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It’s time for a digital protection agency (bloomberg.com)
253 points by adrian_mrd on March 25, 2018 | hide | past | favorite | 195 comments



I have a loosely imagined regulatory solution to the particular problem of secretive data brokerages and user targeting. It works at follows:

* Targeted ads are required to include both a declaration that they are targeted to a user and what criteria were used to select the user.

* Ad and data brokers are required to provide a chain of discovery detailing where the individual ad or data entity received information that contributed to the targeting of the user. (I think this was hit upon in TFA, but it was difficult to get through with the focus as it was mostly on credentials and PII).

* Firms which hold user targeting information and information on individual user preferences are required to allow users to have their records removed from the firm's database.

I'm sure this seems punitive to the companies it would affect, but I'm not sure that's a problem overall. It allows people to control the information that is collected about them and puts the onus on the companies benefiting from that information. If user targeting really does help in product discovery and user preference marching, then the ad and data companies will be rewarded, and the price of regulation will be the cost of information transparency. If it turns out that users really don't want to have dozens of companies tracking their every move then the advertising business model will be starved and make way for companies with more innovative, user-friendly business models.

Edit: autocorrect fucking up words that autocomplete originally predicted correctly.


If you haven't already, you might enjoy reading the EU's forthcoming GDPR regulations [1] they cover all of this and much, much more including things like:

- data should be exportable in digital formats

- you can request what information a company has about you regardless if you're a full "user/customer" (think of things like how FB tracks anyone who visits a webpage with a Like button).

- you have the right to request a manual review of computer made decisions (ex: a credit approval)

- right to have your data corrected/fixed if it's listed incorrectly

- right to escalate to each country's "supervisory authority" (this is the agency within each country that handles things)

- serious fines in case of non compliance (% of revenue, not a flat amount)

1 - https://blog.varonis.com/gdpr-requirements-list-in-plain-eng...


Agree about the overlap, but want to call to attention OP's requirement that I don't believe is part of GDPR:

> Targeted ads are required to include both a declaration that they are targeted to a user and what criteria were used to select the user.

This makes a massive difference! GDPR currently revolves around informed users making a request. OP's requirement would force companies to educate users about their methods. I see an analogy to the health warnings on tobacco ads.

Incidentally, as someone who thinks targeted ads can be beneficial, I think this would help me interpret and engage with "sincere" targeting.


This is a part of the GDPR - the language is so generic that I think much of this will come out in future court cases, but check out Article 21 and 22 of the GDPR which I think addresses this (but IANAL)

https://blog.varonis.com/gdpr-requirements-list-in-plain-eng...

People can object to be profiled and can ask a person for help like: "Why am I seeing this? Please stop"


Belated thanks for the really useful link! I hadn't looked into these opt-out/review requirements before. But, FWIW, I still think there's an important difference between a user-driven opt-out (which I also don't read as a guarantee of explanation) and proactive publication of the personalization criteria. It's still possible for an uninformed individual to never even realize content is being personalized for them, much less pass the threshold of asking how.


I was unaware of the percent of revenue fine. What happens to a company with negative revenue? Seems like Hollywood Accounting could be pervasive here.


Revenue, not profit. Revenue cannot be negative.


Nitpick: Sure it can, but it's a corner case. You can recognize revenue one quarter, and have to issue a refund to a client another quarter. If that was your only revenue, you have negative revenue for the second quarter. :)


Gross vs net


> what criteria were used to select the user.

One of the "failures" of modern AI is "human-friendly explanation": how do you explain the process behind a decision when it was based on a very complex model? At least, without having to explain the entire model being employed.


It dosen't matter which model were used or which algorithm, what matters is based on which information about this particular user it was decided what to show. If you only have his IP then ok, but if you have his browsing history then you should disclose that your targeting was based on exact browsing history or any other data you have concerning this user that was used.


Yeah, but if the entire history (some large part) is available, then it is in the interests of advertisers to run their algorithm against that. It's not informative. Needless to say, there is a lot of work being done in academia on the problem of making AI decisions comprehensible to humans. It is not clear yet AFAIK whether any ML techniques (even the most prominent approaches) are ever going to be susceptible to a simple explanation.


Couldn't you just pick the top N paths (maybe ordered by how sensitive they are to changes in input) back through the neural net, then list the data sources they ultimately trace to?

"Visited aaa.example one day ago, .34; visited abc.example three days ago, .27; therefore display ad for zzz.example"


> Yeah, but if the entire history (some large part) is available, then it is in the interests of advertisers to run their algorithm against that.

If they had to disclose what information was used to show the ad, this would at least give a small disincentive to do that.


I think there was a recent paper that explored this.

Essentially, the AI was showing how it came to a conclusion by, for example, highlighting parts of the image based on how much they contributed to a conclusion (and showed that a husky was mistaken for a wolf because of surrounding snow) or words which lead to context (showing that an AI to identify atheist vs theist texts was using email headers instead of the body).

This doesn't of course explain the entire process but it means a doctor for example can see that the AI concluded it's not the flu because while symptoms A an B were present, C wasn't there was a symptom X that is in the "Not flu" category and the doctor can then easily apply human intuition to say it's the flu after all because the patient is according to the medical record prone to X anyway.


There's a whole field studying machine learning interpretability.

This recent Distill article is a good introduction [1].

The lime [2] package, based on this paper [3], is also notable.

[1]: https://distill.pub/2018/building-blocks/

[2]: https://github.com/marcotcr/lime

[3]: https://arxiv.org/abs/1602.04938


My proposed regime is somewhat more simple:

All services are opt-in.

If anyone anywhere is charging for (or profiting from) my data, I get my cut.


Adding that information could be considered an undue burden... see the recent court ruling on California anti-abortion clinics.


Fuck that, I have a better regulation: Targeted ads are illegal, punishable by death. Let's force a different (I don't care if it's "better") business model.


As usual, a bunch of nonsense by people who have no idea about this.

The fundamental problem is that digital advertising is a 12-figure global industry with practically 0 oversight and regulation. This is an industry that sells influence at scale. Anyone with a credit card can start changing how people think and act but there are absolutely no real consequences for bad actors.

Even the most minimal laws around who can advertise and how would radically change everything. Google has even more data than Facebook. Amazon has just as much. Your ISP has just as much. These silly little projects to chase the latest scandal will do nothing in the long run. The only way to fix anything is to regulate the core, not try and fix every little symptom that occurs.

* Before the inevitable comments, yes advertising works, yes it works on you no matter how much you think otherwise, and no adblockers dont magically solve everything.


> This is an industry that sells influence at scale. Anyone with a credit card can start changing how people think and act but there are absolutely no real consequences for bad actors.

Isn't this true of almost any industry which lets you put out information? E.g. news publishing? Book publishing? Blogs?

I mean, what exactly would you do, ban all communications? Maybe I missed something, but it seems like everyone just assumes that advertising is the #1 biggest influence on most people, and was used to completely change the tide of democracy, when in reality it seems to me that it's a small part of the problem, at most.

I'm serious about the question btw - what would you do? You say regulate at the core. I'm not saying necessarily don't regulate (though that is where I lean) - I'm asking, what exactly do you propose?


> what would you do?

1. Break up Facebook under anti-trust law. Social network share is as dangerous as, if not more dangerous than, market share.

2. Pass an American GDPR. Consumers get an absolute right to audit and delete their data. Explicit consent is required for each instance of third-party sharing. Companies are liable to their users for breaches, with a minimum amount claimable through an easily-accessibly regulator.


What would breaking up Facebook look like? Most features of Facebook couldn't operate as standalone businesses without creating their own massive ad networks.


Who cares! Why should companies that only work as monopolies receive extra leeway against anti-trust laws? I cannot think of a compelling reason.


> What would breaking up Facebook look like?

Crack it along its social graph(s) or separate the platform (which would become a regulated utility) from the advertising business.

Mergers offer four broad categories of synergies [1]: demand-side, supply-side, political and administrative. Airline mergers are usually about demand-side synergies. Having more market share gives you better data about future trends. It also gives you pricing power. Media/telecom mergers tend to rely on supply-side synergies: prices won't be raised, but content suppliers can be squeezed for distribution. When Lockheed Martin bought Sikorsky it acquired lots of employees in Connecticut [2]; that bought them some bulldogs in the Congress. (Administrative synergies are mostly B.S.; they fall into the "you have an accounting department, we have an accounting department, combined we can have just one" category and were mostly disproven in the post-WWII conglomerate boom.)

Facebook is a super aggregator [3]; it has both demand-side and supply-side monopolistic synergies. Cracking the demand side means users go to sleep with a Facebook account and wake up with a Facebook No. 3 account. (Or to sleep with an Instagram account and wake up with an Instagram account.) This worked for AT&T and could be done today (at significant expense to Facebook's shareholders as it was to Standard Oil's, AT&T's and Microsoft's). Cleaving social graphs is complicated. But we understand graph theory better today than we did in AT&T's days. Bonus: require an open inter-operability standard if these networks want to interconnect.

Cracking the supply side would involve taking related advertisers and hiving them off into a separate advertising company. The Facebook platform left would be a natural monopoly, regulated like a utility, serving dual profit and public roles. (Messenger, Instagram, M, and other relatively-discrete products would similarly be spun off.)

TL; DR The novelty of breaking up a Facebook is superficial and finds precedent in antitrust enforcement history.

[1] https://www.investopedia.com/terms/s/synergy.asp

[2] http://www.courant.com/business/hc-sikorsky-connecticut-2016...

[3] https://stratechery.com/2017/defining-aggregators/


Good analysis, but the inherent nature of Facebook (and indeed all social media) is that it bridges these social divides.


Instagram and WhatsApp worked fine before they were part of Facebook.


Both were being run off of VC money when Facebook acquired them. They would be in Snapchat's shoes right now if they were still independent.


They are not the issue so much as FBs core business.


Facebook the company, not facebook the application.


Sure, but neither of those have anything to do with what this thread is talking about. Data ownership and privacy are important, but this thread is about GP's claim that (paraphrased) the fundamental problem is that advertising is the ability to buy influence at scale, and that "bad actors" aren't prevented from doing so.


> the fundamental problem is that advertising is the ability to buy influence at scale

Breaking up Facebook reduces all those scaling factors.


Ah, that makes more sense. Thanks for clarifying.

I'm still not so sure it's true though. Is it materially different to go buy from 5 ad brokers instead of 1? Or from ad exchanges that automate it for your? It's hard for me to see how this would have much of an effect, beyond mildly increasing the cost.


> 1. Break up Facebook under anti-trust law. Social network share is as dangerous as, if not more dangerous than, market share.

You should better ask why the mass of people registered on it to let this happen. It is not that privacy activists have not been warning all the time...

To give a little background: In Germany (where there is a lot more concern for privacy) Facebook never got that deeply ingrained into the daily habits of most people. It is also not uncommon that at a social gathering people explicitly tell you that they don't desire that any photos that were taken here to be put on Facebook.


> You should better ask why the mass of people registered on it to let this happen.

Social networks gravitate towards oligopolies(+), because people go wherever everybody else is. Even in Germany, there is a social price to pay for not having a Facebook account.

(+) Oligopolies, because there seems to be a age generation effect: children don't use the network where their parents are.

This is one of the areas where self-regulation simply doesn't work.


> Even in Germany, there is a social price to pay for not having a Facebook account.

I often write here at HN that there is no "objective" status in society, but rather status in various, often vaguely defined groups in the society, where the individual status symbols can even contradict each other.

It is not my impression that all in all I had to pay a social price for not having a Facebook account at any time (quite the opposite). Rather in some groups this lead to a social malus, but in other groups it gave a large social bonus.


I fully agree that this highly depends on the groups to which you belong. Personally, I have not experienced a malus for not having a Facebook account, but I know of occurrences (e.g., a student learning group organizing their communication via Facebook). For myself, I have faced a potential social price for not having a WhatsApp account that was large enough to let me create an account.


This: "Pass an American GDPR."


1) requires a doj investigation and high court ruling, not to mention your particular case "social media share" is without precedent


Well, 1 could also be taken care of by Congress passing a new law. But I think the more interesting alternative is Zuck deciding to do it on his own. There's no reason he couldn't create a nonprofit and give it the "natural monopoly" pieces. That would certainly include identity and the social graph, and maybe a publishing interchange.

Then Facebook could step back and compete on the non-monopoly pieces. The client, of course. But all the add-ons. Groups and events and marketplace and whatever else. Google, Twitter, Amazon, and probably Apple would probably quickly create their own social clients. And would also join some nonprofit advisory board, which would help to set protocols and standards.


Time to set a precedent then.


People keep seeing "regulate" and reading it as "ban".

The UK regulates what you can advertise (no prescription pharma, for example) and extremely limits political advertising and spending. This results in a culture where local volunteers are important and you don't get weird lie-based adverts smearing candidates all the time. (The smearing is done for free by the press instead)

The only point at which I would say this was overreach was the period when Gerry Adams MP was banned from speaking on televion and had to have his words read by an actor.

WRT Facebook, a good start would be to guarantee traceability of ads, plus the ability to see all ads run by a particular entity even if they're not targeted at you.


You started to make an argument for how "regulate" doesn't mean "ban" but then immediately cited how Rx drug ads are banned.


Well, technically we do things like ban outright lying in advertising already, but it's called regulation. Usually when people talk about "bans" they mean blanket bans for an entire industry, like, banning guns, banning fast food, banning drones, etc.


Post I was replying to said (hyperbolically) "ban all communications".


The part about ad campaign transparency was good though. Corporate facebook page data doesn't seem accessible at all. Is there an API for this data that I don't know about??


It is definitely not true for news and book publishing.

For news, consider things like the Chinese wall [1] between news and ad sales, the formal ad standards that news organizations will have, and the fact that at least traditionally, humans manually sell those ads, resulting in oversight.

For books, I'm not even sure what you mean. Book publishers sell books that they think will do well and, mostly, that reflect well on them. You can't just walk into Random House with a credit card and say, "Here's my manuscript, please put it in book stores nationwide."

Personally, I'd just ban all advertising. The economic-theory reason we need it, purchasers discovering better ways to solve their needs, has been made mostly unnecessary by the Internet. Now if you want to buy a foo you just search for "foo reviews" and you're off to the races. We'd figure out other ways to fund things.

As an aside, that justification was always a little... generous. Coca Cola doesn't spend billions per year on ads because they're just trying to reach people who've never heard of their products. They do it because they want to manipulate people into buying Coke. I say we can trust people to find unhealthy addictions all on their own.

[1] https://en.wikipedia.org/wiki/Chinese_wall#Journalism


> For news, consider things like the Chinese wall [1] between news and ad sales

Literally the second line of the two lines of the linked section talks about the (increasingly common) cases of it being breached, a natural consequence of increasing ad-blocker usage. Also, everything in the example you're giving relies on old distribution methods, not "news". There's no longer a line between news and "random website who publishes information about events", and I'm not sure how anyone who hasn't been living under a rock for the last 15 years could be naive enough to think otherwise. For God's sake, Buzzfeed was a Pulitzer Prize finalist a year or two ago!

> For books, I'm not even sure what you mean. Book publishers sell books that they think will do well and, mostly, that reflect well on them. You can't just walk into Random House with a credit card and say, "Here's my manuscript, please put it in book stores nationwide."

Amazon is the largest bookseller in the country IINM, and you can very much give them a credit card and start selling your books nationwide. Again, you're confusing increasingly-unpopular (for market reasons) distribution methods with types of media.

The very existence of advertorials is a refutation of the notion that there's any principled way to legally distinguish between advertising and other forms of information, even less so one that wouldn't be riven with loopholes (cf limits on campaign spending and Super PACs' technically-not-for-the-candidates' spending).

> Personally, I'd just ban all advertising.

You seem to be confident that you have a definition of the word advertising that would be robust enough to implement this without enough collateral damage that it wouldn't be trivially unconstitutional. What is your rough proposal for what that definition would be?

FWIW, I generally agree with you that advertising is a collective-action/net-loss problem, but I think you may be falling into the classic trap of "this thing is bad, we should just wish for it to disappear and hold all else equal".


> What is your rough proposal for what [the definition of advertising] would be?

I like the definition of "getting a material benefit from someone for singing their praise". I'm fairly confident this could work with German law (where I live). In the US, it will be more difficult given Citizens United vs. FEC and other such absurdities.


That the Chinese wall has been sometimes breached is not proof that it doesn't generally still operate. There is definitely a line between real news and random-ass websites. That Buzzfeed is producing some real journalism is definitely not proof that real journalism has stopped existing.

If you think I'm wrong about this, please do go buy an article in one of the top news sites with content of your choosing. And if you can't, then that's a pretty clear sign that it's different than advertising.

That Amazon sells self-published books is definitely not proof that real book publishers just print any old thing. If you think otherwise, again, please demonstrate it. (And that you'd suggest it as equivalent strikes me as either not understanding the point or a desire to be contrary.)

Regarding your constitutional whataboutism, it may be that we would need a constitutional change to fully ban advertising, but I don't think that changes my view that were I king for a day I'd ban all advertising.


> Here's my manuscript, please put it in book stores nationwide.

I suppose you heard about a company named Amazon. This is basically one of the services they offer for years, if you're OK with selling an e-book.

If your audience prefers dead trees, print-on-demand offers are also numerous.

The problem, as usual, is to make the existence of your book known to potential readers, and this is done by... advertising. And you want it to be targeted unless you enjoy burning money on spamming innocent disinterested people.


Yes, that is called "self-publishing" because it is distinct from what a real publisher does. Vanity presses have existed for decades at least before Amazon, but they too are irrelevant to the point here.


What a real publisher does is to market and promote your book in addition to just running the presses. Aka advertising. You're just making the GP's point for them.


A real publisher handles editing, fact-checking, copyediting, layout, cover design, and distribution. As well as marketing, which is distinct from advertising.

Yes, they do also sometimes advertise books, but I don't see how that proves that "anyone with a credit card" can "put out information" of their choosing through a real publisher.


> Personally, I'd just ban all advertising.

That won't happen. The First Amendment would see to that.


That's not as clear as you suggest. Some advertising restrictions are clearly constitutional (note the lack of cigarette ads, for example), and in the past courts have found that no commercial speech is protected under the constitution. Notably, that includes even the Supreme Court in Valentine v. Chrestensen.

All of which is beside the point, in that my aside was clearly meant as a "if I were in charge" hypothetical. And since it's my hypothetical, I can posit that your puny mortal constitution would not stand up to my hypnobeam powers. So there.


The FCC can regulate or ban certain kinds of advertising on the public airwaves, but a dwindling number of people watch terrestrial OTA television exclusively or predominantly. Private networks (cable, satellite, internet) can set their own rules.


I think the same way. In the end, advertising creates harm to people. Put aside the numbers, and vacuous phrases like "creating value to the shareholders". The net impact on advertising is harm to people. It's about using tricks, potentially with very harmful side effects, to manipulate people into buying your stuff.

Sometimes I imagine how a world without any type of commercial advertising would be...


>It's about using tricks, potentially with very harmful side effects, to manipulate people into buying your stuff.

There is a lot of this, but that is not the whole of advertising. Ads can be informational and useful.

Take the previews at a theater before the feature. Those are ads, they are paid for, and a lot of people like them. If you like movies you'd probably like to know what movies are coming, it's useful for you and useful for the studios. It's a positive sum game.

>Sometimes I imagine how a world without any type of commercial advertising would be...

There would be more of a concentration on other ways to get messaging out. If companies couldn't buy search engine advertisements they would concentrate more on SEO. It's not "advertising" but it has the same effects. There are plenty of side ways into achieving the same propaganda goals.


People could also watch trailers on the Internet without being forced to. In fact, people already do.

If your theory is correct that people want to watch trailers in theaters, then if we ban advertising (that is, the paid placement of content), then they will go on watching them because theaters will show them without being paid to do so. Although they'll likely see fewer misleading trailers for low-quality films, because theaters will no longer have a conflict of interest when deciding what to show.

It's true that companies would spend more on SEO, but that's in effect a fight between search engine companies (who want to find what users want) and other companies (who want to be found whether or not it's what users want). That seems like a fair fight to me.


It would be very very very very boring. There would be very little entertainment, at least no professional entertainment. It write all be small amateurish stuff. But you wouldn't know about it, because it couldn't be advertised.


That's just ridiculous. I hear about plenty of professional entertainment even though I very rarely see ads. How? Reviews, bookstore clerks, word of mouth, online recommendations, social media discussion, and event listings.

Entertainment is a big industry because people want to be entertained, not because somebody told them what to watch. They would seek out entertainment in a world without ads. How do I know? Because they already do.


You can't just expect to search for review of a product and get an unbiased review. Companies caught up on that ages ago and pay bloggers money for good reviews. This is how bloggers make money so they can live on their blog after all.


No, this isn't about banning all communications. Publishing requires you to earn an audience. You can start a blog today but you won't have millions of readers. In fact, audience size is often used as a proxy signal for authority and quality.

Spend a few thousands on Facebook though (or other ad networks), and you can easily get in front of millions of people with whatever message you want, completely subverting all the usual signals. Many people can't discern authority very well, and that's if they even recognize that it is a paid ad.

There must be more regulation. TV, radio, print involved considering time and effort which was a natural barrier, but digital is much too granular and fast for the same rules to apply, and we actually have even less governance.


I think the solution to most problems in the economy is to limit how big companies can get.


Competition keeps organizations honest. It forces them to conform their beliefs to reality and discard whatever is incorrect or counterproductive. It's the only mechanism we've found in thousands of years of institutions that preserves the valuable correspondence between belief and truth.

When an organization becomes big enough that its survival ceases to depend on the correspondence of belief with reality, other concerns take over: usually, primate-hierarchy status games. And these games escalate until the organization fails or people die, depending on the organization.


Competition does not exist when companies get so large they own the whole market.


That's my point.


Concerns s.a primate-hierarchy status games, antitrust laws, and so forth.


>Isn't this true of almost any industry which lets you put out information? E.g. news publishing? Book publishing? Blogs?

Advertising is not information. If it were merely data being exchanged, we wouldn't call it advertising. Advertising is the part that changes one's mind. See: https://www.etymonline.com/word/advert

>I mean, what exactly would you do, ban all communications?

Start by acknowledging the problem. Dodging it hasn't worked. Then we can learn more about it, how it works, the complications of it's side effects (like directly incentivizing privacy abuse) and come up with hopefully a sufficient and efficient solution. In short, we would do Problem Solving, very different from the other option of Not Trying.


Because I'm familiar with HN's penchant for being black-and-white about things, I'll preface this with: I think advertising is very much a net loss for the world and would be pretty happy if it all disappeared tomorrow, magically ceterus paribus. I just don't think that it makes any sense to redefine a word instead of actually addressing a point you disagree with.

Yea, and "villains" are just farmers (https://www.etymonline.com/search?q=villain)

Come on man, there's no way that you don't know how dumb it is to pretend that the etymology of a word is more relevant than its modern definition. '

> Advertising is the part that changes one's mind.

You can't just assert something insane like this without any attempt at backing it up. Advertising is 100% information being exchanged; it may be subjective, but the dirty secret that everyone ignores about epistemology is that all "knowledge" is socially-constructed. Thank God we've (generally) agreed on a few high-quality sources like the scientific establishment, but it's hopelessly naive to pretend that you can find the line where something ceases to be "real" information. And clear lines are incredibly important in legislation, particularly when there's a trillion dollars of incentive to find loopholes.


I never redefined anything. I’m just trying to help you with the nuance in the language that you must be just willfully avoiding. Otherwise, you have found a rhetorical loophole. Doesn’t mean you are right.

“Information” is a poor term for this discussion. “Data” draws the more useful distinction. I should have said “Advertising is not only information”. It would just be stubborn to insist that advertising is merely data sharing. I’ve been working in advertising most of my life and we do more data distortion than data sharing. We make a living on dishonesty and manipulation.


It's funny how your line of argument can seem so obviously accurate to one person (like myself) but so obviously wrong to another (like whoever has downvoted you here). FWIW, I think your distinction between advertising and dissemination of information is a good one.

Those who disagree might nevertheless be surprised to learn that recognized protection of commercial speech (i.e. advertising) by the 1st amendment is only a fairly recent legal development. I would suggest to anyone interested in the topic to revisit the arguments in Virginia State Pharmacy Board v. Virginia Citizens Consumer Council. This case, from the 1976, was a key stepping stone that paved the way for the rampant drug advertising that we have in the U.S. today. In fact, the lone dissenter, the late Justice Rehnquist, foresees precisely this outcome in his opinion, predicting almost the exact "talk to your doctor" phrasing that we have become so accustomed to decades later. By contrast, the majority justices sound like nothing other than hapless and naive dupes of an astroturfing campaign, speaking guilelessly about issuing their decision on behalf of "consumers of prescription drugs" and their right to receive "information". I doubt that they anticipated anything remotely approaching the ravages that, for example, the opioid epidemic would bring.

It's easily on my own personal "top ten" list of bad Supreme Court decisions.


> As usual, a bunch of nonsense by people who have no idea about this

This attitude is startling similar to what I heard on Wall Street during the crisis. “Of course we bet against our counterparties! They’re counterparties, not clients. If they didn’t read the prospectus they’re morons who deserved to lose their money.”

When you’re providing the public with a good, arguing that non-experts can’t comment is an argument for regulation, if only to force a common language.


I'm not sure how you interpreted that, especially since I'm arguing for regulation.

It's not that others can't comment but that their ideas (in this linked article) are poor and betray the lack of experience of the advertising industry that underlies it all. Facebook is not a new threat and focusing on it as a special instance completely hides the other major actors in the world that are doing and allowing the same thing.


Here's an inevitable comment since you make such an authoritative statement with 0 ounce of evidence to back it up. Internet Advertising is not as effective as you believe it is. https://www.theatlantic.com/business/archive/2014/06/a-dange...

Advertising works when it leaves an impression or memories on you:

https://www.theatlantic.com/business/archive/2011/08/why-goo...

That's what makes good advertising good. The medium also matters tremendously.

Internet advertising only really works when you don't know what you're looking for to begin with, which is rarely the case as most human behavior when it comes to the internet is intentional (i.e. I search on Google for "plates", that's why Google AdWords shows me sponsored links for plates)

http://journals.ama.org/doi/abs/10.1509/jmr.11.0503?code=amm...

Moral of the story? Complicated psychological phenomena are complicated and let's not oversimplify them to fit our narrative.


I'm not sure what you're disagreeing with. I never made a claim on effectiveness (which depends on very many factors) but only that it works on everyone and needs more regulation. Are you claiming that it doesn't work at all?

What exactly do you think "internet advertising" is? Ads also don't need to be "good" or leave a lasting memory, they just need to work. Were you really going to buy "plates"? The ads might have made you buy them sooner. Or buy a different brand. Or buy something else along with them. And why did you even start looking for plates in the first place? Why go to google at all?

Regardless you don't need to take it from me. Go ahead and buy some ads and pickup on the power yourself. It's especially interesting seeing results when you're trying to prove it doesn't work.


There's different types of advertising though. And it's not necessarily blatant advertising that's the issue.

A lot of ads are designed differently. Article form. Informative video content. A promoted Facebook post that ends up in your feed. Really any type of content that's pretending not to be an ad.

That's advertising too. And that too, influences people. About tonnes of things. Not necessarily products.

And think about it inversely too. If there's 2 groups of people posting ads: if group 1 has more money, they can effectively push group 2 out.

These too are part of the problem.


> 0 ounce of evidence to back it up

The same principle used when TV lineups are advertised on the TV network channels themselves, is what advertising capitalizes on best. Brand awareness has plenty of psychological evidence behind it. The number don't lie when you get put on the premium channels (or the Google Play recommended top 10).

Ads aren't usually effective at doing what advertisers want (more than brand awareness or opportunity hurdles), which isn't a shocker. Advertisers get sold services by other people in advertising.


> This is an industry that sells influence at scale.

---

>* Before the inevitable comments, yes advertising works, yes it works on you no matter how much you think otherwise

---

Show me the lift (in other words, prove it).

I'm extremely dubious about any claim related to digital advertising having direct effects over a baseline.

It is easy to make a claim that it changes the millieu, to appeal to second order effects. So, prove it. Show me the academic papers. Show me how those papers generalize outside of the specific economic/operation structure they studied.

I mean, look at Google Search. When searching, the top link is generally an ad. My (admittedly biased "no it doesn't work on me no matter how much you claim it does") experience is that I _always_ skip the ads. Even if it is for the company I am looking to purchase from. Because I am averse to digital ads. I can't trust what the ad is selling isn't skeasy. I am not the only one who does it. So is digital advertising being supported only by people who are easy to 419/Nigerian Prince scam or something?

On a tangential note note, this is Amazon's burgeoning issue with its Marketplace and third-party ripoff sellers, now that eBay isn't on top.


Your alternate hypothesis is that the companies collectively spending hundreds of billions of dollars per year on advertising are not getting anything for it? Why don't you take a swing at proving that?


Folks already have, at Microsoft, Yahoo, and Google.[0] The issue isn't showing lift, it's having sufficient power to know the test you ran isn't cherry-picked or BS.

[0] https://courses.cit.cornell.edu/jl2545/4550/materials/lewisr...

Also, the onus to prove the claim that digital marketing has an effect is not logically on the interlocutor, but on the claimant.

Knowing many marketing folks across many industries, their incentives aren't usually tied to incremental lift but rather gross channel volume. So if they can cannibalize from more effective sales or advertising channels they do so, without qualms.

I've heard the claim like grandparent comment has made before for years. Yet, when pushed, it is suddenly a golden cow. This is concerning, precisely due to the figure you cite of billions of dollars.


> Also, the onus to prove the claim that digital marketing has an effect is not logically on the interlocutor, but on the claimant.

No, not really. You're making the extraordinary claim that it has no effect, that millions of businesses are independently making the same mistake.


No, I'm asking for proof that it works over alternative baselines. If people already decided to purchase a product offered, the ad sets up a costly, unnecessary channel.

As was stated by another in this thread, prisoner's dilemma leads to unintuitive economic outcomes.


If you're saying it's an arms race, sure, nobody's denying that. But that doesn't mean that it doesn't work, it just means that in general and over time particular markets are mostly at equilibrium.


What he is saying is, the fact that hundreds of billions of dollars get spent on advertising IS the proof.

That's the evidence. Companies don't waste money for no reason. And so the only reason that they could be spending this amount of money is because it works.

So yes I'd say that this type of argument counts as a "proof".


It's not really any kind of proof. I don't want to clutter up the thread with identical content so I'll just link you to my reply.

https://news.ycombinator.com/item?id=16674883


I agree entirely that it's a total waste from the societal perspective (which is why I say we should ban it). But it can be very effective from the individual advertiser's point of view. That's true of any arms race.

I believe that tomrod is claiming the latter is also false.


Advertising is a classic case of the prisoners dilemma.

In short: Advertising is very effective and worthwhile if you're the only one with a product in that space. As soon as others enter it just becomes an arms race backed by mountains of money with questionable results.

https://en.wikipedia.org/wiki/Prisoner%27s_dilemma#In_econom...

Why spend all the money on questionable results? At risk of coming off as glib, perks. I worked in a field tangential to advertising and all of the money is very useful for throwing parties, signaling success and status, being able to invite clients to large events thatyour advertising is involved with (think superbowl), etc.

For some reason HN at large prefers a more conspiracy leaning attitude toward advertising which you can see in the top comment right now: "Anyone with a credit card can start changing how people think and act." This perspective believes that advertising is like a brain ray that persuades people to do whatever they say - that targets have limited agency over their own thoughts. It's very appealing to assume everyone is a gullible sheep (except yourself, naturally) but that's not the reality behind advertising spending.


> signaling success and status

You already have the insight. "Signaling" is just as much advertising as anything else. It's well-studied and the money spent in maintaining status-quo is just as important as growing a new product.


Thank you, this is a fantastic encapsulation of my point.

The proof that digital advertising does anything but set up a costly lead channel is still a bit lacking, and your plausible assertion shows why that may be the case.


That doesn't seem like a sufficient story to explain most kinds of advertising. What perks do all the local grocery stores get from mailing me leaflets about what's on sale?


That just falls into the standard example with the prisoner's dilemma. My perks example was just explaining what the billions are buying instead of influence/persuasion.


What's the "baseline" you claim? You can prove it yourself by buying some ads. 24 hours and a few thousand dollars and you can sell pretty much anything (which is a much greater signal than just views or clicks).

The obvious explanation to that is that it works, unless you want to call it magic. Also you probably do not realize how much advertising you are exposed to everyday, far beyond some banners or search results. It's never that simple.


Baseline: sale of product sans _digital_ advertising.

I'm not saying digital advertising never works. I'm simply asking for what it incrementally offers over other channels generally.

By digital advertising I'm being very specific: purchased ad space, be it real time advertising networks, sponsored content, and similar. Not "influencers" or other branding efforts for which proving effect is unlikely to be possible.

Further, I can see a difference from launching a new product using digital means versus the (much larger) established companies migrating or updating their marketing portfolio to include digital advertising. But a new launch may be choosing a sub-quality channel. Knife company sales aren't going to be great on digital versus going to a trade show, say, so the margin is what rules the day.

My request is not unreasonable. Show me the proof, the diff-in-diff, the actual assessment of incrementality generalizable to the channel for established companies. Otherwise there are competing theories which equally explain the effectiveness or lack thereof of the digital advertising channel, such as FOMO/prisoner's dilemma.


It either works or it doesn't, I didn't speak about efficacy which varies greatly depending on 1000s of factors. If you accept that it does work then I'm not sure what you're disagreeing about.

Does it improve over the baseline? Yes. It's very easy to see with modern analytics pipelines that report sales in real-time. Ask any growing venture-funded company selling a product or service. Stop the digital ad spend, see what happens. Start it again and see what happens. This has been done by channel, format, campaign and more to do media trials for the largest companies. These tests may not tell you exactly which ad was best but you can derive that this campaign works, or this format works, and can definitely see that the entire medium works. That's before getting into advanced referral tracking and econometric attribution modeling, or even simply asking customers where they last saw the ad.

All these media buying companies might waste money but they aren't in the business of losing it. FOMO/prisoner's dilemma from the other poster is just an interesting perspective regarding signaling, but it is not new. Advertising works but that's completely different from "it works for opposing sides or competing companies to create a net zero influence" which is just a cost of playing the game and a perfectly acceptable strategy. Maintaining market share is just as important as growing a new product and brands spend to signal that they can spend, thereby showing quality and success. Here's more on that: https://en.wikipedia.org/wiki/Signalling_(economics)

I'm not sure what you would like as proof but the Nielsen company has been doing this for decades and is accepted by the industry. Digital advertising isn't a new concept, it's just exposure like it was in TV, radio, print and signage since the beginning. It's just much faster, more personalized and much more pervasive in today's media and devices, and also much cheaper to run.


> I'm not sure what you would like as proof

As mentioned in my prior comment:

>> Show me the proof, the diff-in-diff, the actual assessment of incrementality generalizable to the channel for established companies. Otherwise there are competing theories which equally explain the effectiveness or lack thereof of the digital advertising channel, such as FOMO/prisoner's dilemma.

From your comment, you agree with FOMO/prisoner's dilemma even if you don't agree with the context of the jargon. As you mention, signaling theory is a more proper term for what we are describing, but signaling is efficient if we get to a separating equilibrium (e.g. quality differentiation of product) which clearly we don't see. Ergo FOMO/prisoner's dilemma is likely a better fitting model (though with some admittedly post hoc bias).

So the proof I am asking for is not existence of digital marketing spend, because that isn't proof of effectiveness of digital impact at all and has competing theories sufficient to cast shade on it as full explanation, but incremental improvement over other existing channels (and for established companies, doing nothing at all).


It either works or it doesn't, and you seem to agree that it does, so you're asking how it's better than existing channels? That's completely up to implementation and 1000s of factors as mentioned, and it doesn't need to be better than any other model to be useful for the bottomline, only that it returns a positive ROAS (return on ad spend).

A company selling to younger people might only advertise online while another only sells well through TV commercials. I don't see how that tells you anything useful other than to use the right media mix for your marketing needs.

That being said, whether a medium works is very easily proven by changing spend in isolation and seeing the impact on sales, and it's done by every major company. If spend exists, then campaigns exist, and so a outcome on sales can be measured as compared to the lack of spend (and thus campaigns). I'm unsure sure why that isn't evidence for you.


> yes advertising works, yes it works on you no matter how much you think otherwise

And even if you think it doesn’t, it works on enough other people to make it a worthwhile spend if you want to win an election or get regulation passed.


I'm sure some advertising "works" on some people, but I've met some of the people who buy the advertising on behalf of big companies that produce consumer goods, the people who decide which advertisers get the big contracts and which campaigns get approved, and those people were not exactly of a scientific bent. I think it would be very easy to con them, and probably they get conned a lot of the time.

Also, I can think of a couple of cases in which I was planning to buy a product, but changed my mind because of an advertisement for the product. In one case the advertisement made me consider a particular aspect of the product, which lead to me reevaluating and choosing an alternative product. In the other case the product was an alcoholic beverage, which I liked the taste of, but the advertisement made me embarrassed to be in any way associated with the product. In a way that proves that advertising works, but I would guess it's a lot easier to influence people against something rather than for it, even accidentally. And this is perhaps very relevant to political advertising, which often is "against" something.


> I think it would be very easy to con them, and probably they get conned a lot of the time.

“Half the money I spend on advertising is wasted; the trouble is I don't know which half.” John Wanamaker

Advertisers are used to this.


I would guess that if John Wanamaker wasted only half of his advertising budget then he was doing better than most.


There are a lot of details about Facebook that scare me, but the line between good and bad aspects is very thin. Usually it is a little easier to tease out my complaints.

Influencing opinions isn't in itself a bad thing. Even being influenced to spend money isn't necessarily a bad thing. Being influenced with political ideas is on face first impressions a good idea and I might call it the first step towards understanding.

The combination of scale and selectivity of the Silicon Valley majors seems like it is creeping into a difficult place though. I've always been quite interested in American politics and it is curiously hard now to identify what the message directly to voters is on Facebook. Advertising on Facebook et al is relatively private and personalised vs a newspaper where everyone gets the same ad.

Also an issue here, once politicians get involved in identifying 'bad actors', there is a real risk that their political opponents get identified. Any regulation should proceed very slowly and thoughtfully.


Spot on.

Advertising is a strange beast. An emphasis on taking media theory seriously would do us a lot of good. I actually think the internet has led to more awareness of the issue but the decades prior gave us a dismal trajectory. Whether advertising itself is inherently bad for us is one thing. It's abstract side effects as a are another, and that is what we are concerned with here, but we have to first accept the the realities of the course we have been on in order to correct it.

Media, interface of advertising, is often thought of as frivolous. This is the same interface through which religion has enraptured it's audience for all the centuries. We can approach the issues in a rational way. Branding and advertising uses the same concepts in a different context and form. How branding and advertising affect us is a messier discussion than whether it does or not. We have accepted a life experience (emotions, desires, meanings) overwhelmingly defined by advertising. As such, our livelihoods are entangled with it and almost all of us depend on advertising to make a living. Maybe we should consider whether we are incentivized to be complacent about this core problem in the same way an individual living in an extremist religious society is incentivized to conform. I'm not sure.


> and no adblockers dont magically solve everything.

They dont solve 'everything', but they solve quite a lot.

We can tell how effective they are, by how much many ad funded website complain about them.

Harm minimization is still a useful strategy.


They don't solve much at all, other than blocking annoyances and improving the browsing experience.

The ads blocked by most adblockers is a tiny part of the advertising you are exposed to. It's also a great signal that shows that you are an "adblock user". Everything bit of data is used and you are not special or hard to reach.


Those inevitable comments about advertising not working come up every time for a reason.

Advertising is a classic example of the prisoner's dilemma. All that money being spent is an arms race, not an indicator of the power of advertising. The idea that money controls how people think is appealing when you remove all agency from the population and just assume they're naive sheep but that's a self-serving perspective.

https://en.wikipedia.org/wiki/Prisoner%27s_dilemma#In_econom...

Seeing as how you work in marketing and advertising I'm not sure anyone should take you at your word.

“It is difficult to get a man to understand something, when his salary depends on his not understanding it.”


As your other comment showed, "status" and "status-quo" are just as important.

A brand will spend money to signal that they have the success to be able to spend that money, something that has had close to a century of study. You can also see this in how Silicon Valley companies "signal" through fundraising, which is just another form of advertising.

You have an interesting perspective but I assure you that it is not new. Please don't take my word for it, instead here's a good article since you're referring to economics: https://en.wikipedia.org/wiki/Signalling_(economics)


Yeah we just need to regulate who can tell people about their products, services, issues, etc. Then the world will be perfect just like it is in China where nobody says anything without th governments approval. What could go wrong?


You're jumping to conclusions. We already regulate advertising by the FTC to ensure you cant outright lie in a TV commercial.

The point is that digital advertising is much newer, faster and far more vast in scale. The fact that you can run ads for scams and not get caught, or just create a new account when you do, shows the issue. Facebook and every major ad network already "audit" every single creative that passes by, with rules on what you can and cant do. Clearly even they don't let things go by unchecked.


>yes it works on you no matter how much you think otherwise,

There's no need to add such preposterously inflammatory self-righteousness to your comment, it worked fine without this, but I think you just want people to call you out on it because you believe it but know many people (quite rightly) do not.

And then when you (as you say, inevitably) get called out you can act like you're right because you predicted someone might point out that you're wrong. But that's not really how this works.


What do you mean by "that's not really how this works"...?

Whether advertising works or not has already been well proven through scientific methods and trillions in market cap so it's not about whether you believe in it, which is precisely why I added that comment.

Since you seem to think it doesn't work though, I'll ask you for what your evidence is?


I mean you don't get to act like you're right by predicting someone will point out you're wrong.

Advertising does work obviously, hence the market, but it doesn't influence everyone - that's what I take issue with.


Why do you take issue with that? Who is not influenced at all? And based on what exactly?


Me, based on the fact that I am me. Your statement presumes more about people than you can possibly know.


A day after this comment, a perfect story underlining all of it:

"How Facebook Helps Shady Advertisers Pollute the Internet"

https://www.bloomberg.com/news/features/2018-03-27/ad-scamme...


Advertising works because speech works.

Regulating speech is a cure worse than the disease.


There's a difference between carefully earning an audience versus forcing your message upon billions of people within seconds.

Advertising is commercial speech and already regulated by the FTC (in the US) which is why you can't say false things for an ad. The problem is that it has not been updated to deal with modern digital advertising's speed and scale.


yes, it’s important to look at the invisible actors as well. Facebook and google are front line brands in your face. We have to remember the invisible trackers and ISPs as well, sometimes much worse because they are not scrutinized and cooperate more with government.


Deciding who is allowed to influence people via advertising by law just transfers all that power to the government.

A vastly better solution is to equip people to fight advertising technologically so it’s not cost-effective.


> The fundamental problem is

that ~3 billion people have subscribed to the newsletter of the abyss, and the abyss has friends with which it shares it's insights.


So much this. Nothing has major has changed regarding Facebook.


> Before the inevitable comments, yes advertising works, yes it works on you no matter how much you think otherwise, and no adblockers dont magically solve everything.

So in other words, the results of pretty much every future election, even those won by Democrats, will always be in doubt, because there’s always going to be advertising and shitposting, right?


Most developed countries have an agency dedicated to data protection.

The UK has the ICO, Japan has the Personal Information Protection Commission, Canada has the Office of the Privacy Commissioner, Switzerland has the FDPIC, etc.

Their exact role varies from country-to-country but the US is one of the few modern countries to not have a national body dedicated to the field.


FTC in the US.


Indeed. I came across this, which should probably be of interest to readers in the US:

https://www.ftc.gov/public-statements/2016/01/two-way-street...

However, I seem to recall, that last time I checked (several years ago) there appeared to be very slim data protection in the US. Or rather, somewhat strict rules for the federal government, few or no rules for private business. To the point of federal agencies contracting out databases to firms, so as to dodge legislation...


The CNIL in France, created in 1980.


I've never found "everybody's doing it" to be compelling.


How about "everybody's doing it for a good reason"?


like the metric system

which is to say, i think momentum is the issue


Tbh, I don't trust any corporation in the US to keep my data safe anymore. You can't fix that kind of reputation damage


What did people really expect would happen with Facebook? It's social media, not a file storage service - of course your data isn't going to be private. It's more or less what you should expect when signing up on any social media platform.


I certainly expect my phone company to not record my calls, or my isp not to mine my email. The problem isn't that fb is social media; or that Google/Gmail is an email provider - it's that both of them are ad agencies and private intelligence agencies (they gather, refine and sell information; ie intelligence).

So it really is: Facebook is an intelligence agency and information broker: why would you supply information on yourself and your friends to them. And the answer is likely: I didn't know they were an intelligence company; I thought they were a (social) personal media platform. Like email or a blog, only slightly more modern.

And this isn't a wild expectation. Eg the telephone providers are regulated, and can't sell the content of your calls, even if it's "just" if you're talking about a recent pregnancy, or how you're thinking about buying a car...


Your phone company has, in all liklihood, maintained a log of all your calls, dating to the 1980s.

https://www.schneier.com/blog/archives/2006/03/atts_19trilli...


I'm sure Norwegian military intelligence has a semi legal access to meta data and contents of my calls: but at least it's clearly illegal for them. The largest isp/phone provider (telenor) actually fought back against the eu data collection directive because they had to store more data than they currently did (3 months).

But yeah, data protection in the private sector in the US is dismal.


They have names, phone numbers, locations, calls history and who-knows-what about people who have not signed on Facebook. They just take all these data from your friends' smartphones contacts list.


When I was a kid, everybody's name, address, and phone number was published in a phone book. Why does everyone feel like that's private information today? For some special people, yes, but for just about everybody, it's fine for others to be able to contact them.

If I wanted to be kept hidden, I'd have to be careful who I gave my secret information to. If I trust my friends, and they carelessly give it to Facebook, that's my fault for carelessly trusting untrustworthy friends.


The key difference is how easy it is to correlate different digital datasets. The phonebook gives you name, address and phone number. Call logs give you pairs of phone numbers. Together you know who knows who. Add in the yellow pages and you know who called the suicide hotline. Mix with taxi data and you know who visited who, what time. And who went to an abortion clinic. Or a place of worship. Or who knows more than ten people that regularly worship.

Etc. Getting all that for everyone as opposed to a certain targeted someone is much, much easier with digital records.

[ed: this is why many countries have had strict rules on digital databases of personal (not just sensitive) data a long time, well before the GDPR. The amount you can learn from "simple" correlations of even public data can be staggering.]


Back then long distance was expensive so you didn't get scammers outside of the US calling you. Local police are currently unable to deal with the deluge of foreign scams making protecting your private information much more important.


it’s partly that people didn’t even think about it rather than didn’t expect it i guess? “what did people expect” implies that they had enough of an understanding of where their data is stored, and put enough thought into it in order to form an expectation of any kind

and that’s before you get to the unintentional tracking in things like like buttons, friends’ data that you have no control over, etc


It's naive of technical minded people to think the average person could imagine the types of things you can do with big data sets and algorithms.


The average user's mindset must have changed from when I was younger - mass hysteria over what people and companies online might be doing with your personal information was standard.


> The average user's mindset must have changed from when I was younger

Yes, for a simple reasons: the average web user today is basically the average person. The average web user 20-25 years ago was a technology enthusiast.


My parents have very minimal technical abilities and they’ve always been paranoid about putting any personal info on a paper form and that extended to the internet when things moved online. They always left the birthdate field blank on forms. I was under the impression that most Boomers grew up being wary of privacy whether conservative or liberal, and it was GenX and Millenial who would give their data to anyone.


It's good that your parents are informed, and care about privacy. Many are uninformed, so have no idea.

Then, like you said, there are those who don't care about privacy, even if informed.


I was talking moreover of the Myspace-era than the Usenet-era.


As a side note. In the past 5 years of doing serious contracting work in every industry you can think of (pharma, banking, manufacturing, etc) the places where I have seen info sec taken the most seriously are two: gaming studios (any) and Bloomberg.


The author's suggested fix is "Let’s make a digital Environmental Protection Agency. Call it the Digital Protection Agency. Its job would be to clean up toxic data spills, educate the public, and calibrate and levy fines."

A couple upfront issues with this: 1) "cleaning up toxic data spills" - this doesn't seem well worked out, unless the author suggests going and deleting the stolen data off others' computers

2) "educate the public" - the author suggests explaining how to deal with identify theft. That's great, but doesn't address the secondary issues of advertising/propaganda/other clever unintended uses of data.


> cleaning up toxic data spills" - this doesn't seem well worked out

The EPA’s value in mitigating harm from oil spills probably comes less from the mechanics of the literal clean-up and more from oil companies’ knowledge that they will owe massive fines. Countries with data regulators levy fines. We, in America, do not.


The author suggests fines as the third suggested purpose. The author's take on cleaning is mainly restricted to credit monitoring type deals, which overlaps with the second purpose. (which is part of why I'm saying I don't think it's really thought out all the way)


It also only really works for things that happen domestically - watch as every social media company moved overseas.

Social media companies are in the wonderful position as to where they don't have to take money outright from users to operate, so they can claim they don't operate in any country they'd like to claim they don't, and can move to a foreign country with a lower tax rate without harming themselves at all really. With no users exchanging currency and no (retail) physical presence they're incredibly free as far as mobility goes. Unless I'm missing something about this all, it's surprising that it's not common for them to.


> It also only really works for things that happen domestically - watch as every social media company moved overseas

A limited solution is better than no solution.


In some cases, it isn't. This would be one of those cases - tax increase because of the spending increase required for a new department, little benefit in practice, anti-free market, etc.

It's a culture issue, not particularly a regulation issue. Fining companies for doing with data exactly what they say will be done with data in their ToS (Granted, ToSs are a terrible concept - they are legal and enforcable depending on how the government is feeling for the day, though) would allow the government to effectively shut down platforms it didn't like by fee. Proposing a department to "Calibrate and Levy Fines" upon media is bizarre.

The proper thing to do would be solely focusing on educating the populus, or alternatively funding the EFF to do it for them.


The poker companies moved overseas, and this made zero difference to them being regulated by the US. It's rather hard to run a technology company if being an employee or director results in you being arrested if you ever the US.


Poker companies participate in direct exchange of currencies, a social media company doesn't. A European social media company can have thousands of American users, make money off of them and not touch a single USD.


people still need to pay for ads


There are European ad companies.


It's interesting to use as a metaphor an agency that has recently been completely gutted of it's researchers.


That's more a problem with the executive branch than the agency itself.


Regardless of how well you feel this article is written whether you agree with it, it's important to not ignore it and others like it. This reflects a growing sentiment among much of the population—address their concerns, or regulation will do it for you (likely in a sub-optimal, if not counterproductive, way).


That ball is already rolling downhill, and I don’t think it can be stopped. In addition to the perfectly reasonable concerns of a few billion people, there are also some very wealthy and entrenched media interests who only stand to gain by kicking it along. I don’t think the reputation of tech is salvageable at this point, and the result will be having to live with regulation and oversight like every other industry. Even if everyone shaped up overnight (and they won’t) there is still so much yet to emerge into the public light about what has already happened. Uber and Facebook alone have almost certainly only just begun to bleed scandal.


> the result will be having to live with regulation and oversight like every other industry.

The only other industry I think could be comparable to this, from a privacy standpoint, would be the banking industry. They are largely flying under the radar during all of this, any hypothesis why? Is it because their regulation and oversight is working like you are alluding to? Or is it because the banking industry has not been caught...yet?


I can't wait for the 2023 thinkpieces on how the Digital Homeland Protection Agency or some such has been taken over by purveyors of ungood ethics and we must do something about it.


Google built an algorithm that promoted Alex Jones 15 billion times to vulnerable people. I wonder are they systematizing established marketing influences, or are they creating a new era of conspiracy theory prone populations because those types of articles have better click-through rates for ads?


I've been saying for years that software engineering needs to be elevated to the same standards held by other engineering fields; like civil, mechanical, biomedical, and so on:

If an engineer or a firm is negligent and people die and/or millions of dollars are lost, they are kicked out of the industry/lose their right to operate as a business.

For example: To work on cryptography and security, you need a degree and to have passed certification, perhaps at regular multi-year intervals. Then if you build a login page and store the unsalted passwords in plain text and someone pwns your site, you lose your license, could be fined, sued, or possibly go to jail if your negligence is criminal.

Then, if you are a company and you need a login system, you either (a) hire certified software engineers to write one, (b) subcontract a certified firm, or (c) license a certified off-the-shelf solution. If pwnage happens, the company is liable if they failed to do one those things. Therefore it becomes in the interest of companies to do security correctly, and of engineers to only attempt it if they are competent and qualified.

It's really simple: In other fields of engineering, there are consequences if you fuck up. If you design a bridge that falls down and kills people, you lose your career, are sued, and/or go to jail. Not so in CS. That needs to change.


Consequences and credentialism don't have to go hand in hand. Software's lack of credentialism is what allows so many to rise above their circumstances, break through class barriers, etc.


Somehow I doubt you would apply that argument to designing bridges, or medical practice, or airline piloting, or bus driving, or law, or any of a zillion other professions where credentials are normal and essential to safety and liability. We don't let random schmoes do those other things-- aspiring and starry-eyed or not-- without first proving that they know what they're doing.

We certainly don't wait until the bridge has fallen down or the plane has crashed or the patient has died before we put a burden on the professional to certify their competence.

I don't think it's unreasonable to mandate rigorous certification for life-critical, security-critical, and financial software engineering.

You can write a cookie clicker with a high school degree and put it online if you want. But the moment your cookie clicker takes credit card numbers, you should be legally obligated to know what you are doing or hire someone who does.


When did Facebook, Equifax et al start hiring random schmoes, or more charitably, people who don't know what they're doing?


One could argue from inspection that, when it comes to security, Equifax's talent is scarcely better than random schmoes, yes.

But it's not just about preventing the hiring of "random schmoes". It's about legally formalizing responsibility and accountability, and the incentive structure that arises from that. As before, this is well-tested in other professions.

Facebook might have made difference decisions if they had special legal obligations regarding "the handling of sensitive personal information." Perhaps their engineers would have thought twice about giving unfettered access to third party APIs if they knew that a breach down the line could ruin their careers.


I would apply the same logic to a lot of professions, actually. If you can do the job, you should be able to. Standards already exist that can be enforced without credentialing. PCI regulates credit card handling, HIPAA regulates health info, etc.


Both PCI and HIPAA have credentialing (and HIPAA has a statutory mandate to require it, though the implementing regulations have not been adopted on the timeline mandated in the statute, and presumably won't be now since the Trump Administration seems to be applying the same neglect and sabotage approach to the required updates to HIPAA standards as to most of the ACA, perhaps because some of the requirements for the former were adopted with the latter or related bills.)


I really don't think the proposal goes far enough.

Not only should the agency collect and monitor all "leaked data," but it should set clear an detailed regulations on what can be collected, how it must be revealed to the people who it is relevant to ("relevancy TBD"), how it must be removed at the request of those same people, and how it must be amended when (claimed to be) incorrect.

Many of these things are already done by other organizations for subsets of data (e.g., the regulations on credit reports). It just needs to be expanded to all kinds of data.

Europe is way ahead of the USA on this one. As someone managing the implementation of a lot of the GDPR regulations on data access (e.g., "Subject Access Requests") for a small company, I absolutely wish I as a US citizen had the rights to do this stuff to US companies. But, I don't. Sucks to be an American again. Maybe this can fall under MAGA? LOL


"YouTube. It has users who love conspiracy videos, and YouTube takes that love as a sign that more and more people would love those videos, too."

Not exactly. YouTube sends everybody down rabbit holes, because it adores sticky topics and video sources (more views, more $), and so rewards those who create a bit of an information monopoly by simply lying; after which, one of their videos leads you to another one of their videos. Nobody else is making videos on that, 'cause you made it up. You win. Novel "information" is more likely to be viewed through, and then followed up on with searches for more on the topic. So make up, and YouTube is all about you, thrilled to facilitate the niche info-market you've created out of thin air or wildly exaggerated.

Merely having your own misleading phrases to refer to your bent views will be heavily rewarded by search engines including Google's and YouTube's. For example:

"I wrote about this in my new book, Algorithms of Oppression: How Search Engines Reinforce Racism. In it, I discuss Dylann Roof, the Charleston mass murderer, who said he Googled the phrase “black on white crime” after the Trayvon Martin shooting. He has talked about how important that experience was in forming his white supremacist views. He noted in his online diary that when he Googled the phrase “black on white crime,” the search engine gave him information that shocked him—and helped him come to a different understanding about the so-called truth about race and the value of a multiracial society. That’s because his search only returned the white supremacist websites that use such a phrase—a phrase that is used by hate-based sites to radicalize white Americans against African Americans and other people of color, including Jewish people. Google didn’t provide any context on the white supremacist movement. It didn’t provide any counterpoints of view."

https://logicmag.io/03-engine-failure/


that's indeed scary, but I saw no way out, but I will do the followings:

    1. remove my rarely used facebook account.
    2. remove twitter account.
    3. remove gmail, use outlook email instead, probably host my own email.
    4. for private messenger, use 'signal' app instead.
    5. use vpn more.
There are more stuff I could not remove though, e.g., my Amazon account, ebay and paypal, etc, also my account and posts at HN, hi I can not even remove my posts not to mention my account at HN, will HN sell me someday or is it doing this already?

The only solution I see, is that paying for all those services: pay for twitter, facebook, gmail etc, so they do not need your personal info to profit? of those they need supervise, means if they still violate my privacy after I paid, sue them to hell.


The problem with using signal is getting your contacts on it as well. You could always switch email providers but not chat applications.


Perhaps one solution could be to keep your personal data encrypted but then if you need an online service you'll need to somehow let the services access it.

That's the part where it gets tricky. Either the code working on your data is sandboxed from the outside world which sounds impractical. What if needs to talk to other backends. Alternatively the operating system ACL framework is super granular so you can give the service the minimum amount of data it needs.

Or another solution could be a way to easily see which entities/apps have access to your data and the time they accessed them. Like some sort of an audit log with accessible UI.

A non-profit agency is nice and all but doesn't give much guarantee.


Note a huge reason to target political ads is precisely that you can send your targets highly offensive or obviously misleading ads that you know they won't be offended by, without showing the rest of the electoral how vile the shit you're slinging at voters really is.

Targeting covers the stench. Keeping the average voter from seeing your nastiest ads is just as important as who does see the ads.

Democracy is about informing voters, targeting is all about keeping information about your ads from most voters.


Regardless of regulations, I feel you can’t really stop what the employees do with the data. For every company, there is an employee who have the key to your data just doing their jobs, be it devs verifying data to sysadmins managing the backups. Sure you can have better auditing procedures and analyzing logs, but if its the group of guys especially at the head, its hard to prevent that. Social hacking is happening without us knowing it and that is what worries me more.


The problem with Facebook is it allows people to gather data about a user and their friends. Literally every single other platform (including google) can gather data about you but not your friends.

That is the current problem that needs to be immediately solved IMO. After the obvious, easy win then we should move on to more difficult regulation like others have suggested.


Silicon valley didn't fail at all.

The main business model of a lot of silicon Valley businesses is based upon selling, buying, trading and using people's personal data, so considering this they didn't fail at all.

Edit : IMO to solve privacy we need to create another business model which is obviously not based on data / advertising.


The explanation of HIBP went a tiny bit overzealous...

> For example, the website of Australian security expert Troy Hunt, haveibeenpwned.com (“pwned” is how elite, or “l33t,” hackers, or “hax0rs,” spell “owned”),


Users turn over their data. The solution to people recklessly turning over their once considered private info is not to implement yet more regulation.


> Silicon Valley Has Failed to Protect Our Data.

They are joking, right? FB was never about protecting data, it was always about profiting from selling it.


...They pay taxes... wtf :'D


This is all a very new problem only seen under the new POTUS.


Given the massive uptick in stories around Facebook, it would seem this statement would be true.


I thought you guys are "Silicon Valley"?!


Silicon Valley, huh? I wonder how many trackers appear on the Bloomberg page. Let's see ...

14, according to Ghostery:

* Doubleclick

* Lotame

* Scorecard Research

* Taboola

* SailThrough Horizon

... and nine more.

In the unlikely event anyone from Bloomberg is reading this: fuck you, you hypocrites.


The US must not introduce any laws detrimental to US companies especially when China is bolstering their tech firms (and stealing our IP) and the EU is trying everything short of altogether outlawing US tech companies out of their market.

Just ride out this silly populist convulsion and we'll all be the better for it.


Protect US companies but screw US people? Did you forget about Equifax leak? Why everybody else can have their data protected by not US people?


Generally what's good for US companies is good for the US and its people, I'm fine with a legislative response to the equifax breach, something along the line of mandated disclosure and penalties for lax security but we are in the midst of a global battle and so our tech firms must be protected and not assailed by our gov't.


The same lack of regulation over what Google, Facebook et al can collect about you is also lack of regulation over what Huawei, Xiaomi et al can collect about you. It's not giving US companies any competitive advantage. The Chinese companies have the advantage that they're also collecting the data on Chinese citizens, which is out of bounds of US companies unless they're conducting shady deals with the Chinese government.


China isn't just "stealing IP", they're also innovating in means of production. It's not just "cheap labor" that people get things produced in China for anymore - it's because China is way ahead of anyone else in production capabilities, costs and speed

US companies can't compete with China when they're sending all of their production over to China. You've placed too much emphasis on ideas and not enough on actually making them, because the attitude "China can make it at lower cost."

IP laws are really what are stifling US companies. They're exhausting huge amounts of resources on building up IP portfolios for the sake of entering (or avoiding) legal battles over "I thought of that first."

You have zero chance of competing against China when you're fighting among yourselves over who gets the biggest piece of the shrinking pie.


It's been interesting to see how much press Facebook, and to a lesser degree Google, silicon valley, and "tech" have been getting lately.

I look forward to when the press seriously talks about the truly evil organizations that are physically drugging, poisoning, and killing people and our environment.


Oh my goodness, the solution is to spend billions on a government agency?

Seriously, you can just use encryption for free. People are building entire apps around E2E P2P tools that exist today:

https://hackernoon.com/so-you-want-to-build-a-p2p-twitter-wi...




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