To Protect Consumer Data, Don’t Do Everything on the Cloud

From today’s Harvard Business Review:

When collecting consumer data, there is almost always a risk to consumer privacy. Sensitive information could be leaked unintentionally or breached by bad actors. For example, the Equifax data breach of 2017 compromised the personal information of 143 million U.S. consumers. Smaller breaches, which you may or may not hear about, happen all the time. As companies collect more data — and rely more heavily on its insights — the potential for data to be compromised will likely only grow.

With the appropriate data architecture and processes, however, these risks can be substantially mitigated by ensuring that private data is touched at as few points as possible. Specifically, companies should consider the potential of what is known as edge computing. Under this paradigm, computations are performed not in the cloud, but on devices that are on the edge of the network, close to where the data are generated. For example, the computations that make Apple’s Face ID work happen right on your iPhone. As researchers who study privacy in the context of business, computer science, and statistics, we think this approach is sensible — and should be used more — because edge computing minimizes the transmission and retention of sensitive information to the cloud, lowering the risk that it could land in the wrong hands.

But how does this tech actually work, and how can companies who don’t have Apple-sized resources deploy it?

Consider a hypothetical wine store that wants to capture the faces of consumers sampling a new wine to measure how they like it. The store’s owners are picking between two competing video technologies: The first system captures hours of video, sends the data to third-party servers, saves the content to a database, processes the footage using facial analysis algorithms, and reports the insight that 80% of consumers looked happy upon tasting the new wine. The second system runs facial analysis algorithms on the camera itself, does not store or transmit any video footage, and reports the same 80% aggregated insight to the wine retailer.

The second system uses edge computing to restrict the number of points at which private data are touched by humans, servers, databases, or interfaces. Therefore, it reduces the chances of a data breach or future unauthorized use. It only gathers sufficient data to make a business decision: Should the wine retailer invest in advertising the new wine?

As companies work to protect their customers’ privacy, they will face similar situations as the one above. And in many cases, there will be an edge computing solution. Here’s what they need to know.

Read the complete article here.

Target, Google and others are under pressure to dump the Chamber of Commerce over voting rights

From today’s CNN Online:

Progressive activists are calling on Ford, Target, Google, Bank of America and other major companies that have pledged to support voting rights to cut ties with the US Chamber of Commerce, CNN Business has learned.

At issue is the Chamber of Commerce’s fierce opposition to the Democrats’ sweeping voting bill known as the For the People Act, which advocates say would counter efforts by Georgia and other states to impose new voting restrictions.

The Chamber of Commerce has slammed the legislation, which last month was approved by the US House of Representatives, as “extremely problematic” in part because of new curbs on political advocacy by companies and associations.

The Chamber is one of the most powerful trade groups in the nation. In 2020 alone, the organization spent $81.9 million trying to influence government policy, according to the Center for Responsive Politics. The only organization that spent more was the National Association of Realtors.

Accountable.US, a progressive watchdog group, sent letters Wednesday to 25 companies that have a relationship with the Chamber of Commerce even though they signed last week’s statement in the New York Times vowing to oppose discriminatory voting legislation.

The campaign from activists underscores the enormous pressure companies are under to follow up their verbal support for voting rights with concrete action.Enter your email to receive CNN’s nightcap newsletter.close dialog

“By ignoring the Chamber’s opposition to a bill that protects an essential right in our democracy, these executives are violating their commitment and siding against the millions of Americans — including many of their own employees — fighting racist voter suppression tactics,” Kyle Herrig, president of Accountable.US, told CNN Business.

Read the complete article here.

“An NDA Was Designed to Keep Me Quiet” – How Pinterest Undermines Equity in the Workplace

From today’s New York Times:

Last March, I sat in a lawyer’s conference room and watched as my corporate account at Pinterest was suddenly shut off. For almost two years, I had worked at the company as a public policy manager engaging with elected officials, civil rights groups and public health organizations. In an instant, I lost access to emails, documents and all internal systems. Months earlier, I filed complaints about wage discrimination and retaliation. Now the company was presenting me with no choice but to leave.

I thought about how I would explain to my colleagues, friends, family and prospective employers why I no longer had the high-profile job I loved. Worse, I had to find a way to have those conversations without violating the terms of a highly restrictive nondisclosure agreement (NDA), drawn up by Pinterest’s legal team, which was designed to keep me quiet.

Companies have long used NDAs to prevent competitors from poaching confidential information and good ideas. But they appear to increasingly be used to prevent workers from speaking out about instances of harassment, discrimination or assault they may face on the job.

During the #MeToo movement, those who came forward to report workplace abuses did so at great personal and legal risk. But it shouldn’t be this way. That is why I’mhelping lead the passage of a bill in California that, if signed into law, will allow victims of any kind of workplace discrimination to speak openly about the abuse they experience, regardless of the language in an NDA.

For a long time, I hesitated to speak about the issues I experienced at Pinterest. I didn’t want to be sued, and I hoped that the company would do the right thing and address the pay inequities and retaliation I faced. But it didn’t. When I eventually made the decision to come forward publicly, I, along with a courageous former colleague named Aerica Shimizu Banks, did so with the knowledge that we’d be covered, to some extent, under a 2019 law in California called CCP 1001.

Passed in the wake of the #MeToo movement, the law provides protections for those breaking NDAs if they disclose factual allegations related to only three types of misconduct: sexual harassment, sexual assault and gender discrimination. But those protections did not include the race discrimination that I also faced as a Black woman. As such, only one part of my identity was protected, leaving me in a sort of legal limbo.

Recognizing the need for intersectional protection in this law, I decided to work withCalifornia State Senator Connie Leyva (the author of CCP 1001) to help draft and sponsor the Silenced No More Act along with the California Employment Lawyers Association and Equal Rights Advocates. If passed, the measure will allow victims of any type of covered workplace discrimination — on the basis of such categories as race, religion, age, disability and sexual orientation — to speak honestly and openly about what they have faced, regardless of the language in a nondisclosure or nondisparagement agreement.

Read the complete article here.

Michigan’s big employers speak out against moves to restrict voting rights

From today’s Detroit Free Press:

Michigan’s corporate leaders spoke out strongly Tuesday against GOP-sponsored legislation in the state Legislature that would place new restrictions on voting.

The leaders of three-dozen major Michigan companies, including General Motors, Ford, Blue Cross Blue Shield, and Quicken Loans, issued a joint statement as Republicans are expected to begin consideration this week of a package of bills in committee hearings.

“We represent Michigan’s largest companies, many of which operate on a national basis. We feel a responsibility to add our voice as changes are proposed to voting laws in Michigan and other states,” the statement said.

The move follows widespread outrage and boycotts over a package of election bills that were made law in Georgia.

The statement set out a number of shared principles, including:

  • The right to vote is a sacred, inviolable right of American citizens.
  • Democracy is strongest when participation is greatest.
  • Safe are and secure voting options are vital
  • Government must support equitable access to the ballot.
  • Government must avoid actions that reduce participation in elections, particularly among historically disenfranchised communities.
  • Election laws must be developed in a bipartisan fashion.

A state Senate committee is expected to begin consideration of some of the bills Wednesday.

The Michigan bills would, among other measures, require absentee voters to mail in a paper copy of their ID with their ballot application, shorten the deadline for returning absentee ballots, bar clerks from purchasing prepaid postage for absentee ballot return envelopes and limit the secretary of state’s ability to help voters request an absentee ballot, require video surveillance of drop boxes for absentee ballots and allow only political parties designate election challengers.

Read the complete article here.

Emergency meeting draws corporate leaders to discuss state voting laws

From today’s CBS News Online:

More than 100 of the nation’s top corporate leaders met virtually on Saturday to discuss ways for companies to continue responding to the passage of more restrictive voting laws across the country, a signal that the nation’s premier businesses are preparing a far more robust, organized response to the ongoing debate. 

With some CEOs chiming in from Augusta National Golf Club, site of the Masters golf tournament, attendees on the high-level Zoom call included leaders from the health care, media and transportation sectors and some of the nation’s leading law and investment firms.  

“The gathering was an enthusiastic voluntary statement of defiance against threats of reprisals for exercising their patriotic voices,” said Jeffrey Sonnenfeld, a Yale University management professor who helped organize the confab.  

The corporate leaders “recognize that they need to step up to the plate and are not fearful of these reprisals,” he added. “They’re showing a disdain for these political attacks. Not only are they fortifying each other, but they see that this spreading of disease of voter restrictions from Georgia to up to possibly 46 other states is based on a false premise and its’ anti-democratic.” 

The nonpartisan Brennan Center, which has been tracking voting law proposals across the country, found that lawmakers in 47 states have introduced 361 bills that would restrict voting access. Of those restrictive bills, at least 55 are currently moving through legislatures in 24 states. So far, 29 of them have passed one chamber, while 26 of them have made it through a committee vote. Overall, five bills have been signed into law, including Georgia’s in late March.

In the wake of Georgia’s new law, Delta Air Lines, Coca-Cola and Aflac Insurance, among other companies based in the Peach State, spoke out in opposition to the law. Republican leaders, including former president Trump, have in turn called for boycotts of the companies for speaking out. Liberal organizations, civil rights groups and some Democratic Party leaders have said the firms didn’t speak out forcefully enough or before passage of the law, a move they argue that might have stopped the law’s passage.

Read the complete article here.

Tesla and Elon Musk Appeal NLRB Ruling about Union Activities

From today’s Detroit Bureau:

Tesla CEO Elon Musk wants his day in court, and the EV maker’s filed a petition to get it, appealing a recent ruling by the U.S. National Labor Relations Board that he’s violated U.S. labor law.

As part of the NLRB’s ruling, Tesla and Musk were required to perform several actions, not the least of which is a mandate that Musk take down a now nearly three-old tweet suggesting that if Tesla employees joined a union they could lose stock compensation.

The electric car maker filed a petition on April 2 with the New Orleans-based U.S. Court of Appeals to review the NLRB’s decision and order issued on March 25.

The NLRB ruling stated that Tesla violated federal labor law when it fired a union supporter and moved to block a union organizing drive at its plant in Fremont, California.

In addition, the NLRB found Tesla and the company’s freewheeling CEO, Elon Musk, violated the law and ordered them to stop interfering with workers seeking to organize a union at the Fremont plant, handing a victory to the United Auto Workers (UAW). The ruling on union activity by employees also extends to any other installation operated by Tesla in the U.S.

The dispute between Tesla and the UAW has been ongoing. The union began an organizing effort at Tesla more than five years ago and filed the unfair labor charges against the company in 2017 after security guards seized union literature and one of the leaders of the UAW effort inside Tesla was dismissed.

Tesla is disputing the NLRB’s ruling and asked the court to review the order and grant Tesla “any further relief which the Court deems just and equitable.” Tesla’s Musk has long disputed that his company is against union organizing.

In a 2018 tweet, Musk wrote: “Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare.”

The NLRB ruling ordered Musk to delete that three-year-old tweet warning employees they could lose their stock options if they opted to join the United Auto Workers, which had begun an organizing drive in Fremont. Compensation, including stock options, are subjects of contract negotiations under federal labor law.

The NLRB ordered Tesla to offer one of the former employees reinstatement. The company was also directed to rescind rules established in 2017 that prohibit the distribution of union literature in its parking lot on non-work time.

Read the complete article here.

Robinhood ‘buried’ info on consumer rights in runup to GameStop saga

From today’s MarketWatch.com:

Sen. Elizabeth Warren denounced online broker Robinhood’s practices for disclosing its customer rights in a statement Wednesday, while calling on the Securities and Exchange Commission to ban the practice of requiring new customers to forfeit their right to sue their stock brokers in court.

“Robinhood promised to democratize trading, but hid information about its prerogative to change the rules by cutting off trades without notice — and about customers’ inability to access the courts if they believe they’ve been cheated — behind dozens of pages of legalese,” the Massachusetts Democrat said.

Robinhood’s user agreement, like those of its largest competitors, requires new customers to agree that disputes between them and the company must be resolved through binding arbitration. Robinhood did not immediately respond a request for comment.

She also criticized the firm’s decision to temporarily restrict trading of a number of so-called meme stocks, including GameStop Inc. GME, -7.21% and AMC Entertainment Inc., AMC, -1.77% once their volatility triggered large clearinghouse deposit requirements. Warren said the company “did not have enough cash on had to manage a surge in trading and buried important information about consumers’ rights.”

Along with the statement, Warren released Robinhood’s response to a Feb. 2 letter in which she asked for a detailed description of the broker’s relationship with market makers, hedge funds and other entities that may have influenced its decisions. Robinhood executives have said in sworn statements that its decision to restrict trading was due solely to its need to manage risk and meet clearinghouse requirements, though Warren does not appear fully satisfied with this explanation.

“What’s still not clear from Robinhood’s response to my questions is the full extent of Robinhood’s ties to giant hedge funds and market makers,” Warren explained. “I’m going to keep pushing regulators to use the full range of their regulatory tools to ensure the fair operation of our markets, particularly for small investors.”

Read the complete article here.

U.S. Files Suit Against Facebook, Claiming It Illegally Crushed Competition

From today’s New York Times:

The Federal Trade Commission and more than 40 states accused Facebook on Wednesday of becoming a social media monopoly by buying up its rivals to illegally squash competition, and said the deals that turned the social network into a behemoth should be unwound.

Federal and state regulators, who have been investigating the company for over 18 months, said in separate lawsuits that Facebook’s purchases, especially Instagram for $1 billion in 2012 and WhatsApp for $19 billion two years later, eliminated competition that could have one day challenged the company’s dominance.

Since those deals, Instagram and WhatsApp have skyrocketed in popularity, giving Facebook control over three of the world’s most popular social media and messaging apps. The applications have helped catapult Facebook from a company started in a college dorm room 16 years ago to an internet powerhouse valued at more than $800 billion.

The prosecutors called for Facebook to break off Instagram and WhatsApp and for new restrictions on future deals, in what amounted to some of the most severe penalties regulators can demand.

“For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals and snuff out competition, all at the expense of everyday users,” said Attorney General Letitia James of New York, who led the multistate investigation into the company’s in parallel with the federal agency.

The lawsuits, filed in the U.S. District Court of the District of Columbia, underscore the growing bipartisan and international tsunami against Big Tech. Lawmakers and regulators have zeroed in on the grip that Facebook, Google, Amazon and Apple maintain on commerce, electronics, social networking, search and online advertising, remaking the nation’s economy. President Trump has argued repeatedly that the tech giants have too much power and influence, and allies of President-elect Joseph R. Biden Jr. make similar complaints.

The investigations already led to a lawsuit against Google, brought by the Justice Department two months ago, that accuses the search giant of illegally protecting a monopoly. Prosecutors in that case, though, stopped short of demanding that Google break off any parts of its business. At least one more suit against Google, by both Republican and Democratic officials, is expected by the end of the year. In Europe, regulators are proposing tougher laws against the industry and have issued billions of dollars in penalties for the violation of competition laws.

Read the complete article here.

Mark Zuckerberg Wants To Silence Facebook’s Employees

From today’s Vice News:

Mark Zuckerberg loves free speech, just not when it comes to his own employees.

The Facebook CEO has repeatedly cited free speech as the reason he continued to allow President Donald Trump to openly lie and incite violence on his platform. It is the reason he says he won’t delete coronavirus anti-vaxx content even if it threatens the health of users. It’s why right-wing disinformation continues to dominate the newsfeed. 

But when his own employees speak up about these issues and other social causes, like Black Lives Matter, Zuckerberg’s belief in free speech appears to have reached its limit. 

On Thursday, Zuckerberg told staff that from now on discussions about “divisive” topics would no longer be allowed to be posted just anywhere on the company’s own internal version of Facebook, known as Workplace.

From now on, discussions about political and social issues would only be allowed to take place in specific areas of Workplace, so that all employees don’t have to confront such issues at work if they don’t want to, according to numerous media reports. And, these discussions will be strictly monitored and moderated. 

The exact details of how the new rules will work are still being hammered out. But Zuckerberg was keen to downplay the censorious aspect of the new rules, telling staff that Facebook plans to “explore ways to preserve our culture of openness and debate around” its work, a company spokesman told the Wall Street Journal.

Facebook did not immediately respond to a request for comment about the rule changes and why they were being implemented now.

Read the complete article here.

A brutal year: how ‘techlash’ caught up with Facebook, Google and Amazon

From The Guardian Online:

What goes up must come down, and in 2019, gravity reasserted itself for the tech industry.

After years of relatively unchecked growth, the tech industry found itself on the receiving end of increased scrutiny from lawmakers and the public and attacks from its own employees.

Facebook and Instagram ads were linked to a Russian effort to disrupt the American political process.
Social Media, Fake News, and the hijacking of democracy by reactionary forces at home and from abroad.

“The whole year has been brutal for tech companies,” said Peter Yared, chief executive officer and founder of data compliance firm InCountry. “The techlash we have seen in the rest of the world is just now catching up in the US – it’s been a long time coming.”

From new privacy legislation to internal strife, here are some of the major hurdles the tech industry has faced in the past year.

As the 2020 presidential race intensified, tech companies faced a growing backlash over the campaign-related content they allow on their platforms.Advertisement

In October, Facebook quietly revised its policy banning false claims in advertising to exempt politicians, drawing fierce criticism from users, misinformation watchdogs, and politicians. Following the change in policy, presidential candidate Elizabeth Warren took out advertisements on Facebook purposely making false statements to draw attention to the policy.

Democratic lawmaker Alexandria Ocasio-Cortez grilled Facebook’s chief executive, Mark Zuckerberg, over the policy change in a congressional hearing in October. “Do you see a potential problem here with a complete lack of factchecking on political advertisements?” Ocasio-Cortez asked, as Zuckerberg struggled to answer. “So, you won’t take down lies or you will take down lies?”

Meanwhile, other tech companies took the opposite stance.TikTok, whose reported 500 million users makes it one of Facebook’s largest rivals, made clear in a blogpost in October it would not be hosting any political advertisements.

And Facebook rival Twitter banned almost all political advertising in October. Google stated in November it would no longer allow political advertisers to target voters based on their political affiliations.

Read the complete article here.