FTC says Amazon executives destroyed potential evidence using apps like Signal
theverge.com
theverge.com
As for the lack of messages in this case, they always say the coverup is worse than the crime, but if you don't know what the crime is, how can you be so sure?
> of using the ephemeral messaging app for months after the feds notified Amazon of the antitrust investigation
I think switching to ephemeral messaging apps specifically in response to antitrust investigation is evidence of mens rea that you’re in an illicit conspiracy. As for the crime:
> The FTC accused Amazon of creating a secret “Project Nessie” pricing algorithm that may have generated more than $1 billion in extra profits.)
You can distrust the government or not believe their argument, but our criminal justice system does depend on the government being able to perform an investigation.
I’m not really sure what you’re talking about in terms of verifying your identity, but verification is 100% part of the “trust but verify” philosophy. You should be able to trust your government while simultaneously being able to verify they’re behaving above board. Also you have to be very careful to distinguish government vs individual, government vs small business, and government vs massive multinational. This is the last bucket and concerns in the former don’t really apply to this last bucket.
None of this of course is relevant here - the government is saying that after they begin legal proceedings with Amazon, when Amazon would be under explicit orders to preserve documents and evidence, Amazon spoiled evidence. That’s a very serious accusation and lawyers don’t typically make such claims if they’re baseless because judges typically frown on claims that turn out to be baseless. If the government wins this argument in court, my understanding is that then there’s a presumption that all the documents were negative in Amazon’s favor.
This theory assumes that the company believes the justice system is infallible.
Suppose you're engaged in an illicit conspiracy and you find out there is an investigation. You'd want to stop writing things down that could prove your crimes, because you're guilty.
Suppose you're not engaged in an illicit conspiracy and you find out there is an investigation. You'd want to stop writing things down that could be taken out of context in a malicious prosecution, because you're being investigated even though you're innocent, perhaps because of lobbying by your competitors who have it in for you, maybe because the prosecutor wants to run for office, but certainly for no good reason and therefore evidently for a bad reason.
Since the expected behavior is the same in both cases, it provides no evidence of which case it is.
Which has a negative impact on not just the case but the economy in general, because some of the information would have been useful to the company's business, but the managers will do what their lawyers tell them to do in order to not get prosecuted.
It's the price of being publicly traded, which is born out of our lessons learned from the Enron scandal, and gave us incredibly simple SOX regulations, and decades of strange antipathy towards them.
> it just seems like punishment for the literate.
Are you suggesting that companies are eschewing written communication for verbal communication as a means of bypassing this legislation? And that it's unfair you have no similar bypass? That's a pretty morally relative take.
> but if you don't know what the crime is, how can you be so sure?
You've precisely described _why_ the coverup is seen as worse than the crime.
Publicly traded or not, companies aren't expected to record all voice conversations done by their employees and retain those recordings for future court cases.
That's the double-standard that OP is pointing out. There seems to be an expectation that text chat should be recorded and persisted and audio not.
This is a vestige of an old era when text was for more "formal" or serious conversation and chat for informal.
Today with IM-ing and remote work text can be as ephemeral as voice.
As the saying goes: “Get it in writing”
It's okay for text intended to be permanent to be held to the standard of permanent text.
But creating an expectation that text that is fundamentally intended to be ephemeral should be treated as permanent text does not sound reasonable.
The "crime" is not the chatting. It's using the wires to do it. The danger is the utilization of network infrastructure to facilitate criminal activity.
Or at least that seems to be my view of things.
Americans with Disabilities Act says "Hi". Lock someone out of a position solely on the basis of avoiding a reasonable accommodation for the sake of avoiding creation of a business record to do skulduggerous things, and you've just handed someone a sizable cause of action against you.
Seriously, just stop trying to do illegal shit and get away with it and accept that sometimes the way through actually includes changing the rules first, or that any business model that requires you to do something illegal that can only be mitigate by getting away with it long enough to create an issue after scaling should probably be DOA for a reason you haven't bothered to read up on yet.
I know... I know... Read the room. Totally not HN's bag. Get a load of this square, so on, and so forth. I've done my stint in startups. I've seen the harms they can cause. I've been on the receiving end of the industry's lack of care long enough to realize that these regulations exist for a reason. Part of it is to create generous hooks whereby the legal system can actually introspect what you're up to while you're enjoying the benefits of government granted legal fictions.
A good enterprise doesn't need crime. Simple as.
Let’s consider another hypothetical: if a deaf employee uses teletext to communicate, are they held to a different standard legally than a non-deaf employee? Or do you mean they should learn sign language to enjoy full privacy rights that everyone else has?
Essentially removing the question of whether someone should have considered something as potential evidence before destroying it.
_Not creating more incriminatory evidence_ is not illegal.
Creating unnecessary and incriminating records comes down to your own incompetence.
Historically, my pain with SOX has primarily been related to:
1. Poorly written control procedures that hamstring process but nobody wants to fix them, since typically the biggest point is your process is reasonable, documented, and followed... changing it can be fine.
2. Having to fill out time sheets for my work and having to use a flowchart to know what to put in the Capex/Opex column for my time on a given task, so accounting can follow reporting practices.
No, its not.
Litigation holds apply to everyone, it is not just publicly-traded firms that get in trouble if they destroy evidence related to current or reasonably expected litigation (including, but not limited to, an enforcement agency investigation in which they have been notified to retain information for that purpose.)
It's very difficult to search for definite information about this, but the requirements may have the effect of forcing the recording of every conversation just in case it happens to touch on trading activities or another recording-required topic.
If they have a strong aversion to putting it down in writing, then that's a red flag you shouldn't do it.
> From the perspective of the banks, I have argued, this is a novel expansion of the SEC’s authority. When the SEC created its rules on recordkeeping, it required banks to retain copies of their “inter-office memoranda,” but it was 1948 and those memoranda were produced with carbon paper; they were formal business records memorializing serious policies. In the 2020s, WhatsApp chats are, in large part, substitutes not for formal memoranda but for talking to someone in person. When I was a banker, I have written, “There were some mornings when I sent more than 100 inter-office memoranda, though like 20 of them would be ‘lol’ or ‘fml.’” In 1948, the SEC would not have dreamed of demanding a searchable archive of all of the informal chats held at a brokerage: That was not technologically feasible, and also did not seem to be the point of its rules. In 2022, it was feasible, and the SEC did demand it, and when the brokers were missing some chats they paid a billion dollars in fines.
Not sure of the origin, possibly Martin Lomasney.
https://en.wikipedia.org/wiki/Martin_Lomasney
https://thewestendmuseum.org/news/the-life-legend-and-lesson...
You could see it in a different way, such as being a requirement that only catches the dumbest of criminals, repeatedly.
Being sued does not imply wrong doing.
No salary is worth the risk of going to jail. It's just another job.
> No salary is worth the risk of going to jail. It's just another job.
If you aren't willing to go to jail for your job, you probably should not be willing to commit crimes just because you have a manager dumb enough to provide documentation implicating both of you in the crime.
I think all corporate communications should be preserved indefinitely.
Deletion or using apps like signal to avoid retention should be used against the corporation in court.
Destruction of evidence is one thing, let them get nailed for that. But they weren't afraid to communicate privately and neither should we.
And we can't let the government hold these antitrust suits up as an example of "this is why we need to break encryption, so we can protect consumers from the big bad monopolies" either. I bet that'll be the narrative at some point.
In the era of remote work it's common to have ephemeral conversations through text, which are no different from employees chatting at the watercooler. Employees and execs should be free to have those conversations through ephemeral apps. There is no obligation on any company to deliberately create paper trails of everyday conversations b/w employees.
You know, those everyday conversations around the water-cooler about how we're going to respond to a DOJ anti-trust lawsuit...
I also question your premise, which a lot of people state without evidence:
> Corporations are given tons of privileges
Name something relevant the law allows a corporation to do but not an individual.
still a million times better than most alternatives. maybe matrix today can compete. but that's it.
https://www.vice.com/en/article/pkyzek/signal-new-pin-featur...
the pin/number-as-id is just the cherry on top.
we know nothing about signal infra or why the server code is closed. for all i know mox have the root password on a post it and it's MitM from day one. also they boast about things being easy to verify on client but the default client doesn't and they are very against custom clients... which is very schizophrenic
Maybe there is a middle ground to be found in the insanity but it's definitely not "privacy rights for limited liability legal constructs".
History has shown time and time again why powerful entities need transparency and accountability.
Some people are single-person corporations. Or they run corporations where every significant act by others is directly approved by them. Or they lead corporations which act according to their every whim, stated desire, implied wish, or anticipated future demand.
Are they literally corporations? No, but the line is hard to draw.
EDIT: or maybe I don’t listen to enough Depeche Mode?
Corporations are people, my friend - Mitt Romney.
You are not a corporation. Your existence isn't entirely enabled by an implicit grant of existence that essentially requires you to comply with all relevant regulations in exchange for legal concessions and protections.
Now...
What you should be worried about is Third Party Doctrine, a legal paradigm by which any communication over a network infrastructure you yourself did not build is suddenly considered non-private. Also CALEA.
Since when am I a trillion dollar company?
You're even less able to defend yourself.
I think that you will find that your industry is an outlier.
Those policies are suspended for materials subject to a litigation hold, whether triggered by actual or reasonably foreseen litigation or an active investigation for which they have been notified to preserve evidence (which is mostly a formalized case of reasonably foreseen litigation) and if they aren’t, the company can be sanctioned for destroying evidence (and adverse inferences can be drawn from the destruction of evidence in the litigation, separate from the penalties for destroying evidence.)
> It’s weird that if the companies had a policy to immediately delete them it would be “bad” but if they delete them after 30 days due to “storage” reasons and a clear, global, openly stated policy, it’s OK.
Actually, deleting either way would be sanctionable where a retention requirement of the type at issue applies.
Links to stories are useless
Links to tickets are better
Links to wikis are awful
Comments are misleading
Code review links are ok, but mostly link to unreliable sources, and older code review links are gone.
Commit history also goes missing, so don't bother leaving too much info in the commit text
Current code is mostly reliable, but might need extra knowledge to actually reason about.
It's crazy how much useful info get deleted or not migrated or gets moved in a way where you'd never find it again, or the search tools stop indexing it
I know the annoying slack retention policy but I had never heard of tickets, issues, or wikis or even git commits being auto deleted.
When I was there I could go back a decade and open up old tickets or wikis.
Has things changed so much in less than two years?
"Companies and individuals have a legal responsibility to preserve documents when involved in government investigations or litigation in order to promote efficient and effective enforcement that protects the American public."
But there is no responsibility to create new potentially incriminating evidence against themselves. Just because you are under investigation does not mean all your communication henceforth needs to be recorded.
And then Amazon (and Google) instructed employees to delete lots of communications, and to communicate outside normal channels, e.g., via Signal.
Similar to Elon musk, anything he might do or say could be very consequential to businesses he's related to
I am referencing communicating with a landlord about a fault in the building. I have gotten screwed in the past because I didn't put the information sent to a landlord in a email.
Goodbye security deposit. I guess you can crush a stone, mix with water, and turn the dust into a blood slurry after all.
If only the city held these deposits and the landlord would have to prove in court that they deserve it.
we should have privacy for individuals / citizens and no privacy for those with power, whether they’re a government official or company.
it’s wild to me how quickly this is flipping on its heads, we’re now entering a space where citizens get less and less privacy while billionaires, corps, and governments are getting more.
it’s becoming a genuine two tier system, those who get ultimate privacy and those who get none.
I don’t imagine judges like businesses being cute with evidentiary rules, and even less so when they continually refuse to address the issue.
err- i dont mean to be rude but, what gave you that assumption?
Meta has Workplace, for example.
This is an incorrect assumption. E-mail and even SMS text messaging are heavily relied upon.
This very story shows that Amazon execs were using Signal, not some custom application.
If a company was found to have developed a custom in-house app that was exclusively used by executives and their friends, it would immediately become the central target of their investigation.
> Why would they risk using a popular platform?
I think the part you've missed is that if someone is discussing something sensitive or illegal, they avoid writing it down in any medium at all. They won't develop an in-house app for messaging because they're not going to be messaging these things if it can be avoided. Instead, they send a meeting invite and then discuss it in an ephemeral medium like voice or in person.
> I also assume this is how most illegal collusion is done as well,
Smart people colluding for illegal activities aren't going to take notes or leave anything in writing. It's done in person or in voice, not via e-mail or in-house apps.
One prime directive of megacorp comms, don't write down anything that could be used as evidence. If possible, have an unscheduled chat in person.
I'm curious how using Signal in this way is any different from talking in person. Nobody considers a private conversation during a walk in the park to be destroying evidence just because it wasn't recorded.
Yes. What's the difference, functionally? Ignore the time limitation, what is the command being given, in the end?
The FTC should have some other way to collect evidence. Like getting a warrant to obtain their phones, or old-fashion bug their home.
If I am reading that correctly, the ceo got a litigation hold from internal legal nine months after the original issuance to Amazon ? That is also strange.
Washington Post article referenced:
Federal regulators accuse Amazon executives of deleting messages
I know other apps can do it but other apps aren't being tested publicly in a high profile case like this.
I think there's several big obstacles the prosecution would have to overcome in order for that to happen.
For one, someone would have to violate their own Fifth Amendment right and admit that they used Signal intentionally to hide things relevant to the investigation.
Also, how is "disappearing messages" any different from a private IRL conversation? Nobody is calling a casual chat in the park "destruction of evidence".
- can a smaller or privately held company being sued be obligated to keep all their communications in a form which can be subpoenaed?
- is a family business being sued under the same obligation? What if execs in that family business have both personal and business conversations?
- is an individual being sued under the same obligation?
- if I want access to someone's personal messages, can I contrive a reason to sue them, and create such an obligation to deliver personal correspondence to my counsel?
- if Senator McCarthy thinks you're maybe a communist, can he publish your name as part of a list of suspicious persons and provide legal funds for to any wannabe vigilante who can contrive a suit against you?
At some point, I think we as a society need to agree on what rights to privacy exist, how solid they are, which rights are enjoyed by individuals and which rights if any also apply to corporations.
But I think you are just overall missing the entire point: these people were notified that they are recordkeepers.
That’s the problem. Had they always used signal—-even if they had started the day before the notice of investigation was sent—-it’s a non-issue. They did it in response to a notice. That’s shady shit.
> You can't use apps for what they're designed for!
my sides, in orbit
Killing is not illegal (for self defense, or to save an innocent life). Neither is revolting against an oppressive government in the US, as per the constitution.
Murder doesn't require a gun, murder isn't a universally essential act, and guns don't have to shoot. Knife crime murder is epidemic in some countries. Guns can also be decorations, used for sport of marksmanship, or insurance policies against home invasion; they are inanimate objects without intent of their own. Killing is occasionally essential when all other means of self-defense have been thoroughly exhausted and someone else is intent on great bodily harm or murder that cannot otherwise be prevented with lesser available force or evasion.