Category: legal

  • Amazon and the Soviet customer service model

    Amazon and the Soviet customer service model

    We all value our collections of CDs, books and photos, but what happens when we completely lose the digital equivalents?

    The story of Linn, a Norwegian lady who had her account terminated by Amazon, demonstrates the dangers of being locked into one Internet company’s empire. Get cut off and you lose everything related to them.

    A little understood part of the cloud computing and app world is that you, the customer or user – which isn’t necessarily the same thing – don’t really own anything. The money you spend on ebooks, mobile apps or web storage are for licenses to use the services, not the products themselves.

    Should the supplier decide they no longer want to provide you with their service, then you lose your account and everything with it.

    This is what happened to Linn when Amazon’s algorithm decided her account was in some way breaching their terms and conditions.

    We have found your account is directly related to another which has been previously closed for abuse of our policies. As such, your Amazon.co.uk account has been closed and any open orders have been cancelled.

    Per our Conditions of Use which state in part: Amazon.co.uk and its affiliates reserve the right to refuse service, terminate accounts, remove or edit content, or cancel orders at their sole discretion.

    “At their sole discretion” is the key point here. This is a standard term in most online contracts and reflects the legal realities of the physical world where a shopping mall manager or bar owner can ask you to leave their property without having to tell you why.

    When you use a virtual service, which includes e-books and cloud computing software, you are on someone’s virtual property and they can ask you to leave any time they feel.

    Of course those rights are subject to any contract you might have with that e-book seller, cloud computing service or shopping centre but you have to be in a position to enforce them – not an easy task when you’re in Norway and their lawyers are in Connecticut.

    Even if you want to enforce the agreement you believe these services have entered into, the grossly biased contracts attempt to put all obligations on users or customers while freeing the vendor of the distraction of being responsible for anything.

    The real problem though is the lack of notice and fairness – this blog’s previously looked at how PayPal, Facebook and Google will shut down business sites without any warning or due process.

    It’s one thing to get thrown out of a shopping mall but it’s another matter when your car and week’s groceries are still in there.

    Even more worrying in Linn’s case is how ebooks and music purchased with Digital Rights Management (DRM) controls can be erased by companies like Amazon. Which is like walking home from the shopping mall you’ve been banned from to find the manager has called by to confiscate the toaster and TV you bought last week.

    What’s particularly notable in all of these stories though is the Soviet customer service model, the Amazon”Executive Customer Relations” representative Linn dealt with refused to tell her what she’d done wrong or what rules she broke.

    The only thing “Michael Murphy” would tell her was she was effectively banned for being linked to a blocked account and stated;

    “Please know that any attempt to open a new account will meet with the same action.”

    No notice, no appeal, no rights. The computer says no and the bureaucrat cannot help you further.

    Trust lies at the core of all business and this is even more true when buying services like e-books and cloud computing products. If you can’t trust a vendor to provide a service, or to act openly and honest with you when a problem occurs, then it’s unlikely you’ll use that service.

    A lack of trust is what web 2.0 companies like Amazon and eBay risk with hostile, Soviet style customer service. This is the weak point of the entire online business model.

    For individuals and businesses it’s important to understand that those e-book, cloud storage or social media services may appear to be a bargain, but there are risks lurking in the fine print.

    The new Soviets might be doing well at the moment, but their days are numbered just as the USSR’s were.

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  • Facebook’s war on nipples continues

    Facebook’s war on nipples continues

    Mike Stevens, a cartoonist with the New Yorker magazine, found himself the latest victim of Facebook’s War On Nipples when his cartoon depicting Adam and Eve caused the magazine’s Facebook page to be shut down.

    This is the latest shot in Facebook’s War On Nipples. Two years ago a Sydney jeweller found her page shut down for using a naked doll as a model and breast feeding mothers waged a long campaign against the site taking down pictures of babies being fed.

    If you live outside the US, it’s amusing to observe Americans’ bipolar attitude towards women’s breasts — on one hand they are celebrated though Pamela Anderson, breast enhancement and Hooters while the merest flash of nipple sends the nation into purient overdrive.

    So Mark Zuckerberg’s ban on female nipples is understandable in that context as is the reaction to that ban by people who don’t see much wrong with breast feeding mums or harmless cartoons.

    What we should remember though is Facebook have the right to run their site whatever way they like — if Mark Zuckerberg decides he doesn’t like plaid shirts or broccoli he’s within his rights to ban pictures those as well.

    This is the risk if you’re basing marketing strategies around social media services. If you want to play on Facebook, you have to play by Facebook rules.

    So take your nipples elsewhere.

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  • Chasing away the astroturfers

    Chasing away the astroturfers

    Yesterday we heard the collective gnashing of teeth as social media experts, lawyers and business owners complained about the Australian Advertising Standards Board’s ruling that companies are responsible for comments on their Facebook pages.

    The ASB ruling (PDF file) was a response to complaints that comments on Diageo’s Smirnoff Vodka page breached various industry codes of conducts and encouraged under age drinking.

    While the board found the complaints weren’t justified – something that most of the hysterical commentators overlooked – the ruling contained one paragraph that upset the social media experts and delighted the lawyers.

    The Board considered that the Facebook site of an advertiser is a marketing communication tool over which the advertiser has a reasonable degree of control and could be considered to draw the attention of a segment of the public to a product in a manner calculated to promote or oppose directly or indirectly that product. The Board determined that the provisions of the Code apply to an advertiser’s Facebook page. As a Facebook page can be used to engage with customers, the Board further considered that the Code applies to the content generated by the advertisers as well as material or comments posted by users or friends.

    The key phrase in that paragraph is “over which the advertiser has a reasonable degree of control”. Obviously someone posting on Twitter, their blog or someone else’s website is beyond the control of the advertiser.

    With Facebook comments, the onus is on businesses to make sure there is nothing illegal appearing on their streams and any misconceptions or false statements are answered.

    In many ways, this is common sense. Do you, as a manager or business owner, want your brands tarnished by idiots posting offensive or illegal content? Sensible businesses have already been dealing with this by deleting the really obnoxious stuff and politely replying to the more outrageous claims by Facebook friends.

    What’s more important with both the ASB ruling and the Allergy Pathways case the ruling relies upon make it clear that ‘astroturfing’ on social media sites won’t be tolerated.

    Astroturfing is the PR practice of creating fake groups that appear to support a cause or product. A group paid for by an interested party appears to grow naturally out of community interest or concern – a fake grassroots group so to speak and hence the word ‘Astroturf’ which is a brand of artificial grass.

    Organisations like property developers and mining companies have been setting up Facebook pages and websites that appear to be community groups supporting their projects and many smaller business have been inducing friends, relatives or contractors to post false testimonials. In the run up to major elections in 2012 and 13 we’re seeing many of these fake groups setup to push various political agendas.

    For a few consulting groups, astroturfing has become a nice line of business and those of us on the fringe of the social media community have been watching the development of ‘online advocacy services’ with interest.

    While no-one has claimed Allergy Pathways or Diageo were posting fake testimonials on their own Facebook pages, the rulings in both cases are a warning that the courts and regulators are prepared to deal with those getting clever with social media.

    For honest businesses this ruling is a non-issue, it’s timely reminder though that web and social media site are not ‘set and forget’ but need to be regularly checked, valid customer comments replied to and inappropriate content removed.

    The ASB ruling reaffirms what sensible social media experts have been advising all along, and that’s good news for them and their clients.

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