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Cellphones

Wealthy Install Location-Tracking Apps to Establish Proof-of-Residency for Tax Purposes (nytimes.com) 193

The New York Times shares the dilemma of Jeff Sheu, managing director of a private equity firm, who is "exactly the type of high earner California does not want to lose. When people in his tax bracket leave, the state is likely to audit them to make sure they really have left."

But fortunately, there's an app for that: With the May 17 tax filing deadline approaching, people who have moved to another state or are working more remotely need to be extra vigilant with their tax documents. For Mr. Sheu, that involves an app on his smartphone that uses location services to track him all the time. What he is sacrificing in privacy, he is gaining in peace of mind, knowing he will be able to show exactly when and where he was in a particular state, should California's tax authority come after him... "I'm never apart from my phone," Mr. Sheu said... "It feels to me like a pretty undebatable way to track where I am...."

Tax apps like TaxBird — which Mr. Sheu uses — and TaxDay and Monaeo were created years ago... "We've seen a fourfold increase in our app without any advertising in the past year," said Jonathan Mariner, founder and president of TaxDay, who was himself audited when he worked for Major League Baseball in New York but lived in Florida. "When people are concerned about privacy, I say you probably have a dozen apps on your phone that are tracking you, and you don't even know it...." Monaeo makes a point of describing how the data is cataloged — city, state and country, but without specific locations. It also says upfront that it does not share any data. (All three of the apps are vigilant about that.) While each tax app has different levels of precision and features to upload supporting documents, they all fulfill the basic need to prove your location to a tax authority. When it comes time to file taxes, users download reports detailing where they worked with varying degrees of specificity, from a simple day count to more detailed location information...

With hundreds of millions of dollars at stake, states in need of revenue are not going to let the money go without a fight. "This has the potential to become as messy as you can envision it," said Dustin Grizzle, a tax partner at MGO, an accounting firm. "States are going to say, 'Hey you're just using Covid to give you the ability to work remotely.'"

Education

Three Students Sue Lambda School Alleging False Advertising (techcrunch.com) 22

Lambda School -- incubated at Y Combinator -- raised $130 million in venture funding from several investors including Google Ventures. Its original business model involved six-month virtual computer science courses for $30,000, remembers TechCrunch, "with the option of paying for the courses in installments based on a sliding scale that only kicks in after you land a job that makes at least $50,000."

But this week three former students "filed lawsuits against the company in California, claiming misleading financial and educational practices." The suits — which are being brought by the nonprofit National Student Legal Defense Network on behalf of Linh Nguyen, Heather Nye and Jonathan Stickrod — go back to a period of between 2018 and 2020, and they focus on four basic claims.

First, that Lambda School falsified and misrepresented job placement rates. Second, that Lambda School misrepresented the true nature of its financial interest in student success (specifically, there are question marks over how Lambda handles its Income-Share Agreement contracts and whether it benefits from those). Third, that it misrepresented and concealed a regulatory dispute in California that required the school to cease operations. And fourth, that it enrolled and provided educational services and signed Income-Share Agreement contracts in violation of that order...

Some of the issues that are raised in the lawsuits have also been resolved since then. For example, the prominent display of over 80% of students finding jobs can no longer be found on the Lambda site, and in California you no longer get an Income-Share Agreement but a retail installment contract (similar but different). But as is the way of litigation, lawsuits based on past issues from people who were impacted by them when they were still active, are, in many ways, the next logical, unsurprising step.

Advertising

Vizio Makes Nearly As Much Money From Ads and Data As It Does From TVs (engadget.com) 55

In Vizio's first public earnings report today, the company revealed that in the first three months of 2021, profits from its Platform+ business -- the part that sells viewer data and advertising space via the SmartCast platform -- were $38.4 million. Engadget reports: As execs said on the call, the company continues to court relationships with brands and agencies, following the same plan laid out six years ago with a business built on its Inscape Automated Content Recognition tech. Its device business (the part that sells TVs, sound bars and the like) had a gross profit of $48.2 million in the same period, up from $32.5 million last year. While the hardware business has significantly more revenue, profits from data and advertising spiked 152 percent from last year, and are quickly catching up.

Vizio did say that hardware profits were affected by products getting stuck at ports due to a shipping glut that has impacted many companies over the last year, buts forecast is that Platform+ revenue and profit will continue to grow in Q2, as device profit margins "trend toward the single digits." Vizio said it now has 13.4 million active SmartCast accounts, with viewers spending 52 percent of their viewing time on SmartCast inputs (the built-in apps, or casting from another device). 34 percent of viewing time went to linear TV, with 7 percent for game consoles or over the top devices.
If you have a Vizio TV, you can opt out of anonymized tracking by following these steps.
Privacy

Chinese TV Maker Skyworth Under Fire For Excessive Data Collection That Users Call Spying (scmp.com) 34

Chinese television maker Skyworth has issued an apology after a consumer found that his set was quietly collecting a wide range of private data and sending it to a Beijing-based analytics company without his consent. From a report: A network traffic analysis revealed that a Skyworth smart TV scanned for other devices connected to the same local network every 10 minutes and gathered data that included device names, IP addresses, network latency and even the names of other Wi-Fi networks within range, according to a post last week on the Chinese developer forum V2EX. The data was sent to the Beijing-based firm Gozen Data, the forum user said. Gozen is a data analytics company that specialises in targeted advertising on smart TVs, and it calls itself Chinaâs first "home marketing company empowered by big data centred on family data."

The user did not identify himself, and efforts to contact the person received no reply. However, the post quickly picked up steam, touching a nerve among Chinese consumers and prompting angry comments. "Isn't this already the criminal offence of spying on people?" asked one user on Sina.com, a Chinese financial news portal. "Whom will the collected data be sold to, and who is the end user of this data?"

Facebook

Facebook Ordered To Stop Collecting German WhatsApp Data (bloomberg.com) 32

Facebook was ordered to stop collecting German users' data from its WhatsApp unit, after a regulator in the nation said the company's attempt to make users agree to the practice in its updated terms isn't legal. From a report: Johannes Caspar, who heads Hamburg's privacy authority, issued a three-month emergency ban, prohibiting Facebook from continuing with the data collection. He also asked a panel of European Union data regulators to take action and issue a ruling across the 27-nation bloc. The new WhatsApp terms enabling the data scoop are invalid because they are intransparent, inconsistent and overly broad, he said. "The order aims to secure the rights and freedoms of millions of users which are agreeing to the terms Germany-wide," Caspar said in a statement on Tuesday. "We need to prevent damage and disadvantages linked to such a black-box-procedure." The order strikes at the heart of Facebook's business model and advertising strategy. It echoes a similar and contested step by Germany's antitrust office attacking the network's habit of collecting data about what users do online and merging the information with their Facebook profiles. That trove of information allows ads to be tailored to individual users -- creating a cash cow for Facebook.
IOS

Analytics Suggest 96% of Users Leave App Tracking Disabled in iOS 14.5 (macrumors.com) 66

An early look at an ongoing analysis of Apple's App Tracking Transparency suggests that the vast majority of iPhone users are leaving app tracking disabled since the feature went live on April 26 with the release of iOS 14.5. MacRumors reports: According to the latest data from analytics firm Flurry, just 4% of iPhone users in the U.S. have actively chosen to opt into app tracking after updating their device to iOS 14.5. The data is based on a sampling of 2.5 million daily mobile active users. When looking at users worldwide who allow app tracking, the figure rises to 12% of users in a 5.3 million user sample size.

With the release of iOS 14.5, apps must now ask for and receive user permission before they can access a device's random advertising identifier, which is used to track user activity across apps and websites. Users can either enable or disable the ability for apps to ask to track them. Apple disables the setting by default. Since the update almost two weeks ago, Flurry's figures show a stable rate of app-tracking opt-outs, with the worldwide figure hovering between 11-13%, and 2-5% in the U.S. The challenge for the personalized ads market will be significant if the first two weeks end up reflecting a long-term trend.

Education

American Schools' Phone Apps Send Children's Info To Ad Networks, Analytics Firms (theregister.com) 43

LeeLynx shares a report from The Register: The majority of Android and iOS apps created for US public and private schools send student data to assorted third parties, researchers have found, calling into question privacy commitments from Apple and Google as app store stewards. The Me2B Alliance, a non-profit technology policy group, examined a random sample of 73 mobile applications used in 38 different schools across 14 US states and found 60 percent were transmitting student data. The apps in question send data using software development kits or SDKs, which consist of modular code libraries that can be used to implement utility functions, analytics, or advertising without the hassle of creating these capabilities from scratch. Examples include: Google's AdMob, Firebase, and Sign-in SDKs, Square's OK HTTP and Okio SDKs, and Facebook's Bolts SDK, among others.

The data that concerns Me2B includes: identifiers (IDFA, MAID, etc), Calendar, Contacts, Photos/Media Files, Location, Network Data (IP address), permissions related to Camera, Microphone, Device ID, and Calls. About 49 percent of the apps reviewed sent student data to Google and about 14 percent communicated with Facebook, with the balance routing info to advertising and analytics firms, many among them characterized as high risk by the Me2B researchers. Among the public school apps, 67 per cent sent data to third parties; private school apps proved less likely to send data to third parties (57 percent).
Interestingly, the research group found a signifiant difference across mobile platforms. According to The Register, "91 percent of student Android apps sent data to high-risk third parties while only 26 percent of iOS apps did so, and 20 percent of Android apps piped data to very high-risk third parties while only 2.6 percent of iOS did so."

The report adds: "Nonetheless, the researchers expressed concern that 95 percent of third-party data channels in the surveyed student apps are active even when the user is not signed in and that these apps send data as soon as the app is loaded."
Advertising

Apple Puts More Advertisements In App Store After Ad-Tracking Ban (bbc.com) 24

Apple has added extra paid-for advertisements to its App Store, a week after its new operating system limited tracking for ads from other companies. The BBC reports: The new ad space lets app-makers advertise on the App Store search tab, rather than just in the search results. Previously, Apple sold adverts to appear at the top of search results only. The new slot effectively doubles the advertising space for sale. Enders Analysis senior media analyst Jamie MacEwan said: "The timing makes sense. Apple probably anticipates increased demand for exposure on the App Store. That's because Apple's iOS privacy changes have made other options less attractive."

Ad campaigns on other sites had less reliable measurements of success, he said. And app developers ran ads only if they were sure the cost of winning new customers was lower than the amount they would spend on the app. "As its ads business grows, Apple will have to make sure its execution on consent and privacy is impeccable" to avoid accusations of putting itself first, Mr MacEwan added. Some reports suggest Apple's ad sales could be worth more than $2 billion and are growing.

Facebook

Signal Tried To Use Instagram Ads To Display the Data Facebook Collects and Sells. Facebook Banned Signal's Account. (mashable.com) 55

Privacy-oriented messaging app Signal tried to run a very candid ad campaign on Facebook-owned Instagram, but it wasn't meant to be. From a report: Signal explained how it went down in a blog post Tuesday. The idea was to post ads on Instagram which use the data an online advertiser may have collected about users, and basically show the user what that data might be for them. "You got this ad because you're a teacher, but more importantly you're a Leo (and single). This ad used your location to see you're in Moscow. You like to support sketch comedy, and this ad thinks you do drag," one of the ads said. According to Signal, the ad "would simply display some of the information collected about the viewer which the advertising platform uses."

The fact that Facebook and similar companies collect your data isn't a secret. According to Signal, however "the full picture is hazy to most -- dimly concealed within complex, opaquely-rendered systems and fine print designed to be scrolled past." In other words, you may have consented to this because you weren't bothered to investigate the details, but you may feel differently if you knew exactly what online advertisers know about you. However, Facebook wasn't having it, and shut down both the campaign and Signal's ad account.

America Online

About 1.5 Million People Still Pay for AOL (cnbc.com) 81

Amid the hodgepodge of Verizon Media assets that Apollo Global Management is buying from Verizon -- Yahoo Finance, TechCrunch, advertising technology, Yahoo Fantasy -- there's one cash flow stream that will not die: AOL. From a report: The famed internet company that once bought Time Warner for $182 billion and used to make billions of dollars annually selling dial-up modem access, still has a monthly subscription service called AOL Advantage. In 2015, 2.1 million people were still using AOL's dial-up service. That revenue stream has dried up. The number of dial-up users is now "in the low thousands," according to a person familiar with the matter.

But AOL still has a fairly lucrative base of customers who pay for technical support and identity theft services each month. There are about 1.5 million monthly customers paying $9.99 or $14.99 per month for AOL Advantage, said another person, who asked not to be named because the information is private. If average revenue per user is $10 per month, conservatively, that's $180 million of annual revenue.

Verizon

Verizon Is Weighing a Sale of Yahoo, AOL (bloomberg.com) 88

According to Bloomberg, Verizon is considering selling AOL and Yahoo -- two once high-flying dot-com brands it purchased in 2015 and 2017, respectively. Bloomberg reports: Verizon Media could fetch as much as $5 billion [...]. The company is talking to Apollo Global Management about a deal, they said. It couldn't immediately be learned how a deal would be structured or if other suitors may emerge. No final decision has been made and Verizon could opt to keep the unit. The move comes as Verizon divests tertiary media assets while ramping up its focus on its wireless business and the the rollout of its 5G service. Last year, it agreed to sell the HuffPost online news service to BuzzFeed Inc. and it unloaded the blogging platform Tumblr in 2019. This divestiture would mark Verizon's final retreat from an expensive foray into online advertising, a strategy that never really took off.
Google

Google Is Saving Over $1 Billion a Year by Working From Home (bloomberg.com) 32

With Covid-19 restrictions lifting, more people are booking trips and hotels online, which is very good for Google's advertising business. Google's employees, however, are working from home and not traveling as much on the company dime -- and that's also good for its business. From a report: During the first quarter, Google parent Alphabet saved $268 million in expenses from company promotions, travel and entertainment, compared to same period a year earlier, "primarily as a result of COVID-19," according to a company filing. On an annualized basis, that would be more than $1 billion. Indeed, Alphabet said in its annual report earlier this year that advertising and promotional expenses dropped by $1.4 billion in 2020 as the company reduced spending, paused or rescheduled campaigns, and changed some events to digital-only formats due to the pandemic. Travel and entertainment expenses fell by $371 million. The savings offset many of the costs that came with hiring thousands more workers. And the pandemic prudence allowed the company to keep its marketing and administrative costs effectively flat for the first quarter, despite boosting revenue by 34%.
Youtube

YouTube is a Media Juggernaut That Could Soon Equal Netflix in Revenue (cnbc.com) 40

Google's YouTube is already the world's largest online video platform. If continues growing the way it has the last several quarters, it could also match Netflix in revenues by year's end. From a report: In its first-quarter earnings report Tuesday, Google parent company Alphabet said YouTube brought in revenue of $6.01 billion in advertising revenue during the quarter -- up from $4 billion from a year ago, for a growth rate of 49%. That's an acceleration over its 46% growth in Q4. It's also nearly twice the growth rate of Netflix, which reported 24% revenue growth in Q1, and expects growth to slow to 19% next quarter. If its current growth trajectory continues, YouTube will book between $29 billion and $30 billion in revenue this year. Netflix is expected to report $29.7 billion in revenue for 2021, according to an average of estimates from analysts polled by Refinitiv.
The Courts

ADT Sues Amazon's Ring Over Use of Blue Octagon Logo (cnet.com) 83

ADT, a home security company in the United States with over 6 million customers, is suing Amazon's Ring, alleging that the DIY home security company is copying ADT's logo and profiting from customer trust associated with it. From a report: ADT has asked a federal judge in Florida to order Ring to stop using its blue, octagonal signs and to pay unspecified compensation to the security company. In the complaint, ADT said it asked Ring to stop copying its blue octagon logo in 2016, after which the Amazon-owned company removed the blue color from its sign, but kept the octagon shape. In late March, upon releasing a new outdoor siren, Ring added the blue back to its advertising materials. ADT also said in the complaint that it owns 12 trademarks for the shape, color and look of its blue, octagonal sign.
Google

JavaScript Developers Left in the Dark After DroidScript Software Shut Down by Google Over Ad Fraud Allegations (theregister.com) 40

On the last day of March, DroidScript, a popular Android app for writing JavaScript code, had its Google advertising account suspended and a week later was removed from the Google Play Store for alleged ad fraud. From a report: David Hurren, founder of the non-profit DroidScript.org and of SoftCogs Ltd, a UK-based software firm, is baffled by the charge and asked Google to explain how it came to that conclusion and to reconsider its suspension of DroidScript. But his appeals have been answered by form letters and now the app, used by more than 100,000 developers, including students, teachers and professionals, is losing premium subscribers as well as ad revenue with no further explanation from Google.

The app had only a single banner, added "reluctantly added to cover our development and hosting costs," Hurren explained in a DroidScript forum post about the crisis. Denied access to ad revenue and details about the supposed infraction, Hurren set about creating a new version without the AdMob banner ad shortly after the AdMob account suspension, knowing this might also prevent DroidScript users from implementing AdMob in their own apps. But Google, on April 7, suspended the app on Google Play, preventing any new version from being released. Hurren said that means the app loses all the user-ratings, download statistics, and premium subscribers accrued over the past seven years.

IOS

Apple Releases iOS 14.5 With Much-Talked About App Tracking Transparency Feature (apple.com) 19

Apple on Monday released iOS 14.5, which bring a range of new features to iPhone, including the ability to unlock iPhone with Apple Watch while wearing a face mask, more diverse Siri voices, new privacy controls, skin tone options to better represent couples in emoji, and much more. iOS 14.5 builds on the reimagined iPhone experience introduced in iOS 14, and is available today as a free software update. Regarding the new privacy controls, Apple has described it as: App Tracking Transparency requires apps to get the user's permission before tracking their data across apps or websites owned by other companies for advertising, or sharing their data with data brokers. Apps can prompt users for permission, and in Settings, users will be able to see which apps have requested permission to track so they can make changes to their choice at any time.
Facebook

How Mark Zuckerberg and Tim Cook Became Foes (nytimes.com) 118

The chief executives of Facebook and Apple have opposing visions for the future of the internet. Their differences are set to escalate later today. The New York Times: At a confab for tech and media moguls in Sun Valley, Idaho, in July 2019, Timothy D. Cook of Apple and Mark Zuckerberg of Facebook sat down to repair their fraying relationship. For years, the chief executives had met annually at the conference, which was held by the investment bank Allen & Company, to catch up. But this time, Facebook was grappling with a data privacy scandal. Mr. Zuckerberg had been blasted by lawmakers, regulators and executives -- including Mr. Cook -- for letting the information of more than 50 million Facebook users be harvested by a voter-profiling firm, Cambridge Analytica, without their consent. At the meeting, Mr. Zuckerberg asked Mr. Cook how he would handle the fallout from the controversy, people with knowledge of the conversation said. Mr. Cook responded acidly that Facebook should delete any information that it had collected about people outside of its core apps.

Mr. Zuckerberg was stunned, said the people, who were not authorized to speak publicly. Facebook depends on data about its users to target them with online ads and to make money. By urging Facebook to stop gathering that information, Mr. Cook was in effect telling Mr. Zuckerberg that his business was untenable. He ignored Mr. Cook's advice. Two years later, Mr. Zuckerberg and Mr. Cook's opposing positions have exploded into an all-out war. On Monday, Apple plans to release a new privacy feature that requires iPhone owners to explicitly choose whether to let apps like Facebook track them across other apps. One of the secrets of digital advertising is that companies like Facebook follow people's online habits as they click on other programs, like Spotify and Amazon, on smartphones. That data helps advertisers pinpoint users' interests and better target finely tuned ads. Now, many people are expected to say no to that tracking, delivering a blow to online advertising -- and Facebook's $70 billion business.

At the center of the fight are the two C.E.O.s. Their differences have long been evident. Mr. Cook, 60, is a polished executive who rose through Apple's ranks by constructing efficient supply chains. Mr. Zuckerberg, 36, is a Harvard dropout who built a social-media empire with an anything-goes stance toward free speech. Those contrasts have widened with their deeply divergent visions for the digital future. Mr. Cook wants people to pay a premium -- often to Apple -- for a safer, more private version of the internet. It is a strategy that keeps Apple firmly in control. But Mr. Zuckerberg champions an "open' internet where services like Facebook are effectively free. In that scenario, advertisers foot the bill. The relationship between the chief executives has become increasingly chilly, people familiar with the men said. While Mr. Zuckerberg once took walks and dined with Steve Jobs, Apple's late co-founder, he does not do so with Mr. Cook. Mr. Cook regularly met with Larry Page, Google's co-founder, but he and Mr. Zuckerberg see each other infrequently at events like the Allen & Company conference, these people said.

Facebook

Facebook Mistakenly Deletes Page for the Town of Bitche, France (slate.com) 76

"Ville de Bitche is a town situated in northwestern France with a rich military history, pastoral landscape, and an unfortunate sounding name," reports Slate. (Adding that the "e" is silent....)

"Recently tiny Bitche made international headlines after Facebook mistook the city's name for a swear word and deleted the town's Facebook page." The city's communication manager, Valêrie Degouy, contacted Facebook on March 19 to explain the situation and ask the company to reverse its decision — for the second time. (The page was previously deleted in 2016.) As she awaited Facebook's response — which apologized and reinstated the page Tuesday — Degouy set up a new page for her town, under the name of Marie 57230, her city's postal code. Although Facebook's mistake seems innocuous enough, for the towns located around Bitche, local Facebook pages serve as the main form of communication. Shutting the page down effectively creates a local news blackout. When Rohrbach-les Bitche — a nearby town in the region — heard about the deletion, it quickly rid "ls-Bitche" from its Facebook page name to avoid a similar fate...

The residents of Bitche are far from alone in their reliance on Facebook for local news. In the United States alone, more than 2,000 local newspapers have closed over the past two decades, according to an estimate from Joshua Scacco, associate professor of political communication at the University of South Florida. In these news deserts, Facebook has risen as an alternative information source, allowing anyone with an account to share updates and post events...

But Facebook is not only filling the local news void — it is tied to local papers' disappearance. "Social and digital media are a contributing factor in thinking about the declines of the presence of local newsrooms, as well as what that coverage looks like for the local newsrooms that remain," Scacco says. Facebook is moving advertising dollars away from local newspapers, and even driving the content local newspapers create. Local news coverage often panders to Facebook's algorithms when creating content and headlines, notes Ashley Muddiman, a communications professor at the University of Kansas.

Movies

Apple Must Face Lawsuit for Telling Consumers They Can 'Buy' Movies, TV Shows (hollywoodreporter.com) 130

If possession is nine-tenths of the law, what happens when possession gets slippery? From a report: That's a question for a federal courtroom in Sacramento, California, where Apple is facing a putative class action over the way consumers can "buy" or "rent" movies, TV shows and other content in the iTunes Store. David Andino, the lead plaintiff in this case, argues the distinction is deceptive. He alleges Apple reserves the right to terminate access to what consumers have "purchased," and in fact, has done so on numerous occasions. This week, U.S. District Court Judge John Mendez made clear he isn't ready to buy into Apple's view of consumer expectations in the digital marketplace. "Apple contends that '[n]o reasonable consumer would believe' that purchased content would remain on the iTunes platform indefinitely," writes Mendez. "But in common usage, the term 'buy' means to acquire possession over something. It seems plausible, at least at the motion to dismiss stage, that reasonable consumers would expect their access couldn't be revoked." Apple tried other ways to slip away from claims of false advertising and unfair competition. For example, it tried the time-tested approach of challenging Andino's "injury" to knock his potential standing as a plaintiff.
Google

Daily Mail Owner Sues Google Over Search Results (bbc.com) 73

The owner of the Daily Mail newspaper and MailOnline website is suing Google over allegations the search engine manipulates search results. The BBC reports: Associated Newspapers accuses Google of having too much control over online advertising and of downgrading links to its stories, favoring other outlets. It alleges Google "punishes" publishers in its rankings if they don't sell enough advertising space in its marketplace. Google called the claims "meritless."

Associated Newspapers' concerns stem from its assessment that its coverage of the Royal Family in 2021 has been downplayed in search results. For example, it claims that British users searching for broadcaster Piers Morgan's comments on the Duchess of Sussex following an interview with Oprah Winfrey were more likely to see articles about Morgan produced by smaller, regional outlets. That is despite the Daily Mail writing multiple stories a day about his comments around that time and employing him as a columnist.
In response, a Google spokesperson said: "The Daily Mail's claims are completely inaccurate. The use of our ad tech tools has no bearing on how a publisher's website ranks in Google search. More generally, we compete in a crowded and competitive ad tech space where publishers have and exercise multiple options. The Daily Mail itself authorizes dozens of ad tech companies to sell and manage their ad space, including Amazon, Verizon and more. We will defend ourselves against these meritless claims."

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