by powerful computers that solve complex math puzzles.

Byrne said he is concerned about the possibility of "bad currency wars" in the future. He said the U.S. dollar is already being undermined by the Federal Reserve's easy money policies and by overspending by politicians in Washington.

Related: What is Bitcoin?

Like gold, Byrne said Bitcoin should hold its value better than the dollar because it is "mathematically constrained" and cannot be manipulated by government authorities.

There are currently 12.1 million bitcoins in circulation, according to blockchain.info. The total number of bitcoins is capped at 21 million.

Critics say Bitcoin is at best a fad and at worst a haven for criminals looking to buy and sell illegal goods anonymously. But supporters argue that Bitcoin is a more democratic alternative to traditional currencies.

Former U.S. Congressman Ron Paul, an outspoken Libertarian from Texas, has said that Bitcoin could be the dollar's "destroyer" if it goes mainstream.

Bitcoin has exploded in value this year, rising from about $13 in January to more than $1,200 earlier this month. On Friday, bitcoins were trading at about $739 on the Mt. Gox exchange.

The currency is prone to wild swings and experts say Bitcoin will remain volatile as the technology evolves.

Byrne acknowledged that the volatility is a problem and that Overstock will need to "continually convert Bitcoins into dollars" to avoid losing money. Eventually, he said there will be a derivatives market that will allow companies to hedge their exposure to Bitcoin.

Related: Bitcoin worth almost as much as gold

In some respects, it's not a surprise that Overstock would move to accept Bitcoin. The company is unconventional. It is known for quirky ads and for shortening its name online to O.co.

Byrne also has a penchant for writing long, rambling shareholder letters in earnings reports. And he famously appeared on "60 Minutes" to complain about short sellers who were betting against his stock. He even told CNNMoney in 2003 that "When opportunities come along where we can knee the shorts in the groin, that's always good for fun and amusement. That's just icing on the cake."

But Overstock is not the first business to embrace Bitcoin.

British entrepreneur Richard Branson made a splash in November when he announced that his that his commercial space travel venture, Virgin Galactic, will allow customers to pay for their flights with Bitcoin.

China's leading search engine Baidu (BIDU) also accepts Bitcoin for certain services. And a car dealer in California recently accepted Bitcoin as payment for a Tesla (TSLA) Model S, valued at $100,000.

Bitcoin has been a particularly popular investment in China, but regulators have been cracking down. This week, China's largest bitcoin exchange, BTC China, abruptly stopped accepting new deposits. That came after China's central bank issued a warning and announced new rules for financial institutions dealing in bitcoins earlier this month.

European Union officials have also warned about the risks of Bitcoin and may consider regulating the currency.

First Published: December 20, 2013: 2:10 PM ET

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3 new arrests in Silk Road case

NEW YORK (CNNMoney)

An indictment unsealed this week in New York accuses the trio of helping to operate Silk Road, a website shut down in October that offered an anonymous place to buy drugs, weapons and other illicit products. During its two-and-a-half years in operation, prosecutors say the site handled hundreds of millions of dollars' worth of unlawful transactions for over one hundred thousand buyers.

Silk Road's alleged owner -- Ross Ulbricht, also allegedly known by his online handle "Dread Pirate Roberts" -- is currently in custody and facing charges related to money laundering and drug trafficking.

Related: Arrests in U.K. follow Silk Road bust

The indictment claims that Ulbricht paid two of the new defendants -- Andrew Michael Jones, 24, and Gary Davis, 25 -- to work as administrators on the site, while the third, 40-year-old Peter Philip Nash, allegedly worked as the head moderator for the Silk Road discussion forums. They allegedly received salaries between $50,000 and $75,000 annually.

The three men are charged with conspiracy to commit money laundering, computer hacking and narcotics trafficking. Contact information for their attorneys was not immediately available.

Jones was arrested Thursday in Virginia and appeared in court today, a spokeswoman for the U.S. Attorney's Office in Manhattan said. Davis was arrested Thursday in Ireland, while Nash was arrested Thursday in Australia.

First Published: December 20, 2013: 1:31 PM ET

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Target offers 10% discount after credit card hack

NEW YORK (CNNMoney)

"We recognize this has been confusing and disruptive during an already busy holiday season," Target CEO Gregg Steinhafel said in a statement Friday. "Our guests' trust is our top priority at Target and we are committed to making this right."

The company also provided details Friday about the extent of the hack and the information that could have been compromised.

The nation's No. 2 general merchandise retailer said cards used at its brick-and-mortar stores between Nov. 27 and Dec. 15 of this year may have been impacted.

Target (TGT, Fortune 500) said there is no indication that any debit card PIN numbers were compromised. The retailer also claimed it doesn't appear that the three- or four-digit security code visible on the face of credit cards were breached. That means that the debit and credit cards that were compromised cannot be used to withdraw cash from an ATM or to shop online.

Related: 4 things to do after your card has been hacked

But lawyer Robert Ahdoot, part of a legal team in California that has filed a lawsuit seeking class action status on behalf of Target customers, said he had spoken to shoppers who claimed thieves had used their debit card information to withdraw money from ATMs.

The lawsuit alleges negligence on the part of the retailer, and also says Target failed to promptly notify victims of the hack.

"Target has an obligation to provide adequate security for the financial information they collect," Ahdoot said. He recommended that consumers who suspect that their cards may have been compromised change their PIN numbers as a precaution.

Target spokeswoman Molly Snyder said the retailer "typically doesn't comment on pending litigation."

Target said it believes customers' birth dates and social security numbers weren't compromised. The retailer said it gave Visa, MasterCard (MA, Fortune 500), Discover (DFS, Fortune 500) and American Express (AXP, Fortune 500) the card numbers of those who may have been impacted, and that these companies will monitor the cards for fraud.

As a precaution, J.P. Morgan Chase & Co. said it was temporarily limiting ATM withdrawals to $100 a day and purchases to $300 a day for Chase customers in the U.S. whose debit cards are at risk, the company said in a letter to affected account holders.

Meanwhile, Target is also monitoring its own card, the REDcard, for potential unauthorized activity.

Steinhafel said the affected customers "will not be held financially responsible for any credit and debit card fraud."

"[T]o provide guests with extra assurance, we will be offering free credit monitoring services," Steinhafel said. "We will be in touch with those impacted by this issue soon on how and where to access the service."

To help answer questions about the incident, Target has set up a hotline for customers. Shoppers have been reporting long hold times, so Target said it will beef up its staffing.

Target didn't specify how its systems were hacked. But judging by the scope of the breach and the kind of information that criminals obtained, security experts say hackers apparently targeted the retailer's point-of-sale system. That means they either slipped malware into the terminals where customers swipe their credit cards, or they collected customer data while it was en route from Target to its credit card processors.

The retailer said it had notified authorities and financial institutions immediately after it was made aware of the unauthorized access, and had hired a forensics team to investigate how the breach may have occurred. The issue that allowed the breach has been identified and resolved, Snyder said.

First Published: December 20, 2013: 3:26 PM ET

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Online retailer Overstock to accept Bitcoin

Overstock.com CEO Patrick Byrne is endorsing Bitcoin. His company is the first major U.S. retailer to do so.

NEW YORK (CNNMoney)

Byrne said customers will be able to use the virtual currency to make purchases on Overstock.com (OSTK), which sells everything from digital cameras and bed sheets to patio furniture and even cars. The company is expected to have total revenue of $1.3 billion for 2013, according to FactSet Research.

"We think there's going to be a market in Bitcoin, and we want to get in front of it," said Byrne. "We want to be the first major e-tailer that accepts them." Byrne first made comments about Overstock.com accepting Bitcoin in an interview with Bitcoin blog newsBTC and later in the Financial Times.

Overstock plans to begin accepting Bitcoin near the end of the second quarter of 2014. Byrne said the move stems partly from his background in the Austrian School of economics, which is associated with the Libertarian party in the United States.

"We're the guys who like gold," he said. "We think the monetary base should not be something that a government can create with a stroke of a pen."

Unlike traditional currencies, Bitcoin is not backed by any government authority or central bank. It exists only on the internet and is "mined" by powerful computers that solve complex math puzzles.

Byrne said he is concerned about the possibility of "bad currency wars" in the future. He said the U.S. dollar is already being undermined by the Federal Reserve's easy money policies and by overspending by politicians in Washington.

Related: What is Bitcoin?

Like gold, Byrne said Bitcoin should hold its value better than the dollar because it is "mathematically constrained" and cannot be manipulated by government authorities.

There are currently 12.1 million bitcoins in circulation, according to blockchain.info. The total number of bitcoins is capped at 21 million.

Critics say Bitcoin is at best a fad and at worst a haven for criminals looking to buy and sell illegal goods anonymously. But supporters argue that Bitcoin is a more democratic alternative to traditional currencies.

Former U.S. Congressman Ron Paul, an outspoken Libertarian from Texas, has said that Bitcoin could be the dollar's "destroyer" if it goes mainstream.

Bitcoin has exploded in value this year, rising from about $13 in January to more than $1,200 earlier this month. On Friday, bitcoins were trading at about $739 on the Mt. Gox exchange.

The currency is prone to wild swings and experts say Bitcoin will remain volatile as the technology evolves.

Byrne acknowledged that the volatility is a problem and that Overstock will need to "continually convert Bitcoins into dollars" to avoid losing money. Eventually, he said there will be a derivatives market that will allow companies to hedge their exposure to Bitcoin.

Related: Bitcoin worth almost as much as gold

In some respects, it's not a surprise that Overstock would move to accept Bitcoin. The company is unconventional. It is known for quirky ads and for shortening its name online to O.co.

Byrne also has a penchant for writing long, rambling shareholder letters in earnings reports. And he famously appeared on "60 Minutes" to complain about short sellers who were betting against his stock. He even told CNNMoney in 2003 that "When opportunities come along where we can knee the shorts in the groin, that's always good for fun and amusement. That's just icing on the cake."

But Overstock is not the first business to embrace Bitcoin.

British entrepreneur Richard Branson made a splash in November when he announced that his that his commercial space travel venture, Virgin Galactic, will allow customers to pay for their flights with Bitcoin.

China's leading search engine Baidu (BIDU) also accepts Bitcoin for certain services. And a car dealer in California recently accepted Bitcoin as payment for a Tesla (TSLA) Model S, valued at $100,000.

Bitcoin has been a particularly popular investment in China, but regulators have been cracking down. This week, China's largest bitcoin exchange, BTC China, abruptly stopped accepting new deposits. That came after China's central bank issued a warning and announced new rules for financial institutions dealing in bitcoins earlier this month.

European Union officials have also warned about the risks of Bitcoin and may consider regulating the currency.

First Published: December 20, 2013: 2:10 PM ET

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Target offers 10% discount after credit card hack

NEW YORK (CNNMoney)

"We recognize this has been confusing and disruptive during an already busy holiday season," Target CEO Gregg Steinhafel said in a statement Friday. "Our guests' trust is our top priority at Target and we are committed to making this right."

The company also provided details Friday about the extent of the hack and the information that could have been compromised.

The nation's No. 2 general merchandise retailer said cards used at its brick-and-mortar stores between Nov. 27 and Dec. 15 of this year may have been impacted.

Target (TGT, Fortune 500) said there is no indication that any debit card PIN numbers were compromised. The retailer also claimed it doesn't appear that the three- or four-digit security code visible on the face of credits cards were breached. That means that the debit and credit cards that were compromised cannot be used to withdraw cash from an ATM or to shop online.

Related: Related: 4 things to do after your card has been hacked

But lawyer Robert Ahdoot, part of a legal team in California that has filed a lawsuit seeking class action status on behalf of Target customers, said he had spoken to shoppers who claimed thieves had used their debit card information to withdraw money from ATMs.

The lawsuit alleges negligence on the part of the retailer, and also says Target failed to promptly notify victims of the hack.

"Target has an obligation to provide adequate security for the financial information they collect," Ahdoot said. He recommended that consumers who suspect that their cards may have been compromised change their PIN numbers as a precaution.

Target spokeswoman Molly Snyder said the retailer "typically doesn't comment on pending litigation."

Target said it believes customers' birth dates and social security numbers weren't compromised. The retailer said it gave Visa, MasterCard (MA, Fortune 500), Discover (DFS, Fortune 500) and American Express (AXP, Fortune 500) the card numbers of those who may have been impacted, and that these companies will monitor the cards for fraud.

Target is also monitoring its own card, the REDcard, for potential unauthorized activity.

Steinhafel said the affected customers "will not be held financially responsible for any credit and debit card fraud."

"[T]o provide guests with extra assurance, we will be offering free credit monitoring services," Steinhafel said. "We will be in touch with those impacted by this issue soon on how and where to access the service."

To help answer questions about the incident, Target has set up a hotline for customers. Shoppers have been reporting long hold times, so Target said it will beef up its staffing.

Target didn't specify how its systems were hacked. But judging by the scope of the breach and the kind of information that criminals obtained, security experts say hackers apparently targeted the retailer's point-of-sale system. That means they either slipped malware into the terminals where customers swipe their credit cards, or they collected customer data while it was en route from Target to its credit card processors.

The retailer said it had notified authorities and financial institutions immediately after it was made aware of the unauthorized access, and had hired a forensics team to investigate how the breach may have occurred. The issue that allowed the breach has been identified and resolved, Snyder said.

First Published: December 20, 2013: 3:26 PM ET

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3 new arrests in Silk Road case

NEW YORK (CNNMoney)

An indictment unsealed this week in New York accuses the trio of helping to operate Silk Road, a website shut down in October that offered an anonymous place to buy drugs, weapons and other illicit products. During its two-and-a-half years in operation, prosecutors say the site handled hundreds of millions of dollars' worth of unlawful transactions for over one hundred thousand buyers.

Silk Road's alleged owner -- Ross Ulbricht, also allegedly known by his online handle "Dread Pirate Roberts" -- is currently in custody and facing charges related to money laundering and drug trafficking.

Related: Arrests in U.K. follow Silk Road bust

The indictment claims that Ulbricht paid two of the new defendants -- Andrew Michael Jones, 24, and Gary Davis, 25 -- to work as administrators on the site, while the third, 40-year-old Peter Philip Nash, allegedly worked as the head moderator for the Silk Road discussion forums. They allegedly received salaries between $50,000 and $75,000 annually.

The three men are charged with conspiracy to commit money laundering, computer hacking and narcotics trafficking. Contact information for their attorneys was not immediately available.

Jones was arrested Thursday in Virginia and appeared in court today, a spokeswoman for the U.S. Attorney's Office in Manhattan said. Davis was arrested Thursday in Ireland, while Nash was arrested Thursday in Australia.

First Published: December 20, 2013: 1:31 PM ET

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Ex-Microsoft exec charged with insider trading

NEW YORK (CNNMoney)

The executive, Brian Jorgenson, 32, worked in Microsoft's corporate finance and investment division, according to the Securities and Exchange Commission, which is bringing the civil charges against him and friend Sean Stokke. The two also face up to 20 years in jail on federal criminal charges in U.S. District Court in Washington State. Authorities said they hoped to make enough money on the trades in order to start their own hedge fund.

Microsoft said Jorgenson was fired once the insider trading was discovered, and that it cooperated with authorities on the investigation. A spokesman said the company has "zero tolerance" for insider trading.

Jorgenson admitted to his wrongdoing in an extensive interview with the Seattle Times that was published Thursday morning.

He said it was simply greed that drove him to give information to Stokke, whom Jorgenson described in the article as an experienced day trader. Jorgenson told the paper that he did not know how much money his friend made on the trades, but that he personally received only $40,000 of the illegal profits.

Related: Fortune - The gray art of insider trading

The first illicit trade allegedly came after Jorgenson alerted Stokke about Microsoft's plan to invest in Barnes & Noble's Nook electronic book unit. The $300 million investment, announced in April 2012, sent shares of Barnes & Nobl (BKS, Fortune 500)up more than 50% in a single day and netted the pair nearly a $185,000 profit, according to the complaint.

Then in July 2013, Microsof (MSFT, Fortune 500)reported earnings that fell well short of forecasts, sending shares down 11%. Authorities said that the pair made more than $195,000 on trades betting against Microsoft;s shares.

Finally, the pair made about $13,000 on trades in October when Microsoft reported better than expected earnings.

Attorneys for Jorgenson and Stokke were not available for comment Thursday.

Jorgenson told the paper that he knew the trades were wrong, but that he saw news stories about how members of Congress were allowed to pass on the sort of insider information that he couldn't.

"I told myself, 'Members of Congress can do it,'" he told the paper. He said he used some of the $40,000 to pay tuition at a Christian elementary school for two of his four children.

First Published: December 19, 2013: 5:15 PM ET

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