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The Courts

Google Loses Bid To End US Antitrust Case Over Digital Advertising (reuters.com) 2

An anonymous reader quotes a report from Reuters: Alphabet's Google must face trial on U.S. antitrust enforcers' claim that the internet search juggernaut illegally dominates the online advertising technology market, a federal judge ruled on Friday. U.S. District Judge Leonie Brinkema in Alexandria, Virginia, denied Google's motion during a hearing, according to court records. Google had argued for a win without a trial, saying that antitrust laws do not block companies from refusing to deal with rivals and that regulators had not accurately defined the ad tech market. Court papers did not specify what reasons the judge provided at the hearing. Motions like the one Google filed are only granted where a judge determines there is no factual dispute to send to trial. Last year, the U.S. Justice department and eight states sued Google, calling for the break up of the search giant's ad-technology business over alleged illegal monopolization of the digital advertising market.
Advertising

Oracle Is Shutting Down Its Ad Business (adweek.com) 20

During its earnings call on Monday, Oracle CEO Safra Catz told analysts that it is shutting down its ads business. "In Q4, we decided to exit the advertising business, which had declined to about $300 million in revenue in fiscal year '24," said Catz, according to an earnings transcript. Adweek's Catherine Perloff reports: In August 2022, Business Insider reported that Oracle Advertising made $2 billion in revenue. At the time, revenue was only growing by 2% a year and many employees had been laid off as part of a reorganization in 2022, Business Insider reported. Oracle spent billions on entering the advertising business, acquiring nearly a dozen ad technology companies for over a decade. Notable acquisitions include data firms DataLogix, bought in 2014 for $1.2 billion, and brand safety platform Moat, purchased in 2017 for a reported $850 million. "Oracle's bet on the advertising industry was undermined when Meta [...] shut down its data to third parties including Oracle in 2018, following the Cambridge Analytica scandal," notes Adweek. Europe's GDPR further restricted Oracle's advertising business, leading the company to shut down its 'AddThis' publisher audience tool in 2019, which relied on third-party data.
Advertising

United Airlines Starts Serving Passengers Personalized Ads On Seat-Back Screens (cnbc.com) 95

United Airlines on Friday launched a media platform to serve travelers personalized ads on seat-back screens and in its app, among other platforms, as it seeks to leverage customer data. CNBC reports: United said its new platform, Kinective Media, is already working with Norwegian Cruise Line, Macy's, IHG Hotels & Resorts, TelevisaUnivision and JPMorgan Chase, which offers a host of co-branded credit cards with United. [...] Customers can opt out of seeing targeted ads through a United web page, and United says advertisers can't access customers' personally identifiable information, the airline said. "There is the potential for 3.5 hours of attention per traveler, based on average flight time," United said.
The Courts

Yelp Can Sue Reputation Company For Promising To Suppress Bad Reviews (reuters.com) 8

Yelp can pursue a lawsuit accusing a reputation management company of fraudulently advertising its ability to remove "bad" reviews from the business review website. From a report: In a decision late Thursday night, U.S. District Judge William Alsup in San Francisco said Yelp can pursue trademark infringement and unfair competition claims against ReviewVio, which operates as Dandy. Yelp said ReviewVio's ads, which include the Yelp logo, harmed its reputation by suggesting that businesses could pay for artificially inflated star ratings.

This allegedly undercut honest businesses that will not pay to remove negative reviews, and undermined the usefulness of Yelp's website to consumers. Yelp also said it lost ad revenue from businesses that paid for "review gating," which the company prohibits, or incorrectly believed that Yelp endorsed the practice.

PlayStation (Games)

Sony Removes 8K Claim From PlayStation 5 Boxes (gamespot.com) 39

Fans have noticed that, over the last few months, Sony quietly removed any mention of 8K on the PlayStation 5 boxes. "I have been endlessly bitching since the PS5 released about that 8k Badge," writes X user @DeathlyPrice. "It is false Advertising and Sony should be sued for it." Others shared their grievances via PlayStation Lifestyle and a Reddit thread. GameSpot reports: A FAQ on Sony's official site in 2020 stated that "PS5 is compatible with 8K displays at launch, and after a future system software update will be able to output resolutions up to 8K when content is available, with supported software." But to date, the only game that offers 8K resolution on PS5 is The Touryst, which looks more like Minecraft than a game with advanced visuals.

The reality is that 8K has not been widely adopted by video game developers, or even by filmmakers at this point. There are 8K televisions on the market, but it may be quite some time, if ever, before it becomes the standard for either gaming or entertainment.

The Courts

Court Rules $17 Billion UK Advertising Lawsuit Against Google Can Go Ahead (reuters.com) 18

An anonymous reader quotes a report from Reuters: Google parent Alphabet must face a lawsuit worth up to $17.4 billion for allegedly abusing its dominance in the online advertising market, London's Competition Appeal Tribunal (CAT) ruled on Wednesday. The lawsuit, which seeks damages on behalf of publishers of websites and apps based in the United Kingdom, is the latest case to focus on the search giant's business practices. Ad Tech Collective Action is bringing the claim on behalf of publishers who say they have suffered losses due to Google's allegedly anti-competitive behavior.

Google last month urged the CAT to block the case, which it argued was incoherent. The company "strongly rejects the underlying allegations", its lawyers said in court documents. The CAT said in a written ruling that it would certify the case to proceed towards a trial, which is unlikely to take place before the end of 2025. The tribunal also emphasized the test for certifying a case under the UK's collective proceedings regime -- which is roughly equivalent to the United States' class action regime -- is relatively low.
"Google works constructively with publishers across the UK and Europe," Google legal director Oliver Bethell said in a statement. Bethell added: "This lawsuit is speculative and opportunistic. We'll oppose it vigorously and on the facts."
Technology

Oral-B Bricking Alexa Toothbrush Is a Cautionary Tale Against Buzzy Tech (arstechnica.com) 61

An anonymous reader quotes a report from Ars Technica: As we're currently seeing with AI, when a new technology becomes buzzy, companies will do almost anything to cram that tech into their products. Trends fade, however, and corporate priorities shift -- resulting in bricked gadgets and buyer's remorse. That's what's happening to some who bought into Oral-B toothbrushes with Amazon Alexa built in. Oral-B released the Guide for $230 in August 2020 but bricked the ability to set up or reconfigure Alexa on the product this February. As of this writing, the Guide is still available through a third-party Amazon seller.

The Guide toothbrush's charging base was able to connect to the Internet and work like an Alexa speaker that you could speak to and from which Alexa could respond. Owners could "ask to play music, hear the news, check weather, control smart home devices, and even order more brush heads by saying, 'Alexa, order Oral-B brush head replacements,'" per Procter & Gamble's 2020 announcement. Oral-B also bragged at the time that, in partnering with Alexa, the Guide ushered in "the truly connected bathroom."

On February 15, Oral-B bricked the Guide's ability to set up Alexa by discontinuing the Oral-B Connect app required to complete the process. Guide owners can still use the Oral-B App for other features; however, the ability to use the charging base like an Alexa smart speaker -- a big draw in the product's announcement and advertising -- is seriously limited. The device should still work with Alexa if users set it up before Oral-B shuttered Connect, but setting up a new Wi-Fi connection or reestablishing a lost one doesn't work without Connect.
Oral-B owner, Proctor & Gamble, said in a statement: "The Oral-B Connect app was originally developed to support Oral-B Guide and Oral-B Sense electric toothbrushes, which were discontinued ... While some features are no longer supported on these brushes, the Oral-B app does remain compatible with both devices. Consumers are invited to contact Oral-B customer service where they can get additional support for these brushes."

Meanwhile, an Amazon spokesperson told Ars: "The Oral-B Guide still has Alexa built-in and customers can keep using the Alexa experience on devices that were set up through the Oral-B Connect app. The Oral-B Guide is currently sold by an independent seller on Amazon.com. Please contact Oral-B for any further questions about their app."
Advertising

How Misinformation Spreads? It's Funded By 'The Hellhole of Programmatic Advertising' (wired.com) 66

Journalist Steven Brill has written a new book called The Death of Truth. Its subtitle? "How Social Media and the Internet Gave Snake Oil Salesmen and Demagogues the Weapons They Needed to Destroy Trust and Polarize the World-And What We Can Do."

An excerpt published by Wired points out that last year around the world, $300 billion was spent on "programmatic advertising", and $130 billion was spent in the United States alone in 2022. The problem? For over a decade there's been "brand safety" technology, the article points out — but "what artificial intelligence could not do was spot most forms of disinformation and misinformation..."

The end result... In 2019, other than the government of Vladimir Putin, Warren Buffett was the biggest funder of Sputnik News, the Russian disinformation website controlled by the Kremlin... Geico, the giant American insurance company and subsidiary of Buffett's Berkshire Hathaway, was the leading advertiser on the American version of Sputnik News' global website network... No one at Geico or its advertising agency had any idea its ads would appear on Sputnik, let alone what anti-American content would be displayed alongside the ads. How could they? Which person or army of people at Geico or its agency could have read 44,000 websites?

Geico's ads had been placed through a programmatic advertising system that was invented in the late 1990s as the internet developed. It exploded beginning in the mid 2000s and is now the overwhelmingly dominant advertising medium. Programmatic algorithms, not people, decide where to place most of the ads we now see on websites, social media platforms, mobile devices, streaming television, and increasingly hear on podcasts... If Geico's advertising campaign were typical of programmatic campaigns for broad-based consumer products and services, each of its ads would have been placed on an average of 44,000 websites, according to a study done for the leading trade association of big-brand advertisers.

Geico is hardly the only rock-solid American brand to be funding the Russians. During the same period that the insurance company's ads appeared on Sputnik News, 196 other programmatic advertisers bought ads on the website, including Best Buy, E-Trade, and Progressive insurance. Sputnik News' sister propaganda outlet, RT.com (it was once called Russia Today until someone in Moscow decided to camouflage its parentage), raked in ad revenue from Walmart, Amazon, PayPal, and Kroger, among others... Almost all advertising online — and even much of it on television (through streaming TV), or on podcasts, radio, mobile devices, and electronic billboards — is now done programmatically, which means the machine, not a planner, makes those placement decisions. Unless the advertiser uses special tools, such as what are called exclusion or inclusion lists, the publishers and content around which the ad appears, and which the ad is financing, are no longer part of the decision.

"What I kept hearing as the professionals explained it to me was that the process is like a stock exchange, except that the buyer doesn't know what stock he is buying... the advertiser and its ad agency have no idea where among thousands of websites its ad will appear."
United Kingdom

London's Evening Standard To End Daily Newspaper After Almost 200 Years (theguardian.com) 58

London's famed Evening Standard newspaper has announced plans to end its daily outlet, "bringing an end to almost 200 years of publication in the capital," reports The Guardian. Going forward, the company plans to launch "a brand new weekly newspaper later this year and consider options for retaining ES Magazine with reduced frequency," while also working to increase traffic to its website. "In its 197-year history the Evening Standard has altered its format, price, content and distribution models," notes The Guardian. "But giving up on producing a daily print newspaper is the biggest change yet." From the report: The newspaper said it has been hit hard by the introduction of wifi on the London Underground, a shortage of commuters owing to the growth of working from home and changing consumer habits. The Standard lost 84.5 million pounds in the past six years, according to its accounts, and is reliant on funding from its part-owner Evgeny Lebedev. Its other shareholders include a bank with close links to the Saudi government. Industry sources suggested Lebedev had been willing to consider selling the outlet in recent years but no buyer was found.

Paul Kanareck, the newspaper's chair, told staff on Wednesday morning: "The substantial losses accruing from the current operations are not sustainable. Therefore, we plan to consult with our staff and external stakeholders to reshape the business, return to profitability and secure the long-term future of the number one news brand in London." Kanareck said there would be an "impact on staffing," with journalists bracing themselves for further job losses on top of years of redundancies, while design staff on the print edition are expected to be hit hard. Distributors who hand out the newspaper across London are also likely to be out of work, and billboards outside railway stations advertising the day's headline will stand empty on most days.

He suggested there would be a change in focus for the weekly outlet: "A proposed new weekly newspaper would replace the daily publication, allowing for more in-depth analysis of the issues that matter to Londoners, and serve them in a new and relevant way by celebrating the best London has to offer, from entertainment guides to lifestyle, sports, culture and news and the drumbeat of life in the world's greatest city." Closing the Evening Standard will mean that for the first time in centuries, Londoners will have no general-interest daily print newspaper. The finance-focused City AM, which was recently saved by the billionaire Matthew Moulding, will continue to publish four days a week and has recently increased its distribution.
Further reading: So it's goodbye to London's Standard, my old paper -- and to the heart of democracy, local news (Opinion; The Guardian)
Businesses

PayPal Is Planning an Ad Business Using Data on Its Millions of Shoppers (wsj.com) 35

PayPal hopes to boost its growth by starting an ad network [non-paywalled link] juiced with something it already owns: data on its millions of users. From a report: The digital payments company plans to build an ad sales business around the reams of data it generates from tracking the purchases as well as the broader spending behaviors of millions of consumers who use its services, which include the more socially-enabled Venmo app. PayPal has hired Mark Grether, who formerly led Uber's advertising business, to lead the effort as senior vice president and general manager of its newly-created PayPal Ads division. In his new role, he will be responsible for developing new ad formats, overseeing sales and hiring staff to fill out the division, he said.

PayPal in January introduced Advanced Offers, its first ad product, which uses AI and the company's data to help merchants target PayPal users with discounts and other personalized promotions. Advanced Offers only charges advertisers when consumers make a purchase. Online marketplaces eBay and Zazzle have begun testing it, according to a PayPal spokesman. But PayPal now aims to sell ads not only to its own customers, but to so-called non-endemic advertisers, or those that don't sell products or services through PayPal. Those companies might use PayPal data to target consumers with ads that could be displayed elsewhere, for instance, on other websites or connected TV sets.

Facebook

Meta, Activision Sued By Parents of Children Killed in Last Year's School Shooting (msn.com) 153

Exactly one year after the fatal shooting of 19 elementary school students in Texas, their parents filed a lawsuit against the publisher of the videogame Call of Duty, against Meta, and against the manufacturer of the AR-15-style weapon used in the attack, Daniel Defense.

The Washington Post says the lawsuits "may be the first of their kind to connect aggressive firearms marketing tactics on social media and gaming platforms to the actions of a mass shooter." The complaints contend the three companies are responsible for "grooming" a generation of "socially vulnerable" young men radicalized to live out violent video game fantasies in the real world with easily accessible weapons of war...

Several state legislatures, including California and Hawaii, passed consumer safety laws specific to the sale and marketing of firearms that would open the industry to more civil liability. Texas is not one of them. But it's just one vein in the three-pronged legal push by Uvalde families. The lawsuit against Activision and Meta, which is being filed in California, accuses the tech companies of knowingly promoting dangerous weapons to millions of vulnerable young people, particularly young men who are "insecure about their masculinity, often bullied, eager to show strength and assert dominance."

"To put a finer point on it: Defendants are chewing up alienated teenage boys and spitting out mass shooters," the lawsuit states...

The lawsuit alleges that Meta, which owns Instagram, easily allows gun manufacturers like Daniel Defense to circumvent its ban on paid firearm advertisements to reach scores of young people. Under Meta's rules, gunmakers are not allowed to buy advertisements promoting the sale of or use of weapons, ammunition or explosives. But gunmakers are free to post promotional material about weapons from their own account pages on Facebook and Instagram — a freedom the lawsuit alleges Daniel Defense often exploited.

According to the complaint, the Robb school shooter downloaded a version of "Call of Duty: Modern Warfare," in November 2021 that featured on the opening title page the DDM4V7 model rifle [shooter Salvador] Ramos would later purchase. Drawing from the shooter's social media accounts, Koskoff argued he was being bombarded with explicit marketing and combat imagery from the company on Instagram... The complaint cites Meta's practice, first reported by The Washington Post in 2022, of giving gun sellers wide latitude to knowingly break its rules against selling firearms on its websites. The company has allowed buyers and sellers to violate the rule 10 times before they are kicked off, The Post reported.

The article adds that the lawsuit against Meta "echoes some of the complaints by dozens of state attorneys general and school districts that have accused the tech giant of using manipulative practices to hook... while exposing them to harmful content." It also includes a few excerpts from the text of the lawsuit.
  • It argues that both Meta and Activision "knowingly exposed the Shooter to the weapon, conditioned him to see it as the solution to his problems, and trained him to use it."
  • The lawsuit also compares their practices to another ad campaign accused of marketing harmful products to children: cigarettes. "Over the last 15 years, two of America's largest technology companies — Defendants Activision and Meta — have partnered with the firearms industry in a scheme that makes the Joe Camel campaign look laughably harmless, even quaint."

Meta and Daniel Defense didn't respond to the reporters' requests for comment. But they did quote a statement from Activision expressing sympathy for the communities and families impacted by the "horrendous and heartbreaking" shooting.

Activision also added that "Millions of people around the world enjoy video games without turning to horrific acts."


AI

FCC Chair Proposes Disclosure Rules For AI-Generated Content In Political Ads (qz.com) 37

FCC Chairwoman Jessica Rosenworcel has proposed (PDF) disclosure rules for AI-generated content used in political ads. "If adopted, the proposal would look into whether the FCC should require political ads on radio and TV to disclose when there is AI-generated content," reports Quartz. From the report: The FCC is seeking comment on whether on-air and written disclosure should be required in broadcasters' political files when AI-generated content is used in political ads; proposing that the rules apply to both candidates and issue advertisements; requesting comment on what a specific definition of AI-generated comment should look like; and proposing that disclosure rules be applied to broadcasters and entities involved in programming, such as cable operators and radio providers.

The proposed disclosure rules do not prohibit the use of AI-generated content in political ads. The FCC has authority through the Bipartisan Campaign Reform Act to make rules around political advertising. If the proposal is adopted, the FCC will take public comment on the rules.
"As artificial intelligence tools become more accessible, the Commission wants to make sure consumers are fully informed when the technology is used," Rosenworcel said in a statement. "Today, I've shared with my colleagues a proposal that makes clear consumers have a right to know when AI tools are being used in the political ads they see, and I hope they swiftly act on this issue."
Google

Google Cuts Mystery Check To US In Bid To Sidestep Jury Trial (reuters.com) 38

An anonymous reader quotes a report from Reuters: Alphabet's Google has preemptively paid damages to the U.S. government, an unusual move aimed at avoiding a jury trial in the Justice Department's antitrust lawsuit over its digital advertising business. Google disclosed (PDF) the payment, but not the amount, in a court filing last week that said the case should be heard and decided by a judge directly. Without a monetary damages claim, Google argued, the government has no right to a jury trial. The Justice Department, which has not said if it will accept the payment, declined to comment on the filing. Google asserted that its check, which it said covered its alleged overcharges for online ads, allows it to sidestep a jury trial whether or not the government takes it.

The Justice Department filed the case last year with Virginia and other states, alleging Google was stifling competition for advertising technology. The government has said Google should be forced to sell its ad manager suite. Google, which has denied the allegations, said in a statement that the Justice Department "manufactured a damages claim at the last minute in an attempt to secure a jury trial." Without disclosing the size of its payment, Google said that after months of discovery, the Justice Department could only point to estimated damages of less than $1 million. The company said the government has said the case is "highly technical" and "outside the everyday knowledge of most prospective jurors."

Businesses

OpenAI Strikes Reddit Deal To Train Its AI On Your Posts (theverge.com) 43

Emilia David reports via The Verge: OpenAI has signed a deal for access to real-time content from Reddit's data API, which means it can surface discussions from the site within ChatGPT and other new products. It's an agreement similar to the one Reddit signed with Google earlier this year that was reportedly worth $60 million. The deal will also "enable Reddit to bring new AI-powered features to Redditors and mods" and use OpenAI's large language models to build applications. OpenAI has also signed up to become an advertising partner on Reddit.

No financial terms were revealed in the blog post announcing the arrangement, and neither company mentioned training data, either. That last detail is different from the deal with Google, where Reddit explicitly stated it would give Google "more efficient ways to train models." There is, however, a disclosure mentioning that OpenAI CEO Sam Altman is also a shareholder in Reddit but that "This partnership was led by OpenAI's COO and approved by its independent Board of Directors."
"Reddit has become one of the internet's largest open archives of authentic, relevant, and always up-to-date human conversations about anything and everything. Including it in ChatGPT upholds our belief in a connected internet, helps people find more of what they're looking for, and helps new audiences find community on Reddit," Reddit CEO Steve Huffman says.

Reddit stock has jumped on news of the deal, rising 13% on Friday to $63.64. As Reuters notes, it's "within striking distance of the record closing price of $65.11 hit in late-March, putting the company on track to add $1.2 billion to its market capitalization."
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."

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