Meta said it plans to introduce advertisements on Threads starting in early 2025, according to a report by The Information (paywalled). GuruFocus reports: Leading the effort -- which is still in its early phases -- is a team inside Instagram's advertising division. One source said Threads is anticipated to let a small number of marketers produce and post material on the platform in January. Threads had about 275 million monthly active users as late as October. During the company's third-quarter earnings call, Meta CEO Mark Zuckerberg observed that Threads daily sign-up count was about one million, each day.

An anonymous reader quotes a report from TechCrunch: The FBI is warning that hackers are obtaining private user information — including emails and phone numbers — from U.S.-based tech companies by compromising government and police email addresses to submit "emergency" data requests. The FBI's public notice filed this week is a rare admission from the federal government about the threat from fraudulent emergency data requests, a legal process designed to help police and federal authorities obtain information from companies to respond to immediate threats affecting someone's life or property. The abuse of emergency data requests is not new, and has been widely reported in recent years. Now, the FBI warns that it saw an "uptick" around August in criminal posts online advertising access to or conducting fraudulent emergency data requests, and that it was going public for awareness.

"Cyber-criminals are likely gaining access to compromised US and foreign government email addresses and using them to conduct fraudulent emergency data requests to US based companies, exposing the personal information of customers to further use for criminal purposes," reads the FBI's advisory. [...] The FBI said in its advisory that it had seen several public posts made by known cybercriminals over 2023 and 2024, claiming access to email addresses used by U.S. law enforcement and some foreign governments. The FBI says this access was ultimately used to send fraudulent subpoenas and other legal demands to U.S. companies seeking private user data stored on their systems. The advisory said that the cybercriminals were successful in masquerading as law enforcement by using compromised police accounts to send emails to companies requesting user data. In some cases, the requests cited false threats, like claims of human trafficking and, in one case, that an individual would "suffer greatly or die" unless the company in question returns the requested information.

The FBI said the compromised access to law enforcement accounts allowed the hackers to generate legitimate-looking subpoenas that resulted in companies turning over usernames, emails, phone numbers, and other private information about their users. But not all fraudulent attempts to file emergency data requests were successful, the FBI said. The FBI said in its advisory that law enforcement organizations should take steps to improve their cybersecurity posture to prevent intrusions, including stronger passwords and multi-factor authentication. The FBI said that private companies "should apply critical thinking to any emergency data requests received," given that cybercriminals "understand the need for exigency."

The FBI is warning that hackers are obtaining private user information -- including emails and phone numbers -- from U.S.-based tech companies by compromising government and police email addresses to submit "emergency" data requests. From a report: The FBI's public notice filed this week is a rare admission from the federal government about the threat from fraudulent emergency data requests, a legal process designed to help police and federal authorities obtain information from companies to respond to immediate threats affecting someone's life or property.

The abuse of emergency data requests is not new, and has been widely reported in recent years. Now, the FBI warns that it saw an "uptick" around August in criminal posts online advertising access to or conducting fraudulent emergency data requests, and that it was going public for awareness. "Cyber-criminals are likely gaining access to compromised U.S. and foreign government email addresses and using them to conduct fraudulent emergency data requests to U.S. based companies, exposing the personal information of customers to further use for criminal purposes," reads the FBI's advisory.

IBM is facing a new lawsuit alleging that its Weather Channel website shared users' personal data with third-party ad partners without consent, violating the Video Privacy Protection Act (VPPA). The Register reports: In the absence of a comprehensive federal privacy law, the complaint [PDF] claims Big Blue violated America's Video Privacy Protection Act (VPPA), enacted in 1988 in response to the disclosure of Supreme Court nominee Robert Bork's videotape rental records. IBM was sued in 2019 (PDF) by then Los Angeles City Attorney Mike Feuer over similar allegations: That its Weather Channel mobile app collected and shared location data without disclosure. The IT titan settled that claim in 2020. A separate civil action against IBM's Weather Channel was filed in 2020 and settled in 2023 (PDF).

This latest legal salvo against alleged Weather Channel-enabled data collection takes issue with the sensitive information made available through the company's website to third-party ad partners mParticle and AppNexus/Xandr (acquired by Microsoft in 2022). The former provides customer analytics, and the latter is an advertising and marketing platform. The complaint, filed on behalf of California plaintiff Ed Penning, contends that by watching videos on the Weather Channel website, those two marketing firms received Penning's full name, gender, email address, precise geolocation, the name, and the URLs of videos he watched, without his permission or knowledge.

It explains that the plaintiff's counsel retained a private research firm last year to analyze browser network traffic during video sessions on the Weather Channel website. The research firm is said to have confirmed that the website provided the third-party ad firms with information that could be used to identify people and the videos that they watched. The VPPA prohibits video providers from sharing "personally identifiable information" about clients without their consent. [...] The lawsuit aspires to be certified as a class action. Under the VPPA, a successful claim allows for actual damages (if any) and statutory damages of $2,500 for each violation of the law, as well as attorney's fees.

The Washington Post reports that America's Consumer Financial Protection Bureau (or CFPB) "is considering legal action against Meta over allegations that it improperly used financial data obtained from third parties in its highly-lucrative advertising business..."

The article says a Meta securities filing Thursday revealed it had received a formal notification about the federal investigation last month. The filing said only that the inquiry relates to "advertising for financial products and services on our platform." A spokesperson for Meta declined to comment on the investigation. "We disagree with the claims," the company's filing said, "and believe an enforcement action is unwarranted...."

The CFPB's probe underscores its aggressive recent focus on Big Tech. In recent years, major companies including Apple, Amazon, Facebook and Google have launched a wave of new financial services, including credit cards and apps that help users send money to friends... Under its current director, Rohit Chopra, the CFPB has also sought to ensure that tech giants adhere to the same safeguards that have long applied to their brick-and-mortar banking predecessors. The bureau formalized its tech crackdown in 2021, when Chopra ordered companies including Facebook to turn over records related to their payment apps and other financial service offerings.

At the time, he expressed fear that these giants already possessed troves of customer data and could solidify their dominance if they gained greater insight into users' purchasing and spending habits. "This data can be monetized by companies that seek to profit from behavioral targeting, particularly around advertising and e-commerce," Chopra said in a statement announcing the review. "That many Big Tech companies aspire to grow in this space only heightens these concerns." Since then, the watchdog agency has proposed new rules that could treat Apple, Google and PayPal-owned Venmo more like banks, opening the door for federal regulators to inspect some of their operations in a bid to protect users' deposits.

The rules, which have not been finalized, have sparked fierce lobbying opposition from major tech companies.

In Reddit's third-quarter earnings results, the company reported a profit of $29.9 million, with $348.4 million in revenue -- a 68% increase year over year. The Verge reports: The company hasn't been profitable at any point in its nearly 20-year history. Since going public, Reddit lost $575 million during its first quarter on the market, but it decreased that loss to $10 million last quarter, and is now finally in the green. Reddit also grew to 97.2 million daily users over the past few months, marking a 47 percent increase from the same time last year. That number exceeded 100 million users on some days during the quarter, Reddit says.

Reddit's advertising revenue grew to $315.1 million, while "other" revenue reached $33.2 million on account of "data licensing agreements signed earlier this year." Both Google and OpenAI have cut deals with Reddit to train their AI models on its posts.

Microsoft took the unusual step on Monday of publicly criticizing longtime rival Google for running "shadow campaigns" in Europe designed to discredit the software giant with regulators. CNBC: Microsoft lawyer Rima Alaily wrote in a blog post that Google hired a firm to recruit European cloud companies to represent the search company's case. "This week an astroturf group organized by Google is launching," Microsoft lawyer Rima Alaily wrote in a blog post. "It is designed to discredit Microsoft with competition authorities, and policymakers and mislead the public. Google has gone through great lengths to obfuscate its involvement, funding, and control, most notably by recruiting a handful of European cloud providers, to serve as the public face of the new organization."

The conflict represents a fresh battle between two companies that do battle in cloud infrastructure as well as online advertising and productivity software. The latest chapter surfaces as Google faces heightened regulatory pressure in Europe and in the U.S., where it's in the midst of its second antitrust trial against the Justice Department. Alaily suggested in Monday's post that Google hired advisory firm DGA Group to set up the Open Cloud Coalition. One company that opted not to participate in the group told Microsoft that the coalition would receive financial backing from Google and criticize Microsoft's practices in Europe, Alaily wrote.

PayPal will begin sharing detailed customer purchase data, including clothing sizes and shopping preferences, with retailers for targeted advertising starting November 27, the payments company announced in a recent privacy update. The initiative affects PayPal's 391 million active consumer accounts worldwide. While customers can opt out through the app's settings, the GAO reports such opt-out rates typically remain below 7% across financial services.

Cable companies, advertising firms, and newspapers are asking courts to block a federal "click-to-cancel" rule that would force businesses to make it easier for consumers to cancel services. From a report: Lawsuits were filed yesterday, about a week after the Federal Trade Commission approved a rule that "requires sellers to provide consumers with simple cancellation mechanisms to immediately halt all recurring charges."

Cable lobby group NCTA-The Internet & Television Association and the Interactive Advertising Bureau trade group sued the FTC in the conservative US Court of Appeals for the 5th Circuit. The lawsuit claims the 5th Circuit is a proper venue because a third plaintiff, the Electronic Security Association, has its principal offices in Dallas. That group represents security companies such as ADT.

Ireland's data-protection watchdog fined LinkedIn 310 million euros ($334.3 million), saying the Microsoft-owned career platform's personal-data processing breached strict European Union data-privacy and security legislation. From a report: The Irish Data Protection Commission in 2018 launched a probe into LinkedIn's processing of users' personal data for behavioral analysis and targeted advertising after its French equivalent flagged a complaint it received from a non-profit organization. Irish officials raised concerns on the lawfulness, fairness and transparency of the practice, saying Thursday that LinkedIn was in breach of the EU's General Data Protection Regulation.

"The lawfulness of processing is a fundamental aspect of data protection law and the processing of personal data without an appropriate legal basis is a clear and serious violation of a data subjects' fundamental right to data protection," said Graham Doyle, deputy commissioner at the Irish Data Protection Commission. In their decision, Irish officials said LinkedIn wasn't sufficiently informing users when seeking their consent to process third-party data for behavioral analysis and targeted advertising and ordered the platform to bring its processing into compliance.

Democratic senators Elizabeth Warren, Ron Wyden, Richard Blumenthal and Representative Katie Porter are demanding the Justice Department prosecute tax preparation companies for allegedly sharing sensitive taxpayer data with Meta and Google through tracking pixels. The lawmakers' call follows a Treasury Inspector General audit confirming their earlier investigation into TaxSlayer, H&R Block, and Tax Act. The audit found multiple companies failed to properly obtain consent before sharing tax return information via advertising tools. Violations could result in one-year prison terms and $1,000 fines per incident, potentially reaching billions in penalties given the scale of affected users.

In a letter shared with The Verge, the lawmakers said: "Accountability for these tax preparation companies -- who disclosed millions of taxpayers' tax return data, meaning they could potentially face billions of dollars in criminal liability -- is essential for protecting the rule of law and the privacy of taxpayers," the letter reads. "We urge you to follow the facts and the conclusions of TIGTA and the IRS and to take appropriate action against any companies or individuals that have violated the law."

TikTok's parent company, ByteDance, fired an intern for "maliciously interfering" with the training of one of its AI models. However, the firm "rejected claims about the extent of the damage caused by the unnamed individual, saying they 'contain some exaggerations and inaccuracies,'" reports the BBC. From the report: The Chinese technology giant's Doubao ChatGPT-like generative AI model is the country's most popular AI chatbot. "The individual was an intern with the [advertising] technology team and has no experience with the AI Lab," ByteDance said in a statement. "Their social media profile and some media reports contain inaccuracies." Its commercial online operations, including its large language AI models, were unaffected by the intern's actions, the company added.

ByteDance also denied reports that the incident caused more than $10 million of damage by disrupting an AI training system made up of thousands of powerful graphics processing units (GPU). As well as firing the person in August, ByteDance said it had informed the intern's university and industry bodies about the incident.

Netflix has begun raising prices in several countries, including Japan, parts of Europe, and Africa, as it seeks to sustain growth following its crackdown on password sharing. While its recent financial results show strong revenue growth, the company faces challenges in finding new subscribers and aims to boost future growth through advertising and fresh content. The BBC reports: In its latest results, Netflix announced that it had added 5.1 million subscribers between July and September - ahead of forecasts but the smallest gain in more than a year. The company is under pressure to show investors what will power growth in the years ahead, as its already massive reach makes finding new subscribers more difficult. The last time Netflix saw signs of slowdown, in 2022, it launched measures to stop password sharing and said it would offer a new streaming option with advertisements.

The crackdown unleashed a new wave of growth. The firm has added more than 45 million new members since last year and has 282 million subscribers globally. Analysts also expect advertisements to eventually become big business for Netflix. For now, however, Netflix has said it remains "early days" and warned it did not expect it to start driving growth until next year, despite many subscribers opting for the ad-supported plan. The plan, which is the company's least expensive option, accounted for 50% of new sign-ups in the places where it is offered in the most recent quarter, Netflix said. Even without a boost from advertising, Netflix said revenue in the July-September period was up 15% compared with the same period last year, to more than $9.8 billion. Profit also rose from $1.6 billion in the same period last year to $2.3 billion.

An anonymous reader shares a report: Households on individual streets will be targeted with personalised adverts under plans being rolled out by Channel 4. The channel is to use new technology which will allow brands to tailor who sees their advert by enabling them to select a demographic within a specific location down to street level. For example, someone watching Made in Chelsea on Channel 4's streaming service could be served an ad for a fashion brand in a local outlet to them if a particular fashion trend is being discussed.

Advertisers can further optimise their campaign by selecting from 26 programme genres, as well as time of day and device the show is being watched on. It forms part of a wider update to Channel 4's streaming platform that the broadcaster hopes could boost revenues by as much as $13m. The company will launch a new private marketplace enabling brands to buy advertising space directly in real-time. This will allow advertisers to amend their campaigns to respond to events, whether that be real-world events such as local weather or developments in fictional storylines within TV shows. Channel 4's new ad targeting also includes more detailed data to track whether a viewer has made a purchase after seeing an ad, as well as new viewer profiles for brands to target.

Many U.S. states now require candidates to disclose when political ads used generative AI, reports the Washington Post.

Unfortunately, researchers at New York University's Center on Technology Policy "found that people rated candidates 'less trustworthy and less appealing' when their ads featured AI disclaimers..." In the study, researchers asked more than 1,000 participants to watch political ads by fictional candidates — some containing AI disclaimers, some not — and then rate how trustworthy they found the would-be officeholders, how likely they were to vote for them and how truthful their ads were. Ads containing AI labels largely hurt candidates across the board, with the pattern holding true for "both deceptive and more harmless uses of generative AI," the researchers wrote. Notably, researchers also found that AI labels were more harmful for candidates running attack ads than those being attacked, something they called the "backfire effect".

"The candidate who was attacked was actually rated more trustworthy, more appealing than the candidate who created the ad," said Scott Babwah Brennen, who directs the center at NYU and co-wrote the report with Shelby Lake, Allison Lazard and Amanda Reid.
One other interesting finding... The article notes that study participants in both parties "preferred when disclaimers were featured anytime AI was used in an ad, even when innocuous."

In response to California's new law targeting "false advertising" of "digital goods," Valve has added the following language to its checkout page: "A purchase of a digital product grants a license for the product on Steam." Ars Technica reports: California's AB2426 law, signed by Gov. Gavin Newsom Sept. 26, excludes subscription-only services, free games, and digital goods that offer "permanent offline download to an external storage source to be used without a connection to the internet." Otherwise, sellers of digital goods cannot use the terms "buy, purchase," or related terms that would "confer an unrestricted ownership interest in the digital good." And they must explain, conspicuously, in plain language, that "the digital good is a license" and link to terms and conditions.

Which is what Valve has now added to its cart page before enforcement of these terms was due to start next year. The company has long made it clear, deeper inside its End User License Agreement (EULA), that a purchase is a license, and those licenses cannot be resold, which avoids issues of one's right to resell a game. Now it is something that every user sees on every purchase, however quickly they click-through to get to their download.

An anonymous reader quotes a report from Wired: Amazon might not have ChatGPT, but it has a roadmap that includes developing even more advanced forms of artificial intelligence -- including AI agents that are hell-bent on helping you buy stuff. The ecommerce company is already sprinkling ChatGPT-like AI over its website and apps -- today announcing, among other enhancements, AI-generated shopping guides for hundreds of different product categories. Executives at the company say its engineers are also exploring more ambitious AI services, including autonomous AI shopping agents that recommend goods to a customer or even add items to their cart.

"It's on our roadmap. We're working on it, prototyping it, and when we think it's good enough, we'll release it in whatever form makes sense," says Trishul Chilimbi, a VP and distinguished scientist at Amazon who works on applying the company's core AI to its products and services. Chilimbi says the first step toward AI agents will likely be chatbots that proactively recommend products based on what they know of your habits and interests, as well as a grasp of broader trends. He acknowledges that making this feel nonintrusive will be crucial. "If it's no good and annoying, then you'll tune it out," he says. "But if it comes up with surprising things that are interesting, you'll use it more." [...]

Like many tech companies, Amazon is looking beyond chat and turning its attention toward the potential of so-called agents, which use LLMs but attempt to carry out useful tasks on users' behalf either by writing code on-the-fly, inputing text, or moving a computer's cursor. Future AI agents might, for instance, navigate various websites to sort out a parking ticket, or they might operate a PC to file a tax return. Getting LLM-powered programs to do this reliably is elusive, however, because such tasks are vastly more complex than simple queries and require a new level of precision and reliability.

Amazon's agents are, of course, likely to be more focused on helping customers find and buy whatever they need or want. A Rufus agent might notice when the next book in a series someone is reading becomes available and then automatically recommend it, add it to your cart, or even buy it for you, says Rajiv Mehta, a vice president at Amazon who works on conversational AI shopping. "It could say, 'We have one bought for you. We can ship it today, and it will arrive tomorrow morning at your door. Would you like that?'" Mehta says. He adds that Amazon is thinking about how advertising can be incorporated into its model's recommendation. Chilimbi and Mehta say that eventually, an agent might go on a shopping spree when a customer says, "I'm going on a camping trip, buy me everything I need." An extreme, though not impossible, scenario would involve agents that decide for themselves when a customer needs something, and then buy and ship it to their door. "You could maybe give it a budget," Chilimbi says with a grin.

In a new 32-page filing (PDF), the Department of Justice indicated that it was considering a possible breakup of Google as an antitrust remedy for its search and advertising monopoly. The remedies necessary to "prevent and restrain monopoly maintenance could include contract requirements and prohibitions; non-discrimination product requirements; data and interoperability requirements; and structural requirements," the department said in the filing. CNBC reports: The DOJ also said it was "considering behavioral and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search and Google search-related products and features -- including emerging search access points and features, such as artificial intelligence -- over rivals or new entrants."

Additionally, the DOJ suggested limiting or prohibiting default agreements and "other revenue-sharing arrangements related to search and search-related products." That would include Google's search position agreements with Apple's iPhone and Samsung devices -- deals that cost the company billions of dollars a year in payouts. The agency suggested one way to do this is requiring a "choice screen," which could allow users to pick from other search engines. Such remedies would end "Google's control of distribution today" and ensure "Google cannot control the distribution of tomorrow."

The decline of journalism has been attributed to many factors, from slow adaptation to the internet to the dominance of tech giants in advertising. But a veteran journalist offers a new perspective: the death of the hyperlink could be changing the fundamental nature of the internet, with significant implications for the news industry. Matt Pearce: There is a real bias against hyperlinking that has developed on platforms and apps over the last five years in particular. It's something that's kind of operating hand-in-hand with the rise of algorithmic recommendations. You see this on Elon Musk's version of Twitter, where posts with hyperlinks are degraded. Facebook itself has decided to detach itself from displaying a lot of links. That's why you get so much AI scum on Facebook these days. Instagram itself has always been kind of hostile to linking. TikTok as well...

If you degrade hyperlinks, and you degrade this idea of the internet as something that refers you to other things, you instead have this stationary internet where a generative AI agent will hoover up and summarize all the information that's out there, and place it right in front of you so that you never have to leave the portal... That was a real epiphany to me, because the argument against one form of this legislation was, "My God, you'll destroy this fundamental way of how the internet works." I'm like, dude, these companies are already destroying the fundamental way of how the internet works.

[...] If you look at what technology has done to journalism over the last 10 years, it was journalists who figured out how to make Twitter work for them. It was journalists who figured out how to be really good on Instagram and Tik Tok. I know there's this argument about content creators and versus journalists, but I'm like, we're all in the same ecosystem. If you're performing the functions of a journalist, you're a journalist. Some people are really good on different platforms. But it's hard to imagine a scenario where Google is going to be the party that creates a more humane, intelligent, responsive form of journalism.

Google's grip on the nearly $300 billion search advertising business is loosening. From a report: For years, the tech giant has seemed invincible in this corner of the ad market, which is the foundation of its business. Now, rivals are beginning to eat into its lead, and new offerings -- fueled by the rise of artificial intelligence and social video -- threaten to reshape the landscape. TikTok, the wildly popular short-form video platform, has recently started allowing brands to target ads based on users' search queries -- a direct challenge to Google's core business.

Perplexity, an AI search startup backed by Jeff Bezos, plans to introduce ads later this month under its AI-generated answers. Until now, it has made revenue mostly from a $20-a-month subscription offering that grants access to more-powerful AI technology. The new initiatives add to the pressure on Google from the rise of Amazon.com, which has taken a chunk of search ad spending. Many consumers begin product searches on the e-commerce platform.

Google's share of the U.S. search ad market is expected to drop below 50% next year for the first time in over a decade, according to the research firm eMarketer. Amazon is expected to have 22.3% of the market this year, with 17.6% growth, compared with Google's 50.5% share and its 7.6% growth.