United States

US House of Representatives Passes TICKET Act To Create Transparency in Pricing (variety.com) 76

After bipartisan constituents introduced the Transparency in Charges for Key Events Ticketing (TICKET) Act in June 2023, the United States House of Representatives passed the legislation this week in the ongoing efforts to reform the ticketing industry. From a report: The bill received a substantial amount of bipartisan support, passing 338-24. This comes after the House of Representatives' Energy and Commerce Committee unanimously approved the bill 45-0 in Dec. 2023. It will, of course, now need to move through the Senate before President Joe Biden signs it into law, and there is currently no floor vote in place for the measure.

If enacted, the TICKET Act will require ticket sellers to implement simple all-in pricing; ban speculative ticketing, where the seller does not have actual possession of the ticket; ban deceptive websites and website marketing; provide full refunds for any canceled event; offer comparable replacement tickets for any postponed event with buyers' approval; and require the FTC to issue a report on the BOTS Act Enforcement, which passed in 2016. Representatives Jan Schakowsky (IL-09) and Gus Bilirakis (FL-12) introduced the legislation last year "to improve transparency in the entertainment industry by requiring all event ticket sellers to display the total ticket price -- including all required fees -- in any advertisement, marketing or promotional materials." It was meant to mirror advertising guidelines for airline tickets and have full transparency throughout the purchasing process.

Advertising

Netflix To Take On Google and Amazon By Building Its Own Ad Server (techcrunch.com) 20

Lauren Forristal writes via TechCrunch: Netflix announced during its Upfronts presentation on Wednesday that it's launching its own advertising technology platform only a year and a half after entering the ads business. This move pits it against other industry heavyweights with ad servers, like Google, Amazon and Comcast. The announcement signifies a significant shake-up in the streaming giant's advertising approach. The company originally partnered with Microsoft to develop its ad tech, letting Netflix enter the ad space quickly and catch up with rivals like Hulu, which has had its own ad server for over a decade.

With the launch of its in-house ad tech, Netflix is poised to take full control of its advertising future. This strategic move will empower the company to create targeted and personalized ad experiences that resonate with its massive user base of 270 million subscribers. [...] Netflix didn't say exactly how its in-house solution will change the way ads are delivered, but it's likely it'll move away from generic advertisements. According to the Financial Times, Netflix wants to experiment with "episodic" campaigns, which involve a series of ads that tell a story rather than delivering repetitive ads. During the presentation, Netflix also noted that it'll expand its buying capabilities this summer, which will now include The Trade Desk, Google's Display & Video 360 and Magnite as partners. Notably, competitor Disney+ also has an advertising agreement with The Trade Desk. Netflix also touted the success of its ad-supported tier, reporting that 40 million global monthly active users opt for the plan. The ad tier had around 5 million users within six months of launching.

Businesses

Walmart's Reign as America's Biggest Retailer Is Under Threat (wsj.com) 48

With Amazon on its heels, the nation's biggest company by revenue is hunting for ways to continue growing. From a report: For a decade, Walmart has reigned as the nation's biggest company by revenue. Its sales last year added up to $648 billion -- more than $1.2 million a minute. That status comes with benefits. It gives Walmart power in negotiations with product manufacturers and in dealing with government officials over policy issues. It's also a point of pride: Job postings often tout working at the "Fortune 1" company as a perk. Its reign is looking shaky lately [non-paywalled link]. If current sales trends persist, Amazon is likely to overtake Walmart soon. Amazon reported $575 billion in total revenue last year, up 12% from the previous year, compared with Walmart's revenue growth of 6%.

Walmart's behemoth size means that to meet its own sales target of around 4% growth each year, the company has to find an additional $26 billion in sales this year. That's no easy task. About 90% of Americans already shop at the retailer. The pandemic and rising inflation boosted Walmart's revenue by $100 billion since 2019. It faces continued uncertainty in consumer confidence and while it's spending in some areas, it's pulling back in others. Earlier this week, Walmart told workers it would cut hundreds of corporate jobs and ask most remote workers to move to offices. While Amazon's and Walmart's businesses compete head on, there are big differences. Amazon earns much of its profit from non-retail operations such as cloud computing and advertising, while grabbing retail market share with fast shipping. Walmart gets the bulk of its sales and profits from U.S. stores, while growing side businesses like advertising and digital sales.

Walmart executives are most wary of Amazon's ability to keep increasing profits through its non-retail business, while eating more of the retail landscape with ever-faster shipping and a bigger product selection, people familiar with the company said. Internally some executives are highlighting Walmart's role as a good corporate citizen and emphasizing that it's important to be the best at serving customers and workers, not just the biggest, say some of those people. Its scale can also have downsides, say some, like outsize attention on every misstep.

Social Networks

Reddit Grows, Seeks More AI Deals, Plans 'Award' Shops, and Gets Sued (yahoo.com) 45

Reddit reported its first results since going public in late March. Yahoo Finance reports: Daily active users increased 37% year over year to 82.7 million. Weekly active unique users rose 40% from the prior year. Total revenue improved 48% to $243 million, nearly doubling the growth rate from the prior quarter, due to strength in advertising. The company delivered adjusted operating profits of $10 million, versus a $50.2 million loss a year ago. [Reddit CEO Steve] Huffman declined to say when the company would be profitable on a net income basis, noting it's a focus for the management team. Other areas of focus include rolling out a new user interface this year, introducing shopping capabilities, and searching for another artificial intelligence content licensing deal like the one with Google.
Bloomberg notes that already Reddit "has signed licensing agreements worth $203 million in total, with terms ranging from two to three years. The company generated about $20 million from AI content deals last quarter, and expects to bring in more than $60 million by the end of the year."

And elsewhere Bloomberg writes that Reddit "plans to expand its revenue streams outside of advertising into what Huffman calls the 'user economy' — users making money from others on the platform... " In the coming months Reddit plans to launch new versions of awards, which are digital gifts users can give to each other, along with other products... Reddit also plans to continue striking data licensing deals with artificial intelligence companies, expanding into international markets and evaluating potential acquisition targets in areas such as search, he said.
Meanwhile, ZDNet notes that this week a Reddit announcement "introduced a new public content policy that lays out a framework for how partners and third parties can access user-posted content on its site." The post explains that more and more companies are using unsavory means to access user data in bulk, including Reddit posts. Once a company gets this data, there's no limit to what it can do with it. Reddit will continue to block "bad actors" that use unauthorized methods to get data, the company says, but it's taking additional steps to keep users safe from the site's partners.... Reddit still supports using its data for research: It's creating a new subreddit — r/reddit4researchers — to support these initiatives, and partnering with OpenMined to help improve research. Private data is, however, going to stay private.

If a company wants to use Reddit data for commercial purposes, including advertising or training AI, it will have to pay. Reddit made this clear by saying, "If you're interested in using Reddit data to power, augment, or enhance your product or service for any commercial purposes, we require a contract." To be clear, Reddit is still selling users' data — it's just making sure that unscrupulous actors have a tougher time accessing that data for free and researchers have an easier time finding what they need.

And finally, there's some court action, according to the Register. Reddit "was sued by an unhappy advertiser who claims that internet giga-forum sold ads but provided no way to verify that real people were responsible for clicking on them." The complaint [PDF] was filed this week in a U.S. federal court in northern California on behalf of LevelFields, a Virginia-based investment research platform that relies on AI. It says the biz booked pay-per-click ads on the discussion site starting September 2022... That arrangement called for Reddit to use reasonable means to ensure that LevelField's ads were delivered to and clicked on by actual people rather than bots and the like. But according to the complaint, Reddit broke that contract...

LevelFields argues that Reddit is in a particularly good position to track click fraud because it's serving ads on its own site, as opposed to third-party properties where it may have less visibility into network traffic... Nonetheless, LevelFields's effort to obtain IP address data to verify the ads it was billed for went unfulfilled. The social media site "provided click logs without IP addresses," the complaint says. "Reddit represented that it was not able to provide IP addresses."

"The plaintiffs aspire to have their claim certified as a class action," the article adds — along with an interesting statistic.

"According to Juniper Research, 22 percent of ad spending last year was lost to click fraud, amounting to $84 billion."
The Courts

Big Three Carriers Pay $10 Million To Settle Claims of False 'Unlimited' Advertising (arstechnica.com) 33

Jon Brodkin reports via Ars Technica: T-Mobile, Verizon, and AT&T will pay a combined $10.2 million in a settlement with US states that alleged the carriers falsely advertised wireless plans as "unlimited" and phones as "free." The deal was announced yesterday by New York Attorney General Letitia James. "A multistate investigation found that the companies made false claims in advertisements in New York and across the nation, including misrepresentations about 'unlimited' data plans that were in fact limited and had reduced quality and speed after a certain limit was reached by the user," the announcement said.

T-Mobile and Verizon agreed to pay $4.1 million each while AT&T agreed to pay a little over $2 million. The settlement includes AT&T subsidiary Cricket Wireless and Verizon subsidiary TracFone. The settlement involves 49 of the 50 US states (Florida did not participate) and the District of Columbia. The states' investigation found that the three major carriers "made several misleading claims in their advertising, including misrepresenting 'unlimited' data plans that were actually limited, offering 'free' phones that came at a cost, and making false promises about switching to different wireless carrier plans."

"AT&T, Verizon, and T-Mobile lied to millions of consumers, making false promises of free phones and 'unlimited' data plans that were simply untrue," James said. "Big companies are not excused from following the law and cannot trick consumers into paying for services they will never receive." The carriers denied any illegal conduct despite agreeing to the settlement. In addition to payments to each state, the carriers agreed to changes in their advertising practices. It's unclear whether consumers will get any refunds out of the settlement, however.
These are the following changes the three carriers agreed upon, as highlighted by the NY attorney general's office:

- "Unlimited" mobile data plans can only be marketed if there are no limits on the quantity of data allowed during a billing cycle.
- Offers to pay for consumers to switch to a different wireless carrier must clearly disclose how much a consumer will be paid, how consumers will be paid, when consumers can expect payment, and any additional requirements consumers have to meet to get paid.
- Offers of "free" wireless devices or services must clearly state everything a consumer must do to receive the "free" devices or services.
- Offers to lease wireless devices must clearly state that the consumer will be entering into a lease agreement.
- All "savings" claims must have a reasonable basis. If a wireless carrier claims that consumers will save using its services compared to another wireless carrier, the claim must be based on similar goods or services or differences must be clearly explained to the consumer.

The advertising restrictions are to be in place for five years.
AI

CEO of World's Biggest Ad Firm Targeted By Deepfake Scam 11

The head of the world's biggest advertising group was the target of an elaborate deepfake scam that involved an AI voice clone. From a report: The CEO of WPP, Mark Read, detailed the attempted fraud in a recent email to leadership, warning others at the company to look out for calls claiming to be from top executives. Fraudsters created a WhatsApp account with a publicly available image of Read and used it to set up a Microsoft Teams meeting that appeared to be with him and another senior WPP executive, according to the email obtained by the Guardian.

During the meeting, the impostors deployed a voice clone of the executive as well as YouTube footage of them. The scammers impersonated Read off-camera using the meeting's chat window. The scam, which was unsuccessful, targeted an "agency leader," asking them to set up a new business in an attempt to solicit money and personal details. "Fortunately the attackers were not successful," Read wrote in the email. "We all need to be vigilant to the techniques that go beyond emails to take advantage of virtual meetings, AI and deepfakes."
Games

EA Weighs Putting In-game Ads in AAA Games (tomshardware.com) 69

Electronic Arts CEO Andrew Wilson confirmed the company is considering putting ads in traditional AAA games, which players purchase for around $70 apiece. During EA's latest earnings call, Wilson said, "Advertising has an opportunity to be a meaningful driver of growth for us," and that teams are looking at how to thoughtfully implement ads within game experiences.

In-game advertising is not new, with the first recorded instance dating back to 1978. As the gaming industry is expected to grow to $583 billion by 2030, in-game ads are seen as a natural progression. However, player reception depends on the placement and unobtrusiveness of the ads. EA has faced backlash in the past for poorly placed ads, such as full-screen promotions for a TV show in UFC 4, which disrupted gameplay. The company has been experimenting with dynamic ads since 2006, with titles like Need for Speed Carbon and Battlefield 2142 among the first to feature them.
Privacy

Maryland Passes Two Bills Limiting Tech Platforms' Ability To Track Users (theverge.com) 19

An anonymous reader quotes a report from The Verge: The Maryland legislature passed two bills over the weekend limiting tech platforms' ability to collect and use consumers' data. Maryland Governor Wes Moore is expected to sign one of those bills, the Maryland Kids Code, on Thursday, MoCo360 reports. If signed into law, the other bill, the Maryland Online Privacy Act, will go into effect in October 2025. The legislation would limit platforms' ability to collect user data and let users opt out of having their data used for targeted advertising and other purposes. Together, the bills would significantly limit social media and other platforms' ability to track their users -- but tech companies, including Amazon, Google, and Meta, have opposed similar legislation. Lawmakers say the goal is to protect children, but tech companies say the bills are a threat to free speech.

Part of the Maryland Kids Code -- the Maryland Age-Appropriate Design Code Act -- will go into effect much sooner, on October 1st. It bans platforms from using "system design features to increase, sustain, or extend the use of the online product," including autoplaying media, rewarding users for spending more time on the platform, and spamming users with notifications. Another part of the legislation prohibits certain video game, social media, and other platforms from tracking users who are younger than 18.
"It's meant to rein in some of the worst practices with sensible regulation that allows companies to do what's right and what is wonderful about the internet and tech innovation, while at the same time saying, 'You can't take advantage of our kids,'" Maryland state Delegate Jared Solomon, one of the bill's sponsors, said in a press conference Wednesday.

"We are technically the second state to pass a kids code," Solomon told The New York Times. "But we are hoping to be the first state to withstand the inevitable court challenge that we know is coming."
Facebook

Extremist Militias Are Coordinating In More Than 100 Facebook Groups (wired.com) 204

An anonymous reader quotes a report from Wired: Join your localMilitia or III% Patriot Group," a post urged the more than 650 members of a Facebook group called the Free American Army. Accompanied by the logo for the Three Percenters militia network and an image of a man in tactical gear holding a long rifle, the post continues: "Now more than ever. Support the American militia page." Other content and messaging in the group is similar. And despite the fact that Facebook bans paramilitary organizing and deemed the Three Percenters an "armed militia group" on its 2021 Dangerous Individuals and Organizations List, the post and group remained up until WIRED contacted Meta for comment about its existence.

Free American Army is just one of around 200 similar Facebook groups and profiles, most of which are still live, that anti-government and far-right extremists are using to coordinate local militia activity around the country. After lying low for several years in the aftermath of the US Capitol riot on January 6, militia extremists have been quietly reorganizing, ramping up recruitment and rhetoric on Facebook -- with apparently little concern that Meta will enforce its ban against them, according to new research by the Tech Transparency Project, shared exclusively with WIRED.

Individuals across the US with long-standing ties to militia groups are creating networks of Facebook pages, urging others to recruit "active patriots" and attend meetups, and openly associating themselves with known militia-related sub-ideologies like that of the anti-government Three Percenter movement. They're also advertising combat training and telling their followers to be "prepared" for whatever lies ahead. These groups are trying to facilitate local organizing, state by state and county by county. Their goals are vague, but many of their posts convey a general sense of urgency about the need to prepare for "war" or to "stand up" against many supposed enemies, including drag queens, immigrants, pro-Palestine college students, communists -- and the US government. These groups are also rebuilding at a moment when anti-government rhetoric has continued to surge in mainstream political discourse ahead of a contentious, high-stakes presidential election. And by doing all of this on Facebook, they're hoping to reach a broader pool of prospective recruits than they would on a comparatively fringe platform like Telegram.
"Many of these groups are no longer fractured sets of localized militia but coalitions formed between multiple militia groups, many with Three Percenters at the helm," said Katie Paul, director of the Tech Transparency Project. "Facebook remains the largest gathering place for extremists and militia movements to cast a wide net and funnel users to more private chats, including on the platform, where they can plan and coordinate with impunity."

Paul has been monitoring "hundreds" of these groups and profiles since 2021 and found that they have been growing "increasingly emboldened with more serious and coordinated organizing" in the past year.
Google

Google's Payments To Apple Reached $20 Billion in 2022, Antitrust Court Documents Show (yahoo.com) 27

Alphabet paid Apple $20 billion in 2022 for Google to be the default search engine in the Safari browser, according to newly unsealed court documents in the Justice Department's antitrust lawsuit against Google. From a report: The deal between the two tech giants is at the heart of the landmark case, in which antitrust enforcers allege Google has illegally monopolized the market for online search and related advertising. The Justice Department and Google will offer closing arguments in the case Thursday and Friday, with a decision expected later this year.

Google and Apple had hoped to shield the payment amount from public disclosure. At the trial last fall, Apple executives testified that Google paid "billions," without specifying a number. A Google witness later accidentally disclosed that Google pays 36% of the revenue it earns from search ads to Apple. Court documents filed late Tuesday ahead of the closing arguments mark the first public confirmation of the figures by Apple's senior vice president of services, Eddy Cue. Such numbers aren't disclosed by either company in their securities filings. The documents also revealed the importance of the payments to Apple's bottom line. For instance, in 2020, Google's payments to Apple constituted 17.5% of the iPhone maker's operating income.

Advertising

Roblox Players To Start Seeing Video Ads In Its Virtual Realms (reuters.com) 12

Roblox announced it'll be rolling out virtual billboards with video advertisements that will be displayed in its virtual worlds. Reuters reports: Users will now see billboards featuring content from brands such as e.l.f beauty, Walmart and Warner Bros Discovery, just as they would in real life. That would give advertisers access to Roblox's nearly 72 million daily active users -- half of whom are Gen-Z customers, a population group prized by marketers and businesses.

The company in November began testing the video ads -- that will be served to users who are 13 years and older -- as part of its efforts to reduce reliance on revenue generated from its in-game currency "Robux", which players can use to buy outfits, vehicles and other features inside the company's digital worlds. It charges a fee on all purchases done on its platform, which hosts millions of videogames that are built by its users -- who get a share of any related revenue.

That practice will extend to the ads, with creators of the virtual worlds who opt to show the billboards getting a portion of the revenue Roblox makes from them. Roblox is hoping its large Gen-Z user base will give it an edge in the competitive ad market, where it would have to wrestle for marketing dollars with tech giants such as Google and Meta and smaller players such as Snap.

Advertising

Roku Wants To Use Home Screen For New Types of Ads (thestreamable.com) 60

An anonymous reader quotes a report from The Streamable: Roku wants to take the term "ad-supported" to another level. The company held its quarterly earnings conference call on Thursday, and revealed that 81.6 million households used a Roku device or smart TV to stream video in the first three months of the year. As part of the report, company CEO Anthony Wood laid out ideas for how the company would increase revenues in 2024. Unsurprisingly, advertising will be an important centerpiece of that strategy, and Wood provided some details on what Roku users can expect from their ad experience going forward.

The idea of bringing more ads to the Roku home screen is nothing new, but that's what Wood focused on in his discussion with analysts about how to boost revenue on the Roku platform. The company has already begun putting more static ads on the screen, but now it appears that Roku is considering how to get video ads embedded into the home page as well. Wood said that he believes that a video-enabled ad unit on the Roku home screen will be "very popular with advertisers," considering that Roku devices have the reach to put ads in front of 120 million pairs of eyes every day. He also said that the company is "testing other types of video ad units, looking at other experiences" that it can bring to the Roku home screen.

As another way to boost ad revenues, Wood suggested that the company's home screen experiences could be leveraged to deliver more ads. He pointed to the NBA Zone, which Roku launched at the beginning of April as an example. Roku can use these themed content hubs to deliver ads more tailored to fans of that particular content, harnessing the power of popular sports to pull more ad revenue. Customers concerned that Roku will just gunk up their home screen with ads are likely wondering if the company has made any moves toward actually making the user experience on the platform better. The good news is that Roku has also introduced a recommended content row, that will compile picks from across various streaming services and use AI to point customers toward new shows and movies they might like. "There's lots of ways we're working on enhancing the home screen to make it more valuable to viewers but also increase the monetization," Wood said.

United States

Razer Made a Million Dollars Selling a Mask With RGB, And the FTC is Not Pleased (theverge.com) 74

Razer will have to fork over $1.1 million in refunds to customers who purchased its RGB-clad Zephyr face mask, according to a proposed settlement announced by the Federal Trade Commission on Monday. From a report: The company claimed the face mask used N95-grade filters, but the FTC alleges Razer never submitted them for testing and only "stopped the false advertising following negative press coverage and consumer outrage at the deceptive claims."

Razer first released its Zephyr face mask in 2021 as a nifty, cyberpunk-esque alternative to traditional face masks worn during the covid-19 pandemic. Although Razer initially marketed the $100 mask as having N95-grade filters, it scrubbed any mention of the grade after YouTuber Naomi Wu tore down the mask and found that it wasn't N95 certified after all. N95 masks are supposed to filter out at least 95 percent of airborne particles, according to the Centers for Disease Control and Prevention. Razer also planned on launching a $150 Zephyr Pro with a voice amplification feature, but that never panned out. At the time, Razer addressed claims about its Zephyr masks, saying in a post on X that "the Razer Zephyr and Zephyr Pro are not medical devices, respirators, surgical masks, or personal protective equipment (PPE) and are not meant to be used in medical or clinical settings."

Businesses

Alphabet Shares Jump 14% On Earnings Beat, First-Ever Dividend (cnbc.com) 94

Alphabet has reported first quarter results that topped analysts' estimates with soaring profits in its cloud division. It also announced its first-ever dividend. CNBC shares the results: Earnings per share: $1.89 vs. $1.51 per share expected by LSEG
Revenue: $80.54 billion vs. $78.59 billion expected by LSEG

Wall Street is also watching several other numbers in the report:

YouTube advertising revenue: $8.09 billion vs. $7.72 billion expected, according to StreetAccount.
Google Cloud revenue: $9.57 billion vs. $9.35 billion expected, according to StreetAccount.
Traffic acquisition costs (TAC): $12.95 billion $12.74 billion expected, according to StreetAccount.

Alphabet's revenue increased 15% from $69.79 billion a year earlier, the fastest rate of growth since early 2022. Alphabet said its board approved a cash dividend of 20 cents per share to be paid on June 17, to stockholders of record as of June 10. The company said it "intends to pay quarterly cash dividends in the future."

EU

EU Opens Probe of TikTok Lite, Citing Concerns About Addictive Design (techcrunch.com) 25

The European Union has opened a second formal investigation into TikTok under its Digital Services Act (DSA), an online governance and content moderation framework. The investigation centers around TikTok Lite's "Task and Reward" feature that may harm mental health, especially among minors, by promoting addictive behavior. TechCrunch reports: The Commission also said it's minded to impose interim measures that could force the company to suspend access to the TikTok Lite app in the EU while it investigates concerns the app poses mental health risks to users. Although the EU has given TikTok until April 24 to argue against the measure -- meaning the app remains accessible for now. Penalties for confirmed violations of the DSA can reach up to 6% of global annual turnover. So ByeDance, TikTok's parent, could face hefty fines if EU enforcers do end up deciding it has broken the law.

The EU's first TikTok probe covers multiple issues including the protection of minors, advertising transparency, data access for researchers, and the risk management of addictive design and harmful content. Hence it said the latest investigation will specifically focus on TikTok Lite, a version of the video sharing platform which launched earlier this month in France and Spain and includes a mechanism that allows users to earn points for doing things like watching or liking videos. Points earned through TikTok Lite can be exchanged for things like Amazon gift vouchers or TikTok's own digital currency for gifting to creators. The Commission is worried this so-called "task and reward" feature could negatively impact the mental health of young users by "stimulating addictive behavior."

The EU wrote that the second probe will focus on TikTok's compliance with the DSA obligation to conduct and submit a risk assessment report prior to the launch of the "Task and Reward Lite" program, with a particular focus on negative effects on mental health, including minors' mental health. It also said it will look into measures taken by TikTok to mitigate those risks. In a press release announcing the action, the EU said ByeDance failed to produce a risk assessment about the feature which it had asked to see last week -- when it gave the company 24 hours to produce the document. Since it failed to submit the risk assessment paperwork on April 18 the Commission wrote that it suspects a "prima facie infringement of the DSA."

EU

EU: Meta Cannot Rely On 'Pay Or Okay' (europa.eu) 110

The EU's European Data Protection Board oversees its privacy-protecting GDPR policies.

Earlier this week, TechCrunch reported that nearly two dozen civil society groups and nonprofits wrote the Board an open letter "urging it not to endorse a strategy used by Meta that they say is intended to bypass the EU's privacy protections for commercial gain."

Meta's strategy is sometimes called "Pay or Okay," writes long-time Slashdot reader AmiMoJo : Meta offers users a choice: "consent" to tracking, or pay over €250/year to use its sites without invasive monetization of personal data.
Meta prefers the phrase "subsccription for no ads," and told TechCrunch it makes them compliant with EU laws: A raft of complaints have been filed against Meta's implementation of the pay-or-consent tactic since it launched the "no ads" subscription offer last fall. Additionally, in a notable step last month, the European Union opened a formal investigation into Meta's tactic, seeking to find whether it breaches obligations that apply to Facebook and Instagram under the competition-focused Digital Markets Act. That probe remains ongoing.
The letter to the Board called for "robust protections that prioritize data subjects' agency and control over their information." And Wednesday the board issued its first decision:

"[I]n most cases, it will not be possible for [social media services] to comply with the requirements for valid consent, if they confront users only with a choice between consenting to processing of personal data for behavioural advertising purposes and paying a fee." The EDPB considers that offering only a paid alternative to services which involve the processing of personal data for behavioural advertising purposes should not be the default way forward for controllers. When developing alternatives, large online platforms should consider providing individuals with an 'equivalent alternative' that does not entail the payment of a fee. If controllers do opt to charge a fee for access to the 'equivalent alternative', they should give significant consideration to offering an additional alternative. This free alternative should be without behavioural advertising, e.g. with a form of advertising involving the processing of less or no personal data.
EDPB Chair, Anu Talus added: "Controllers should take care at all times to avoid transforming the fundamental right to data protection into a feature that individuals have to pay to enjoy."
Businesses

Netflix Blows Past Earnings Estimates As Subscribers Jump 16% (cnbc.com) 35

Netflix on Thursday reported a 16% rise in memberships in the first quarter, reaching 269.6 million, beating Wall Street expectations. Starting next year, the company will no longer provide quarterly membership numbers or average revenue per user starting next year. CNBC reports: "As we've noted in previous letters, we're focused on revenue and operating margin as our primary financial metrics -- and engagement (i.e. time spent) as our best proxy for customer satisfaction," the company said in its quarterly letter to shareholders. "In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential." Netflix said now that it is generating substantial profit and free cash flow -- as well as developing new revenue streams like advertising and a password-sharing crackdown -- its membership numbers are not the only factor in the company's growth. It said the metric lost significance after it started to offer multiple price points for memberships. The company said it would still announce "major subscriber milestones as we cross them."

Netflix also noted that it expects paid net additions to be lower in the second quarter compared to the first quarter "due to typical seasonality." Its second-quarter revenue forecast of $9.49 billion was just shy of Wall Street's estimate of $9.54 billion Shares of the company fell around 4% in extended trading. Netflix reported first-quarter net income of $2.33 billion, or $5.28 per share, versus $1.30 billion, or $2.88 per share, in the prior-year period. The company posted revenue of $9.37 billion for the quarter, up from $8.16 billion in the year-ago quarter.

Microsoft

Windows 11's Beta Testers May Start Seeing Ads for Microsoft Store Apps (engadget.com) 37

Engadget warns Windows 11 users that Microsoft is "exploring the idea" of putting ads in their Start menu. Sort of... To be specific, it's looking to place advertisements for apps you can find in the Microsoft Store in the menu's recommended section....

At the moment, Microsoft will only show ads in this version if you're in the US and a Windows Insider in the Beta Channel. You won't be seeing them if you're not a beta tester or if you're using a device managed by an organization. Further, you can disable the advertisements altogether. To do so, just go to Personalization under Settings and then toggle off "Show recommendations for tips, app promotions, and more" in the Start section.

Like any other Microsoft experiment, it may never reach wider rollout, but you may want to remember the aforementioned steps, since the company does have history of incorporating ads into its desktop platforms.

IT

'Defeated' CEO's Finally Concede Hybrid Working Is Here to Stay (yahoo.com) 88

"After a year of cracking down with rigid return-to-office mandates, defeated CEOs are now finally accepting that hybrid working is here to stay," reports Fortune: KPMG surveyed U.S. CEOs of companies turning over at least $500 million and found that just one-third expect a full return to the office in the next three years.

So it's official: Leaders who believe that office workers will be back at their desks five days a week in the near future are now in the small minority. It's a complete 360 on their stance last year, when 62% of CEOs surveyed predicted that working from home would end by 2026. At the time, 90% of CEOs even admitted that they were so steadfast on summoning staff back to their vertical towers that they were sweetening the pot with salary raises, promotions, and favorable assignments to those who showed face more.

But now, bosses are backtracking: Nearly half of CEOs have concluded that the future of work is hybrid — up from 34% last year. What's more, a sizable chunk of CEOs aren't just embracing working from home on Fridays, they're going one step further and ditching the workday altogether. KPMG found that a third of CEOs are exploring the feasibility of a four-day week at their firm...

Research has echoed that nearly half of companies with return-to-office mandates witnessed a higher level of employee attrition than they had anticipated, and 29% of companies enforcing office returns are struggling with recruitment. It perhaps explains why, as KPMG's data shows, CEOs are now waking up to the fact that the future of work is probably the happy medium of hybrid... Lewis Maleh, CEO of the global executive recruitment agency Bentley Lewis, has already witnessed a U-turn to more flexible job ads. "I've noticed a definite rise in job postings advertising remote or hybrid work," Maleh tells Fortune. "We haven't worked on any searches that require the candidate to be in the office five days per week in the past six months globally."

"The shift demonstrates the cementing of hybrid work models, as CEOs increasingly recognize flexibility as a key factor in attracting and retaining top talent."

Privacy

96% of US Hospital Websites Share Visitor Info With Meta, Google, Data Brokers (theregister.com) 21

An anonymous reader quotes a report from The Guardian: Hospitals -- despite being places where people implicitly expect to have their personal details kept private -- frequently use tracking technologies on their websites to share user information with Google, Meta, data brokers, and other third parties, according to research published today. Academics at the University of Pennsylvania analyzed a nationally representative sample of 100 non-federal acute care hospitals -- essentially traditional hospitals with emergency departments -- and their findings were that 96 percent of their websites transmitted user data to third parties. Additionally, not all of these websites even had a privacy policy. And of the 71 percent that did, 56 percent disclosed specific third-party companies that could receive user information.

The researchers' latest work builds on a study they published a year ago of 3,747 US non-federal hospital websites. That found 98.6 percent tracked and transferred visitors' data to large tech and social media companies, advertising firms, and data brokers. To find the trackers on websites, the team checked out each hospitals' homepage on January 26 using webXray, an open source tool that detects third-party HTTP requests and matches them to the organizations receiving the data. They also recorded the number of third-party cookies per page. One name in particular stood out, in terms of who was receiving website visitors' information. "In every study we've done, in any part of the health system, Google, whose parent company is Alphabet, is on nearly every page, including hospitals," [Dr Ari Friedman, an assistant professor of emergency medicine at the University of Pennsylvania] observed. "From there, it declines," he continued. "Meta was on a little over half of hospital webpages, and the Meta Pixel is notable because it seems to be one of the grabbier entities out there in terms of tracking."

Both Meta and Google's tracking technologies have been the subject of criminal complaints and lawsuits over the years -- as have some healthcare companies that shared data with these and other advertisers. In addition, between 20 and 30 percent of the hospitals share data with Adobe, Friedman noted. "Everybody knows Adobe for PDFs. My understanding is they also have a tracking division within their ad division." Others include telecom and digital marketing companies like The Trade Desk and Verizon, plus tech giants Oracle, Microsoft, and Amazon, according to Friedman. Then there's also analytics firms including Hotjar and data brokers such as Acxiom. "And two thirds of hospital websites had some kind of data transfer to a third-party domain that we couldn't even identify," he added. Of the 71 hospital website privacy policies that the team found, 69 addressed the types of user information that was collected. The most common were IP addresses (80 percent), web browser name and version (75 percent), pages visited on the website (73 percent), and the website from which the user arrived (73 percent). Only 56 percent of these policies identified the third-party companies receiving user information.
In lieu of any federal data privacy law in the U.S., Friedman recommends users protect their personal information via the browser-based tools Ghostery and Privacy Badger, which identify and block transfers to third-party domains.

Slashdot Top Deals