Andrew Yang's Data Dividend Project is pushing Big Tech to pay users for data
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I ran the numbers on Facebook a while back: https://news.ycombinator.com/item?id=19462402 It comes out that they're making roughly $17/yr in annual revenue per user. Revenue, not profit. Cross checking my numbers against some other sources, it may be now more like $40 or $50/yr. Profits, the thing they could actually afford to share with you, look like maybe $10/year. So, what, Facebook is going to cut me a check for $5 every year? Google sends me another 5-spot, and a few other companies send me a dollar or less? What problem does that solve?
I mean, if people found out there was a $1000 or $10,000 vein of value to mine, yeah, people might get upset and demand a more "fair portion", but they're not going to get upset over $10/year.
The problem isn't the amount of money the companies are making on your privacy, the problem is what they are doing to make that money. I'm appalled at the damage to society they're willing to do to make that little money, but you're not going to convince anyone of any problems by focusing on the "little money" part.
I like to think they don't know. I fear they don't care.
... and honestly, that might be the correct risk assessment for the average person. The worst-case scenario only happens to a few people.
No
In all respect, this is a really naive view of the ad tech marketplace.
The only thing that would do what you're saying is legislation. Making it more expensive just pushes out smaller players in the marketplace, leading to consolidation towards the Google's / Facebooks of the world.
Money doesn't solve every issue, especially when your adversaries have so much more money (and power) than you.
[1]: https://slate.com/technology/2020/04/sell-your-own-data-bad-...
The only way to stop others from collecting data on you is to not give it out in the first place. We need our computers, particularly browsers, to stop leaking so much information.
Edit: this is also the downfall of GDPR. An enterprising Chinese company could collect whatever data they want and then simply sell it to someone else who can use it to sell something to Europeans.
The point of making the companies change is that most users aren’t computer literate enough to understand the problem, it’s consequences, or the mitigations. The knowledge asymmetry between the average user and the companies collecting and using this data could hardly be more vast, and that creates a situation where companies can effectively prey on less knowledgable users. If the wide majority of users aren’t capable of finding/using the available user-level solutions, the problems will remain rampant.
You're saying the low levels of adoption of such technologies are indicative of users' subpar technical skills, but maybe it's just general apathy and disinterest? E.g., how many public protests and calls to action have we seen after Snowden revelations?
FWIW, the former is already prevalent among younger generations, with Instagram for their "public" life and f-Insta for everything private.
But if the "you" you're referring to here is actually just you, of course you can.
It makes the data use much less profitable for the companies involved, and therefore far less attractive, discouraging business models that rely on it from the start.
[1] https://www.statista.com/statistics/264810/number-of-monthly...
They might diversify a bit (which they already have, with their hardware plays and all that jazz,) but let's not pretend this is going to be the game changing investment mover we hope it would be.
Currently data is held by a small number of companies who invest a lot of money protecting it as a business secret.
The goal of the pay-for-data movement is to make it easy for any fly by night operation to have access to the same data without earning your trust.
Why not ban tracking and ad targeting and selling personal data, and force that business model to go extinct, and now they have to start charging for service and their users become actual customers.
The feed is such an integral part of FB.
Since me and the other 99% of people contribute most of the value to Facebook for you, would you be willing to subsidize the other 99% of people and pay $1700/year?
> I would not, I'd rather they target me with personalized ads like they are doing now. I hate paying for things, and I imagine neither would 99% of users.
I will never understand the mind of a typical social media user(s), as I'd rather not use it and save myself the damage on my psyche and mental health as well as leaking personal information I'd rather not be in the hands of the very companies building the Panopticon.
Other than the supposed potential dating benefits, having an actual active social life I don't get the appeal as I probably say I meet too many people for my own good, what can you say really is worth it that you can't do with text/email? The digital life that was sold to us as an amazing replacement is actually proving to be really sad as COVID has shown and is perhaps one of the reasons I can comprehend why people are out there violating it as its proven to be an incredibly undesirable and lonely experience.
Scientific evidence on that is inconclusive and mixed. https://link.springer.com/content/pdf/10.1007/s11126-017-953...
> Other than the supposed potential dating benefits, having an actual active social life I don't get the appeal as I probably say I meet too many people for my own good
Then maybe it's not for you? I like to share things with my friends, see things they share, it's mildly entertaining and somewhat informative. If you don't enjoy those things, then you don't have to participate.
> leaking personal information I'd rather not be in the hands of the very companies building the Panopticon
In a practical sense, I have never encountered any downsides with supposed data leaking / personalized ads / strangers selling information about me. I have not lost money because of it, or lost friendships, or manipulated to do something I later regret.
But I have lost time and money because of wrong information shared by the credit bureaus, lost friends and messages because of a broken phone, misleading salesmen who convinced me to buy bad products at bad prices, insurance companies that didn't pay up, and landlords who scammed me. So after I finish dealing with and worrying about actual bad actors that harm me in direct ways, maybe I'll start worrying about the ghosts.
That sort of statement requires data to back it up.
> would you be willing to subsidize the other 99%
That would just mean that facebook is an unwanted and unprofitable service which then wouldn't exist.
Which is not a problem at all.
But if Facebook threw up two buttons, one saying I agree to allow targeted ads, and one saying "$17/year" and requires you to give your credit card information, it's naive to think a substantial percentage will hit the $17/year button for a product they've already been using for free.
This is, after all, how the internet got to be where it is. Not through the use of 'walled gardens' and paywalls. But by providing ad supported content.
On other social media websites that offer "pay to remove ads" versus "get personalized ads", like Reddit or Twitch, about 1% of users pay. Wikipedia asks for donations and very few people donate, percentage-wise. So I think if you want to show a substantially higher number, say even 10%, you'll need to provided evidence. Even if 10% of users paid, would they be willing to be $170/year?
> That would just mean that facebook is an unwanted and unprofitable service which then wouldn't exist. Which is not a problem at all.
I don't see how you jumped to that conclusion, that it's unwanted. I want Facebook, and I want it for free with personalized ads. Same with Gmail, Yelp, Reddit, Google Maps, Instagram, Youtube, and a bunch of other web services. Not sure how that's so hard to understand, that this is the business model I prefer.
Same with newspapers. I don't want to pay the full cost of making a newspaper (probably $10 or so), but rather I'd purchase a very cheap subsidized newspaper with ads for $1. Or free apps with in-app purchases. Doesn't mean it's unwanted if people aren't willing to pay the cost price for it.
That sort of statement requires data to back it up.
> I don't see how you jumped to that conclusion, that it's unwanted. I want Facebook, and I want it for free
If no one wants to pay for it, it's unwanted. I'm sure you'd also want a mansion, butlers, a private jet, etc. for free. That you want something for free means nothing, and is entirely irrelevant.
Facebook in its current form also doesn't care about what you want. They care about how they can please their paying customers, with you being one of their many products they can sell.
The person you're replying to spoke directly to this by saying they want those services not merely for free, but for free with personalized ads. That is, by just saying "for free", you are removing an important part of the context. I suspect they would also sign up for a service that offered a mansion, butlers, a private jet, etc. for free with personalized ads, if anybody were offering such a thing.
I'm personally in the boat of preferring to pay for things that are important to me and hope to see more movement over time to subscription business models that work, but it does not make sense to write off people who want the opposite, who prefer to get things for free with personalized ads. The revealed preference in society seems to be that there are a lot more people who feel that way than people who prefer to pay for subscriptions. These people aren't just being duped, everybody knows how free services work because it is a very frequent and well publicized topic of conversation, it's just that they are ok or even happy with it.
I think what happens a lot, because I think it's what I experience personally very often, is that when we find ourselves with a minority opinion that we really think is right, that we conclude the majority with a different opinion from ours is just ignorant or being manipulated. But in reality, they are often just as knowledgeable as we are, but have simply drawn different conclusions. Speaking personally, this is always a bitter pill to swallow.
Exactly! I don't know why it's so hard for people to realize that there are people that 100% ok with the offerings from these companies and would rather not have legislation interfere with such transactions
Anyway, personalized ads is just the tip of the iceberg, the real problem with that data doesn't exist on a small scale. The problem is that mountain of data could be abused, for example to manipulate public opinion, elections, the stock market, etc, and blackmail.
Even if you aren't vulnerable to these things directly, the abuse potential of such data is so high that IMO it's only a matter of time before you're indirectly negatively affected by it.
Of course all this would be predicated on trust and a government that would actually use teeth if fraud was committed.
Hah.
I already don't, but they still build a shadow profile of me with the data my friends and friends of friends leak.
For a free service like Facebook you the user have no expectation of quality because you're paying nothing. So Facebook's motivation is not to provide quality but to keep you engaged and clicking. They've discovered that best way to do that is to infuriate you and to radicalize you. This keeps you the user engaged which is what advertisers require, so that's what Facebook delivers.
This is great except that this is not a healthy arrangement for a democracy. To constantly have users given whatever amount of negativity and disinformation is necessary to keep them enraged and glued to their phones. That's what Yang is all about trying to fix.
So paying for Facebook changes the dynamic. Users will now demand quality. Facebook will have to change. If users discover that Facebook only delivers them misery, then they'll stop paying and Facebook loses revenue on both ends. The users collectively will have power to demand improvements. Facebook's algorithm will have to change in response to that new dynamic. Problem solved. (That's the hope.)
Nope. Few people I know have a Netflix subscription. The subscription model doesn't work for news media for example.
I've never used Facebook, but there have been times where I've thought of signing up. If Facebook had cost money then that would've been a non-starter from the get go. The same goes for most other services.
I don't know why, but the value proposition of something that costs money online has to be very large for me to consider it.
So they need to understand your interests anyway to provide the services that people find useful. So they still need forms of tracking to do the things that people find useful on the sites.
So what do we do?
I think the general problem is that those who can afford to pay for Facebook are those who are the most valuable to advertisers. So if you gave users the choice to pay or not, the users who draw the advertising revenue would pay, leaving the users who the advertisers don't really want to advertise to.
~220-230 million monthly active US users, $31.4 billion in sales (projected 2020 figure) for that market.
That's of course not adjusting for hours of use for a given user, data contribution, and so on.
And do those numbers include messenger?
It would be fascinating to see some histograms of users and usage. Especially one that compares ad buyers, page managers, and personal only users.
It’s hard to remember, the average person makes $X,000 globally and Facebook has a huge % of the planet on their platform.
HN users make in the upper echelon of wages, and are comfortable with their computers and online shopping.
It's completely impossible that it wouldn't be revealed to the public, and every possible take on it will be published. All it would take is a few people posting the amounts they received, which is definitely going to happen.
Revenue per user is a very misleading way to evaluate the value when talking about a hyper-global operation. It is as useful as averaging the global price of a loaf of bread, which would be priced as $2-3 in the US but a few cents in a third world country. This is very applicable to ad revenue because ultimately ads are capturing the pricing levels of real economy, and bulk of the facebook users are not from high GDP nations.
> Your entire data load might be worth $100 a year
This is a very simplistic way to think about data. In fact, calling it data itself is misleading. Because it all boils down to how the data is operationalized and made into information and knowledge about you when the business is interacting with you. Same demographic data is worth separately for selling you ads, driving product development to increase usage, price discriminating against you while buying airplane tickets, selling you insurance, influencing your vote etc.
Another way data is not a static, lifeless entity is something people often forget, it is the power of an SQL join. Joining table-a and table-b yields information neither of the tables had alone. So there will always be more a potential of rendering the existing data more valuable (more information yielding) by joining it with a marginal amount of new data.
In sum, data doesn't have a static value, and I don't think we have seen the end of ways it could be utilized against users yet.
> It doesn't work.
To my knowledge, we don't have empirical data that shows it doesn't yet.
It doesn't matter, because there's no way to torture the data until "the amount of money that Facebook can afford to remit to its users for giving them their data" is going to be anything significant. They can't afford anything "per user" or any significant number of users.
If it were, say, $500 dollars a year, and we were arguing about whether we were an order of magnitude low or high, it might matter, because the difference between $50/yr and $5000/year is pretty significant. But you're never going to get so much as "Facebook can pay most users $15/month for their data" let alone anything worth it to anybody.
Also, I've seen people hypothesize about these other values that this data might bring before, but bear in mind I'm operating my analysis based on Facebook overall revenue. There is no hypothetical 10x or 100x amount of value sitting around in the data, which we know, because otherwise Facebook would be collecting some significant amount of the value and it would be showing up in their revenue. The fact I'm basing this sort of analysis on revenue rather than profit is already an ENORMOUS concession to the idea, just staggeringly huge, and even with that concession it's a couple of orders of magnitude away from making sense.
If you think there's some huge untapped source of revenue here that might make the idea work, show it to me. Show me the company and their revenue. There's Google, and then it falls off a cliff.
Deciding how much a user's data is worth is an exercise for the reader, but I would certainly pay much more to avoid Facebook, than Facebook would pay to have me[0]. That's a red flag.
[0] - as would anyone who has ever added a Facebook domain to a Pi-Hole, the total cost of which likely exceeds Facebook's per-user revenue by your numbers.
If we have the option to pay up front, or sell off my data and maybe end up in the red or black. It will all be very complex in the end, but that's just exposing the inherent complexity that already exists and is just papered over.
If you want to internal externalities, go for the tax. Probably an easier sell to the politicians.
How are you going to value what has been extracted from them, though? Facebook is in a better position to value it than anyone: they're selling it. What people are willing to pay them for it is literally its value. I don't really see how you can decide that the value of the data is greater than what Facebook is extracting from it. If it were, they'd be charging that much.
That was my point. In this thought exercise, we ought to separate the amount paid to users by country, because it will differ as much as a few orders of magnitude per country, just as the per user revenue most probably does. That is roughly the scale of GDP per capita per country between 1st world and 3rd world countries, which would be a good proxy for ad markets. I agree with rest of your argument, if per person revenue in the US was $150, would that be enough to make users care? It is unknown.
> If you think there's some huge untapped source of revenue here that might make the idea work, show it to me
I will concede that I am leveling an argument that entirely hinges on a hypothetical. But I don't think it is fantastical. The core of the problem is information asymmetry. These companies have huge amounts of high resolution data on us, but we don't have anything about the breakdown and how they operationalize that data. The argument that "if there was more ways to milk money out of it, we would have seen that in revenue" has several drawbacks in my opinion for several reasons.
a) The data doesn't have to be used in ways that translate to quarterly revenue but still great value to the company; this includes back channel uses (elections, famously brexit, that was won by data, and it is hard to put a revenue tag to its effects), it also includes expenditures such as acquisitions of competitors (famously instagram and whatsapp, I don't doubt for a second facebook made use of their data to assess the viability of these acquisitions), or temporarily unused data for game theoretic reasons ("I don't want to expose the fact that I can utilize racial data, health data, covert speech recognition data on my users as long as I can, but if market conditions/lobbying efforts are fruitful, I will translate that to revenue").
b) Even directly revenue increasing uses of data is subject to R&D and mining day in day out. So new combinations of existing data can be figured out, or new products might potentiate existing data to be more valuable without preceding revenue footprints. Think about self driving cars; how traffic operated has been public data, individual sensor technologies aren't that novel, but self-driving car is joining all this together in the hope of converting that data into revenue. When it does, it will be a phase shift that tremendously increases the value of that data, and we will have not been wiser to it if we only watched the revenue. I'm not suggesting FB is necessarily after such an exponential tech, but it is to keep in mind the potentiality stored with data is not readily observable, so “show me it can translate into revenue” criteria can be failed for a long while despite the fact that it eventually can.
So what would that something be? Is there any obvious way to spend the revenues to further discourage tracking users and storing user data? Or would it be best to just plow it into the education budget or general fund?
I think the correct use did eventually occur to me: turn it into funding for open source software, that is both free as in freedom and free as in beer.
If people were to negotiate the value of their data collectivelly you can have a 100k or a million people in some organisation that has stewardship over their data and negotiates say, a price with facebook, and that institution either manages the money and invests it or pays it back out.
The reason people are so disempowered today in the face of these huge companies is because everyone is operating under this atomistic, individualist, consumer mindset. People can effectively negotiate when they team up.
On Google that's maybe one click, probably half a click.
All the problems of big tech disappear when they're held accountable for their actions. The easiest way to hold them accountable is to reduce their clout.
Not to mention the logic doesn't follow. Today nearly everyonr would agree that it would be a terrible idea to openly sell representation in congress or the ability levy and collect arbitrary taxes to the highest bidder because the incentived essentially only make sense for those who can make a large enough profit in short term to justify the expense. The best thing you could say about the policy is that if it is cheaper than an invasion adversaries might decide to buy you out instead of declaring war.
That is a considerable amount for many.
If this were the limit of the value per user, they would have offered a subscription service long ago. Something is missing from your model.
There should be roughly as much variation in FB users’ value to FB as there is variation in disposable income across their whole userbase.
This whole thing is essentially credit card points. These credit card companies pay you for the purchase data in the form on points. And the detail from those purchases is nothing compared to what FB and others would have.
Then give it to me if no one cares. I don't want my personal information bought and sold.
Everyone who logs on gets a ticket. It follows some type of grading scale. Bigger revenue generators earns more tickets. Only individuals are allowed to win, no businesses.
Maybe Facebook’s goal can be to give away $1 Billion dollars a year, divided into $1 Million jackpots. Thus, 1,000 people a year can win it. Over 10 years, and you possibly have 10,000 winners.
And maybe you have to meet a certain income or wealth criteria to win the jackpot? Otherwise, you only win a smaller jackpot. You don’t really want all the big influencers and wealthy to take all the money.
$5/year is irrelevant. But $1 Million, this might be more interesting. And force the IRS to tax-exempt the winnings. The goal is to transfer wealth to the less-privileged, to help rectify the inequality of the capitalistic system.
It would also disincentive them collecting info on me.
The payment that you get is the products. You don't get a check from Google, but you get to use Google, which is an incredibly useful tool.
I like Yang, but I think he's barking up the wrong tree. We should be focused on giving people control over their data and awareness of how it's being used so they can make informed decisions, not insisting they get paid for it.
That the store turns around and makes money off of that browsing data so Facebook can sell me ads for products I lingered in front of, is another level entirely. Thus the data dividend forces the store to truly think through wether or not it's worth it to them to the data. For mega-corp retailers like Target or Whole Foods, they may decide it is (though I'd prefer not), and in that case, since it is my data being sold it doesn't seem unreasonable that I should get something from that transaction. (Unlike physical goods, my data, eg home address/email/IP address/etc, doesn't stop being mine just because someone else also has it.)
If FB gave people a rebate in the amount of their net profit, the whole transaction would round out to FB operating and people getting it for free, so it's not obviously that bad of a deal for users, at least not with profit as the metric.
As anecdata, if you offered me instagram without ads for $10 / year I wouldn't even blink before accepting it. Yet I've also bought a half dozen things from their ads for > $50 over the last few years, which is likely more valuable to them. Or more specifically, makes their ad platform more valuable to their ad-buying business customers.
Also keep in mind that some percent of that revenue is from other things (ads for example). They could still make ad revenue on paid users, just marginally less.
There are a couple problems with this that I can see. First, given that the transaction is not exchanged using dollars, we don't know if we are getting ripped off. One of the useful signals that money sends is uniform price discovery. Maybe we as consumers are leaving a lot of money on the table.
Second, it's a gray economy that escapes taxation. If Google can conduct a significant fraction of its business in an untaxed gray zone, while General Motors must account and pay all suppliers for the taxes they must pay to the government, then that's a market distortion in favor of Google. This is why bartering at large scales is illegal, unless of course you're an internet company.
You don’t walk around all day evaluating the rest of your purchases based on COGS, you do it based on the value you receive in return.
Those of us who are well-aware of data harvesting still forget about it all the time; it isn't at the forefront of our attention when we're shopping on Amazon or watching videos on Youtube. at a store you pull money out of your wallet, all the elements of the exchange are at the top of your attention, and when it's over it's over.
data collection is constant, has far-reaching effects on the future, and we have no intuition about the manipulation we're opening ourselves up to.
data commodification is very materially different from exchanging a currency for a physical good; and i think it's wrong to lose that distinction with a metaphor that's too simplistic.
I see your point but we are commenting on an article that is talking about "data dividends" :)
i worked with a company that tracks you and your facial expressions as you move thru the store. they analysed that data to show new products and move things around.
The only incentive companies generally respond to is financial, that's where we need to impact them to make them think.
(Yes, some companies do try to do right, but they are sadly outnumbered. So far.)
Rather, I think consumers are getting a poor exchange rate, not least because they have very little agency or transparency into the nature of the transaction. It's all or nothing: cede massive economic power to a small number of centralized corporations and enjoy (admittedly significant) trickle-down utility value; or, live as a quasi-Luddite and eschew these services entirely [1].
It's also worth noting the hidden costs behind the scenes: the massive power of data consolidation, and the accompanying "winner take all" dynamics, creates near-monopoly power in which the centralized networks (Amazon in particular) can dictate terms and prices, usually through the supply side rather than the demand side as was done by trusts and monopolies of old. (This also isn't new to internet services: the centralization of purchasing data through debit/credit cards pioneered the model.)
Lastly, Lanier likes to point out the curse of normalizing the price of "free" for software and services: while consumers obviously prefer it, every consumer is also a producer in one way or another, and so will find when it's their turn to sell some digital service / creative work / non-excludable good, the market is largely intractable to actually paying for things. The "surveillance capitalism" model crowds out other business models in many cases, making a small number of centralized winners the only players with the economy of scale to make money on "free" services.
[0] https://en.wikipedia.org/wiki/Who_Owns_the_Future%3F
[1] Even then, one's data is often swept up indirectly through one's social graph. If I avoid using Google services, but send an email to a @gmail.com, the contents of that email are ingested and profited from all the same.
Who is choosing? I can walk into a store and look around without making a commitment to buy a product. I may leave realizing that there is nothing for me here. I chose not to become a customer. Or I chose to be a customer and there was a ritual exchanging of gifts and information which is relatively clear to all parties.
Websites don't work that way. I can't 'browse' without them already tracking me. I haven't agreed to anything yet. The transition happens without my awareness. It's predatory.
Suggesting that sites do not have right to retain information about what you asked them to do after you've read an article or created an account, would be similar to saying that bookstore should allow you to read entire books standing in the store, or that they can't use their security cameras because you may be visible on them.
One random example from 2018 (so, probably a lot more advanced and widespread by now): https://www.adweek.com/digital/adobes-newest-labs-project-ca...
Could be I'm wrong about that, but how long do you have to embolden people before they do something truly brazen?
Imagine you had a screen like you do when you connect two integrated services that tells you exactly what data is being sent (e.g. if you authorize this mobile game to access your Facebook account, it will be able to access your profile picture, friends list, etc.) before you access a site. If that happens, you know that the site is going to collect your location data, browsing history, etc., and you know that they are going to use it to both serve you ads and will sell it to third parties. From there, you can make a decision as to whether that use of your data is worth access to the site, and the market will eventually decide what value people place on their data.
Shouldn't this be more targeted at cable companies which collect a monthly fee and again sell your data? And may be forcing Big Tech to provide a paid alternative which doesn't use data collected?
That's the whole reason we trade. The value of a good is different to different people. If a book is worth £5 to me, and £1 to you, then if I give you £2.50 for the book we've both gained more than we've lost.
The problem here is that one side of the trade does not fully know the value they provide. When you give $10 for an apple, you know exactly what you give and what you get. When you give $0+"your data"+"your ad view/clicks" for "free Facebook service" it's really really unclear what it is you're giving to Facebook and what it is Facebook is giving you.
The above comment wasn't an example of that, though. His friend was getting medical treatment, the issue is that you can't just buy a kidney (at least not in the US), you need to find a donor.
That isn't just an outright baseless claim, it's wrong by definition. The said person had to go to social media to find a donor, which 100% matches what I descibed, and the fact that some felt this was necessary points to a broken system. It's also terrible to imagine what shady companies can do with targeted ads aimed at vulnerable people who can't find any donors.
What solutions did you have in mind?
I cant think of any other way he could have gotten exposure without having to go on tv, radio, public areas and making his case. That power of facebook ( and other social media is undeniable )
Even Wajahat Ali on CNN, who has such a big audience, found a donor off Twitter. Not everyone has the ability to reach out to Anderson Cooper and ask for help.
For every evil thing Facebook has done, there are stories like this. Having my friend alive, his family seeing him everyday is well worth it.
It would be interesting to get some preliminary guidance on what tech companies would do in response (start charging for premium services? only give premium services to the most valuable users?)
Andrew Yang has also mentioned in prior podcasts on UBI (Freakanomics, etc.) that probably the best way to fund such a program would be proceeds from increased taxation on tech companies.
I for one would love to see cable companies turned into public utilities. But that goal is not mutually exclusive from the goal to give the consumer some more power over the big tech conglomerates.
Disclaimer: I work at Google, opinions my own.
Something where a switch is easier and doesn't cut you off from the old platform would be nice, similar to how domains or phone numbers work: you own your profile and all the data, but you can switch platforms at any time without losing contacts or abilities, keeping the competition between platform-providers alive. I have no idea how that would work out though. Does FB have actually any value besides the fact that everybody you know is there? If you were able to connect with them while they're on FB and you're not, would a lot of people decide to stay in FB because it's such a great platform?
Almost certainly. What people often miss in this discussion is that advertising is progressive--it's a transfer of value from richer people who can and will pay for both the service being used and the product that is being advertised to poorer people who cannot.
The ramifications of creating barriers to advertising is ultimately taking these services away from the poor.
I think it's more about changing the frame. That Tech companies have been profiting off something you actually have always intrinsically owned, your personal data, and now is the time to retake that ownership.
In other cases the data that users upload to websites is definitely owned by them. e.g. If I take a picture on my phone, and then later upload it to Facebook, the photo is still owned by me. However, for any site that allows users to upload photos, it will be part of the terms of service that the users give the site a license to display the photo.
Establishing a value for each data point gathered and an ongoing payout from derived data (e.g. training a machine learning model using your search habits should not mean you get nothing if the original data isn't kept) is crucial.
Also, keeping track of all of those payouts would also be a huge burden for even Google, I can't imagine for a small startup. This also needs to be considered so that it doesn't stifle innovation.
Some napkin math: assuming 1 billion MAU for Google Search and around $30B in revenue for Q1 2020, that's $30 in revenue per MAU per quarter or around $120/year. This would be before costs of course and represents the ceiling of what they would be able to pay.
https://en.wikipedia.org/wiki/Hollywood_accounting
https://www.cnbc.com/2020/04/28/alphabet-googl-earnings-q1-2...
For starters, _most_ data-hoarding websites allow these characters these days, so it's just one more obstacle when trying to match and verify "my" data. I guess let's hope I signed up to every website with the same e-mail address?
On a similar note, it also rejected my 5-digit valid zip code as "invalid", so I'm unable to sign up at all.
Andrew Yang talks racism in America with Bakari Sellers: https://www.youtube.com/watch?v=HfiMfPo0u6U
But what can we DO? Six ideas for police reform: https://www.youtube.com/watch?v=V_gd4nx-dk0
Also, it often seems like he needs "ENGLISH" more than "MATH". Because "technology" is a meaningless word. A carburetor is technology. A ramp is technology. Just about everything is technology in some fashion.
So. We already tax technology, if indirectly, through taxing goods and services.
Then there's the railing against the large targeted-advertising companies (I guess that's what they have most in common). There's technically been a trade already. Our data for their services.
And then there's the fact that he's now doing the thing he's complaining about: data harvesting.
And to top all of that off, the issues you just mentioned. This guy can't even harvest data effectively or efficiently. Or identify people who can. And I'm supposed to trust him to create legislation affecting those companies? Or identify people who can? He has just blatantly demonstrated he does not have those skills.
So for whatever service they offer, we give them data. And extra secondary income from every third party they pass that same data along to. And the risk of first party data breaches. And the risk of data breaches from any other party that gets access. And likely that same data getting scraped by aggregators just from being used.
The deal is by no means equal, and we the customer pay dearly.
I'm quite happy with the idea of making it expensive to retain any data that's not required by law or explicit operational need.
But looking at his book and platform, one can't help but notice that it heavily incorporates ideas that are popular in tech circles (UBI, automation, etc). Then on top of that he spends time talking about non-mainstream topics like Ranked Choice Voting, blockchain, etc. Who else talks about these things on the debate stage?
So we would get some sort of commission from Instagram for every ad we view. And the government will need to track this for every Californian, then divvy up a couple dollars per person each year.
I know there are some Yang fans on HN and I don’t want to get too political here but his ideas are too oversimplified, from the $1k UBI thing to this they feel like the left’s version of “build a wall”. They’re simple ideas that are great for social media attention but ultimately oversimplify an inherently complex problem.
Again, I’m not trying to make a political argument either way here, just pointing out how social media seems to incentivize our leaders to oversimplify policy ideas.
The same way anything works. The largest players write the regulations, stand up a new regulatory body, require anyone that can be remotely considered a data collector or warehouse or whatever term they come up with to 'pre-certify' their operation at a 6 or 7 figure sum to crowd out any upstart players.
[1] https://www.theatlantic.com/international/archive/2015/02/ho...
What we really need is a data tax. The more data you collect, the more taxes you need to pay. You can even index it against company income and have a lower data tax bracket for small start-ups and a higher data tax bracket for large orgs.
User data needs to be treated as a liability, not an asset.
This seems like a wild thing to be asking for at this stage in the project.
Very coincidentally, we just presented on the topic of data dividends at the RadicalxChange conference two days ago (https://www.radicalxchange.org/2020-conference/, VODs still processing) and launched a website with a summary of our report yesterday. Was very surprised (and excited) to see this very similarly named project launch today!
While we’re very much interested in tackling the same core problem, I think the group agrees with many of the concerns raised in this thread (paychecks will be small, administrative challenges, etc.). We’re also very concerned about the potential for “privacy as a luxury good” and the fact that a data dividend could exacerbate existing inequalities.
Our main philosophical difference is that we argue that this discussion should be framed around the idea that the data fueling profitable intelligent technologies is “our data”, not “my data”. As such, our ideas for “disbursing the dividend” are focused on promoting collective benefit, e.g. through programs well-known to reduce inequality, support for "data unions", and new infrastructure to support the sharing of data (and ideally, increase innovation, competition, etc.).
Overall, I think increased discussion around this topic is really great!
I m actually surprised at the amount of content that people give away to these platforms, even here.
A major reason is that there is no legal mechanism for users to directly pay other users. Things like brave attention token are steps in the right direction
Your data today has value. It's how you get access to Google, YouTube, Facebook, Instagram, etc, for the monetary cost of $0.00. That is value, and yes, you can't cash that out to $ _yet_. That's because a marketplace hasn't been built yet, but maybe legislation could create such a market and give consumers a fair shake.
The ancestor comment said they "can't sell [their] data on the free market," and we contested that statement and each other a bit.
Bringing up that a marketplace hasn't been built yet and that the data still has value is somewhat irrelevant to the conversation I thought we were having. FWIW, I agree with you -- a marketplace hasn't been built (not that I'm sure it should be), and our data definitely has value.
As an example, the Shapley value in simpler, similar scenarios would allocate half the profits to whomever trained the model and distribute the other half equally among those individuals whose data was used (or equivalently, it would treat every interaction between the model-maker and a data-provider as splitting the profits 50/50). Actually calculating the Shapley value for something as nonlinear as the hypothetical profits from a trained model on various data subsets seems...problematic...but splitting some percentage of the profits equally among the participants won't be too far off the mark.
If data is your property, then you can sell it to someone else permanently without royalty. Expect to see signup forms that say your first month of SaaS app is $0.01 and you will receive a credit for $0.01 for selling your data to them.
If data is Intellectual Property subject to royalty like other intellectual property (say, stock photos for example) then you can assign away the royalties and we can expect it to be assigned away in the signup form or EULA.
If data is a form of labor it will be subject to minimum wage laws and other employment law.
If data is intrinsic to the individual it cannot be sold or reassigned (like i cannot sell or reassign my other human rights).
I think there's a simpler way to solve this. This is just an exchange, you're getting a product, and you're giving away to them and all subsequent third parties all the rights to your data in exchange. That's your payment.
The problem here is that this is your only form of payment by default for that tier of product and that sucks.
In my opinion it should illegal to do that by default without first giving the customer the option to pay in money in exchange that exact same product.
And if I'm paying I don't want you sharing my personally identifiable information shared with no analytics, no tracking, no third-party consulting and if you can't pass a security audit or can't figure out how to anonymize/encrypt my information properly, I don't want you accessing it in clear form at all outside your company promises including from your remote employees. I think that's fair.
If you're startup and can't afford to pay for a credible audit, then you shouldn't be allowed to even know my first name. You'll have to use a secure and audited intermediary to provide you that in anonymized form and you figure out how to handle on your own.
I'd like the legal right to always be shown the option to pay money instead.
OK, so first question - what is this DDP entity?
A "movement" doesn't tell me who or what entity I am assigning agency to, endorsing, giving money to, etc.
The article omits this key piece of information and nor does the website disclose on a cursory glance! Is it a gov org? nonprofit, for profit, coop, other? And equally important: who legally runs/owns it? Am I missing the obvious here?!
Without a clear and upfront answer to the basics here, I would not recommend anyone blindly engage with / opt into anything like this regardless of whose brainchild it is.
This is completely a technical problem that can be solved in software
Given the articles and comments I've read in the past year, I don't think a lot of people are exactly thrilled with the exchange.
Outside of HN I think there's some feeling of unfairness to see so much money being made off "our data", for better or worse. It's complicated because the data isn't worth much until it's processed and analyzed, and that's where much of the value-add is. But nonetheless unfairness is a very strong emotion.
It isn't worth much, per user, even after it's processed and analyzed.
Personally I much rather preferred his original plan to fund a UBI with consumption taxes, but I suppose the primary voters weren't bought into that plan.
A lot of it is - expecting a pony with their can of coke while not considering such arrangements now mean thousands of dollars per can and a massive reserve of ponies outside every vendor.
https://www.youtube.com/watch?v=RmNCVHcZp5s episode w/ Jaron Lanier (re: data unions, brokers, etc.)
https://www.youtube.com/watch?v=x-WuwG_fYJ4 pre-launch episode
Make sure to check out the FAQ and Privacy Policy of the project to get a better grasp of what legal framework and actions they are taking.
Furthermore, any attempt to account for the "price" of used data (basically just something to id you online) should be matched by a valuation of the true value this companies offer in compensation. In the case of google: what's the value to users from having fast, accurate search; petabytes upon petabytes of free content (from the mundane to the educational) on youtube ($5 - $9/mo if you go by Disney+/Netflix prices); and entire office suite ($5 - $12/mo looking at many SaaS/Office 365) kept up to date; a quality email client ($99/yr for Hey); a free OS for your phone and computer (Android/Chromebooks); a high quality global mapping service w/ turn-by-turn GPS ($300 devices back in the day?); a Calendar ($3 - $9/mo looking at competitors), 15GB of cloud storage; unlimited storage for all your photos in the cloud (say the average user has 50Gb of photos, thats $3 - $9/mo).... and I could go on. In the case of Facebook I believe there is genuine value in having a directory of all your friends/acquaintances/family, and a repository for memories either there or on instagram.
I see the techlash and policies like this data-dividend as a very natural impulse from society to get a spoonfull from the honeypot these companies created. Just because it is natural doesn't mean it is right. Our economic model is premised on the idea that the fruits of your labor/property/ideas are yours to keep, however spectacular they may be. Keep in mind that this policy does nothing to change the way this companies operate, or question their overall effects on society.
#1 highway is essential, they provide transport. Online ads on the other hand, is not. In the sense that most ads are for arousing consumerism impulse. (No I am not arguing ads is wrong or something, I was saying if they are not as essential ad highway)
#2 highway is physical and does not infringe privacy. Online ads are virtual, and blindly intrusive to privacy.
#3 highway is regulated as infrastructure, internet ads companies are not. And they are ferociously resisting being treated as infrastructure.
It seems like after you complete the application, the green submit button, as well as the text fields in the following sequences, are buggy -- single click doesn't seem to pick up the action, double click seems to upset it, tab into the button to press Enter doesn't work. This is all via Chrome.
Advertisers want people with disposable income.
People without much disposable income get really targeted ads (they won’t pay for the privacy).
People with disposable income pay for the privacy service and don’t get ads or get poorly targeted ads.
It then becomes more like traditional ads that get broadcast to everyone.
So the policy shoots itself in the foot.
I'm sure Google has good numbers on this from YouTube premium.
Video streaming (and music streaming though not as much anymore) also have premium versions without ads.
I think people are willing to pay for an "ad-free" experience on some services and still see ads elsewhere.
You may not want your data monetized, but if you are in the contacts list of somebody else who has opted in, your half of any conversation isn't going to be excluded.
This article argues that freemium is a marketing tool, not a business model:
https://medium.com/m8-ventures/why-freemium-doesnt-work-so-w...
The M&Ms example is delightfully succinct in explaining why the transition never works.
In the US, the Fed did a study to figure out how much they would have to pay users to stop using products like Facebook, YouTube, or to stop using search engines altogether.
The median value for Facebook was $48/month, YouTube $1,173/month, and search $17,530/month. [1]
I think many people might pay $50/month to use Google Search, GMail, Maps, and YouTube. But what if they were to pay $18,703/month, just for Google Search and YouTube? Because that's the median price that US users valued these at.
This shows that the advertising model is way better than paid subscriptions, because users are getting much more value out of them (>$18,000/month) than they would realistically pay for them. If all these services were subscription-based and there was no advertising or data collection, almost nobody would pay for them and then the business model wouldn't be scalable so the service wouldn't work. TLDR: The advertising business model is awesome!!
[1]: https://www.cnbc.com/2019/10/11/fed-tries-to-figure-out-valu...
If you want privacy honoring products you want the users to pay money for the service.
> Earlier in his campaign, Yang said that data should be classified as property, and users should have certain rights over how their data is collected and used by tech companies. Yang offers more insight on what these rights would look like in Thursday’s proposal, and he pledges to pass a “Digital Bill of Rights, ensuring ownership of data, control over how it’s used, and compensation for its use” if he is elected president.
https://www.theverge.com/2019/11/14/20964834/andrew-yang-dig...
And for a balance of opinion, a counter-argument on why this might be bad:
> Or let's take the central element of yang's proposal, establishing data as a property right and allowing individuals to be compensated for the use of that data if it is used by a big tech company like Google or Facebook when selling to advertisers. This again is a bit of a problem as tech expert Gigi sohn said on this show recently.
> Gigi makes a pretty convincing case there that actual ownership of your data could have a lot of problems, while the core underlying concern is more about data privacy. why not just tackle that instead?
https://thehill.com/hilltv/rising/470719-saagar-enjeti-yangs...
CCPA is supposed to help keep my data more safe. How exactly will my data be more safe upon giving Facebook some of my banking info and government id so I can officially receive payment for my data?
If you get everyone who contribute data to Facebook, google, twitter etc. organized, then you can do a hell of a lot more than just get a couple of dollars for each person. You might even get them to clean up major parts of their act. Because a threat of “tomorrow we will request GDPR removal of all content from 1million users unless you do x” is much more of a threat than #quitfacebook will ever be.
Fighting fire with fire, I guess? Seems wrong though...
Similar to app permissions, users could choose which aspects of their data/profile to share with each company. The data could then be accessed via a federated API. With this in place, you could make it illegal for companies to store any PII themselves.
Of course whoever controls that central user repo would have great power.
So my data will now be even less about me?
Im paying for Google Storage, Youtube Premium and would like one fee where I dont see any ads at all.
Side topic: do parents who hand kids iPads to watch YouTube worry about the advertisements? That used to be a concern on regular cable television.
Once you go ad-free, it's hard to go back. I'd happily pay for an ad-free version of every service I use.
Scott Galloway has been suggesting that Twitter move to a subscription model, with all accounts with less <5000 followers be free, subsidized by a progressive monthly fee for larger accounts based on number of followers above 5000.
This would serve dual purpose of eliminating a whole heap of bots and fake accounts, forcing them to be tied to a credit card. With Twitter earning recurring revenue from whales, along with reducing or eliminating personal data aggregation for ad-targeting, I can't see a downside.
Plus, you could then weaponize bots against smaller accounts on a large scale
They surveyed how much they would have to pay users to stop using these services:
For the median US user: $48/month for Facebook, $1,173 for YouTube, and $17,530 for internet search altogether.
For a sample of students in Europe: €2.17/month for Snapchat, €1.52 for LinkedIn, €536 for Whatsapp.
https://www.cnbc.com/2019/10/11/fed-tries-to-figure-out-valu...
It's just a matter of educating the (boomer and zoomer) public, that "official companies" with proprietary services aren't the only legitimate platforms, and that the actual internet isn't 5 websites, but millions of interoperable and bustling websites and fediverse instances.
https://joinmastodon.org/ (recomended) https://pleroma.social/ https://joinpeertube.org/ and many more.
Ideally, I'd like to have a switch that would just disable tracking on everything, and if I find out I'm still being tracked, I need to be able to sue. The whole tracking bullshit will solve itself in no time at all.
And no, GDPR cookie warnings are basically deliberate sabotage of this idea, because presented with an option with lots of text the user always clicks "yes".
In the end what needs to happen is exactly what GDPR is made for: don't grab people's data and track them unless they say it is OK to do so.
We had good reasons to prohibit the sale of human parts (even if the donor consents to getting paid for the transplantation). Now, we have very good reasons to protect personal data too.
Why not forbid the trade of personal data for the same reasons we banned it for our physical parts, and implement strong regulations (GDPR 2.0) to make sure that organizations only access and use our personal data for ethical, commonly-approved purposes?
A better idea would be to give each user equity in the company. An even better idea would be give that equity voting rights.
Side benefit: platforms would have to KYC human beings and we'd kill off a lot of bots and other generated horseshit.