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Google and Facebook, including their subsidiaries like Instagram and YouTube, make about 83 percent and 99 percent of their respective revenue from one thing: selling ads. It’s the same story with Twitter and other free sites and apps. More to the point, these companies are in the business of what’s called behavioral advertising, which allows companies to aim their marketing based on everything from users’ sexual orientations to their moods and menstrual cycles, as revealed by everything they do on their devices and every place they take them. It follows that most of the unsavory things the platforms do—boost inflammatory content, track our whereabouts, enable election manipulation, crush the news industry—stem from the goal of boosting ad revenues. Instead of trying to clean up all these messes one by one, the logic goes, why not just remove the underlying financial incentive? Targeting ads based on individual user data didn’t even really exist until the past decade. (Indeed, Google still makes many billions of dollars from ads tied to search terms, which aren’t user-specific.) What if companies simply weren’t allowed to do it anymore?

Let’s pretend it really happened. Imagine Congress passed a law tomorrow morning that banned companies from doing any ad microtargeting whatsoever. Close your eyes and picture what life would be like if the leading business model of the internet were banished from existence. How would things be different?

Many of the changes would be subtle. You could buy a pair of shoes on Amazon without Reebok ads following you for months. Perhaps you’d see some listings that you didn’t see before, for jobs or real estate. That’s especially likely if you’re African-American, or a woman, or a member of another disadvantaged group. You might come to understand that microtargeting had supercharged advertisers’ ability to discriminate, even when they weren’t trying to.

On Friday, Facebook and Twitter shut down a network of fake accounts that pushed pro-Trump messages all while “masquerading” as Americans with AI-generated faces as profile photos.

QIn a blog post, Facebook said that it connected the accounts to a US-based media company called The BL that, it claims, has ties to Epoch Media Group. In August, NBC News first reported that Epoch Media Group was pushing messages in support of President Donald Trump across social media platforms like Facebook and Twitter. Epoch has extensive connections to Falun Gong, an eccentric Chinese spiritual community that has faced significant persecution from the country’s central government. In a statement provided to The Verge, the Epoch Times denied any connection to The BL.

Facebook noted that many of the fake accounts used in the latest campaign employed false profile photos that appeared to have been generated by artificial intelligence. Those accounts would post BL content in other Facebook groups while pretending to be Americans. Pro-Trump messages were often posted “at very high frequencies” and linked to off-platform sites belonging to the BL and The Epoch Times. The accounts and pages were managed by individuals in the US and Vietnam. Facebook said that it removed 610 accounts, 89 Facebook pages, 156 groups, and 72 Instagram accounts that were connected to the organization. Around 55 million accounts followed one of these Facebook pages and 92,000 followed at least one of the Instagram accounts. The organization spent nearly $9.5 million in advertisements, according to Facebook.

Few companies have more riding on proposed privacy legislation than Alphabet’s Google and Facebook. To try to steer the bill their way, the giant advertising technology companies spend millions of dollars to lobby each year, a fact confirmed by government filings. Not so well-documented is spending to support highly influential think tanks and public interest groups that are helping shape the privacy debate, ostensibly as independent observers. Bloomberg Law examined seven prominent nonprofit think tanks that work on privacy issues that received a total of $1.5 million over a 18-month period ending Dec. 31, 2018. The groups included such organizations as the Center for Democracy and Technology, the Future of Privacy Forum and the Brookings Institution. The actual total is undoubtedly much higher — exact totals for contributions were difficult to pin down. The tech giants have “funded scores of nonprofits, including consumer and privacy groups, and academics,” said Jeffrey Chester, executive director at the Center for Digital Democracy, a public interest group that does not accept donations from Google or Facebook. Further, he says, their influence is strong. The companies have “opposed federal privacy laws and worked to weaken existing safeguards,” Chester said. Accepting donations from these “privacy-killing companies enable them to influence decisions by nonprofits, even subtly,” he said.

Government demands for user data increased by 16% to 128,617 demands during the first-half of this year compared to the second-half of last year. That’s the highest number of government demands its received in any reporting period since it published its first transparency report in 2013. The U.S. government led the way with the most number of requests–50,741 demands for user data resulting in some account or user data given to authorities in 88% of cases. Facebook said two-thirds of all of the U.S. government’s requests came with a gag order, preventing the company from telling the user about the request for their data. But Facebook said it was able to release details of 11 so-called national security letters (NSLs) for the first time after their gag provisions were lifted during the period. National security letters can compel companies to turn over non-content data at the request of the FBI. These letters are not approved by a judge, and often come with a gag order preventing their disclosure. But since the Freedom Act passed in 2015, companies have been allowed to request the lifting of those gag orders.

When you’re scrolling through Facebook’s app, the social network could be watching you back, in more ways than just your data, concerned users have found. Multiple people have found and reported that their iPhone cameras were turned on in the background while looking at their feed. The issue came to light with several posts on Twitter, showing that their cameras were activated behind Facebook’s app as they were watching videos or looking at photos on the social network. After clicking on the video to full screen, returning it back to normal would create a bug where Facebook’s mobile layout was slightly shifted to the right. With the open space on the left, you could now see the phone’s camera activated in the background. This was documented in multiple cases, with the earliest incident on November 2.

A cache of leaked Facebook documents shows how the company’s CEO, Mark Zuckerberg, oversaw plans to consolidate the social network’s power and control competitors by treating its users’ data as a bargaining chip. This trove comprises approximately 7,000 pages in total, of which about 4,000 are internal Facebook communications such as emails, web chats, notes, presentations and spreadsheets, primarily from 2011 to 2015. About 1,200 pages are marked as “highly confidential.” Taken together, they show how Zuckerberg, along with his board and management team, found ways to tap Facebook users’ data — including information about friends, relationships and photos — as leverage over the companies it partnered with. In some cases, Facebook would reward partners by giving them preferential access to certain types of user data while denying the same access to rival companies.

For example, Facebook gave Amazon special access to user data because it was spending money on Facebook advertising. In another case the messaging app MessageMe was cut off from access to data because it had grown too popular and could compete with Facebook. All the while, Facebook planned to publicly frame these moves as a way to protect user privacy, the documents show. State and federal authorities are now closely scrutinizing Facebook’s business practices. In October, New York Attorney General Letitia James announced that 47 attorneys general from states and U.S. territories plan to take part in a New York-led antitrust probe into Facebook. Over the summer, the House Judiciary Committee held hearings over antitrust concerns in Silicon Valley while the Federal Trade Commission also continues to examine the firm’s practices.

Yael Eisenstat, a visiting fellow at Cornell Tech in the Digital Life Initiative and a former elections integrity head at Facebook, CIA officer, and White House adviser, writes for the Washington Post:

As the company continues to struggle with how to handle political content and as another presidential election approaches, it’s clear that tinkering around the margins of advertising policies won’t fix the most serious issues. The real problem is that Facebook profits partly by amplifying lies and selling dangerous targeting tools that allow political operatives to engage in a new level of information warfare. Its business model exploits our data to let advertisers custom-target people, show us each a different version of the truth and manipulate us with hyper-customized ads — ads that, as of two weeks ago, can contain blatantly false and debunked information if they’re run by a political campaign. As long as Facebook prioritizes profit over healthy discourse, they can’t avoid damaging democracies.

Early in my time there, I dug into the question of misinformation in political advertising. Posting in a “tribe” (Facebook’s internal collaboration platform), I asked our teams working on political advertising whether we should incorporate the same tools for political ads that other integrity teams at Facebook were developing to address misinformation in pages and organic posts. It was unclear to me why the company was applying different, siloed policies and tools across the platform. Most users do not differentiate organic content from ads — as I clearly saw on a trip to India, where we were testing our ads-integrity products — so why were we expecting users to understand that we applied different standards to different forms of content that all just appear in their news feeds?

The fact that we were taking money for political ads and allowing campaigns and other political organizations to target users based on the vast amounts of data we had gathered meant political ads should have an even higher bar for integrity than what people were posting in organic content. We verified advertisers to run political ads, giving them a check mark and a “paid for by” label, and I questioned if that gave the false impression that we were vouching for the validity of the content, boosting its perceived credibility even though we weren’t checking any facts or ensuring that ads weren’t spreading false information. Most of my colleagues agreed. People wanted to get this right. But above me, there was no appetite for my pushing, and I was accused of “creating confusion.”

Facebook chief executive Mark Zuckerberg said in an interview he worries “about an erosion of truth” online but defended the policy that allows politicians to peddle ads containing misrepresentations and lies on his social network, a stance that has sparked an outcry during the 2020 presidential campaign. From a report:

“People worry, and I worry deeply, too, about an erosion of truth,” Zuckerberg told The Washington Post ahead of a speech Thursday at Georgetown University. “At the same time, I don’t think people want to live in a world where you can only say things that tech companies decide are 100 percent true. And I think that those tensions are something we have to live with.” Zuckerberg’s approach to political speech has come under fire in recent weeks. Democrats have taken particular issue with Facebook’s decision to allow an ad from President Trump’s 2020 campaign that included falsehoods about former vice president Joe Biden and his son, Hunter. Sen. Elizabeth Warren responded to Facebook’s decision by running her own campaign ad, satirically stating that Zuckerberg supports Trump for re-election.

Zuckerberg framed the issue as part of a broader debate over free expression, warning about the dangers of social networks, including Facebook, “potentially cracking down too much.” He called on the U.S. to set an example for tailored regulation in contrast to other countries, including China, that censor political speech online. And Zuckerberg stressed Facebook must stand strong against governments that seek to “pull back” on free speech in the face of heightened social and political tensions. Zuckerberg’s appearance in Washington marks his most forceful attempt to articulate his vision for how governments and tech giants should approach the Web’s most intractable problems. The scale of Facebook and its affiliated apps, Instagram and WhatsApp, which make up a virtual community of billions of users, poses challenges for Zuckerberg and regulators around the world as they struggle to contain hate speech, falsehoods, violent imagery and terrorist propaganda on social media.

The social network’s advertising tools reveal 740,000 children under the age of 18 are flagged as being interested in gambling, including 130,000 in the UK. Some 940,000 minors — 150,000 of whom are British — are flagged as being interested in alcoholic beverages. These “interests” are automatically generated by Facebook, based on what it has learned about a user by monitoring their activity on the social network. Advertisers can then use them to specifically target messages to subgroups who have been flagged as interested in the topic. In a statement, Facebook said: “We don’t allow ads that promote the sale of alcohol or gambling to minors on Facebook and we enforce against this activity when we find it. We also work closely with regulators to provide guidance for marketers to help them reach their audiences effectively and responsibly.” The company does allow advertisers to specifically target messages to children based on their interest in alcohol or gambling. A Facebook insider gave the example of an anti-gambling service that may want to reach out to children who potentially have a gambling problem and offer them help and support.

“The United States is walking in the same direction as China, we’re just allowing private companies to monetize left, right and center,” Cambridge Analytica whistleblower Christopher Wylie told CNBC on Wednesday. “Just because it’s not the state doesn’t mean that there isn’t harmful impacts that could come if you have one or two large companies monitoring or tracking everything you do,” he said. CNBC reports:

Wylie, whose memoir came out this week, has become outspoken about the influence of social media companies due to the large amounts of data they collect. In March 2018, he exposed the Cambridge Analytica scandal that brought down his former employer and resulted in the Federal Trade Commission fining Facebook, 15 months later, $5 billion for mishandling. While Cambridge Analytica has since shut down, Wylie said the tactics it used could be deployed elsewhere, and that is why data privacy regulation needs to be dramatically enhanced.

“Even if the company has dissolved, the capabilities of the company haven’t,” he said. “My real concern is what happens if China becomes the next Cambridge Analytica, what happens if North Korea becomes the next Cambridge Analytica?” Wylie also said he believes that social media companies should, at a minimum, face regulation similar to water utilities or electrical companies — “certain industries that have become so important because of their vital importance to business and people’s lives and the nature of their scale.” In those cases, “we put in place rules that put consumers first,” he added. “You can still make a profit. You can still make money. But you have to consider the rights and safety of people.”

Facebook this week finally put into writing what users — especially politically powerful users — have known for years: its community “standards” do not, in fact, apply across the whole community. Speech from politicians is officially exempt from the platform’s fact checking and decency standards, the company has clarified, with a few exceptions. Facebook communications VP Nick Clegg, himself a former member of the UK Parliament, outlined the policy in a speech and company blog post Tuesday. Facebook has had a “newsworthiness exemption” to its content guidelines since 2016. That policy was formalized in late October of that year amid a contentious and chaotic US political season and three weeks before the presidential election that would land Donald Trump the White House.

Facebook at the time was uncertain how to handle posts from the Trump campaign, The Wall Street Journal reported. Sources told the paper that Facebook employees were sharply divided over the candidate’s rhetoric about Muslim immigrants and his stated desire for a Muslim travel ban, which several felt were in violation of the service’s hate speech standards. Eventually, the sources said, CEO Mark Zuckerberg weighed in directly and said it would be inappropriate to intervene. Months later, Facebook finally issued its policy. “We’re going to begin allowing more items that people find newsworthy, significant, or important to the public interest — even if they might otherwise violate our standards,” Facebook wrote at the time.
Facebook by default “will treat speech from politicians as newsworthy content that should, as a general rule, be seen and heard.” It won’t be subject to fact-checking because the company does not believe that it is appropriate for it to “referee political debates” or prevent a politician’s speech from both reaching its intended audience and “being subject to public debate and scrutiny.”

Newsworthiness, Clegg added, will be determined by weighing the “public interest value of the piece of speech” against the risk of harm. The exception to all of this is advertising. “Standards are different for content for which the company receives payment, so if someone — even a politician or political candidate — posts ads to Facebook, those ads in theory must still meet both the community standards and Facebook’s advertising policies,” reports Ars.

Social networking sites (SNS) such as Facebook and Instagram are known to cause stress in users, known as technostress from social media. However, when faced with such stress, instead of switching off or using them less, people are moving from one aspect of the social media platforms to another — escaping the causes of their stress without leaving the medium on which it originated.

Research into the habits of 444 Facebook users revealed they would switch between activities such as chatting to friends, scanning news feeds and posting updates as each began to cause stress. This leads to an increased likelihood of technology addiction, as they use the various elements of the platform over a greater timespan.

Researchers from Lancaster University, the University of Bamberg and Friedrich-Alexander Univeristät Erlangen-Nürnberg, writing in Information Systems Journal, found that users were seeking distraction and diversion within the Facebook platform as a coping mechanism for stress caused by the same platform, rather than switching off and undertaking a different activity.

The FBI is planning to aggressively harvest information from Facebook and Twitter, a move which is likely to cause a clash between the agency and social media platforms.

As reported by the Wall Street Journal, the FBI has recently sought proposals from third-party vendors for technological solutions able to harvest publicly-available information in bulk from Facebook, Twitter, and other social media outlets.

Law enforcement has requested the means to “obtain the full social media profile of persons-of-interest and their affiliation to any organization or groups,” to keep track of users based on their neighborhood, and keyword searches, among other tool functions.

While the FBI believes that such tools can work in harmony with privacy safeguards and civil liberties, the mass collection of names, photos, and IDs — when combined with information from other sources — may do just the opposite.

Back in July, for example, there was a public outcry after it was discovered that the FBI and Immigration and Customs Enforcement (ICE) were plundering databases belonging to the DMV for surveillance and investigative purposes.

Facebook Inc. has been paying hundreds of outside contractors to transcribe clips of audio from users of its services, according to people with knowledge of the work.

The work has rattled the contract employees, who are not told where the audio was recorded or how it was obtained — only to transcribe it, said the people, who requested anonymity for fear of losing their jobs. They’re hearing Facebook users’ conversations, sometimes with vulgar content, but do not know why Facebook needs them transcribed, the people said.

Facebook confirmed that it had been transcribing users’ audio and said it will no longer do so, following scrutiny into other companies. “Much like Apple and Google, we paused human review of audio more than a week ago,” the company said Tuesday. The company said the users who were affected chose the option in Facebook’s Messenger app to have their voice chats transcribed. The contractors were checking whether Facebook’s artificial intelligence correctly interpreted the messages, which were anonymized.

Big tech companies including Amazon.com Inc. and Apple Inc. have come under fire for collecting audio snippets from consumer computing devices and subjecting those clips to human review, a practice that critics say invades privacy. Bloomberg first reported in April that Amazon had a team of thousands of workers around the world listening to Alexa audio requests with the goal of improving the software, and that similar human review was used for Apple’s Siri and Alphabet Inc.’s Google Assistant. Apple and Google have since said they no longer engage in the practice and Amazon said it will let users opt out of human review.

The social networking giant, which just completed a $5 billion settlement with the U.S. Federal Trade Commission after a probe of its privacy practices, has long denied that it collects audio from users to inform ads or help determine what people see in their news feeds. Chief Executive Officer Mark Zuckerberg denied the idea directly in Congressional testimony.

In follow-up answers for Congress, the company said it “only accesses users’ microphone if the user has given our app permission and if they are actively using a specific feature that requires audio (like voice messaging features.)” The Menlo Park, California-based company doesn’t address what happens to the audio afterward.

Until recently, ambient privacy was a simple fact of life. Recording something for posterity required making special arrangements, and most of our shared experience of the past was filtered through the attenuating haze of human memory. Even police states like East Germany, where one in seven citizens was an informer, were not able to keep tabs on their entire population. Today computers have given us that power. Authoritarian states like China and Saudi Arabia are using this newfound capacity as a tool of social control. Here in the United States, we’re using it to show ads. But the infrastructure of total surveillance is everywhere the same, and everywhere being deployed at scale….

Because our laws frame privacy as an individual right, we don’t have a mechanism for deciding whether we want to live in a surveillance society. Congress has remained silent on the matter, with both parties content to watch Silicon Valley make up its own rules. The large tech companies point to our willing use of their services as proof that people don’t really care about their privacy. But this is like arguing that inmates are happy to be in jail because they use the prison library. Confronted with the reality of a monitored world, people make the rational decision to make the best of it.

That is not consent…

Our discourse around privacy needs to expand to address foundational questions about the role of automation: To what extent is living in a surveillance-saturated world compatible with pluralism and democracy? What are the consequences of raising a generation of children whose every action feeds into a corporate database? What does it mean to be manipulated from an early age by machine learning algorithms that adaptively learn to shape our behavior? That is not the conversation Facebook or Google want us to have. Their totalizing vision is of a world with no ambient privacy and strong data protections, dominated by the few companies that can manage to hoard information at a planetary scale. They correctly see the new round of privacy laws as a weapon to deploy against smaller rivals, further consolidating their control over the algorithmic panopticon.

Facebook wants to dismiss a lawsuit stemming from the Cambridge Analytica scandal by arguing that it didn’t violate users’ privacy rights because there’s no expectation of privacy when using social media. “There is no invasion of privacy at all, because there is no privacy,” Facebook counsel Orin Snyder said during a pretrial hearing to dismiss a lawsuit stemming from the Cambridge Analytica scandal, according to Law 360. The company reportedly didn’t deny that third parties accessed users’ data, but it instead told U.S. District Judge Vince Chhabria that there’s no “reasonable expectation of privacy” on Facebook or any other social media site.

A confidential Facebook document reviewed by The Intercept shows that Facebook courts carriers, along with phone makers — some 100 different companies in 50 countries — by offering the use of even more surveillance data, pulled straight from your smartphone by Facebook itself.

Offered to select Facebook partners, the data includes not just technical information about Facebook members’ devices and use of Wi-Fi and cellular networks, but also their past locations, interests, and even their social groups. This data is sourced not just from the company’s main iOS and Android apps, but from Instagram and Messenger as well. The data has been used by Facebook partners to assess their standing against competitors, including customers lost to and won from them, but also for more controversial uses like racially targeted ads.

Some experts are particularly alarmed that Facebook has marketed the use of the information — and appears to have helped directly facilitate its use, along with other Facebook data — for the purpose of screening customers on the basis of likely creditworthiness. Such use could potentially run afoul of federal law, which tightly governs credit assessments. Facebook said it does not provide creditworthiness services and that the data it provides to cellphone carriers and makers does not go beyond what it was already collecting for other uses.

Facebook uses thousands of third-party staffers around the world to look at Facebook and Instagram posts to help train its AI and to inform new products. “But because the contractors see users’ public and private posts, some view it as a violation of privacy.”

According to Reuters, as many as 260 contract workers in Hyderabad, India have spent more than a year labeling millions of Facebook posts dating back to 2014. They look for the subject of the post, the occasion and the author’s intent, and Facebook told Reuters, the company uses that information to develop new features and to potentially increase usage and ad revenue. Around the globe, Facebook has as many as 200 similar content labeling projects, many of which are used to train the company’s AI.

The contractors working in Hyderabad told Reuters they see everything from text-based status updates to videos, photos and Stories across Facebook and Instagram — including those that are shared privately. And even as Facebook embarks on its “the future is private” platform, one Facebook employee told Reuters he can’t imagine the practice going away. It’s a core part of training AI and developing the company’s products.

Just two weeks after admitting it stored hundreds of millions of its users’ own passwords insecurely, Facebook is demanding some users fork over the password for their outside email account as the price of admission to the social network. Facebook users are being interrupted by an interstitial demanding they provide the password for the email account they gave to Facebook when signing up. “To continue using Facebook, you’ll need to confirm your email,” the message demands. “Since you signed up with [email address], you can do that automatically …” A form below the message asked for the users’ “email password.”

“That’s beyond sketchy,” security consultant Jake Williams told the Daily Beast. “They should not be taking your password or handling your password in the background. If that’s what’s required to sign up with Facebook, you’re better off not being on Facebook.” In a statement emailed to the Daily Beast after this story published, Facebook reiterated its claim it doesn’t store the email passwords. But the company also announced it will end the practice altogether. “We understand the password verification option isn’t the best way to go about this, so we are going to stop offering it,” Facebook wrote. It’s not clear how widely the new measure was deployed, but in its statement Facebook said users retain the option of bypassing the password demand and activating their account through more conventional means, such as “a code sent to their phone or a link sent to their email.” Those options are presented to users who click on the words “Need help?” in one corner of the page.

Researchers from Northeastern Unviersity, the University of Southern Carolina, and tech accountability non-profit Upturn have released a paper that says Facebook’s ad delivery system itself can steer ads intended to be inclusive toward discrimination without explicit intent. “In a paper titled, ‘Discrimination through optimization: How Facebook’s ad delivery can lead to skewed outcomes,’ co-authors Muhammad Ali, Piotr Sapiezynski, Miranda Bogen, Aleksandra Korolova, Alan Mislove, and Aaron Rieke find that advertiser budgets and ad content affect ad delivery, skewing it along gender and racial lines even when neutral ad targeting settings are used,” reports The Register. From the report:
The researchers found that Facebook ads tend to be shown to men because women tend to click on ads more often, making them more expensive to reach through Facebook’s system. That divide becomes apparent when ad budgets are compared, because the ad budget affects ad distribution. As the paper explains, “the higher the daily budget, the smaller the fraction of men in the audience.” Such segregation may be appropriate and desirable for certain types of marketing pitches, but when applied to credit, employment and housing ads, the consequences can be problematic.

Ad content — text and images — also has a strong effect on whether ads get shown to men or women, even when the bidding strategy is the same and gender-agnostic targeting is used. In particular, the researchers found images had a surprisingly large effect on ad delivery. Ad URL destination has some effect — an ad pointing to a bodybuilding site and an ad pointing to a cosmetics site had a baseline delivery distribution of 48 percent men and 40 percent men respectively. The addition of a title and headline doesn’t change that much. But once the researchers added an image to the ad, the distribution pattern changed, with the bodybuilding site ad reaching an audience that was 75 percent male and the cosmetics ad reaching an audience that was 90 percent female. According to the researchers, their tests suggest, “Facebook has an automated image classification mechanism in place that is used to steer different ads towards different subsets of the user population.”

“In terms of credit, employment and housing ads, the problem with this system is that it discriminates where it shouldn’t: Five ads for lumber industry jobs were delivered to an audience that was more than 90 percent men and more than 70 percent white; five ads for janitorial work were delivered to an audience that was more than 65 percent women and 75 percent black,” the report adds. “Housing ads also showed a racial skew.”

The latest findings come after years of criticism of Facebook’s ad system. Last month, Facebook announced changes to the platform intended to prevent advertisers from deploying unfair credit, employment and housing ads. One week later, the U.S. Department of Housing and Urban Development sued Facebook for violating the Fair Housing Act.