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Technology
Amazon said today it is working with the Federal Trade Commissioninvestigation into consumer fraud allegedly committed by Sellers Playbook, a Minnesota-based business that claimed to help Amazon sellers make more money.
FTC and the state of Minnesota announced today that they have charged Sellers Playbook and its owner Jessie Tieva and CEO Matthew Tieva, a married couple who are not affiliated with Amazon.com, with running a large business opportunity scheme. Specifically, the FTC and the Minnesota Attorney GeneralOffice allege Sellers Playbook deceived consumers with a &get rich scheme,& marketing a system that it claimed could enable purchasers to make thousands of dollars per month selling products on Amazon.
In their complaint, the FTC and state of Minnesota wrote the defendants &lure[d]consumers into purchasing expensive business opportunities by deceptively offering consumers a ‘full-service, turnkey package& for getting their ‘piece of the $400 Billion Amazon Pie,& butfew, if any, of the systemusers achieved those earnings. In reality, most lost money.
Meanwhile, Jessie Tieva and Matthew Tieva allegedly made more than $15 million between April 2017 and May 2018, with some consumers forking over more than $32,000.
The FTC says Jessie Tieva and one of her businesses, Exposure Marketing Company (also known as Sellers Online and Sellers System), previously promoted and sold a similar &how to make money on Amazon& scheme called FBA Stores, which also resulted in many purchasers losing large amounts of money. Tieva &routinely made false and unsubstantiated earnings claims during her sales presentations at FBA Stores& live events,& the FTC wrote in its complaint against Sellers Playbook.
FBA Stores stopped operating in March after reaching a settlement with the FTC that included a judgement of more than $102 million. Amazon and the state of Washington also filed separate lawsuits against FBA Stores, accusing it of &preying& on consumers. (The Tievas are not defendants in the FBA Stores case).
In a statement, an Amazon spokesperson said &the entrepreneurs and small businesses selling on Amazon are incredibly important to us and our customers, and we aggressively pursue those that attempt to harm their selling experience. We invest heavily to protect the integrity of our stores and take action to protect customers and sellers, including working with consumer protection agencies and lawenforcement. We have zero tolerance for fraud and abuse and will continue to cooperate with law enforcement to pursue criminals.&
TechCrunch has reached out to Sellers Playbook for comment.
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Read more: Amazon is working with the FTC’s fraud investigation against Sellers Playbook
Write comment (96 Comments)Streaming adult video site YouPorn, announced today that it has banned Alex Jones from its platform, following actions against the conspiracy-monger by tech companies including Apple, Facebook, YouTube and Spotify—but notably, not Twitter. Before you go &wtf,& there were indeed (non-porn) videos with Alex Jones in them on YouPorn (people often take advantage of relatively lax copyright policing on various porn sites to upload non-pornographic content). YouPorn said italso removed spoof videos of Jones and will not allow him to host any content on the platform moving forward.
So naturally the next question is…is there lots of Alex Jones content on porn sites AS IT TURNS OUT THE ANSWER IS YES PLS HELP pic.twitter.com/WSgFUpyi2e
— Charlie Warzel (@cwarzel) August 6, 2018
Iteasy to dismiss YouPornban as a publicity grab, but it underscores the fact that Twitter lack of action is became increasingly notable, even though last December it said it would take a harder stance against hate speech. Alex Jones& verified Twitter profile, with 838,000 followers, is still up, with one of his recent tweets complaining about &being banned on the Internet.&
In a statement, YouPorn vice president Charlie Hughes said &Following news that YouTube, Spotify and Facebook have banned Alex Jones from their platforms, team YouPorn is joining in solidarity and announces we are banning his content as well. As one of the largest user-generated content platforms in the world, we have already removed his videos that have violated our terms of service. As an inclusive platform, hate has no place on YouPorn.&
For those that need a refresher, Alex Jones frequently broadcasts hate speech and played a major role in propagating some of the most harmful conspiracy theories in recent years, including Pizzagate and the debunked claim that vaccines cause autism. His support of theories that the Sandy Hook and Parkland shootings were faked resulted in harassment against the families of victims (Jones is currently trying to get a defamation lawsuit brought against him by some Sandy Hook parents dismissed).
Yesterday, YouTube removed Alex Jones& channel, which had 2.4 million subscribers, for violating its community guidelines, after issuing it a strike last month. On the same day, Apple removed Alex Jones& podcasts from iTunes, following similar actions from Spotify and Stitcher, and Facebook removed four Infowars pages for violating its policies against graphic violence and hate speech. Pinterest also took down Infowars& profile following an inquiry from Mashable.
This now makes Twitter an outlier, one that apparently has lower standards than YouPorn, which, after all, simply streams adult videos instead of arguably sheltering hate speech and bullies. With many of his most active social media outlets removed or suspended, Jones now has two main platforms: the Infowars site and Twitter.
Twitter has promised to do a better job of protecting users, but a lot of its actions come across as more hemming and hawing while real damage is being done through its platform (for example, President Donald Trump retweeting Islamophobic posts from the deputy leader of hate group Britain Firstaccount, which Twitter only suspended three weeks later despite massive uproar and concern that it would trigger more violence and harassment against Muslims).
With Apple (now Americalargest company by market capitalization), some of the biggest social media platforms and even YouPorn taking a stand against Alex Jones and Infowars, the pressure on Twitter is increasing. TechCrunch has reached out to Twitter and Infowars for comment.
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Read more: Now even YouPorn has banned Alex Jones, but he’s still on Twitter
Write comment (100 Comments)Some numbers published in a report from The Information reveal that very few owners of Alexa-powered devices use them for shopping. Of about 50 million Alexa users, only about 100,000 reportedly bought something via voice interface more than once. Itnot exactly surprising, but it may still harm the narrative of conversational commerce that Amazon and others are trying to advance.
The Amazon Echo and its brethren are mostly used for the expected everyday purposes of listening to music, asking what the weather will be like tomorrow and setting timers. All of these things are obviously things that phones do as well, but theresomething to be said for having a stationary hub for the more domestic tasks.
But part of the expectation of seeding the home with these devices has been that users would also make purchases using them: &Alexa, order more Oreos,& or &Alexa, buy a pair of Bose noise-cancelling headphones.& This always seemed rather odd, as people tend to want to look at items before buying them, to check reviews, to shop around for better prices and so on. Who would just buy something by telling their Echo that they want to
Hardly anyone, it seems. That said, it would be a bit disingenuous to pretend that conversational commerce is anything other than one point in a litany of proposed uses for the likes of Alexa, running the gamut of credibility.
As a hub for increasingly common smart home devices, Alexa is a great choice and a common one. And although groceries and impulse purchases may not be something people do via voice, an Echo is a great seller of subscriptions like Spotify and Audible, not to mention future possibilities from queries like &Alexa, call me a plumber.& And of course therethe whole behind-the-scenes industry of ads, promotions and clever use of voice data.
Why would anyone use these devices to shop Itlike using a laptop as a hammer. Possible, but not recommended. The other stat The Information mentions is that a million people have tried buying stuff but only 100,000 continued. It may be that this side of e-commerce is merely not &mature,& that catch-all term that could mean so many things. But it may also just be that itnot something people want to do.
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Read more: Surprise, no one buys things via Alexa
Write comment (95 Comments)Twilio today reported a positive quarter that brought it to profitability — on an adjusted basis — ahead of schedule for Wall Street, sending the stock soaring 16 percent in extended hours after the release came out.
While according to traditional accounting principles Twilio still lost money (this usually includes stock-based compensation, a key component of compensation packages), the company is still showing that it has the capability of being profitable. Born as a go-to tool for startups and larger companies to handle their text- and telephone-related operations, Twilio was among a wave of IPOs in 2016 that has more or less continued into this year. The companystock has more than doubled in the past year, and is up nearly 170 percent this year alone. Twilio also brought in revenue ahead of Wall Street expectations.
Still, as a services business, Twilio has to show that it can continue to scale its business while absorbing the cost of the infrastructure required and acquire new customers. It also has to ensure that those customers aren&t leaving, or at least that itbringing on enough new developers more quickly than they are leaving. Larger enterprises, as a result, can be more attractive because they&re more predictable and can lead to bigger buckets of revenue for the company — and, well, most larger companies still need communications support in some way still today.
On an adjusted basis, Twilio said it earned 3 cents per share, ahead of the loss of 5 cents that analysts were expecting. It said it brought in $147.8 million in revenue compared to $131.1 million analysts were expecting, so ita beat on both lines, and more importantly shows that Twilio may be able to morph its toolkit into a mainline business that can end up as the backbone of any companycommunication with their customers or users.
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Read more: Twilio came ahead of expectations and the stock is going nuts
Write comment (95 Comments)As popular as Pokémon GO is, it has always been missing one major feature: pitting your Pokémon directly against another trainer&s. Strange, since that was the entire basis of the franchise to begin with! But the mobile game will at last get this much-requested feature by the end of the year, the company told Polish news site Gram.
After a record-shattering debut and then a long slump as players perceived the gameshallowness and abandoned it en masse, Pokémon GO is having something of a renaissance. Improved gym and social mechanics, better reliability and, of course, a host of new ‘mon have brought players back, and it seems that features will continue to be rolled out.
What exactly the PvP mode will consist of is not clear. Chances are it will require players to be near each other, like the trading function. Though it is likely to produce some kind of reward, it likely will be limited in some other way, via a stardust or candy cost, to prevent people gaming the system.
NianticAnne Beuttenmüller, in her interview with Gram, didn&t get specific. She was more interested in talking about the upcoming Ingress Prime, a sort of relaunch of the game on which Pokémon GO is essentially based; that will also be released toward the end of the year.
As for the highly anticipated Harry Potter: Wizards Unite, which will no doubt involve people waving their phones around and uttering magic nonsense in full view of the public, her lips were sealed. It too will release around the end of the year! Itgoing to be a busy holiday season.
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Read more: Pokémon GO is getting PvP by the end of the year
Write comment (92 Comments)The FCC has come clean on the fact that a purported hack of its comment system last year never actually took place, after a report from its inspector general found a lack of evidence supporting the idea. Chairman Ajit Pai blamed the former chief information officer and the Obama administration for providing &inaccurate information about this incident to me, my office, Congress, and the American people.&
The semi-apology and finger-pointing are a disappointing conclusion to the year-long web of obfuscation that the FCC has woven. Since the first moment it was reported that there was a hack of the system, there have been questions about the nature, scale and response to it that the FCC has studiously avoided even under direct Congressional questioning.
It was so galling to everyone looking for answers that the GAO was officially asked to look into it. The letter requesting the officehelp at the time complained that the FCC had ¬ released any records or documentation that would allow for confirmation that an attack occurred, that it was effectively dealt with, and that the FCC has begun to institute measures to thwart future attacks and ensure the security of its systems.& That investigation is still going on, but one conducted by the FCCown OIG resulted in the report Pai cites.
The former CIO, David Bray, was the origin of the theory, but emails obtained by American Oversight in June show that evidence for it and a similar claim from 2014 were worryingly thin. Nevertheless, the FCC has continuously upheld the idea that it was under attack and has never publicly walked it back.
Paistatement was issued before the OIG publicized its report, as one does when a report is imminent that essentially says your agency has been clueless at best or deliberately untruthful at worst, and for more than a year. To be clear, the report is still unpublished, though its broader conclusions are clear from Paistatement. In it he slathers Bray with the partisan brush and asserts that the report exonerates his office:
I am deeply disappointed that the FCCformer [CIO], who was hired by the prior Administration and is no longer with the Commission, provided inaccurate information about this incident to me, my office, Congress, and the American people. This is completely unacceptable. I&m also disappointed that some working under the former CIO apparently either disagreed with the information that he was presenting or had questions about it, yet didn&t feel comfortable communicating their concerns to me or my office.
On the other hand, I&m pleased that this report debunks the conspiracy theory that my office or I had any knowledge that the information provided by the former CIO was inaccurate and was allowing that inaccurate information to be disseminated for political purposes.
Although an evaluation of Pai&conspiracy theory& idea must wait until the report is public, ithard to square this pleasure of the chairmanwith the record. At any time in the last year, especially after Bray had departed, it would have been, if not simple, then at least simpler than maintaining its complex act of knowledgelessness, to say that the CIO had made an error and there was no attack. Nothing like that has come out of the agency.
One must assume the agency had reviewed the data. Bray left a long time ago; why did these subordinates of his fail to speak out afterwards If the FCC had its doubts, why did it not say so instead of risking withering criticism by avoiding the question for months on end When and why did Pai or his office develop the idea that the report was inaccurate, if not when it was being disseminated These aren&t trivial questions.
Some of the FCCreticence to speak out may have even been explained as part of the request by the inspector general not to discuss the investigation. Thatan easy out, at least for some of the time! But we haven&t heard that, that I know of at least, and it doesn&t explain the rest of the agencysilence or misleading statements.
FCC Commissioner Jessica Rosenworcel urged everyone to move on with a quickness:
The Inspector General Report tells us what we knew all along: the FCCclaim that it was the victim of a DDoS attack during the net neutrality proceeding is bogus. What happened instead is obvious—millions of Americans overwhelmed our online system because they wanted to tell us how important internet openness is to them and how distressed they were to see the FCC roll back their rights. Itunfortunate that this agencyenergy and resources needed to be spent debunking this implausible claim.
Although ittrue that pushing forward is a good idea, some accountability and an explanation for the last year of mystery would also be welcome.
Because it wasn&t a hack, it seems that the comment-filing system, though recently revamped, needs yet another fresh coat of paint to handle the kind of volume it saw during the net neutrality repeal. Plans for that are underway, Pai wrote. The GAO investigation regarding fraud in the comment system will no doubt affect those plans.
I&ve contacted the FCC and its Office of the Inspector General for more information, including the report itself, which is published at the officediscretion. I will update this post when I hear back.
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Read more: FCC admits it was never actually hacked
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