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FTC goes after astroturfing

August 30th, 2010  |  by jz  |  Published in Future of the Internet  |  4 Comments

Last week the U.S. Federal Trade Commission announced a settlement with Reverb Communications, a firm that describes its business as a:

… full service videogame agency that provides public relations, marketing, and sales services through one integrated campaign to the interactive entertainment and music industry.  Using precise messaging and calculated marketing campaigns, we are able to drive consumer and industry demand for our clients’ products, resulting in increased product sales.

According to the FTC’s complaint, some of the “precise messaging” involved the firm putting in fake positive user reviews of various video games on the iTunes store.

I haven’t been able to track down Reverb’s answer to the charges except a statement repeated here, a blog entry that reports some additional details of how the FTC got onto Reverb’s trail.  Reverb is said to have said:

During discussions with the FTC, it became apparent that we would never agree on the facts of the situation. Rather than continuing to spend time and money arguing, and laying off employees to fight what we believed was a frivolous matter, we settled this case and ended the discussion because as the FTC states: “The consent agreement is for settlement purposes only and does not constitute admission by the respondents of a law violation.”

That sounds like a non-denial denial, and the FTC appears to be doing good work here.  In the fall of ’09 it announced that paid commercial endorsements had to be disclosed — even on Twitter, Facebook, and in blogs.  There was some handwringing over this — would the government be going after any blogger who says something good about something and might have a financial interest in it?  It is not particularly easy to predict, especially since the FTC, unlike other Federal agencies, does not do formal rulemakings — it can only announce guidelines and then bring one enforcement action at a time under its general charter to combat unfair or deceptive trade practices.

The Reverb case provides a good example of how the FTC is thinking about applying its limited staff power: to professional organizations working to subvert ratings schemes.  That’s a good place to start; if nascent ratings schemes are to work, it’s helpful to know what the boundaries are — especially to PR and marketing firms that don’t want to have to race to the bottom.  Now they can tell their clients that they’re just not able to help out with fake reviews.  (In the meantime, the Reverb main home page is showing a generic parked message — odd.)

I remain curious how effective sites like subvertandprofit.com are.  S&P says it:

… runs social media campaigns across a variety of social media sites, via our 25,000 users who earn money by viewing, voting, fanning, rating, or posting assigned tasks. Since 2007, our user actions have effectively promoted our advertisers’ web content to popularity at significant cost savings. In 2010, Subvert and Profit merged with Crowdsource Corp. to extend the power of crowdsourcing to a variety of social and business applications.

More directly, S&P tells advertisers that they can:

Buy votes on social media sites.

  1. Sign up.
  2. Add funds to your account.
  3. Buy votes.
  4. Get visitors to your site for cheap.
  5. Repeat.

And in turn, social media users can “get paid just for clicking buttons.”

Perhaps they or other intermediaries that help to launder ratings could find themselves answering some questions from the FTC.  I see the domain for subvertandprofit is registered in Massachusetts, so I’ve sent an email to its owner — I’ll update this post if I hear anything.

Responses

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  1. Seth Finkelstein says:

    August 30th, 2010 at 7:46 pm (#)

    > … would the government be going after any blogger who says something good about something and might have a financial interest in it? It is not particularly easy to predict, …

    I understand the bogospheric politics behind that phrasing. But I can say, au contraire, it was very easy to predict that the FTC was not going to spend scarce agency resources to go after trivia. However, that sort of prediction doesn’t make good linkbait/hit-fodder.

  2. J.H. Snider says:

    August 31st, 2010 at 11:57 am (#)

    Hi Jonathan,

    You might be interested in my FTC testimony/working paper on the FTC’s blogger conflict-of-interest rules:

    http://www.ftc.gov/opp/workshops/news/mar9/docs/snider1.pdf

    I argue for a more technologically sophisticated approach to such rules.

    If you like nice cartoons and graphics (and are also interested a much bigger framing of the issue), you might also be interested in:

    http://isolon.org/Reports/10-05-08–FOI-Summit–TransparencyInTheDigitalAge–Presentation.pptx
    (skip to the 2nd half of the presentation where I discuss government conflict-of-interest rules).

    Best,

    –Jim

  3. El astroturfing al banquillo de los acusados -- El Blog de Manuel Delgado says:

    September 1st, 2010 at 12:27 am (#)

    [...] Jonathan Zittrain en su blog que la FTC estadounidense le ha metido un puro a una empresa llamada Reverb Communications por basar su negocio en el astroturfing, [...]

  4. Joly MacFie says:

    September 2nd, 2010 at 1:08 am (#)

    http://www.newsweek.com/2010/08/10/businesses-buy-facebook-fans.html

    “The need to be liked has become important enough that some businesses are willing to pay for Facebook popularity. Advertising Expert, a small firm in Boynton Beach, Fla., is among a growing number of companies in the popularity-sales business. Others include USocial and Socioniks. Through a network of outsourced Facebook users, Advertising Experts garners fans for its customers, ideally those who already “like” products or companies in the market that the customer is looking to serve. Customers can order 500 “likes” for $55 or 10,000 “likes” for $900.”

Blog

  • The Future of the Internet: Five Years Later
  • In 2008, The Future of the Internet called attention to a “sea change” in the way consumer devices interact with the Internet. “The future is not one of generative PCs attached to a generative network,” the book warns; “it is instead one of sterile appliances tethered to a network of control.” In response to the security threats posed by malicious third-party code, increasing numbers of users will likely gravitate towards gadgets “tethered” by continuous communication between product and vendor. And this proliferation of tethered computing—the “appliancization” of PCs—will deal a serious blow to the principles of generativity and free expression that drove the early Internet.

    Since the publication of The Future of the Internet, the ethos of strict appliancization has taken a new turn. In 2011, Professor Zittrain wrote an update on the book’s message: “at the time of the book’s drafting, the alternatives seemed stark: the “sterile” iPhone that ran only Apple’s software on the one hand, and the chaotic PC that ran anything ending in .exe on the other. The iPhone’s openness to outside code beginning in ’08 changed all that. It became what I call “contingently generative” — it runs outside code after approval (and then until it doesn’t).” This trend towards contingently generative models continues into the present day, and represents a shift similar in many respects to the one The Future of the Internet predicted.

    Jon Brodkin and Peter Bright’s Ars Technica op-ed on the Microsoft Metro app store offers some valuable commentary on a big development in this “sea change.” The article recognizes that “Microsoft is imitating Apple in one very bad way, by limiting the distribution of Metro applications to a Microsoft-controlled app store… by bringing Windows to tablets, Microsoft could strike a blow for openness in a market dominated by a closed system. Instead, Microsoft is bringing the same restrictions found on iPads to both Windows tablets and PCs.” As forecasted by The Future of the Internet, devices that only run approved code are gaining popularity. Metro, the curated user interface that has found its way onto Microsoft’s tablets and PCs (in the case of the PCs, alongside a fully-functional desktop mode capable of side-loading non-Windows Store applications), won’t run applications from outside the Windows Store. Moreover, the apps available through the Store are subject to a bevy of restrictions on content. With these restrictions on installable applications come the restrictions on generativity that The Future of the Internet anticipated: “lock down the device, and network censorship and control can be extraordinarily reinforced.” And, as the Ars Technica piece observes, the Windows Store’s rules would exclude critically-acclaimed content like the video game Elder Scrolls: Skyrim, simply for its PEGI 18/ESRB M rating. It isn’t hard to extrapolate, as Brodkin and Bright do, that these rules could give rise to debacles similar to Apple’s (repealed) ban of a satire app developed by a Pulitzer Prize winner.

    Though the Windows Store’s restrictions resemble Apple’s policies in many ways, there is a crucial difference: Metro-running Windows 8 products are designed as PC replacements, rather than sui generis devices like the iPad. And since Windows desktops have long been preferred gaming platforms, the theoretical exclusion of content like Skyrim from the Windows Store makes Windows 8’s emphasis on the Metro interface particularly jarring.

    With Metro, Microsoft has made a decisive move towards contingent generativity. Brodkin and Bright note that “there are security benefits to a closed app store model, particularly for less tech-savvy users who may not understand all the dangers on the Web. There are also, arguably, convenience benefits; end-users can be reasonably confident that the apps they download will work correctly and be at least marginally useful…But while these security and convenience benefits might be enough to justify the existence of a curated app store, they don’t justify the decision to make that store the only option for all users. Informed users should be allowed to install applications from wherever they want.” Brodkin and Bright prefer a system like Gatekeeper, a fixture in newer versions of Apple’s OS X, from Mountain Lion forward. Gatekeeper gives users the choice to restrict their operating system to App Store apps and outside apps that have been signed with Apple-issued Developer IDs, or open up the device to all programs, whether or not they’ve been vetted by Apple. The “Future of the Internet” Blog is fairly enthusiastic about Gatekeeper: about a year ago, a post here suggested that “the middle ground of allowing non-App Store signed code may represent the best of both worlds.” But we were quick to warn that Gatekeeper strikes a tenuous balance: “one small tweak — lose that Control-click for sideloading — and OS X could fully merge with iOS, both in functionality and in security methods.” Metro’s riff on content control could be just that sort of tweak—especially given recent speculation that Microsoft may dump desktop mode in Windows 9, leaving only Metro.

    Moreover, a contingently generative business model like the Windows Store’s carries some ethical implications that, while not damning, are certainly worth examining. Distribution systems like the Windows Store, Apple’s App Store, and the Android Market receive 30% of the sales revenue from applications sold in their stores (in the Windows Store, this cut drops to 20% after an app reaches $25,000 USD in revenue). Further restrictions on side-loading in new operating systems would drive a great deal of business towards big companies’ proprietary marketplaces—and with that traffic would come big payouts. With the uptick in store traffic that tighter gatekeeping would engender, it’s easy to imagine the equilibrium of Mac’s OS X Gatekeeper being forsaken for more restrictive, and more lucrative, operating systems. To analogize, a la The Future of the Internet: when the company that makes your computer requires you to install programs through their official store, it isn’t so different from the company that makes your toaster forcing you to buy from their bakery—and taking a cut out of every bread purchase you make.

    Even though Windows 8 PC users can still make use of a fully-functioning desktop operating system, Microsoft’s failure to include a side-loading option for the heavily-emphasized Metro interface—particularly in devices marketed as PC replacements—is a step in the wrong direction. It’s also an indication that the seas are changing in the way The Future of the Internet predicted. Given that Android’s more open approach to outside applications[1] still leaves the Android Market increasingly economically viable, Ars Technica is right to voice its disappointment in xenophobic operating systems like iOS and Metro.

    - Ben Sobel, Kendra Albert, and JZ

    [1] Though the Google Play approach to openness is far from perfect! Ad-Blocking apps were recently pulled from the Play Store, in a move that will come to illustrate just how viable it is to distribute a side-loaded Android app without any help from the Play Store.

  • Rock star RA wanted
  • I’m seeking a full-time one-year rock star research associate to engage with a variety of projects and classes, with a broad opportunity to immerse in cyberlaw and Internet topics.   Blurb below, with more information on how to apply at <http://cyber.law.harvard.edu/getinvolved/jzra>.  …JZ

    –

    Professor Jonathan Zittrain of Harvard Law School, the Harvard Kennedy School of Government, the Harvard School of Engineering and Applied Sciences, and the Berkman Center for Internet & Society, seeks a full-time research associate in Cambridge, MA for a period of one year, beginning no sooner than June 1, 2013.

    This position requires the ability to absorb large amounts of written and other media materials from various sources (including but not restricted to: original sources, scholarly articles, news articles/blogs, interviews, databases) in a short amount of time, critically analyze that material and render it forward. This could take the form of prep materials for panels, conferences and presentations; article outlines; fact checking materials; original article or paper drafts; slide decks or other digested forms. The research assistant should be prepared to help prepare materials for class sessions and syllabi, lead discussions and work with project managers to accomplish research-related goals.

    Research is often self-directed with little outside guidance beyond broad outlines and themes (though occasional targeted research assignment for a specific fact or image can be expected, and feedback is provided), so the ability to quickly critically appraise sources and identify interesting, relevant and original paths is essential. Wide-ranging interests and the ability to work on almost any issue or topic that arises is a plus, as is an ability to ramp up quickly on unfamiliar fields or topic areas. Excellent writing and editorial skills with an attention to detail are also required.

    This job is an ideal opportunity for those interested in future graduate school or law school studies, whether currently admitted or still applying to such programs.

    Over the course of the year, a motivated individual will sharpen and focus his or her research agenda and make valuable contributions (in his or her own name) to the field of cyberlaw and beyond, while being exposed to interesting thinkers in academia, industry, and government. A research associate in this position will work very closely with Professor Jonathan Zittrain and his team, assisting in a variety of research areas, e.g. ubiquitous human computing, mesh networking, and cybersecurity, as well as on topics around access to knowledge and open scholarly publishing under the auspices of the Harvard Law School Library.

    The position will not start before June 1, 2013.  As with all Berkman staff positions, this is a term position, ending June 30, 2014.

  • F-T: Don’t sue over tweets
  • I just published a short piece in the F-T in the wake of legal threats against users who tweeted or retweeted a link to a BBC report of child abuse that turned out to be wrong.  Here’s the full text –

    Those who didn’t see the false child abuse accusations against Lord Alistair McAlpine on an ill-considered BBC documentary may have instead heard about them through social media. This week, London’s Metropolitan Police suggested they might file charges against those Twitter users who sullied the reputation of the retired Conservative politician by knowingly repeating the lie that he was a child abuser. But the police may be less fearsome to the average BBC-linking tweeter than Lord McAlpine himself. Read more »

  • Taking More than Candy from a Baby
  • Update – 10/17/2012: The parties involved in the lawsuit – Speak for Yourself and SCS/PRC reached a settlement, allowing the app to remain in the Android and iOS app stores. More at the Nieder family blog.

    Original Post:

    Generativity hasn’t had a poster child — until now.

    Meet Maya, a four-year-old child who could lose her ability to speak with the elimination of an app from the iOS App Store.

    As detailed in the Nieder family’s original blog post on the subject, Maya uses Speak for Yourself (SfY), an iPad app that serves as an “augmentative and alternative communication” (AAC) device. Before finding SfY, Maya had tried multiple AAC devices, but hadn’t found one that worked for her. Read more »

  • “Unabomber manifesto tied to tech news headlines”
  • When you see the headline “Powerful ‘Flame’ cyberweapon tied to popular Angry Birds game,” does it cause you to think that there is actually some connnection between the recently discovered malware Flame and Angry Birds? That would be entirely reasonable, but wrong. Read more »

About Jonathan Zittrain

jonathan zittrain

Jonathan Zittrain is Professor of Law at Harvard Law School and co-founder of the Berkman Center for Internet and Society at Harvard Law School

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