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The Almighty Buck

Users Threaten To Sue After Yield Generation Project Stablegains Loses $44 Million in Terra Collapse (web3isgoinggreat.com) 52

A class action law firm sent a letter to the yield generation project Stablegains, demanding records on customer accounts, marketing and advertising strategies, and communications relating to the Terra stablecoin. Web3 is Going Great reports: [...] Unfortunately for their customers, it turned out that Stablegains was heavily invested in the Terra project's Anchor protocol, which collapsed along with the rest of the Terra ecosystem last week. Stablegains' website had stated they primarily generated yields through the asset-backed stablecoin USDC. However, after the collapse of Terra, Stablegains admitted that "All users' holdings are in UST" -- which lost over 90% of its value. Stablegains was part of Y Combinator's W22 batch and had received over $3 million in funding from several venture capital firms, including SNO Ventures, Moonfire and Goodwater Capital.
Social Networks

TikTok Plans Big Push Into Gaming, Conducting Tests in Vietnam (reuters.com) 4

TikTok has been conducting tests so users can play games on its video-sharing app in Vietnam, part of plans for a major push into gaming, Reuters reported Thursday, citing four people familiar with the matter. From the report: Featuring games on its platform would boost advertising revenue as well as the amount of time users spend on the app -- one of the world's most popular with more than 1 billion monthly active users. TikTok, which is owned by China's ByteDance, also plans to roll out gaming more widely in Southeast Asia, the people said. That move could come as early as the third quarter, said two of them. A TikTok representative said the company has tested bringing HTML5 games, a common form of minigame, to its app through tie-ups with third-party game developers and studios such as Zynga.
Google

Google Messages RCS Is Being Abused For Ads In India (9to5google.com) 11

Over the past few weeks, Google Messages users in India have been reporting more and more ads showing up through RCS messaging. 9to5Google reports: While many brands -- even in the US and other countries -- have used messaging apps and SMS texts to advertise new products to former customers, these ads going on in India are not necessarily the result of a user's buying activity. Business messaging on RCS, as Google's Jibe website points out, is supposed to be used for things such as sending copies of your travel tickets or sending links for buying additional products based on a past purchase based on a user's request. [...] That is very much not what is happening in India right now.

Brought to our attention by Ishan Argwal on Twitter, RCS ads in Google Messages appear to be coming from "Verified Business" accounts. Google first announced that functionality back in 2020, for the purposes of allowing customers to talk to businesses. Advertising was surely part of the functionality, but it's clearly being abused in India. Android Police says these ads have been going out for almost a year now, citing examples of ads sent by Kotak Mahindra Bank, Bajaj Finserv, Buddy Loan, and PolicyBazaar. From what we can tell from user reports, it appears the frequency of these ads has been picking up over the past few months especially.

These ads are not harmless, either, with many of the examples we've seen being for personal loans, a category that tends to be full of predatory practices. One user reports that they were sent one of these ads on a phone that didn't even have an active SIM card in it. Currently, it seems as though this practice is primarily happening in the Indian market, at least in this quantity. What can be done about these ads in Google Messages? The solutions are all not quite ideal, unfortunately. You can report these businesses and block them from sending future messages [...]. Alternatively, you can turn off RCS features entirely within the Google Messages app.

Google

Google Subsidiary in Russia To File for Bankruptcy (wsj.com) 53

The Russian subsidiary of Alphabet's Google plans to file for bankruptcy, saying it had become impossible for the company to pay employees and suppliers. From a report: Google submitted a notice of intent to declare itself bankrupt, according to a message published Wednesday on Russia's Fedresurs registry. A Google spokesperson separately said an earlier move by authorities to seize its bank account made continuing operations in the country impossible. "The Russian authorities' seizure of Google Russia's bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations," the Google spokesperson said. The company had already paused most of its commercial operations in Russia, including all advertising, after the country's communications censor accused the company's YouTube video service of spreading misinformation and stoking protests.
Privacy

Ad-Tech Firms Grab Email Addresses From Forms Before They're Even Submitted (theregister.com) 46

Tracking, marketing, and analytics firms have been exfiltrating the email addresses of internet users from web forms prior to submission and without user consent, according to security researchers. Some of these firms are said to have also inadvertently grabbed passwords from these forms. The Register reports: In a research paper scheduled to appear at the Usenix '22 security conference later this year, authors Asuman Senol (imec-COSIC, KU Leuven), Gunes Acar (Radboud University), Mathias Humbert (University of Lausanne) and Frederik Zuiderveen Borgesius, (Radboud University) describe how they measured data handling in web forms on the top 100,000 websites, as ranked by research site Tranco. The boffins created their own software to measure email and password data gathering from web forms -- structured web input boxes through which site visitors can enter data and submit it to a local or remote application.

Providing information through a web form by pressing the submit button generally indicates the user has consented to provide that information for a specific purpose. But web pages, because they run JavaScript code, can be programmed to respond to events prior to a user pressing a form's submit button. And many companies involved in data gathering and advertising appear to believe that they're entitled to grab the information website visitors enter into forms with scripts before the submit button has been pressed.

"Our analyses show that users' email addresses are exfiltrated to tracking, marketing and analytics domains before form submission and without giving consent on 1,844 websites in the EU crawl and 2,950 websites in the US crawl," the researchers state in their paper, noting that the addresses may be unencoded, encoded, compressed, or hashed depending on the vendor involved. Most of the email addresses grabbed were sent to known tracking domains, though the boffins say they identified 41 tracking domains that are not found on any of the popular blocklists. "Furthermore, we find incidental password collection on 52 websites by third-party session replay scripts," the researchers say.

The Military

The US Army's Unsettling New Recruitment Video for Psychological Warfare (taskandpurpose.com) 189

Task and Purpose reports on "a new and somewhat unnerving recruiting pitch from the U.S. Army's 4th Psychological Operations Group" that asks viewers one simple question: "Have you ever wondered who's pulling the strings?" The three-and-a-half minute, movie trailer-esque video was released by the 4th PSYOP Group on Youtube on May 2. Since then it's brought in 329,396 views, and it's not hard to see why: This is not your father's recruiting commercial. Complete with eerie whistling in the background and suspenseful music, the video is far from the sometimes-cheesy Army recruiting commercials we often see on television. It's dark and palpably tense, the clips of old cartoons and radio segments from world events combining perfectly to create something that is both intriguing and unsettling.

It accomplishes exactly what psychological operations soldiers set out to do: Influence an audience. As one commenter on Youtube pointed out: "Everything is a weapon. Even this video." Col. Chris Stangle, commander of 4th PSYOP Group, told Task & Purpose on Friday that the video was created in-house, both as a recruitment effort but also to literally show people what they can do — part of psychological operations is creating persuasive media.... Throughout the world, Stangle said, psychological operations are occurring "literally everywhere, every day, in every component of our lives." We're seeing it play out in real-time in eastern Europe, where Ukraine is proving much more successful in the information war than the Russians.

That's no coincidence. Stangle said after the annexation of Crimea in 2014, the U.S. PSYOP community, along with other NATO allies and special operations communities around the world, got to work helping Ukraine build their own abilities.... "We've helped through [military-to-military] partnerships, us as well as more than 12 allies and partners. And what we've been able to do is just sit and watch how amazing their arguments are ... Ukraine has done a masterful job, they've taken the training and the work we've done with them, as well as their own inherent skill, and have just really blown it up...."

U.S. Army PSYOP soldiers are working daily with over 40 countries around the globe, according to Stangle. And those partnerships will be critical to success both in preventing future conflicts, and in future conflicts as they unfold.

As the video says: "Warfare is evolving, and all the world's a stage."

Thanks to Slashdot reader schwit1 for sharing the link!
Movies

Disney+ Adds Almost 8 Million New Subscribers (theverge.com) 47

Disney added 7.9 million new subscribers to its Disney Plus streaming service during the first three months of 2022, the company announced (PDF) in its Q2 earnings report on Wednesday. The Verge reports: That brings the total to around 87.6 million worldwide, excluding the 50.1 million people subscribed to Disney Plus Hotstar internationally. In the US and Canada alone, Disney Plus now has 7.1 million more subscribers than it did a year ago, with 44.4 million. The company also said that the number of subscribers for all of its streaming offerings -- including Hulu and ESPN Plus -- had grown to over 205 million, an increase from the 196.4 million it reported in January.

Disney also reports that it's earning more per Disney Plus subscriber than it had been previously, at least in the US. Where its average monthly revenue per paid subscriber used to be $6.01, it's now sitting at $6.32. Disney says this is thanks to "an increase in retail pricing and a lower mix of wholesale subscribers." Despite this, Disney Plus is actually losing the company money at a greater clip than it was before. Disney says this is thanks to higher costs for production, advertising, and technology. Those costs seem unlikely to go down, and raising prices, like Netflix did, could cut off its subscriber growth. All that put together makes it obvious why Disney is looking at creating an ad-supported tier sooner rather than later.

Google

Google Is Remaking Search, Maps for the TikTok Generation (bloomberg.com) 51

Alphabet's Google unveiled a series of planned upgrades to its search and maps services revealing the company's augmented reality ambitions -- and its appeal to a generation of internet users drifting away from the company. From a report: The new features include ways for people to search for nearby items using images and identify physical objects with their smartphone cameras. On Google Maps, the company promised a way for people to explore detailed 3D digital models of landmarks and neighborhoods before setting foot in person. Google shared the plans on Wednesday for the first day of its annual I/O developer conference held near its Mountain View, California headquarters.

Google is working to keep its products relevant and growing as users' needs evolve beyond text. "Search should be something that you can do anywhere, in any way you want, using any of your senses," Prabhakar Raghavan, Google's senior vice president and product chief, said in an interview. Google's core search advertising business has continued to grow steadily during the pandemic, despite recent middling financial results. Yet the I/O announcements underscored nascent threats Google sees to its flagship services. People in emerging markets are more likely to search with voice features than typing, which has driven Google to invest more in its voice assistant feature.

Advertising

Lawmakers Offer Bill To Regulate Volume of Commercials On Streaming Services (thehill.com) 103

Sen. Sheldon Whitehouse (D-R.I.) and Rep. Anna Eshoo (D-Calif.) on Tuesday introduced a bill to regulate the volume of commercials shown on streaming platforms. The Hill reports: The bill is known as the Commercial Advertisement Loudness Mitigation (CALM) Modernization Act. It would modernize policies regarding ads on streaming services, saying that "the volume of commercials on streaming services cannot be louder than regular programming," according to Eshoo. It would also ramp up the Federal Communications Commission's ability to investigate and enforce violations of the original CALM Act and require a study into its effectiveness.

Eshoo added that since she and Whitehouse created the original CALM Act, streaming service providers have "recreated the problem of loud ads because the old law doesn't apply to them." "Today, we're updating the legislation for the benefit of consumers who are tired of diving for the mute button at every commercial break," Eshoo added.

Media

Podcasting Will Be Worth $4 Billion By 2024 (variety.com) 24

According to figures from trade group IAB and PwC, the podcast advertising business in the United States is expected to grow to an estimated $4.2 billion in 2024. Variety reports: The sector hit $1.45 billion in 2021, representing 72% annual growth, according to the report. In 2021, U.S. podcast advertising revenue grew twice as fast as the total internet advertising market, which was up 35% last year, according to the 2021 PwC/IAB Internet Advertising Revenue Report. Still, U.S. podcast advertising revenue is poised to continue double-digit growth, growing more than 100% over the next two years to an estimated $4.2 billion in 2024, per the report.

According to the latest IAB/PwC podcast report, three key factors are driving podcast ad revenue growth: the ongoing increase in listeners and content; increased use of automated ad tech, as ad revenue served via dynamic ad insertion (DAI) has almost doubled in two years to take 84% share in 2021 (versus ads embedded in podcast audio); and growth of ad spending in categories that historically had lower spend volumes like sports and true crime.
"Everything right now is aligned to drive growth," said Chris Bruderle, IAB's VP of research and insights. "There's more engaging and diverse podcast content than ever, and that is translating into larger, more attractive audiences. But more than anything, podcasting has proven that it can deliver beyond direct-to-consumer advertising to support brand-building and drive business outcomes."
Privacy

Clearview AI Agrees To Limit Sales of Facial Recognition Data In the US (engadget.com) 14

An anonymous reader quotes a report from Engadget: Notorious facial recognition company Clearview AI has agreed to permanently halt sales of its massive biometric database to all private companies and individuals in the United States as part of a legal settlement with the American Civil Liberties Union, per court records. Monday's announcement marks the close of a two-year legal dispute brought by the ACLU and privacy advocate groups in May of 2020 against the company over allegations that it had violated BIPA, the 2008 Illinois Biometric Information Privacy Act. This act requires companies to obtain permission before harvesting a person's biometric information -- fingerprints, gait metrics, iris scans and faceprints for example -- and empowers users to sue the companies who do not.

In addition to the nationwide private party sales ban, Clearview will not offer any of its services to Illinois local and state law enforcement agencies (as well as all private parties) for the next five years. "This means that within Illinois, Clearview cannot take advantage of BIPA's exception for government contractors during that time," the ACLU points out, though Federal agencies, state and local law enforcement departments outside of Illinois will be unaffected. That's not all. Clearview must also end its free trial program for police officers, erect and maintain an opt-out page for Illinois residents, and spend $50,000 advertising it online. The settlement must still be approved by a federal judge before it takes effect.
"Fourteen years ago, the ACLU of Illinois led the effort to enact BIPA -- a groundbreaking statute to deal with the growing use of sensitive biometric information without any notice and without meaningful consent," Rebecca Glenberg, staff attorney for the ACLU of Illinois, said in a statement. "BIPA was intended to curb exactly the kind of broad-based surveillance that Clearview's app enables. Today's agreement begins to ensure that Clearview complies with the law. This should be a strong signal to other state legislatures to adopt similar statutes."
Businesses

The Tech Industry's Epic Two-Year Run Sputters (wsj.com) 24

Investors are divided about whether technology companies are set for a deep retrenchment or if growth is simply slowing from pandemic highs. From a report: The technology industry, which powered the U.S. economy during the pandemic and grew at tremendous scale during a decade of ultralow interest rates, is confronting one of the most punishing stretches in years. Global powerhouses and fledgling startups are feeling pain from a variety of economic, industry and market factors, spawning postpandemic turbulence in e-commerce, digital advertising, electric vehicles, ride-hailing and other segments. Companies that emerged as job-creating juggernauts in the past two years -- collectively adding hundreds of thousands of workers to their payrolls in engineering, warehouse and delivery jobs -- have begun to freeze hiring or even lay off employees.

Concerned that some of the forces that have propelled tech ever upward have begun to fade, investors have sent share prices for a number of companies, including Lyft and Peloton plunging on disappointing financial results or other news. The stocks of Netflix, Facebook parent Meta Platforms and Amazon.com all are down more than 30% this year, exceeding the more-than-13% drop in the S&P 500. Investors are divided on the question of whether the slowdown is temporary -- as well-positioned companies work through a period of stagnation after expanding ultrafast in recent years -- or if these are the early signs of a deeper retrenchment for the industry and its investors.

Earth

Is Plastic Recycling a Myth? (nasdaq.com) 290

Last week California's Attorney General accused the fossil fuel/petrochemical industries of "perpetuating a myth that recycling can solve the plastics crisis," Reuters reports, and even launched an investigation into their role in "causing and exacerbating the global plastics pollution crisis."

And meanwhile, "The rate of plastic waste recycling in the United States fell to between 5%-6% in 2021, as some countries stopped accepting U.S. waste exports and as plastic waste generation surged to new highs, according to a report released on Wednesday." The report by environmental groups Last Beach Clean Up and Beyond Plastics shows the recycling rate has dropped from 8.7% in 2018, the last time the Environmental Protection Agency published recycling figures. The decline coincides with a sharp drop in plastic waste exports, which had counted as recycled plastic.... "The U.S. must take responsibility for managing its own plastic waste," said the report, which used 2018 EPA, 2021 export and recent industry data to estimate the 2021 recycling rate.....

"Recycling does not work, it never will work, and no amount of false advertising will change that," said report author Judith Enck [a former regional administrator at America's Environmental Protection Agency].

One sustainability site now even calls plastic recycling "a diversionary tactic preventing us from finding real solutions to our waste crisis," agreeing that it's being pushed by the plastics industry in "a clever, yet green-washed, ploy to maintain production by perpetuating a myth that all this plastic is destroyed. The sad truth is that it's not...."

"[T]he real problem is the ever-increasing amount of STUFF, particularly single-use plastic stuff, that's produced, consumed briefly, and then added to existing colossal piles of trash. Recycling can't solve this problem."

Or, as Cory Doctorow put it recently, "Recycling is puffery. Which is to say, recyling is bullshit...." In 1973, Exxon researchers told the company that there was no feasible way to recycle plastics, and that there likely never would be. Exxon sprang into action! They created a puffery campaign! They lobbied state legislatures to mandate the use of the recycling logo, three arrows pointing at each other, telling us that plastic was part of a new, "circular" economy. Oil is made into plastic, plastic is used, plastic is recycled. Everybody wins!

We — the "consumers" (ugh) — bought it. We bought the plastic, sure, but we bought the puffery, too. We sorted our plastic, washed it, set it out on the curb. 90% of it was never recycled. 90% of it never will be.

Thanks to Slashdot reader joshuark for sharing the link...
Advertising

TikTok Plans To Share Ad Revenue With Creators For the First Time (variety.com) 10

TikTok is launching a new way for the top creators on its billion-user app make money -- and for advertisers to reach the cream of the short-form video crop. Variety reports: The company announced TikTok Pulse, an advertising program to let marketers buy inventory in the top 4% of all videos on the platform in a dozen different categories (including beauty, fashion, cooking and gaming). Creators and publishers with at least 100,000 followers will be eligible to participate in the initial stage of TikTok Pulse. The company said that with the launch of Pulse, it will "begin exploring" its first advertising-revenue share program with creators, public figures and media publishers.

TikTok Pulse will roll out first in the U.S. in June, with additional markets to follow in the fall, according to Sofia Hernandez, TikTok's global head of business marketing. "This finally offers marketers something they have been asking for for years -- to be part of a community," she said.

Twitter

Twitter Admits To Risk of Losing Advertisers, Staff Due To Musk Takeover (techcrunch.com) 214

An anonymous reader quotes a report from TechCrunch: Just ahead of its presentation to media ad buyers later this week at the 2022 NewFronts, Twitter acknowledged in a new SEC filing that its core advertising business could now be at risk as a result of the Elon Musk takeover, in addition to employee hiring and retention efforts and other factors. While Musk's vision for Twitter is one of a more free speech-focused platform, he hasn't offered assurances to Twitter's advertiser base that Twitter will remain "brand safe," post-acquisition. To the extent that he's clarified his vision, Musk said only that he believes any speech not deemed illegal by a government will soon be permitted on Twitter. Of course, Twitter today already moderates a wide range of prohibited types of content beyond what's considered illegal. [...] They may just decide that reaching Twitter's small-ish user base -- at least in comparison with the larger social giants like Meta and TikTok -- is not worth the risk. [...]

Among the many new risks related to the transactional nature of the Musk deal -- like if the merger is delayed or doesn't close (the latter which comes with a billion-dollar financial hit to Twitter, for instance) -- the company said it's exposed to new risks related to its "business relationships, financial condition, operating results, cash flows, and business," including "whether advertisers continue their spending on our platform." As the company explains further in the filing, amid its ongoing risk factors, it continues to generate the "substantial majority of our revenue from advertising" and its loss could harm the business. It notes as well that if its reputation among advertisers declined, it may be less competitive.

[T]he company also acknowledged a more immediate threat of employee departures and an inability to effectively recruit as other potential ramifications of the merge, and noted that "current employees could be distracted, and their productivity decline as a result, due to uncertainty regarding the merger." Musk downplayed any worries over employee departures when speaking to reporters on the red carpet at the annual Met Gala in New York, Reuters noted, saying that "it's a free country," and that: "Certainly if anyone doesn't feel comfortable with that, they will on their own accord go somewhere else. That's fine."

Television

Paramount+ Subscriber Count Grows To Nearly 40 Million (theverge.com) 38

Paramount Plus' subscriber count has ballooned to almost 40 million with the service gaining 6.8 million subscribers in the first quarter of 2022 alone, Paramount announced in its earnings report on Tuesday. The Verge reports: An increase in subscriber count led to more money for the company as well — its direct-to-consumer revenue, which includes Paramount Plus and its free TV streaming service, Pluto TV, increased 82 percent year over year. While revenue from subscriptions for both Pluto TV and Paramount Plus grew 95 percent year over year, advertising revenue increased 59 percent. The company says Paramount Plus subscribers watched more shows for longer periods of time as well. This, along with a higher subscriber count, was mostly driven by the service strengthening its roster of shows.
Privacy

Grindr User Data Was Sold Through Ad Networks (gizmodo.com) 78

According to The Wall Street Journal, a digital advertising network was selling precise movements of millions of users of the gay-dating app Grindr. The locations were available for purchase since "at least 2017," according to the report. Gizmodo reports: According to the Journal's sources, one of the company's old ad partners, MoPub (which was sold off by Twitter earlier this year), was freely passing off location data from the tens of thousands of apps that use place-based information to monetize. At one time, this included Grindr. Once in MoPub's hands, the Journal alleges that this data was sold off, in bulk, to other partners, like Near (formerly known as UM, and formerly formerly known as UberMedia). And Near offered up that data to just about anyone. Because data privacy laws in the U.S. are vague and chaotic where they exist at all, Near can pawn off data from its upstream partners out in the open. You, dear reader, could buy it yourself.

"Grindr has shared less information with ad partners than any of the big tech platforms and most of our competitors, restricting the information we share to IP address, advertising ID, and the basic information necessary to support ad delivery," Grindr spokesperson Patrick Lenihan noted in a public statement. With all respect to Lenihan, that bar is extremely low. So-called "anonymous" data points like an ad ID or IP address can easily be tied back to a specific device, and the person who owns that device. By using "anonymous" data like this, advertisers can accurately surmise your workout routine, your favorite tunes, your immigration status and much, much more.
"[A]bout one year ago, reports emerged that location data gleaned from the app was used to out a Catholic priest," adds Gizmodo. "The priest resigned, and Catholic news writers wrung their hands over the ill-gotten data source."

"[T]he data used to out the priest was anonymized, legally speaking, but the middlemen were able to tie the Grindr-using device to a certain Grindr-using priest because the device was seen frequenting the priest's residence and lake house."
Education

Google Makes $100,000 Worth of Tech Training Free To Every US Business (reuters.com) 12

Alphabet's Google will provide any U.S. business over $100,000 worth of online courses in data analytics, design and other tech skills for their workers free of charge, the search company said on Monday. Reuters reports: The offer marks a big expansion of Google's Career Certificates, a program the company launched in 2018 to help people globally boost their resumes by learning new tools at their own pace. Over 70,000 people in the United States and 205,000 globally have earned at least one certificate, and 75% receive a benefit such as a new job or higher pay within six months, according to Google.

The courses, designed by Google and sold through online education service Coursera, each typically cost students about $39 a month and take three to six months to finish. Google will now cover costs for up to 500 workers at any U.S. business, and it valued the grants at $100,000 because people usually take up to six months to finish. Lisa Gevelber, founder of Grow with Google, the company unit overseeing certificates, said course completion rates are higher when people pay out of pocket but that the new offer was still worthwhile if it could help some businesses gain digital savvy. Certificates also are available in IT support, project management, e-commerce and digital marketing. They cover popular software in each of the fields, including Google advertising services.

Google

Google Attacks EU for Treating It Almost Like a 'Criminal' (bloomberg.com) 75

Alphabet's Google lashed out at the European Union for doling out a "quasi criminal fine of very large proportions" for allegedly thwarting advertising rivals on websites. From a report: At a hearing at the bloc's General Court on Monday, the search giant said the 2019 decision by the EU's antitrust arm to issue the 1.49 billion-euro ($1.6 billion) fine was riddled with errors and should be struck down. The case is the last of a trilogy of EU court fights over cases that set the course for antitrust chief Margrethe Vestager's bid to rein in Silicon Valley. It focuses on Google's role as an ad broker for websites, targeting exclusivity agreements for online ads with its AdSense for Search product. In its decision, the EU accused the company of imposing a number of restrictive clauses in contracts with third-party websites which prevented Google's rivals from placing their search adverts on these websites. The European Commission analysis includes "errors of characterization" that led it "to proceed on a false basis in its assessment of the clauses and they have resulted in material errors of analysis," said Josh Holmes, one of the lawyers for Google appearing in court.
Advertising

Researchers Find Amazon Uses Alexa Voice Data To Target You With Ads (theverge.com) 36

A report released last week contends that Amazon uses voice data from its Echo devices to serve targeted ads on its own platforms and the web. The Verge reports: he report, produced by researchers affiliated with the University of Washington, UC Davis, UC Irvine, and Northeastern University, said the ways Amazon does this is inconsistent with its privacy policies. Titled, "Your Echos are Heard: Tracking, Profiling, and Ad Targeting in the Amazon Smart Speaker Ecosystem," the report concludes that Amazon and third parties (including advertising and tracking services) collect data from your interactions with Alexa through Echo smart speakers and share it with as many as 41 advertising partners. That data is then used to "infer user interests" and "serve targeted ads on-platform (Echo devices) as well as off-platform (web)." It also concludes that this type of data is in hot demand, leading to "30X higher ad bids from advertisers."

Amazon confirmed to The Verge that it does use voice data from Alexa interactions to inform relevant ads shown on Amazon or other sites where Amazon places ads. "Similar to what you'd experience if you made a purchase on Amazon.com or requested a song through Amazon Music, if you ask Alexa to order paper towels or to play a song on Amazon Music, the record of that purchase or song play may inform relevant ads shown on Amazon or other sites where Amazon places ads." Amazon spokesperson Lauren Raemhild said in an email.

The company also confirmed there are targeted ads on its smart speakers. "Customers may receive interest-based ads when they use ad-supported premium content -- like music, radio or news streams," said Raemhild, pointing out that this is the same experience if they engaged with that content on other channels. She went on to say that Amazon does not share voice recordings with developers. "Developers get the information necessary to fulfill your requests within their skills, such as answers when you play a trivia skill, or the name of the song you want to play," she said. "We do not share our customers' personal information to third-party skills without the customer's consent." Amazon allows Alexa users to opt out of ad targeting as well (see sidebar).
"Many of the conclusions in this research are based on inaccurate inferences or speculation by the authors, and do not accurately reflect how Alexa works," added Raemhild. "We are not in the business of selling our customers' personal information and we do not share Alexa requests with advertising networks."

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