Facebook

Mark Zuckerberg Says He's Done Apologizing (techcrunch.com) 91

An anonymous reader quotes a report from TechCrunch: The home of the Golden State Warriors was packed on Tuesday evening this week, but it wasn't to watch Steph Curry. Thousands of fans gathered at the Chase Center in downtown San Francisco to watch one of Silicon Valley's biggest ballers, Meta CEO Mark Zuckerberg, sit down for a conversation with the hosts of the Acquired podcast, David Rosenthal and Ben Gilbert. Shortly after hopping onstage, Zuckerberg joked that he might need to schedule his next appearance in order to apologize for whatever he was about to say. After a beat, he added that he was just kidding and that, in fact, his days of apologizing are over.

Zuckerberg has had something of a rebrand recently. He raises cattle in Hawaii now, has long bouncy curls and a gold chain, and commissions Roman-style statues of his wife. Onstage, the Facebook founder wore a boxy T-shirt he designed himself alongside fashion designer Mike Amiri that read "learning through suffering" in Greek letters. The tongue-in-cheek comment about apologizing was a reference to Nvidia CEO Jensen Huang, who himself addressed a flub he'd made on the Acquired podcast earlier this year, via a pre-recorded video on a screen hanging over the crowd. Huang's original comment -- that he never would have started Nvidia if he knew what he did today -- was grossly taken out of context, he said. In the video, he clarified that he absolutely would start Nvidia again, and that his comment was more about the blissful ignorance of startup founders.

While Zuckerberg's opening comment was just a friendly jab at Huang, it set the tone for Zuckerberg's new attitude toward life and business. The founder of Facebook has spent a lot of time apologizing for Facebook's content moderation issues. But when reflecting on the biggest mistakes of his career, Zuckerberg said his largest one was a "political miscalculation" that he described as a "20-year mistake." Specifically, he said, he'd taken too much ownership for problems allegedly out of Facebook's control. "Some of the things they were asserting that we were doing or were responsible for, I don't actually think we were," said Zuckerberg. "When it's a political problem there are people operating in good faith who are identifying a problem and want something to be fixed, and there are people who are just looking for someone to blame."

AI

Facebook Admits To Scraping Every Australian Adult User's Public Photos and Posts To Train AI, With No Opt-out Option (abc.net.au) 56

Facebook has admitted that it scrapes the public photos, posts and other data of Australian adult users to train its AI models and provides no opt-out option, even though it allows people in the European Union to refuse consent. From a report: Meta's global privacy director Melinda Claybaugh was pressed at an inquiry as to whether the social media giant was hoovering up the data of all Australians in order to build its generative artificial intelligence tools, and initially rejected that claim. Labor senator Tony Sheldon asked whether Meta had used Australian posts from as far back as 2007 to feed its AI products, to which Ms Claybaugh responded "we have not done that".

But that was quickly challenged by Greens senator David Shoebridge.

Shoebridge: "The truth of the matter is that unless you have consciously set those posts to private since 2007, Meta has just decided that you will scrape all of the photos and all of the texts from every public post on Instagram or Facebook since 2007, unless there was a conscious decision to set them on private. That's the reality, isn't it?
Claybaugh: "Correct."

Ms Claybaugh added that accounts of people under 18 were not scraped, but when asked by Senator Sheldon whether public photos of his own children on his account would be scraped, Ms Claybaugh acknowledged they would.

Television

TV News Overtaken By Digital Rivals For First Time in UK (ft.com) 38

Television has ceased to be the main source of news in the UK for the first time since the 1960s as Britons turn increasingly to online news and social media apps, according to research by the media regulator. From a report: Ofcom said on Tuesday that viewing of TV news had continued to fall steeply, with online platforms such as Facebook, YouTube and TikTok and digital versions of broadcasters now slightly more widely used as a source of news.ÂIn its annual study of audience habits, the watchdog said 71 per cent of adults obtained news online, compared with 70 per cent via TV -- a finding it described as "marking a generational shift in the balance of news media."

The reach of TV news has fallen from 75 per cent last year. More than four-fifths of people between the ages of 16 and 24 obtained their news from social media, Ofcom found. The report underlines the pressure on more traditional linear broadcasters such as the BBC, Sky and Channel 4 to accelerate moves to digital platforms, which include their own streaming sites as well as social media apps such as TikTok.Â

Social Networks

A Surgeon General Warning Label Must Appear on Social Media Apps, 42 State Attorneys General Demand 46

It's hard to get 42 states to agree on much. But a bipartisan group of attorneys general on Tuesday demanded that Congress require Surgeon General warning labels on social media apps to help curtail addiction and a mental health crisis among young adults. From a report: "As state Attorneys General, we sometimes disagree about important issues, but all of us share an abiding concern for the safety of the kids in our jurisdictions -- and algorithm-driven social media platforms threaten that safety," the 42 attorneys general said in a letter to Congress. States have taken legal action against a number of social media companies, including Meta and TikTok. But they argue more needs to be done in Washington to alert people to the dangers social media platforms present.

"In addition to the states' historic efforts, this ubiquitous problem requires federal action -- and a surgeon general's warning on social media platforms, though not sufficient to address the full scope of the problem, would be one consequential step toward mitigating the risk of harm to youth," the attorneys general said. The letter echoed much of what Surgeon General Vivek Murthy outlined in a scathing New York Times op-ed in June, that drew a direct comparison between the apps -- TikTok, Instagram, Facebook, Snapchat and others -- to cancer causing cigarettes.

Murthy cited several studies, including a 2019 American Medical Association study published in JAMA that showed teens who spend three hours a day on social media double their risk of depression. Teens spend nearly five hours a day on social media apps, according to a Gallup poll.
Australia

Australia Plans Age Limit To Ban Children From Social Media (yahoo.com) 99

An anonymous reader quotes a report from Agence France-Presse: Australia will ban children from using social media with a minimum age limit as high as 16, the prime minister said Tuesday, vowing to get kids off their devices and "onto the footy fields." Federal legislation to keep children off social media will be introduced this year, Anthony Albanese said, describing the impact of the sites on young people as a "scourge." The minimum age for children to log into sites such as Facebook, Instagram, and TikTok has not been decided but is expected to be between 14 and 16 years, Albanese said. The prime minister said his own preference would be a block on users aged below 16. An age verification trial to test various approaches is being conducted over the coming months, the centre-left leader said. [...]

It is not even clear that the technology exists to reliably enforce such bans, said the University of Melbourne's associate professor in computing and information technology, Toby Murray. "The government is currently trialling age assurance technology. But we already know that present age verification methods are unreliable, too easy to circumvent, or risk user privacy," he said. But the prime minister said parents expected a response to online bullying and the access social media gave to harmful material. "These social media companies think they're above everyone," he told a radio interviewer. "Well, they have a social responsibility and at the moment, they're not exercising it. And we're determined to make sure that they do," he said.

Google

US Prepares To Challenge Google's Online Ad Dominance (reuters.com) 24

An anonymous reader quotes a report from the New York Times: For years, Google has faced complaints about how it dominates the online advertising market. Many of the concerns stem from the internet giant's suite of software known as Google Ad Manager, which websites around the world use to sell ads on their sites. The technology conducts split-second auctions to place ads each time a user loads a page. The dominance of that technology has landed Google in federal court. On Monday, Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia will preside over the start of a trial in which the Department of Justice accuses the company of abusing control of its ad technology and violating antitrust law (Warning: source may be paywalled; alternative source).

It would be Google's second antitrust trial in less than a year. In August, a federal judge ruled in a separate case that Google had illegally maintained a monopoly in online search, a major victory for the Justice Department. The new trial is the latest salvo by federal antitrust regulators against Big Tech, testing a century-old competition law against companies that have reshaped the way people shop, communicate and consume information. Federal regulators have also filed antitrust lawsuits against Apple,Amazon and Meta, which owns Facebook, Instagram and WhatsApp, saying those companies have also abused their power.
Google's vice president for regulatory affairs, Lee-Anne Mulholland, said in a blog post on Sunday that the Justice Department was "picking winners and losers in a highly competitive industry."

"With the cost of ads going down and the number of ads sold going up, the market is working," she said. "The DOJ's case risks inefficiencies and higher prices -- the last thing that America's economy or our small businesses need right now."
Privacy

The NSA Has a Podcast (wired.com) 14

Steven Levy, writing for Wired: My first story for WIRED -- yep, 31 years ago -- looked at a group of "crypto rebels" who were trying to pry strong encryption technology from the government-classified world and send it into the mainstream. Naturally I attempted to speak to someone at the National Security Agency for comment and ideally get a window into its thinking. Unsurprisingly, that was a no-go, because the NSA was famous for its reticence. Eventually we agreed that I could fax (!) a list of questions. In return I got an unsigned response in unhelpful bureaucratese that didn't address my queries. Even that represented a loosening of what once was total blackout on anything having to do with this ultra-secretive intelligence agency. For decades after its post-World War II founding, the government revealed nothing, not even the name, of this agency and its activities. Those in the know referred to it as "No Such Agency."

In recent years, the widespread adoption of encryption technology and the vital need for cybersecurity has led to more openness. Its directors began to speak in public; in 2012, NSA director Keith Alexander actually keynoted Defcon. I'd spent the entire 1990s lobbying to visit the agency for my book Crypto; in 2013, I finally crossed the threshold of its iconic Fort Meade Headquarters for an on-the-record conversation with officials, including Alexander. NSA now has social media accounts on Twitter, Instagram, Facebook. And there is a form on the agency website for podcasters to request guest appearances by an actual NSA-ite.

So it shouldn't be a total shock that NSA is now doing its own podcast. You don't need to be an intelligence agency to know that pods are a unique way to tell stories and hold people's attention. The first two episodes of the seven-part season dropped this week. It's called No Such Podcast, earning some self-irony points from the get-go. In keeping with the openness vibe, the NSA granted me an interview with an official in charge of the project -- one of the de facto podcast producers, a title that apparently is still not an official NSA job posting. Since NSA still gotta NSA, I can't use this person's name. But my source did point out that in the podcast itself, both the hosts and the guests -- who are past and present agency officials -- speak under their actual identities.

Crime

How an Engineer Exposed an International Bike Theft Ring - By Its Facebook Friends (msn.com) 50

Security engineer Bryan Hance co-founded the nonprofit Bike Index, back in 2013, reports the Los Angeles Times, "where cyclists can register their bikes and contact information, making it easier to reunite lost or stolen bikes with their owners." It now holds descriptions and serial numbers of about 1.3 million bikes worldwide.

"But in spring 2020, Hance was tipped to something new: Scores of high-end bikes that matched the descriptions of bikes reported stolen from locations across the Bay Area were turning up for sale on Facebook Marketplace and Instagram pages attached to someone in Mexico, thousands of miles away..." The Facebook page he first spotted disappeared, replaced by pages that were blocked to U.S. computers; Hance managed to get in anyway, thanks to creative use of a VPN. He started reaching out to the owners whose stolen bikes he suspected he was seeing for sale. "Can you tell me a little bit about how your bike was stolen," he would ask. Often, the methods were sophisticated and selective. Thieves would break into a bicycle room at an apartment complex with a specialized saw and leave minutes later with only the fanciest mountain bikes...

Over time, he spoke to more than a dozen [police] officers in jurisdictions across the Bay Area, including Alameda, Santa Clara, Santa Cruz, Marin, Napa and Sonoma counties... [H]ere was Hance, telling officers that he believed he had located a stolen bike, in Mexico. "That's gone," the officer would inform him. Or, one time, according to Hance: "We're not Interpol." Hance also tried to get Meta to do something. After all, he had identified what could be hundreds of stolen bikes being sold on its platforms, valued, he estimated, at well over $2 million. He said he got nowhere...

[Hance] believed he'd figured out the identity of the seller in Jalisco, and was monitoring that person's personal social media accounts. In early 2021, he had spotted something that might break open the case: the name of a person who was sending the Jalisco seller photos of bikes that matched descriptions of those reported stolen by Bay Area cyclists. Hance theorized that person could be a fence who was collecting stolen bikes on this side of the border and sending photos to Jalisco so they could be posted for sale. Hance hunted through the Jalisco seller's Facebook friends until he found the name there: Victor Romero, of San Jose. More sleuthing revealed that a man by the name of Victor Romero ran an auto shop in San Jose, and, judging by his own Facebook photos, was an avid mountain biker. There was something else: Romero's auto shop in San Jose had distinctive orange shelves. One photo of a bike listed for sale on the Jalisco seller's site had similar orange shelves in the backdrop.

Hance contacted a San Francisco police detective who had seemed interested in what he was doing. Check out this guy's auto shop, he advised. San Francisco police raided Romero in the spring of 2021. They found more than $200,000 in cash, according to a federal indictment, along with screenshots from his phone they said showed Romero's proceeds from trafficking in stolen bikes. They also found a Kona Process 153 mountain bike valued at about $4,700 that had been reported stolen from an apartment garage in San Francisco, according to the indictment. It had been disassembled and packaged for shipment to Jalisco.

In January, a federal grand jury indicted Victoriano Romero on felony conspiracy charges for his alleged role in a scheme to purchase high-end stolen bicycles from thieves across the Bay Area and transport them to Mexico for resale.

But bikes continue to be stolen, and "The guy is still operating," Hance told the Los Angeles Times.

"We could do the whole thing again."
Crime

During Georgia School Shooting, Newly-Installed Tech Spread Warnings and Called Police (cnn.com) 255

A schoolteacher using an interactive whiteboard is surprised by an alert. Their school is in "hard lockdown." They knew — instantly — something was about to happen, and "got everybody into a corner," they later told CNN. Classroom doors at the school are always locked, so they then "turned off the lights. And just kind of held everyone nice and tight, and just said, 'Wait for everything to happen, everything to pass.'"

The school was Apalachee High School in Winder, Georgia, where on Wednesday 11 students were shot and two killed. Two schoolteachers were also killed. But according to CNN, social studies teacher Stephen Kreyenbuhl "said the school's new alert system bought him critical time to prepare and protect his students before a shooter opened fire just down the hall..." The CrisisAlert system, designed by Centegix, includes a device the size of an ID badge. It's equipped with a button that, when pressed rapidly, can quietly notify administrators and local law enforcement to the exact location of an active emergency. The company works with school districts and law enforcement agencies to integrate the system into their current safety procedures and automate as much as possible. Barrow County Sheriff Jud Smith told CNN Apalachee High School had the system for less than a week and had tested it for the first time only the day before the shooting... Brent Cobb, the company's CEO, told CNN in an interview earlier this year that their CrisisAlert technology was designed following the 2018 Parkland high school shooting in Florida to give teachers and administrators a fast and discreet way to call for help.... "[Y]ou need everyone to know immediately" that a crisis is taking place.

Once a lockdown is activated, the CrisisAlert system is designed to trigger a series of responses: Pre-recorded warnings sound over the intercom system to alert the entire campus to the lockdown, while on-site safety administrators, like school resource officers [a law-enforcement officer with arrest powers, usually armed], are notified of the location of the incident. Cobb told CNN in some school districts the system is also integrated with local law enforcement agencies and can automatically call 911 and send messages to officers of the exact location of the incident. This is what happened in Barrow County. The goal, he said, is to help decrease police response times, an issue that has come under scrutiny in recent years following the shooting at Robb Elementary School in Uvalde, Texas, where it took officers 77 minutes to adequately respond to a shooter.

In an exclusive interview with CNN Thursday, Smith scrolled through the series of alerts and the detailed map his officers received to guide them to where the shooting was happening... [Social studies teacher] Kreyenbuhl said he is grateful the district implemented a system that enabled him to protect his students. "I actually saw the lockdown initiate before I even heard the gunshots, so I had time to prepare," he said.... "It's insane the technology we have access to."

Privacy

Signal is More Than Encrypted Messaging. It Wants to Prove Surveillance Capitalism Is Wrong (wired.com) 70

Slashdot reader echo123 shared a new article from Wired titled "Signal Is More Than Encrypted Messaging. Under Meredith Whittaker, It's Out to Prove Surveillance Capitalism Wrong." ("On its 10th anniversary, Signal's president wants to remind you that the world's most secure communications platform is a nonprofit. It's free. It doesn't track you or serve you ads. It pays its engineers very well. And it's a go-to app for hundreds of millions of people.") Ten years ago, WIRED published a news story about how two little-known, slightly ramshackle encryption apps called RedPhone and TextSecure were merging to form something called Signal. Since that July in 2014, Signal has transformed from a cypherpunk curiosity — created by an anarchist coder, run by a scrappy team working in a single room in San Francisco, spread word-of-mouth by hackers competing for paranoia points — into a full-blown, mainstream, encrypted communications phenomenon... Billions more use Signal's encryption protocols integrated into platforms like WhatsApp...

But Signal is, in many ways, the exact opposite of the Silicon Valley model. It's a nonprofit funded by donations. It has never taken investment, makes its product available for free, has no advertisements, and collects virtually no information on its users — while competing with tech giants and winning... Signal stands as a counterfactual: evidence that venture capitalism and surveillance capitalism — hell, capitalism, period — are not the only paths forward for the future of technology.

Over its past decade, no leader of Signal has embodied that iconoclasm as visibly as Meredith Whittaker. Signal's president since 2022 is one of the world's most prominent tech critics: When she worked at Google, she led walkouts to protest its discriminatory practices and spoke out against its military contracts. She cofounded the AI Now Institute to address ethical implications of artificial intelligence and has become a leading voice for the notion that AI and surveillance are inherently intertwined. Since she took on the presidency at the Signal Foundation, she has come to see her central task as working to find a long-term taproot of funding to keep Signal alive for decades to come — with zero compromises or corporate entanglements — so it can serve as a model for an entirely new kind of tech ecosystem...

Meredith Whittaker: "The Signal model is going to keep growing, and thriving and providing, if we're successful. We're already seeing Proton [a startup that offers end-to-end encrypted email, calendars, note-taking apps, and the like] becoming a nonprofit. It's the paradigm shift that's going to involve a lot of different forces pointing in a similar direction."

Key quotes from the interview:
  • "Given that governments in the U.S. and elsewhere have not always been uncritical of encryption, a future where we have jurisdictional flexibility is something we're looking at."
  • "It's not by accident that WhatsApp and Apple are spending billions of dollars defining themselves as private. Because privacy is incredibly valuable. And who's the gold standard for privacy? It's Signal."
  • "AI is a product of the mass surveillance business model in its current form. It is not a separate technological phenomenon."
  • "...alternative models have not received the capital they need, the support they need. And they've been swimming upstream against a business model that opposes their success. It's not for lack of ideas or possibilities. It's that we actually have to start taking seriously the shifts that are going to be required to do this thing — to build tech that rejects surveillance and centralized control — whose necessity is now obvious to everyone."

Facebook

Meta Will Let Third-Party Apps Place Calls To WhatsApp, Messenger Users (techcrunch.com) 10

An anonymous reader quotes a report from TechCrunch: Meta on Friday published an update on how it plans to comply with the Digital Markets Act (DMA), the European law that aims to promote competition in digital marketplaces, where the law concerns the company's messaging apps, Messenger and WhatsApp. As Meta notes in a blog post, the DMA requires that it provide an option in WhatsApp and Messenger to connect with interoperable third-party messaging services and apps. Meta says it's building notifications into WhatsApp and Messenger to inform users about these third-party integrations and alert them when a newly compatible third-party messaging app comes online. The company also says it's introducing an onboarding flow in WhatsApp and Messenger where users can learn more about third-party chats and switch them on. From the flow, users will be able to set up a designated folder for third-party messages or, alternatively, opt for a combined inbox.

In 2025, Meta will roll out group functionality for third-party chats, and, in 2027, it'll launch voice and video calling in accordance with the DMA. And at some unspecified point in the future, Meta will bring "rich messaging" features for third-party chats to WhatsApp and Messenger, like reactions, direct replies, typing indicators and read receipts, the company says. "We will keep collaborating with third-party messaging services in order to provide the safest and best experience," Meta wrote in the post. "Users will start to see the third-party chat option when a third-party messaging service has built, tested and launched the necessary technology to make the feature a positive and secure user experience."

Facebook

Threads is Trading Trust For Growth (werd.io) 37

Ben Werdmuller, an entrepreneur who leads tech for ProPublica, writes on the trust crisis brewing in Meta's Threads app. He posted a quick comment about the Internet Archive's legal troubles, only to find it blew up in unexpected ways. Turns out, Threads' algorithm tossed his post to folks way outside his usual crowd, and they weren't happy about the lack of context. He writes: The comments that really surprised me were the ones that accused me of engagement farming. I've never received these before, and it made me wonder about the underlying assumptions. Why would this be engagement farming? Why would someone do this? Why would they assume that about me? Turns out, Meta's been secretly paying select "creators" up to $5,000 per viral post, turning the platform into a digital gold rush. Now, every post is suspect.
Power

Meta Strikes Geothermal Energy Deal To Power US Data Centers (reuters.com) 26

An anonymous reader quotes a report from Reuters: Facebook owner Meta struck a deal to buy geothermal power from Sage Geosystems to supply its U.S. data centers, it said on Monday, as it races to build out the infrastructure to support its massive investments in energy-hungry artificial intelligence. The first phase of the 150-megawatt project should be operational by 2027 and "significantly" expand the use of geothermal power in the United States, the social media company said. The location has yet to be determined, but the companies said it will be east of the Rocky Mountains. Financial terms of the deal were not disclosed. [...]

Sage, which is based in Houston, is a four-year-old startup developing next-generation technology that it says can be deployed in more locations than traditional geothermal, which requires naturally occurring underground reservoirs of hot water and accounts for 0.4% of U.S. power generation. The company is backed by oil and gas firms Chesapeake Energy and Nabors Industries and venture capital firms Virya and Helium-3 Ventures. The project for Meta would be Sage's largest to date by far. The company said it first validated the technology in the field just two years ago. A Meta spokesperson told Reuters the company expected the Sage Geosystems energy to feed the power grid, rather than directly supplying any specific data center.

Censorship

Zuckerberg Says He Regrets Not Being More Outspoken About 'Government Pressure' (thehill.com) 288

In a letter to the House Judiciary Committee, Meta CEO Mark Zuckerberg expressed regret for not being more vocal about "government pressure" to censor COVID-19-related content. He also acknowledged that Meta shouldn't have demoted a New York Post story about President Biden's family before the 2020 election. The Hill reports: Zuckerberg said senior Biden administration officials "repeatedly pressured" Meta, the parent company of Facebook and Instagram, to "censor" content in 2021. "I believe the government pressure was wrong, and I regret that we were not more outspoken," he wrote to House Judiciary Chair Jim Jordan (R-Ohio). "Like I said to our teams at the time, I feel strongly that we should not compromise our content standards due to pressure from any Administration in either direction -- and we're ready to push back if something like this happens again," Zuckerberg added.

The Meta CEO also said the company "shouldn't have demoted" a New York Post story about corruption allegations involving President Biden's family ahead of the 2020 election while waiting for fact-checkers to review it. The social media company has since updated its policies and processes, including no longer demoting content in the U.S. while waiting for fact-checkers, he noted. Zuckerberg also said in Monday's letter that he does not plan to make contributions to local jurisdictions to support election infrastructure this cycle, like he did during the 2020 election.

The contributions, which were "designed to be non-partisan," were accused of being unfairly distributed between left-leaning and right-leaning areas and labeled "Zuckerbucks" by Republicans. "Still, despite the analyses I've seen showing otherwise, I know that some people believe this work benefited one party over the other," Zuckerberg said. "My goal is to be neutral and not play a role one way or another -- or to even appear to be playing a role."
House Judiciary Republicans touted the letter as a "big win for free speech," writing on X: "Mark Zuckerberg just admitted three things: 1. Biden-Harris Admin 'pressured' Facebook to censor Americans. 2. Facebook censored Americans. 3. Facebook throttled the Hunter Biden laptop story."

"Mark Zuckerberg also tells the Judiciary Committee that he won't spend money this election cycle. That's right, no more Zuck-bucks. Huge win for election integrity," it added.
Facebook

Meta Cancels High-End Mixed-Reality Headset (theinformation.com) 26

Meta Platforms has canceled plans for a premium mixed-reality headset intended to compete with Apple's Vision Pro, The Information reported Friday, citing sources. From the report: Meta told employees at the company's Reality Labs division to stop work on the device this week after a product review meeting attended by Meta CEO Mark Zuckerberg, Chief Technology Officer Andrew Bosworth and other Meta executives, the employees said. The axed device, which was internally code-named La Jolla, began development in November and was scheduled for release in 2027, according to current and former Meta employees. It was going to contain ultrahigh-resolution screens known as micro OLEDs -- the same display technology used in Apple's Vision Pro.
Businesses

Peloton To Start Charging Subscribers With Used Equipment $95 Activation Fee (cnbc.com) 137

Peloton on Thursday said it will start charging new subscribers a one-time $95 activation fee if they bought their hardware on the secondary market as more consumers snag lightly used equipment for a fraction of the typical retail price. From a report: The used equipment activation fee for subscribers in the U.S. and Canada comes as Peloton starts to see a meaningful increase in new members who bought used Bikes or Treads from peer-to-peer markets such as Facebook Marketplace. During its fiscal fourth quarter, which ended June 30, Peloton said it saw a "steady stream of paid connected fitness subscribers" who bought hardware on the secondary market. The company said the segment grew 16% year over year.

"We believe a meaningful share of these subscribers are incremental, and they exhibit lower net churn rates than rental subscribers," the company said in a letter to shareholders. "It's also worth highlighting that this activation fee will be a source of incremental revenue and gross profit for us, helping to support our investments in improving the fitness experience for our members," interim co-CEO Christopher Bruzzo later added on a call with analysts.

Censorship

Russia Blocks Signal Messaging App (apnews.com) 47

Russia has blocked access to the encrypted Signal messaging app to "prevent the messenger's use of terrorist and extremist purposes." YouTube is also facing mass outages following repeated slowdowns in recent weeks. The Associated Press reports: Russian authorities expanded their crackdown on dissent and free media after Russian President Vladimir Putin sent troops into Ukraine in February 2022. They have blocked multiple independent Russian-language media outlets critical of the Kremlin, and cut access to Twitter, which later became X, as well as Meta's Facebook and Instagram.

In the latest blow to the freedom of information, YouTube faced mass outages on Thursday following repeated slowdowns in recent weeks. Russian authorities have blamed the slowdowns on Google's failure to upgrade its equipment in Russia, but many experts have challenged the claim, arguing that the likely reason for the slowdowns and the latest outage was the Kremlin's desire to shut public access to a major platform that carries opposition views.

Piracy

Mayor Shows Pirated Movie On Town Square Big Screen In Brazil (torrentfreak.com) 76

An anonymous reader quotes a report from TorrentFreak: In Brazil, there was a [...] unbelievable display of public piracy last week that went on to make national headlines. The mayor of the municipality Acopiara, in the north-east of the country, invited citizens of the small town Trussu to join a screening of the blockbuster "Inside Out 2" at the local town square. With little more than a thousand inhabitants, many of whom have limited means, this appeared to be a kind gesture. The mayor, Anthony Almeida Neto, could use some positive marks too; he was removed from office three times on suspicion of being involved in corruption schemes, and was most recently reinstated in March. The mayor officially announced the public screening of 'Inside Out 2' via Instagram and Facebook, inviting people to join him. That worked well as a sizable crowd showed up, allowing the controversial mayor to proudly boast the event's popularity in public through his social media channels.

Taking place in an outside theater created just for this occasion, the screening was a unique opportunity for the small town's residents. There are no official movie theaters nearby, so locals would normally have to travel for several hours to see a film that's still in cinemas. Thanks to the mayor, people could see 'Inside Out 2' in their hometown instead. The mayor was pleased with the turnout too and proudly broadcasted it through a livestream on Instagram. Amidst all this joy, however, people started to notice a watermark on the film that was clearly associated with piracy. In addition, it was apparent that the copy had been sourced from pirate streaming site, Obaflix. All signs indicate that the public event wasn't authorized or licensed. Instead, it appeared to be an improvised screening of a low-quality TS release of the film, which is widely available through pirate sites. When this 'revelation' was picked up in the Brazilian press, mayor Anthony Almeida was quick to respond with assurances that he only had honest intentions.

AI

Where Facebook's AI Slop Comes From (404media.co) 8

Facebook's AI-generated content problem is being fueled by its own creator bonus program, according to an investigation by 404 Media. The program incentivizes users, particularly from developing countries, to flood the platform with AI-generated images for financial gain. The outlet found that influencers in India and Southeast Asia are teaching followers how to exploit Facebook's algorithms and content moderation systems to go viral with AI-generated images. Many use Microsoft's Bing Image Creator to produce bizarre, often emotive content that garners high engagement.

"The post you are seeing now is of a poor man that is being used to generate revenue," said Indian YouTuber Gyan Abhishek in a video, pointing to an AI image of an emaciated elderly man. He claimed users could earn "$100 for 1,000 likes" through Facebook's bonus program. While exact payment rates vary, 404 Media verified that consistent viral posting can lead to significant earnings for users in countries like India. Meta has defended the program to 404 Media, stating it works as intended if content meets community standards and engagement is authentic.
Social Networks

Founder of Collapsed Social Media Site 'IRL' Charged With Fraud Over Faked Users (bbc.com) 22

This week America's Securities and Exchange Commission filed fraud charges against the former CEO of the startup social media site "IRL"

The BBC reports: IRL — which was once considered a potential rival to Facebook — took its name from its intention to get its online users to meet up in real life. However, the initial optimism evaporated after it emerged most of IRL's users were bots, with the platform shutting in 2023...

The SEC says it believes [CEO Abraham] Shafi raised about $170m by portraying IRL as the new success story in the social media world. It alleges he told investors that IRL had attracted the vast majority its supposed 12 million users through organic growth. In reality, it argues, IRL was spending millions of dollars on advertisements which offered incentives to prospective users to download the IRL app. That expenditure, it is alleged, was subsequently hidden in the company's books.

IRL received multiple rounds of venture capital financing, eventually reaching "unicorn status" with a $1.17 billion valuation, according to TechCrunch. But it shut down in 2023 "after an internal investigation by the company's board found that 95% of the app's users were 'automated or from bots'."

TechCrunch notes it's the second time in the same week — and at least the fourth time in the past several months — that the SEC has charged a venture-backed founder on allegations of fraud... Earlier this week, the SEC charged BitClout founder Nader Al-Naji with fraud and unregistered offering of securities, claiming he used his pseudonymous online identity "DiamondHands" to avoid regulatory scrutiny while he raised over $257 million in cryptocurrency. BitClout, a buzzy crypto startup, was backed by high-profile VCs such as a16z, Sequoia, Chamath Palihapitiya's Social Capital, Coinbase Ventures and Winklevoss Capital.

In June, the SEC charged Ilit Raz, CEO and founder of the now-shuttered AI recruitment startup Joonko, with defrauding investors of at least $21 million. The agency alleged Raz made false and misleading statements about the quantity and quality of Joonko's customers, the number of candidates on its platform and the startup's revenue.

The agency has also gone after venture firms in recent months. In May, the SEC charged Robert Scott Murray and his firm Trillium Capital LLC with a fraudulent scheme to manipulate the stock price of Getty Images Holdings Inc. by announcing a phony offer by Trillium to purchase Getty Images.

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