Category: Technology (Page 1 of 10)

Markets vs. Marketing in the Age of AI

Maybe history will defeat itself.

Remember FreePC? It was a thing, briefly, at the end of the last millennium, right before Y2K pooped the biggest excuse for a party in a thousand years. This may help. The idea was to put ads in the corner of your PC’s screen. The market gave it zero stars, and it failed.

And now comes Telly, hawking free TVs with ads in a corner, and a promise to “optimize your ad experience.” As if anybody wants an ad experience other than no advertising at all.

Negative demand for advertising has been well advertised by both ad blocking (the biggest boycott in human history) and ad-free “prestige” TV, (or SVOD, for subscription video on demand). With those we gladly pay—a lot— not to see advertising. (See numbers here.)

But the advertising business (in the mines of which I toiled for too much of my adult life) has always smoked its own exhaust and excels best at getting high with generous funders. (Yeah, some advertising works, but on the whole people still hate it on the receiving end.)

The fun will come when our own personal AI bots, working for our own asses, do battle with the robot Nazgûls of marketing — and win, because we’re on the Demand side of the marketplace, and we’ll do a better job of knowing what we want and don’t want to buy than marketing’s surveillant AI robots can guess at. Supply will survive, of course. But markets will defeat marketing by taking out the middle creep.

The end state will be one Cluetrain forecast in 1999, Linux Journal named in 2006, the VRM community started working on that same year, and The Intention Economy detailed in 2012. The only thing all of them missed was how customer intentions might be helped by personal AI.

Personal.* Not personalized.

Markets will become new and better dances between Demand and Supply, simply because Demand will have better ways to take the lead, and not just follow all the time. Simple as that.


*For more on how this will work, see Individual Empowerment and Agency on a Scale We’ve Never Seen Before.

A beckon for Beckn

Want to place a bet on where VRM will finally take off? Try India.

Because India is home to the Beckn protocol: one that enables peer-to-peer e-commerce at scale without the big platforms taking a large cut of the pie just for matchmaking. The possibilities are endless and extreme—especially for customers and small businesses.

Beckn is open source (here on Github),  moving into deployment, and expected to grow toward ubiquity on the same slope as Aadhaar, the government ID now held by 1.35 billion people.

To put this into perspective, India has more people than all of Europe (even when you throw in Russia and Turkey), and more than twice the population of North America. Only China has more people, but India is ready to overtake it in just four years.

We will discuss all this and more with Sujith Nair this coming Monday, 20 February, from 2-3:30 PM Eastern Time.  He is the CEO & Co-founder of FIDE.org, the nonprofit behind the Beckn protocol, and may have the clearest vision in the world toward an e-commerce future that isn’t contained inside big tech’s walled gardens: ones in which every business and every customer can operate with both independence and minimized friction.

This will kick off the Workshop’s next Beyond the Web salon series . Stay tuned for more in the coming months, but be sure to catch this one. It could hardly matter more for what our project has worked toward since 2006.

It’s both in-person and online, and free. But you need to register. Do that here.

How the Web sucks

This spectrum of emojis is a map of the Web’s main occupants (the middle three) and outliers (the two on the flanks). It provides a way of examining who is involved, where regulation fits, and where money gets invested and made. Yes, it’s overly broad, but I think it’s helpful in understanding where things went wrong and why. So let’s start.

Wizards are tech experts who likely run their own servers and keep private by isolating themselves and communicating with crypto. They enjoy the highest degrees of privacy possible on and around the Web, and their approach to evangelizing their methods is to say “do as I do” (which most of us, being Muggles, don’t). Relatively speaking, not much money gets made by or invested in Wizards, but much money gets made because of Wizards’ inventions. Those inventions include the Internet, the Web, free and open source software, and much more. Without Wizards, little of what we enjoy in the digital world today would be possible. However, it’s hard to migrate their methods into the muggle population.

‍Muggles are the non-Wizards who surf the Web and live much of their digital lives there, using Web-based services on mobile apps and browsers on computers. Most of the money flowing into the webbed economy comes from Muggles. Still, there is little investment in providing Muggles with tools for operating or engaging independently and at scale across the websites and services of the world. Browsers and email clients are about it, and the most popular of those (Chrome, Safari, Edge) are by the grace of corporate giants. Almost everything Muggles do on the Web and mobile devices is on apps and tools that are what the trade calls silos or walled gardens: private spaces run by the websites and services of the world.

Sites. This category also includes clouds and the machinery of e-commerce. These are at the heart of the Web: a client-server (aka calf-cow) top-down, master-slave environment where servers rule and clients obey. It is in this category that most of the money on the Web (and e-commerce in general) gets made, and into which most investment money flows. It is also here that nearly all development n the connected world today happens.

 Ad-tech, aka adtech, is the home of surveillance capitalism, which relies on advertisers and their agents knowing all that can be known about every Muggle. This business also relies on absent Muggle agency, and uses that absence as an excuse for abusing the privilege of committing privacy violations that would be rude or criminal in the natural world. Also involved in this systematic compromise are adtech’s dependents in the websites and Web services of the world, which are typically employed by adtech to inject tracking beacons in Muggles’ browsers and apps. It is to the overlap between adtech and sites that all privacy regulation is addressed. This is why, the GDPR sees Muggles as mere “data subjects,” and assigns responsibility for Muggle’s privacy to websites and services the regulation calls “data controllers” and “data processors.” The regulation barely imagines that Muggles could perform either of those roles, even though personal computing was invented so every person can do both. (By the way, the adtech business and many of its dependents in publishing like to say the Web is free because advertising pays for it. But the Web is as free by nature as are air and sunlight. And most of the money Google makes, for example, comes from plain old search advertising, which can get along fine without tracking. There is also nothing about advertising itself that requires tracking.)

 Crime happens on the Web, but its center of gravity is outside, on the dark web. This is home to botnets, illegal porn, terrorist activity, ransom attacks, cyber espionage, and so on. There is a lot of overlap between crime and adtech, however, given the moral compromises required for adtech to function, plus the countless ways that bots, malware and other types of fraud are endemic to the adtech business. (Of course, to be an expert criminal on the dark web requires a high degree of wizardry. So I one could arrange these categories in a circle, with an overlap between wizards and criminals.)

I offer this set of distinctions for several reasons. One is to invite conversation about how we have failed the Web and the Web has failed us—the Muggles of the world—even though we enjoy apparently infinite goodness from the Web and handy services there. Another is to explain why ProjectVRM has been more aspirational than productive in the fifteen years it has been working toward empowering people on the commercial Net. (Though there has been ample productivity.) But mostly it is to explain why I believe we will be far more productive if we start working outside the Web itself. This is why our spinoff, Customer Commons, is pushing forward with the Byway toward i-commerce. Check it out.

Finally, I owe the idea for this visualization to Iain Henderson, who has been with ProjectVRM since before it started. (His other current involvements are with JLINC and Customer Commons.) Hope it proves useful.

Markets as conversations with robots

From the Google AI blogTowards a Conversational Agent that Can Chat About…Anything:

In “Towards a Human-like Open-Domain Chatbot”, we present Meena, a 2.6 billion parameter end-to-end trained neural conversational model. We show that Meena can conduct conversations that are more sensible and specific than existing state-of-the-art chatbots. Such improvements are reflected through a new human evaluation metric that we propose for open-domain chatbots, called Sensibleness and Specificity Average (SSA), which captures basic, but important attributes for human conversation. Remarkably, we demonstrate that perplexity, an automatic metric that is readily available to any neural conversational models, highly correlates with SSA.

A chat between Meena (left) and a person (right).

Meena
Meena is an end-to-end, neural conversational model that learns to respond sensibly to a given conversational context. The training objective is to minimize perplexity, the uncertainty of predicting the next token (in this case, the next word in a conversation). At its heart lies the Evolved Transformer seq2seq architecture, a Transformer architecture discovered by evolutionary neural architecture search to improve perplexity.
 
Concretely, Meena has a single Evolved Transformer encoder block and 13 Evolved Transformer decoder blocks as illustrated below. The encoder is responsible for processing the conversation context to help Meena understand what has already been said in the conversation. The decoder then uses that information to formulate an actual response. Through tuning the hyper-parameters, we discovered that a more powerful decoder was the key to higher conversational quality.
So how about turning this around?

What if Google sold or gave a Meena model to people—a model Google wouldn’t be able to spy on—so people could use it to chat sensibly with robots or people at companies?

Possible?

If, in the future (which is now—it’s freaking 2020 already), people will have robots of their own, why not one for dealing with companies, which themselves are turning their sales and customer service systems over to robots anyway?

A citizen-sovereign way to pay for news—or for any creative work

The Aspen Institute just published a 180-page report by the Knight Commission on Trust, Media and Democracy titled  (in all caps) CRISIS IN DEMOCRACY: RENEWING TRUST IN AMERICA. Its Call to Action concludes,
This is good. Real good.  Having  Aspen and Knight endorse personal sovereignty as a necessity for solving the crises of democracy and trust also means they endorse what we’ve been pushing forward here for more than a dozen years.

Since the report says (under Innovation, on page 73) we need to “use technology to enhance journalism’s roles in fostering democracy,” and that “news companies need to embrace technology to support their mission and achieve sustainability,” it should help to bring up the innovation we proposed in an application for a Knight News Challenge grant in 2011. This innovation was, and still is, called EmanciPay. It’s a citizen-sovereign way to pay for news, plus all forms of creative production where there is both demand and failing or absent sources of funding.

We have not only needed this for a long time, but it is for lack of it (or of any original and market-based approach to paying for creative work) that the EU is poised to further break our one Internet into four or more parts and destroy the open Web that has done so much to bring the world together and generate near-boundless forms of new wealth, inclusivity, equality, productivity and other good nouns ending in ty. The EU’s hammer for breaking the open Web is the EU Copyright Directive,  which has been under consideration and undergoing steady revision since 2016. Cory Doctorow, writing for the EFF, says The Final Version of the EU’s Copyright Directive Is the Worst One Yet. One offense (among too many to list here):

Under the final text, any online community, platform or service that has existed for three or more years, or is making €10,000,001/year or more, is responsible for ensuring that no user ever posts anything that infringes copyright, even momentarily. This is impossible, and the closest any service can come to it is spending hundreds of millions of euros to develop automated copyright filters. Those filters will subject all communications of every European to interception and arbitrary censorship if a black-box algorithm decides their text, pictures, sounds or videos are a match for a known copyrighted work. They are a gift to fraudsters and criminals, to say nothing of censors, both government and private.

There are much better ways of getting the supply and demand sides of creative markets together. EmanciPay is one of them, and deserves another airing.

Perhaps now that Knight and Aspen are cheering the citizen-sovereign bandwagon, it’s worth welcoming the fact that our original EmanciPay proposal in open source form.

So here it is, copied and pasted out of the last draft before we submitted it. Since much has changed since then (other than the original idea, which is the same as ever only more timely), I’ve added a bunch of notes at the end, and a call for action. Before reading it, please note two things: 1) we are not asking for money now (we were then, but not now); and 2) while this proposal addresses the challenge of paying for news, it applies much more broadly to all creative work.

10:00pm Monday 31 January 2011

Project Title:

EmanciPay: a user-driven system for generating revenue and managing relationships

Requested amount from Knight News Challenge

$325,000

Describe your project:

EmanciPay is the first user-driven payment system for news and information media. It is also the first system by which the consumers of media can create and participate in relationships with media — and the first system to reform the legal means by which those relationships are created and sustained.

With EmanciPay, users can easily choose to pay whatever they like, whenever they like, however they like — on their own terms and not just those controlled by the media’s supply side. EmanciPay will also provide means for building genuine two-way relationships, rather than relationships defined by each organization’s subscription and membership systems. As with Creative Commons, terms will be expressed in text and symbols that can be read easily by both software and people.

While there is no limit to payment choice options with EmanciPay, we plan to test these one at a time. The first planned trials are with Tipsy, which is being developed in alongside EmanciPay, and which also has a Knight News Challenge application. The two efforts are cooperative and coordinated.

EmanciPay belongs to a growing family of VRM (Vendor Relationship Management) tools. Both EmanciPay and VRM grew out of work in ProjectVRM, which I launched in 2006, at the start of my fellowship with Harvard’s Berkman Center for Internet & Society. In the past four years the VRM development community has grown internationally and today involves many allied noncommercial and commercial efforts. Here is the current list of VRM development projects.

How will your project improve the delivery of news and information to geographic communities?:

Two ways.

First is with a new business model. Incumbent local and regional media currently have three business models: paid delivery (subscriptions and newsstand sales), advertising, and (in the case of noncommercial media) appeals for support. All of these have well-known problems and limitations. They are also controlled in a top-down way by media organizations. By reducing friction and lowering the threshold of payment, EmanciPay will raise the number of customers while also providing direct and useful intelligence about the size and nature of demand. This supports geographic customisation of news and information goods.

Second is by providing ways for both individuals and news organizations to create and sustain relationships that go beyond “membership” (which in too many cases means little more than “we gave money”). EmanciPay will also help consumers of news participate in the news development process. Because EmanciPay is based on open source code and open standards, it can be widely adopted and adapted to meet local needs. CRM (customer relationship management) software companies, many of which supply CRM systems to media organizations, are also awaiting VRM developments. (The cover and much of this CRM Magazine are devoted to VRM.)

What unmet need does your proposal answer?:

EmanciPay meets the need for maximum freedom and flexibility in paying for news and information, and for a media business model that does not depend only on advertising, membership systems, large donors or government grants. (This last one is of special interest at a time when cutting government funding of public broadcasting is a campaign pledge by many freshly elected members of Congress.)

Right now most news and information is free of charge on the Web, even when the same goods are sold on newsstands or through cable TV subscriptions. This fact, plus cumbersome and widely varied membership, pledging and payment systems, serves to discourage payment by media users. Even the membership systems of public broadcasting stations exclude vast numbers of people who would contribute “if it was easy”. EmanciPay overcomes these problems by making it easy for consumers of news to become customers of news. It also allows users to initiate real and productive relationships with news organizations, whether or not they pay those organizations.

How is your idea new?:

Equipping individuals with their own tools for choosing what and how to pay, and for creating and maintaining relationships, is a new idea. Nearly all other sustainability ideas involve creating new intermediators or working on improving services on the supply side.

Tying sustainability to meaningful relationships (rather than just “membership” is also new). So is creating means by which individuals can assert their own “terms of service” — and match those terms with those on the supply side.

EmanciPay is also new in the scope of its ambition. Beyond creating a large new source of revenues, and scaffolding meaningful relationships between supply and demand, EmanciPay intends to remove legal frictions from the marketplace as well. What lawyers call contracts of adhesion (ones in which the dominant party is free to change what they please while the submissive party is nailed to whatever the dominant party dictates) have been pro forma on the Web since the invention of the cookie in 1995. EmanciPay is the first and only system intended to obsolete and replace these onerous “agreements” (which really aren’t).

Once in place and working, EmanciPay’s effects should exceed even those of Creative Commons, because EmanciPay addresses the demand as well as the supply side of the marketplace. And, like Creative Commons, EmanciPay does not require changes in standing law.

Finally, EmanciPay is new in the sense that it is not centralized, and does not require an intermediary. As with email (the protocols of which are open and decentralized, by design), EmanciPay supports both self-hosting and hosting in “the cloud.” It is also both low-level and flexible enough to provide base-level building material for any number of new businesses and services.

What will you have changed by the end of the project?:

First, we will have changed the habits and methods by which people pay for the media goods they receive, starting with news and information.

Second, we will have introduced relationship systems that are not controlled by the media, but driven instead by the individuals who are each at the centers of their own relationships with many different entities. Thus relationships will be user-driven and not just organization-driven.

Third, we will have created a new legal framework for agreements between buyers and sellers on the Web and in the networked world, eliminating many of the legal frictions involved in today’s e-commerce systems.

Fourth, we will have introduced to the world an intention economy, based on the actual intentions of buyers, rather than on guesswork by sellers about what customers might buy. (The latter is the familiar “attention economy” of advertising and promotion.)

Why are you the right person or team to complete this project?:

I know how to get ideas and code moving in the world. I’ve done that while running ProjectVRM for the last four years. As of today VRM tools are being developed in many places, by many programmers, in both commercial and noncommercial capacities, around the world, Those places include BostonLondonJohannesburgDubuqueSantiagoBelfastSalt Lake CitySanta BarbaraVienna, and Seattle. Much of this work has also been advanced at twice-yearly IIW (Internet Identity Workshop) events, which I co-founded in 2005 and continue to help organize.

As Senior Editor of Linux Journal, I’ve been covering open source code development since 1996, contributing to its understanding and widespread adoption. For that and related work, I received a Google-O’Reilly Open Source Award for “Best Communicator” in 2005.

I helped reform both markets and marketing as a co-author of The Cluetrain Manifesto, a business bestseller in 2000 that has since become part of the marketing canon. (As of today, Cluetrain is cited by more than 5300 other books.) I also coined Cluetrain’s most-quoted line, “Markets are conversations.”

I helped popularize blogging, a subject to which I have been contributing original thinking and writing since 1999. I also have more than 12,000 followers on Twitter.

EmanciPay is also my idea, and one I have been working on for some time. This includes collaboration with PRX and other members of the public radio community on ListenLog (the brainchild of Keith Hopper at NPR), which can be found today on the Public Radio Player, an iPhone app that has been downloaded more than 2 million times. I am also working on EmanciPay with students at MIT/CSAIL and Kings College London. The MIT/CSAIL collaboration is led by David Karger of the MIT faculty, and ties in with work he and students are doing with Haystack and Tipsy.

I’ve also contributed to other VRM development efforts — on identity and trust frameworks, on privacy assurance, on selective disclosure of personal data, and on personal data stores (PDSes), all of which will help support EmanciPay as it is deployed.

What terms best describe your project?:

Bold, original, practical, innovative and likely to succeed.

What tasks/benchmarks need to be accomplished to develop your project and by when will you complete them? (500 words)

1) Engaging of programmers at MIT and other institutions within two months.

2) Establishment of Customer Commons (similar to Creative Commons) within two months.

3) Getting EmanciPay into clinical law case study by classes at law schools, one semester after the grant money arrives.

4) Beta-level code within six months.

5) Recruitment of first-round participating media entities (journals, sites, blogs, broadcast stations — completed within six months.

6) Relationships established with PayPal, Google Checkout and other payment intermediators within six months.

7) Tipsy trials within three months after beta-level code is ready.

8) Full EmanciPay trials within six months after beta-level code is ready.

9) Research protocols completed by the time beta code is ready.

How will you measure progress?: (500 words)

1) Involvement in open source code development by programmers other than those already paid or engaged (for example, as students) for the work

2) Completion of code

3) Deployment in target software and devices

4) Cooperation by allied development .orgs and .coms

5) Adoption and use by individuals

6) Direct financial benefit for news organizations.

All are measurable. We can count programmers working on code bases, as well as patches and lines of code submitted and added. We can see completed code in downloadable and installable form in the appropriate places. We can see and document cooperation by organizations. We can count downloads and monitor activities by users (with their permission). And we can see measurable financial benefits to news and information organizations. Researching each of these will be part of the project. For example, we will need to provide on our website, or directly, descriptions of accounting methods for the organizations that will benefit directly from individual contributions.

Do you see any risk in the development of your project?: (500 words)

EmanciPay is likely to be seen as disruptive by organizations that are highly vested in existing forms of funding. One example is public broadcasting, which has relied on fund drives for decades.

There is also a fear that EmanciPay will raise the number of contributors while lowering the overall funding dollar amount spent by contributors. I don’t expect that to happen. What I do expect is for the market to decide — and for EmanciPay to provide the means. Fortunately, EmanciPay also provides means for non-monetary relationships to grow as well, which will raise the perception of value by users and customers, and the likelihood that more users will become customers.

How will people learn about what you are doing?: (500 words) remaining

We will blog about it, talk about it at conferences, tweet about it, and use every other personal and social medium to spread the word. And we will use traditional media relations as well — which shouldn’t be too hard, since we will be working to bring more income to those media.

We have a good story about an important cause. I’m good at communicating and driving stories forward, and I and have no doubt that the effort will succeed.

Is this a one-time experiment or do you think it will continue after the grant?: (500 words)

EmanciPay will continue after the grant because it will become institutionalized within the fabric of the economy, as will its allied efforts.

In addition to the Knight News Challenge, does your project rely on other revenue sources? (Choose all that apply):

[ ] Advertising
[ ] Paid Subscriptions
[ x ] Crowd-Funded
[ ] Earned Income
[ ] Syndication
[ ] Other

Here’s what happened after that.

  1. Customer Commons was incorporated as a California-based 501(3)(c) nonprofit shortly after this was submitted.  (It is also currently cited in this CNN story  and this one by Fox News.) Almost entirely bootstrapped, Customer Commons has established itself as a Creative Commons-like place where model personal privacy policies and terms of engagement that individuals proffer as first parties can live. Those terms are among a number of other tools for exercising citizen sovereign powers. “CuCo” also plans, immodestly, to be a worldwide membership organization, comprised entirely of customers (possible slogan: “We’re the hundred percent”). In that capacity, it will hold events, publish, develop customer-side code that’s good for both customers and businesses (e.g. a shopping cart of your own that you can take from site to site), and lobby for policies that respect the natural sovereignty and power of customers in the digital world. After years of prep, and not much asking, Customer Commons is at last ready to accept funding, and to start scaling up. If you have money to invest in grass roots citizen-sovereign work, that’s a good place to do it.
  2. Commercial publishers, including nearly all the world’s websites (or so it seems) became deeply dependent on adtech—tracking based advertising—for income. (I reviewed that history here in 2015.) We’ve been fighting that. So have governments. Both the GDPR in Europe and the California Consumer Privacy Act were called to existence by privacy abuses funded by adtech. (Seriously, without adtech, those laws wouldn’t have happened.)
  3. The current VRM developments list is a large and growing one. So is our list of participants.
  4. Some of the allied projects mentioned in the proposal are gone or have morphed. But some are still there, and there are many other potential collaborators.
  5. Fintech has become a thing, along with blockchain, distributed ledgers and other person-driven solutions to the problem of excessive centralization.
  6. The word cluetrain is now mentioned in more than 13,000 books. And, twenty years since it was first uttered, cluetrain is also tweeted almost constantly.
  7. I am now editor-in-chief of Linux Journal, the first publication ready  to accept terms proffered by readers, starting with a Customer Commons one dubbed #NoStalking.

That list could go on, but it’s not what matters.

What matters is that EmanciPay was a great idea when we proposed it in the first place, and a better idea now. With the right backing, it can scale.

If you want to solve the problem of paying for news (or all of journalism), there is not a more democratic, fair, trust-causing and potentially massive idea on the table, for doing exactly that, than EmanciPay. And nobody is better potentiated to address lots of other problems and  goals laid out in that Knight Commission report. One example: An immodest proposal for the music industry.

If you’re interested, talk to me.

Weighings

A few years ago I got a Withings bathroom scale: one that knows it’s me, records my weight, body mass index and fat percentage on a graph informed over wi-fi. The graph was in a Withings cloud.

I got it because I liked the product (still do, even though it now just tells me my weight and BMI), and because I trusted Withings, a French company subject to French privacy law, meaning it would store my data in a safe place accessible only to me, and not look inside. Or so I thought.

Here’s the privacy policy, and here are the terms of use, both retrieved from Archive.org. (Same goes for the link in the last paragraph and the image above.)

Then, in 2016, the company was acquired by Nokia and morphed into Nokia Health. Sometime after that, I started to get these:

This told me Nokia Health was watching my weight, which I didn’t like or appreciate. But I wasn’t surprised, since Withings’ original privacy policy featured the lack of assurance long customary to one-sided contracts of adhesion that have been pro forma on the Web since commercial activity exploded there in 1995: “The Service Provider reserves the right to modify all or part of the Service’s Privacy Rules without notice. Use of the Service by the User constitutes full and complete acceptance of any changes made to these Privacy Rules.” (The exact same language appears in the original terms of use.)

Still, I was too busy with other stuff to care more about it until I got this from community@email.health.nokia two days ago:

Here’s the announcement at the “learn more” link. Sounded encouraging.

So I dug a bit and and saw that Nokia in May planned to sell its Health division to Withings co-founder Éric Carreel (@ecaeca).

Thinking that perhaps Withings would welcome some feedback from a customer, I wrote this in a customer service form:

One big reason I bought my Withings scale was to monitor my own weight, by myself. As I recall the promise from Withings was that my data would remain known only to me (though Withings would store it). Since then I have received many robotic emailings telling me my weight and offering encouragements. This annoys me, and I would like my data to be exclusively my own again — and for that to be among Withings’ enticements to buy the company’s products. Thank you.

Here’s the response I got back, by email:

Hi,

Thank you for contacting Nokia Customer Support about monitoring your own weight. I’ll be glad to help.

Following your request to remove your email address from our mailing lists, and in accordance with data privacy laws, we have created an interface which allows our customers to manage their email preferences and easily opt-out from receiving emails from us. To access this interface, please follow the link below:

Obviously, the person there didn’t understand what I said.

So I’m saying it here. And on Twitter.

What I’m hoping isn’t for Withings to make a minor correction for one customer, but rather that Éric & Withings enter a dialog with the @VRM community and @CustomerCommons about a different approach to #GDPR compliance: one at the end of which Withings might pioneer agreeing to customers’ friendly terms and conditions, such as those starting to appear at Customer Commons.

Why personal agency matters more than personal data

Lately a lot of thought, work and advocacy has been going into valuing personal data as a fungible commodity: one that can be made scarce, bought, sold, traded and so on.  While there are good reasons to challenge whether or not data can be property (see Jefferson and  Renieris), I want to focus on a different problem: the one best to solve first: the need for personal agency in the online world.

I see two reasons why personal agency matters more than personal data.

The first reason we have far too little agency in the networked world is that we settled, way back in 1995, on a model for websites called client-server, which should have been called calf-cow or slave-master, because we’re always the weaker party: dependent, subordinate, secondary. In defaulted regulatory terms, we clients are mere “data subjects,” and only server operators are privileged to be “data controllers,” “data processors,” or both.

Fortunately, the Net’s and the Web’s base protocols remain peer-to-peer, by design. We can still build on those. And it’s early.

A critical start in that direction is making each of us the first party rather than the second when we deal with the sites, services, companies and apps of the world—and doing that at scale across all of them.

Think about how much more simple and sane it is for websites to accept our terms and our privacy policies, rather than to force each of us, all the time, to accept their terms, all expressed in their own different ways. (Because they are advised by different lawyers, equipped by different third parties, and generally confused anyway.)

Getting sites to agree to our own personal terms and policies is not a stretch, because that’s exactly what we have in the way we deal with each other in the physical world.

For example, the clothes that we wear are privacy technologies. We also have  norms that discourage others from doing rude things, such as sticking their hands inside our clothes without permission.

We don’t yet have those norms online, because we have no clothing there. The browser should have been clothing, but instead it became an easy way for adtech and its dependents in digital publishing to plant tracking beacons on our naked digital selves, so they could track us like marked animals across the digital frontier. That this normative is no excuse. Tracking people without their conscious and explicit invitation—or a court order—is morally wrong, massively rude, and now (at least hopefully) illegal under the GDPR and other privacy laws.

We can easily create privacy tech, personal terms and personal privacy policies that are normative and scale for each of us across all the entities that deal with us. (This is what ProjectVRM’s nonprofit spin-off, Customer Commons, is about.)

It is the height of fatuity for websites and services to say their cookie notice settings are “your privacy choices” when you have no power to offer, or to make, your own privacy choices, with records of those choices that you keep.

The simple fact of the matter is that businesses can’t give us privacy if we’re always the second parties clicking “agree.” It doesn’t matter how well-meaning and GDPR-compliant those businesses are. Making people second parties in all cases is a design flaw in every standing “agreement” we “accept.” And we need to correct that.

The second reason agency matters more than data is that nearly the entire market for personal data today is adtech, and adtech is too dysfunctional, too corrupt, too drunk on the data it already has, and absolutely awful at doing what they’ve harvested that data for, which is so machines can guess at what we might want before they shoot “relevant” and “interest-based” ads at our tracked eyeballs.

Not only do tracking-based ads fail to convince us to do a damn thing 99.xx+% of the time, but we’re also not buying something most of the time as well.

As incentive alignments go, adtech’s failure to serve the actual interests of its targets verges on absolute. (It’s no coincidence that more than a year ago, up to 1.7 billion people were already blocking ads online.)

And hell, what they do also isn’t really advertising, even though it’s called that. It’s direct marketing, which gives us junk mail and is the model for spam. (For more on this, see Separating Advertising’s Wheat and Chaff.)

Privacy is personal. That means privacy is an effect of personal agency, projected by personal tech and by personal expressions of intent that others can respect without working at it. We have that in the offline world. We can have it in the online world too.

Privacy is not something given to us by companies or governments, no matter how well they do Privacy by Design or craft their privacy policies. Top-down privacy simply can’t work.

In the physical world we got privacy tech and norms before we got privacy law. In the networked world we got the law first. That’s why the GDPR has caused so much confusion. Good and helpful though it may be, it is the regulatory cart in front of the technology horse. In the absence of privacy tech, we also failed to get the norms that would normally and naturally guide lawmaking.

So let’s get the tech horse back in front of the lawmaking cart. If we don’t do that first, adtech will stay in control. And we know how that movie goes, because it’s a horror show and we’re living in it now.

 

GDPR Hack Day at MIT

Our challenge in the near term is to make the GDPR work for us “data subjects” as well as for the “data processors” and “data controllers” of the world—and to start making it work before the GDPR’s “sunrise” on May 25th. That’s when the EU can start laying fines—big ones—on those data processors and controllers, but not on us mere subjects. After all, we’re the ones the GDPR protects.

Ah, but we can also bring some relief to those processors and controllers, by automating, in a way, our own consent to good behavior on their part, using a consent cookie of our own baking. That’s what we started working on at IIW on April 5th. Here’s the whiteboard:

Here are the session notes. And we’ll continue at a GDPR Hack Day, next Thursday, April 26th, at MIT. Read more about and sign up here. You don’t need to be a hacker to participate.

A positive look at Me2B

Somehow Martin Geddes and I were both at PIE2017 in London a few days ago and missed each other. That bums me because nobody in tech is more thoughtful and deep than Martin, and it would have been great to see him there. Still, we have his excellent report on the conference, which I highly recommend.

The theme of the conference was #Me2B, a perfect synonym (or synotag) for both #VRM and #CustomerTech, and hugely gratifying for us at ProjectVRM. As Martin says in his report,

This conference is an important one, as it has not sold its soul to the identity harvesters, nor rejected commercialism for utopian social visions by excluding them. It brings together the different parts and players, accepts the imperfection of our present reality, and celebrates the genuine progress being made.

Another pull-quote:

…if Facebook (and other identity harvesting companies) performed the same surveillance and stalking actions in the physical world as they do online, there would be riots. How dare you do that to my children, family and friends!

On the other hand, there are many people working to empower the “buy side”, helping people to make better decisions. Rather than identity harvesting, they perform “identity projection”, augmenting the power of the individual over the system of choice around them.

The main demand side commercial opportunity at the moment are applications like price comparison shopping. In the not too distant future is may transform how we eat, and drive a “food as medicine” model, paid for by life insurers to reduce claims.

The core issue is “who is my data empowering, and to what ends?”. If it is personal data, then there needs to be only one ultimate answer: it must empower you, and to your own benefit (where that is a legitimate intent, i.e. not fraud). Anything else is a tyranny to be avoided.

The good news is that these apparently unreconcilable views and systems can find a middle ground. There are technologies being built that allow for every party to win: the user, the merchant, and the identity broker. That these appear to be gaining ground, and removing the friction from the “identity supply chain”, is room for optimism.

Encouraging technologies that enable the individual to win is what ProjectVRM is all about. Same goes for Customer Commons, our nonprofit spin-off. Nice to know others (especially ones as smart and observant as Martin) see them gaining ground.

Martin also writes,

It is not merely for suppliers in the digital identity and personal information supply chain. Any enterprise can aspire to deliver a smart customer journey using smart contracts powered by personal information. All enterprises can deliver a better experience by helping customers to make better choices.

True.

The only problem with companies delivering better experiences by themselves is that every one of them is doing it differently, often using the same back-end SaaS systems (e.g. from Salesforce, Oracle, IBM, et. al.).

We need ways customers can have their own standard ways to change personal data settings (e.g. name, address, credit card info), call for support and supply useful intelligence to any of the companies they deal with, and to do any of those in one move.

See, just as companies need scale across all the customers they deal with, customers need scale across all the companies they deal with. I visit the possibilities for that here, here, here, and here.

On the topic of privacy, here’s a bonus link.

And, since Martin takes a very useful identity angle in his report, I invite him to come to the next Internet Identity Workshop, which Phil Windley, Kaliya @IdentityWoman and I put on twice a year at the Computer History Museum. The next, our 26th, is 3-5 April 2018.

 

 

Our radical hack on the whole marketplace

In Disruption isn’t the whole VRM story, I visited the Tetrad of Media Effects, from Laws of Media: the New Science, by Marshall and Eric McLuhan. Every new medium (which can be anything from a stone arrowhead to a self-driving car), the McLuhans say, does four things, which they pose as questions that can have multiple answers, and they visualize this way:

tetrad-of-media-effects

The McLuhans also famously explained their work with this encompassing statement: We shape our tools and thereafter they shape us.

This can go for institutions, such as businesses, and whole marketplaces, as well as people. We saw that happen in a big way with contracts of adhesion: those one-sided non-agreements we click on every time we acquire a new login and password, so we can deal with yet another site or service online.

These were named in 1943 by the law professor Friedrich “Fritz” Kessler in his landmark paper, “Contracts of Adhesion: Some Thoughts about Freedom of Contract.” Here is pretty much his whole case, expressed in a tetrad:

contracts-of-adhesion

Contracts of adhesion were tools industry shaped, was in turn shaped by, and in turn shaped the whole marketplace.

But now we have the Internet, which by design gives everyone on it a place to stand, and, like Archimedes with his lever, move the world.

We are now developing that lever, in the form of terms any one of us can assert, as a first party, and the other side—the businesses we deal with—can agree to, automatically. Which they’ll do it because it’s good for them.

I describe our first two terms, both of which have potentials toward enormous changes, in two similar posts put up elsewhere: 

— What if businesses agreed to customers’ terms and conditions? 

— The only way customers come first

And we’ll work some of those terms this week, fittingly, at the Computer History Museum in Silicon Valley, starting tomorrow at VRM Day and then Tuesday through Thursday at the Internet Identity Workshop. I host the former and co-host the latter, our 24th. One is free and the other is cheap for a conference.

Here is what will come of our work:
personal-terms

Trust me: nothing you can do is more leveraged than helping make this happen.

See you there.

 

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