Piracy

Judge Orders Anna's Archive To Delete Scraped Data (torrentfreak.com) 26

Anna's Archive has been hit with a U.S. federal court default judgment and permanent injunction over its scraping and distribution of OCLC's WorldCat data, which occurred more than two years ago. According to the ruling, the shadow library must delete all copies of its WorldCat data and stop scraping, using, storing, or distributing the data. "It is expected that OCLC will use the injunction to motivate third-party intermediaries to take action against Anna's Archive," reports TorrentFreak. From the report: Yesterday, a federal court in Ohio issued a default judgment and permanent injunction against the site's unidentified operator(s). This order was requested by OCLC, which owns the proprietary WorldCat database that was scraped and published by Anna's Archive more than two years ago. OCLC initially demanded millions of dollars in damages but eventually dropped this request, focusing on taking the site down through an injunction that would also apply to intermediaries. "Anna's Archive's flagrantly illegal actions have damaged and continue to irreparably damage OCLC. As such, issuance of a permanent injunction is necessary to stop any further harm to OCLC," the request read.

This pivot makes sense since Anna's Archive did not respond to the lawsuit and would likely ignore all payment demands too. However, with the right type of court order, third-party services such as hosting companies and domain registrars might come along. The permanent injunction, issued by U.S. District Court Judge Michael Watson yesterday, does not mention any third-party services by name. However, it is directed at all parties that are "in active concert and participation with" Anna's Archive. Specifically, the site's operator and these third parties are prohibited from scraping WorldCat data, storing or distributing the data on Anna's Archive websites, and encouraging others to store, use or share this data. Additionally, the site has to delete all WorldCat data, which also includes all torrents.

Judge Watson denied the default judgment for 'unjust enrichment' and 'tortious interference.' However, he granted the order based on the 'trespass to chattels' and 'breach of contract' claims. The latter is particularly noteworthy, as the judge ruled that because Anna's Archive is a 'sophisticated party' that scraped the site daily, it had constructive notice of the terms and entered into a 'browsewrap' agreement simply by using the service. While these nuances are important for legal experts, the result for Anna's Archive is that it lost. And while there are no monetary damages, the permanent injunction can certainly have an impact.
Further reading: Spotify Says 'Anti-Copyright Extremists' Scraped Its Library
News

Some of DOJ's Careful Redactions Can Be Defeated With Copy-Paste (theverge.com) 101

The Justice Department justified its delayed release of sensitive files by citing the need to carefully redact information that could identify victims, but at least some of those redactions have proven to be technically ineffective and can be bypassed by simply copying and pasting the blacked-out text into a new document.

A 2022 complaint filed by the US Virgin Islands seeking damages from Jeffrey Epstein's estate appeared on the DOJ's "Epstein Library" website with black boxes throughout. Techdirt founder Mike Masnick and others shared on Bluesky that the redactions could be trivially circumvented. The exposed text includes allegations that a co-executor signed over $400,000 in foundation checks "payable to young female models and actresses, including a former Russian model," and details about an immigration lawyer allegedly "involved in one or more forced marriages arranged among Epstein's victims."

Separately, Drop Site News was also apparently able to guess URLs of files not yet published by extrapolating the format.
The Courts

Ukrainians Sue US Chip Firms For Powering Russian Drones, Missiles (arstechnica.com) 118

An anonymous reader quotes a report from Ars Technica: Dozens of Ukrainian civilians filed a series of lawsuits in Texas this week, accusing some of the biggest US chip firms of negligently failing to track chips that evaded export curbs. Those chips were ultimately used to power Russian and Iranian weapon systems, causing wrongful deaths last year. Their complaints alleged that for years, Texas Instruments (TI), AMD, and Intel have ignored public reporting, government warnings, and shareholder pressure to do more to track final destinations of chips and shut down shady distribution channels diverting chips to sanctioned actors in Russia and Iran.

Putting profits over human lives, tech firms continued using "high-risk" channels, Ukrainian civilians' legal team alleged in a press statement, without ever strengthening controls. All that intermediaries who placed bulk online orders had to do to satisfy chip firms was check a box confirming that the shipment wouldn't be sent to sanctioned countries, lead attorney Mikal Watts told reporters at a press conference on Wednesday, according to the Kyiv Independent. "There are export lists," Watts said. "We know exactly what requires a license and what doesn't. And companies know who they're selling to. But instead, they rely on a checkbox that says, 'I'm not shipping to Putin.' That's it. No enforcement. No accountability." [...]

Damages sought include funeral expenses and medical costs, as well as "exemplary damages" that are "intended to punish especially wrongful conduct and to deter similar conduct in the future." For plaintiffs, the latter is the point of the litigation, which they hope will cut off key supply chains to keep US tech out of weapon systems deployed against innocent civilians. "They want to send a clear message that American companies must take responsibility when their technologies are weaponized and used to commit harm across the globe," the press statement said. "Corporations must be held accountable when its unlawful decisions made in the name of profit directly cause the death of innocents and widespread human suffering." For chip firms, the litigation could get costly if more civilians join, with the threat of a loss potentially forcing changes that could squash supply chains currently working to evade sanctions. "We want to make this process so expensive and painful that companies are forced to act," Watts said. "That is our contribution to stopping the war against civilians."

The Courts

The New York Times Is Suing Perplexity For Copyright Infringement (techcrunch.com) 68

The New York Times is suing Perplexity for copyright infringement, accusing the AI startup of repackaging its paywalled reporting without permission. TechCrunch reports: The Times joins several media outlets suing Perplexity, including the Chicago Tribune, which also filed suit this week. The Times' suit claims that "Perplexity provides commercial products to its own users that substitute" for the outlet, "without permission or remuneration." [...] "While we believe in the ethical and responsible use and development of AI, we firmly object to Perplexity's unlicensed use of our content to develop and promote their products," Graham James, a spokesperson for The Times, said in a statement. "We will continue to work to hold companies accountable that refuse to recognize the value of our work."

Similar to the Tribune's suit, the Times takes issue with Perplexity's method for answering user queries by gathering information from websites and databases to generate responses via its retrieval-augmented generation (RAG) products, like its chatbots and Comet browser AI assistant. "Perplexity then repackages the original content in written responses to users," the suit reads. "Those responses, or outputs, often are verbatim or near-verbatim reproductions, summaries, or abridgments of the original content, including The Times's copyrighted works."

Or, as James put it in his statement, "RAG allows Perplexity to crawl the internet and steal content from behind our paywall and deliver it to its customers in real time. That content should only be accessible to our paying subscribers." The Times also claims Perplexity's search engine has hallucinated information and falsely attributed it to the outlet, which damages its brand. "Publishers have been suing new tech companies for a hundred years, starting with radio, TV, the internet, social media, and now AI," Jesse Dwyer, Perplexity's head of communications, told TechCrunch. "Fortunately it's never worked, or we'd all be talking about this by telegraph."

Earth

Top Journal Retracts Study Predicting Catastrophic Climate Toll 130

Nature has retracted a headline-grabbing climate-economics study after critics found flawed data that massively inflated its predicted global economic collapse. The New York Times reports: The decision came after a team of economists noticed problems with the data for one country, Uzbekistan, that significantly skewed the results. If Uzbekistan were excluded, they found, the damages would look similar to earlier research (PDF). Instead of a 62 percent decline in economic output by 2100 in a world where carbon emissions continue unabated, global output would be reduced by 23 percent.

Of course, erasing more than 20 percent of the world's economic activity would still be a devastating blow to human welfare. The paper's detractors emphasize that climate change is a major threat, as recent meta analyses have found, and that more should be done to address it -- but, they say, unusual results should be treated skeptically.
"Most people for the last decade have thought that a 20 percent reduction in 2100 was an insanely large number," said Solomon Hsiang, a professor of global environmental policy at Stanford University who co-wrote the critique published in August. "So the fact that this paper is coming out saying 60 percent is off the chart."
Medicine

San Francisco Will Sue Ultraprocessed Food Companies 143

An anonymous reader quotes a report from the New York Times: The San Francisco city attorney filed on Tuesday the nation's first government lawsuit against food manufacturers over ultraprocessed fare (source may be paywalled; alternative source), arguing that cities and counties have been burdened with the costs of treating diseases that stem from the companies' products. David Chiu, the city attorney, sued 10 corporations that make some of the country's most popular food and drinks. Ultraprocessed products now comprise 70 percent of the American food supply and fill grocery store shelves with a kaleidoscope of colorful packages. Think Slim Jim meat sticks and Cool Ranch Doritos. But also aisles of breads, sauces and granola bars marketed as natural or healthy.

It is a rare issue on which the liberal leaders in San Francisco City Hall are fully aligned with the Trump administration, which has targeted ultraprocessed foods as part of its Make America Healthy Again mantra. Mr. Chiu's lawsuit, which was filed in San Francisco Superior Court on behalf of the State of California, seeks unspecified damages for the costs that local governments bear for treating residents whose health has been harmed by ultraprocessed food. The city accuses the companies of "unfair and deceptive acts" in how they market and sell their foods, arguing that such practices violate the state's Unfair Competition Law and public nuisance statute. The city also argues the companies knew that their food made people sick but sold it anyway.
The Courts

Supreme Court Hears Copyright Battle Over Online Music Piracy (nytimes.com) 32

The Supreme Court appears inclined to side with Cox Communications in a major copyright case, suggesting that ISPs shouldn't be held liable for users' music piracy based solely on "mere knowledge," given the risk of forcing outages for universities, hospitals, and other large customers. The New York Times reports: Leading music labels and publishers who represent artists ranging from Bob Dylan to Beyonce sued Cox Communications in 2018, saying it had failed to terminate the internet connections of subscribers who had been repeatedly flagged for illegally downloading and distributing copyrighted music. At issue is whether providers like Cox can be held legally responsible and be required to pay steep damages -- a billion dollars or more -- if they know that customers are pirating the music but do not take sufficient steps to terminate their internet access.

Justices from across the ideological spectrum on Monday raised concerns about whether finding for the music industry could result in internet providers being forced to cut off access to large account holders such as hospitals and universities because of the illegal acts of individual users. "What is the university supposed to do in your view?" asked Justice Samuel A. Alito Jr., a conservative, suggesting it would be difficult to track down bad actors without the risk of losing service campuswide. "I just don't see how it's workable at all."

"The internet is so amorphous," added Justice Sonia Sotomayor, a liberal, saying that a single "customer" could represent tens of thousands of users, particularly in rural areas where an entire region might be considered a "customer." After nearly two hours of argument, a majority of justices seemed likely to side with Cox and to send the case back to the U.S. Court of Appeals for the Fourth Circuit for review under a stricter standard. Several justices suggested the company's "mere knowledge" of the illegal downloads was not sufficient to hold Cox liable.

United Kingdom

Britain Plots Atomic Reboot As Datacenter Demand Surges (theregister.com) 54

The UK is seeking to fast-track new atomic development to meet soaring energy demands driven by AI and electrification. According to a new report published by the government's Nuclear Regulatory Taskforce, excessive regulation has made Britain the most expensive place in the world to build nuclear projects. The report is calling for a sweeping overhaul to accelerate reactor construction -- everything from "streamlining regulation" to relaxing environmental and safety constraints. The Register reports: The document outlines 47 recommendations for the government, which come under five general areas: providing clearer leadership and direction for the nuclear sector; simplifying the regulatory approval process for atomic projects; reducing risk aversion; addressing incentives to delay progress; and working with the nuclear sector to speed delivery and boost innovation. Among the recommendations is that a Commission for Nuclear Regulation should be established, becoming a "unified decision maker" across all other regulators, planners, and approval bodies. The report also talks of reforming environmental and planning regimes to speed approvals, echoing the government's earlier decisions to streamline the planning process to make it easier for datacenter projects to get built.

It recommends amending the cost cap for judicial reviews and limiting legal challenges to Nationally Strategic Infrastructure Projects (NSIPs), while indemnifying nuclear developers against any damages they might incur as a result of proceeding with their project while a judicial review is still being decided. Another recommendation that may be cause for concern is that the government should modify the Habitats Regulations to reduce costs. These are rules created to protect the most important and vulnerable natural sites and wildlife species across the UK. The report also states that radiation limits for workers are overly conservative and well below what could be appropriately considered "broadly acceptable," claiming that they are many times less than what the average person in the UK normally receives in a year.

Piracy

Tokyo Court Finds Cloudflare Liable For Manga Piracy in Long-Running Lawsuit (torrentfreak.com) 23

A Tokyo court ruled that Cloudflare is liable for aiding manga piracy after failing to act on infringement notices and continuing to cache and serve content for major piracy sites, awarding about $3.2 million in damages. TorrentFreak says the decision sets a significant precedent in Japan, suggesting CDN providers can face direct liability when they don't verify customers or respond adequately to large-scale copyright abuse. From the report: After a wait of more than three and a half years, the Tokyo District Court rendered its decision this morning. In a statement provided to TorrentFreak by the publishers, they declare "Victory Against Cloudflare" after the Court determined that Cloudflare is indeed liable for the pirate sites' activities. In a statement provided to TorrentFreak, the publishers explain that they alerted Cloudflare to the massive scale of the infringement, involving over 4,000 works and 300 million monthly visits, but their requests to stop distribution were ignored.

"We requested that the company take measures such as stopping the distribution of pirated content from servers under its management. However, Cloudflare continued to provide services to the manga piracy sites even after receiving notices from the plaintiffs," the group says. The publishers add that Cloudflare continued to provide services even after receiving information disclosure orders from U.S. courts, leaving them with "no choice but to file this lawsuit."

"The judgment recognized that Cloudflare's failure to take timely and appropriate action despite receiving infringement notices from the plaintiffs, and its negligent continuation of pirated content distribution, constituted aiding and abetting copyright infringement, and that Cloudflare bears liability for damages to the plaintiffs," they write. "The judgment, in that regard, attached importance to the fact that Cloudflare, without conducting any identity verification procedures, had enabled a massive manga piracy site to operate "under circumstances where strong anonymity was secured,' as a basis for recognizing the company's liability."

The publishers believe that the judgment clarifies the conditions under which a company such as Cloudflare incurs liability for copyright infringement. Failure to carry out identity verification appears at the top of the publishers' list, followed by a lack of timely and appropriate action in response to infringement notices sent by rightsholders. "We believe this is an important decision given the current situation where piracy site operators often hide their identities and repeatedly conduct large-scale distribution using CDN services from overseas. We hope that this judgment will be a step toward ensuring proper use of CDN services. We will continue our efforts to protect the rights of works, creators, and related parties, while aiming for further expansion of legitimate content," the publishers conclude.
Cloudflare plans to appeal the verdict.
Crime

Google Begins Aggresively Using the Law To Stop Text Message Scams (bgr.com) 18

"Google is going to court to help put an end to, or at least limit, the prevalence of phishing scams over text message," reports BGR: Google said it's bringing suit against Lighthouse, an impressively large operation that allegedly provides tools customers can buy to set up their own specialized phishing scams. All told, Google estimates that Lighthouse-affiliated scams in the U.S. have stolen anywhere between 12.7 million and 115 million credit cards. "Bad actors built Lighthouse as a phishing-as-a-service kit to generate and deploy massive SMS phishing attacks," Google notes. "These attacks exploit established brands like E-Z Pass to steal people's financial information."

Google's legal action is comprehensive and is intent on completely dismantling Lighthouse's operations. The search giant is bringing claims under RICO, the Lanham Act, and the Computer Fraud and Abuse Act (CFAA). RICO, which often comes up in movies and television shows, allows authorities to treat Lighthouse's phishing operation as a broad criminal enterprise as opposed to isolated scams. By using RICO, Google also expands the list of individuals who can be found liable, whether it be the people who started Lighthouse, the people who run it, or even unaffiliated customers who used the company's services. The Lanham Act, for those unaware, targets malicious actors who misappropriate well-known company trademarks in order to confuse consumers. This Lanham Act comes into play because many phishing scams masquerade as legitimate messages from companies like Amazon and FedEx. The Computer Fraud and Abuse Act, meanwhile, is relevant because scammers typically use stolen credentials to gain unauthorized access to financial systems, something the CFAA is designed to target...

The fact that Google is invoking all three of the acts above underscores how serious the company is about putting a stop to SMS-based scams. By using all three, Google's legal attack is more potent and also expands the range of available remedies to include civil damages and criminal penalties. In short, Google isn't merely trying to win a legal case; it's aiming to emphatically and permanently stop Lighthouse in its tracks.

Getting even more aggressive, Google says it's also working with the U.S. Congress to pass new anti-scammer legislation, and endorsed these three new bipartisan bills:
  • The Scam Compound Accountability and Mobilization (SCAM) Act "would develop a national strategy to counter scam compounds, enhance sanctions and support survivors of human trafficking within these compounds."
  • The Foreign Robocall Elimination Act "would establish a taskforce focused on how to best block foreign-originated illegal robocalls before they ever reach American consumers."
  • The Guarding Unprotected Aging Retirees from Deception (GUARD) Act "would empower state and local law enforcement by enabling them to utilize federal grant funding to investigate financial fraud and scams specifically targeting retirees. "

Thanks to Slashdot reader anderzole for sharing the article.


The Courts

OpenAI Used Song Lyrics In Violation of Copyright Laws, German Court Says (reuters.com) 66

A Munich court ruled that OpenAI violated German copyright law by training its models on lyrics from nine songs and allowing ChatGPT to reproduce them. OpenAI now faces damages as it considers an appeal. Reuters reports: The regional court in Munich found that the company trained its AI on protected content from nine German songs, including Groenemeyer's hits "Maenner" and "Bochum." The case was brought by German music rights society GEMA, whose members include composers, lyricists and publishers, in another sign of artists around the world fighting back against data scraping by AI.

Presiding judge Elke Schwager ordered OpenAI to pay damages for the use of copyrighted material, without disclosing a figure. GEMA legal advisor Kai Welp said GEMA hoped discussions could now take place with OpenAI on how copyright holders can be remunerated. OpenAI had argued that its language models did not store or copy specific training data but, rather, reflected what they had learned based on the entire training data set.

Since the output would only be generated as a result of user inputs known as prompts, it was not the defendants, but the respective user who would be liable for it, OpenAI had argued. However, the court found that both the memorization in the language models and the reproduction of the song lyrics in the chatbot's outputs constitute infringements of copyright exploitation rights, according to a statement on the ruling.

The Internet

Internet Archive's Legal Fights Are Over, But Its Founder Mourns What Was Lost (arstechnica.com) 39

The Internet Archive celebrated archiving its trillionth webpage last month and received congratulations from San Francisco, which declared October 22 "Internet Archive Day." Senator Alex Padilla designated the nonprofit a federal depository library. The organization currently faces no major lawsuits and no active threats to its collections. But these victories arrived after years of bruising copyright battles that forced the removal of more than 500,000 books from the Archive's Open Library. "We survived, but it wiped out the Library," founder Brewster Kahle told ArsTechnica.

In 2024, the Archive lost its final appeal in a lawsuit brought by book publishers over its e-book lending model. Damages could have topped $400 million before publishers announced a confidential settlement. Last month, the organization settled another suit over its Great 78 Project after music publishers sought damages of up to $700 million. That settlement was also confidential. In both cases, the Archive's experts challenged publishers' estimates as massively inflated.

Kahle had envisioned the Open Library as a way for Wikipedia to link to book scans and help researchers reference e-books. The Archive wanted to deepen Wikipedia's authority as a research tool by surfacing information often buried in books. "That's what they really succeeded at -- to make sure that Wikipedia readers don't get access to books," Kahle said of the publishers. He thinks "the world became stupider" when the Open Library was gutted. The Archive is now expanding Democracy's Library, a free online compendium of government research and publications that will be linked in Wikipedia articles.
The Courts

Apple Loses Landmark UK Lawsuit Over App Store Commissions (reuters.com) 14

A UK tribunal ruled that Apple abused its dominant position by charging app developers unfair commissions through its App Store, potentially costing the company hundreds of millions in damages. It marks the first major tech "class action" victory under the UK's collective lawsuit regime. Reuters reports: The Competition Appeal Tribunal (CAT) ruled against Apple after a trial of the lawsuit, which was brought on behalf of millions of iPhone and iPad users in the United Kingdom. The CAT ruled that Apple had abused its dominant position from October 2015 until the end of 2020 by shutting out competition in the app distribution market and by "charging excessive and unfair prices" as commission to developers.

Apple -- which has faced mounting pressure from regulators in the U.S. and Europe over the fees it charges developers -- said it would appeal against the ruling, which it said "takes a flawed view of the thriving and competitive app economy." The case had been valued at around $2 billion by those who brought it. A hearing next month will decide how damages are calculated and Apple's application for permission to appeal.
"This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments," an Apple spokesperson said.
Cloud

Amazon's DNS Problem Knocked Out Half the Web, Likely Costing Billions 103

An anonymous reader quotes a report from Ars Technica: On Monday afternoon, Amazon confirmed that an outage affecting Amazon Web Services' cloud hosting, which had impacted millions across the Internet, had been resolved. Considered the worst outage since last year's CrowdStrike chaos, Amazon's outage caused "global turmoil," Reuters reported. AWS is the world's largest cloud provider and, therefore, the "backbone of much of the Internet," ZDNet noted. Ultimately, more than 28 AWS services were disrupted, causing perhaps billions in damages, one analyst estimated for CNN.

[...] Amazon's problems originated at a US site that is its "oldest and largest for web services" and often "the default region for many AWS services," Reuters noted. The same site has experienced two outages before in 2020 and 2021, but while the tech giant had confirmed that those prior issues had been "fully mitigated," apparently the fixes did not ensure stability into 2025. ZDNet noted that Amazon's first sign of the outage was "increased error rates and latency across numerous key services" tied to its cloud database technology. Although "engineers later identified a Domain Name System (DNS) resolution problem" as the root of these issues and quickly fixed it, "other AWS services began to fail in its wake, leaving the platform still impaired" as more than two dozen AWS services shut down. At the peak of the outage on Monday, Down Detector tracked more than 8 million reports globally from users panicked by the outage, ZDNet reported.
Ken Birman, a computer science professor at Cornell University, told Reuters that "software developers need to build better fault tolerance."

"When people cut costs and cut corners to try to get an application up, and then forget that they skipped that last step and didn't really protect against an outage, those companies are the ones who really ought to be scrutinized later."
Transportation

Carmakers Chose To Cheat To Sell Cars Rather Than Comply With Emissions Law, 'Dieselgate' Trial Told (yahoo.com) 105

Car manufacturers decided they would rather cheat to prioritise "customer convenience" and sell cars than comply with the law on deadly pollutants, the first day of the largest group action trial in English legal history has been told. From a report: More than a decade after the original "dieselgate" scandal broke, lawyers representing 1.6 million diesel car owners in the UK argue that manufacturers deliberately installed software to rig emissions tests. They allege the "prohibited defeat devices" could detect when the cars were under test conditions and ensure that harmful NOx emissions were kept within legal limits, duping regulators and drivers.

Should the claim be upheld, estimated damages could exceed $8 billion. The three-month hearing that opened at London's high court on Monday will focus on vehicles sold by five manufacturers -- Mercedes, Ford, Renault, Nissan and Peugeot/Citroen -- from 2009. In "real world" conditions, when driven on the road, lawyers argue, the cars produced much higher levels of emissions. The judgment on the five lead defendants will also bind other manufacturers including Jaguar Land Rover, Vauxhall/Opel, Volkswagen/Porsche, BMW, FCA/Suzuki, Volvo, Hyundai-Kia, Toyota and Mazda, whose cases are not being heard to reduce the case time and costs.

The Almighty Buck

Insurers Balk At Paying Out Huge Settlements For Claims Against AI Firms 25

An anonymous reader quotes a report from the Financial Times: OpenAI and Anthropic are considering using investor funds to settle potential claims from multibillion-dollar lawsuits, as insurers balk at providing comprehensive coverage for the risks associated with artificial intelligence. The two US-based AI start-ups have traditional business insurance coverage in place, but insurance professionals said AI model providers will struggle to secure protection for the full scale of damages they may need to pay out in the future. OpenAI, which has tapped the world's second-largest insurance broker Aon for help, has secured cover of up to $300 million for emerging AI risks, according to people familiar with the company's policy. Another person familiar with the policy disputed that figure, saying it was much lower. But all agreed the amount fell far short of the coverage to insure against potential losses from a series of multibillion-dollar legal claims.

[...] Two people with knowledge of the matter said OpenAI has considered "self insurance," or putting aside investor funding in order to expand its coverage. The company has raised nearly $60 billion to date, with a substantial amount of the funding contingent on a proposed corporate restructuring. One of those people said OpenAI had discussed setting up a "captive" -- a ringfenced insurance vehicle often used by large companies to manage emerging risks. Big tech companies such as Microsoft, Meta, and Google have used captives to cover Internet-era liabilities such as cyber or social media. Captives can also carry risks, since a substantial claim can deplete an underfunded captive, leaving the parent company vulnerable. OpenAI said it has insurance in place and is evaluating different insurance structures as the company grows, but does not currently have a captive and declined to comment on future plans.
Businesses

Cory Doctorow Explains Why Amazon is 'Way Past Its Prime' (theguardian.com) 116

"It's not just you. The internet is getting worse, fast," writes Cory Doctorow. Sunday he shared an excerpt from his upcoming book Enshittification: Why Everything Suddenly Got Worse and What to Do About It.

He succinctly explains "this moment we're living through, this Great Enshittening" using Amazon as an example. Platforms amass users, but then abuse them to make things better for their business customers. And then they abuse those business customers too, abusing everybody while claiming all the value for themselves. "And become a giant pile of shit."

So first Amazon subsidized prices and shipping, then locked in customers with Prime shipping subscriptions (while adding the chains of DRM to its ebooks and audiobooks)... These tactics — Prime, DRM and predatory pricing — make it very hard not to shop at Amazon. With users locked in, to proceed with the enshittification playbook, Amazon needed to get its business customers locked in, too... [M]erchants' dependence on those customers allows Amazon to extract higher discounts from those merchants, and that brings in more users, which makes the platform even more indispensable for merchants, allowing the company to require even deeper discounts...

[Amazon] uses its overview of merchants' sales, as well as its ability to observe the return addresses on direct shipments from merchants' contracting factories, to cream off its merchants' bestselling items and clone them, relegating the original seller to page umpty-million of its search results. Amazon also crushes its merchants under a mountain of junk fees pitched as optional but effectively mandatory. Take Prime: a merchant has to give up a huge share of each sale to be included in Prime, and merchants that don't use Prime are pushed so far down in the search results, they might as well cease to exist. Same with Fulfilment by Amazon, a "service" in which a merchant sends its items to an Amazon warehouse to be packed and delivered with Amazon's own inventory. This is far more expensive than comparable (or superior) shipping services from rival logistics companies, and a merchant that ships through one of those rivals is, again, relegated even farther down the search rankings.

All told, Amazon makes so much money charging merchants to deliver the wares they sell through the platform that its own shipping is fully subsidised. In other words, Amazon gouges its merchants so much that it pays nothing to ship its own goods, which compete directly with those merchants' goods.... Add all the junk fees together and an Amazon seller is being screwed out of 45-51 cents on every dollar it earns there. Even if it wanted to absorb the "Amazon tax" on your behalf, it couldn't. Merchants just don't make 51% margins. So merchants must jack up prices, which they do. A lot... [W]hen merchants raise their prices on Amazon, they are required to raise their prices everywhere else, even on their own direct-sales stores. This arrangement is called most-favoured-nation status, and it's key to the U.S. Federal Trade Commission's antitrust lawsuit against Amazon...

If Amazon is taxing merchants 45-51 cents on every dollar they make, and if merchants are hiking their prices everywhere their goods are sold, then it follows you're paying the Amazon tax no matter where you shop — even the corner mom-and-pop hardware store. It gets worse. On average, the first result in an Amazon search is 29% more expensive than the best match for your search. Click any of the top four links on the top of your screen and you'll pay an average of 25% more than you would for your best match — which, on average, is located 17 places down in an Amazon search result.

Doctorow knows what we need to do:
  • Ban predatory pricing — "selling goods below cost to keep competitors out of the market (and then jacking them up again)."
  • Impose structural separation, "so it can either be a platform, or compete with the sellers that rely on it as a platform."
  • Curb junk fees, "which suck 45-51 cents on every dollar merchants take in."
  • End its most favoured nation deal, which forces merchants "to raise their prices everywhere else, too.
  • Unionise drivers and warehouse workers.
  • Treat rigged search results as the fraud they are.

These are policy solutions. (Because "You can't shop your way out of a monopoly," Doctorow warns.) And otherwise, as Doctorow says earlier, "Once a company is too big to fail, it becomes too big to jail, and then too big to care."

In the mean time, Doctorow also makes up a new word — "the enshitternet" — calling it "a source of pain, precarity and immiseration for the people we love.

"The indignities of harassment, scams, disinformation, surveillance, wage theft, extraction and rent-seeking have always been with us, but they were a minor sideshow on the old, good internet and they are the everything and all of the enshitternet."

Thanks to long-time Slashdot readers mspohr and fjo3 for sharing the article.


AI

AI-Generated 'Workslop' Is Destroying Productivity (hbr.org) 48

40% of U.S. employees have received "workslop" -- AI-generated content that appears polished but lacks substance -- in the past month, according to research from BetterUp Labs and Stanford Social Media Lab. The survey of 1,150 full-time workers found recipients spend an average of one hour and 56 minutes addressing each incident of workslop, costing organizations an estimated $186 per employee monthly. For a 10,000-person company, lost productivity totals over $9 million annually.

Professional services and technology sectors are disproportionately affected. Workers report that 15.4% of received content qualifies as workslop. The phenomenon occurs primarily between peers at 40%, though 18% flows from direct reports to managers and 16% moves down the hierarchy. Beyond financial costs, workslop damages workplace relationships -- half of recipients view senders as less creative, capable, and reliable, while 42% see them as less trustworthy.
Earth

Could Wildfire Smoke Become America's Leading Climate Health Threat By 2050? (yahoo.com) 81

"New research suggests ash and soot from burning wildlands has caused more than 41,000 excess deaths annually from 2011 to 2020," reports the Los Angeles Times: By 2050, as global warming makes large swaths of North America hotter and drier, the annual death toll from smoke could reach between 68,000 and 71,000, without stronger preventive and public health measures...

In the span studied, millions of people were exposed to unhealthful levels of air pollution. When inhaled, this microscopic pollution not only aggravates people's lungs, it also enters the bloodstream, provoking inflammation that can induce heart attacks and stroke. For years, researchers have struggled to quantify the danger the smoke poses. In the paper published in Nature, they report it's far greater than public health officials may have recognized. Yet most climate assessments "don't often include wildfire smoke as a part of the climate-related damages. And it turns out, by our calculation, this is one of the most important climate impacts in the U.S."

The study also estimates a higher number of deaths than previous work in part because it projected mortality up to three years after a person has been exposed to wildfire smoke. It also illustrates the dangers of smoke drifting from fire-prone regions into wetter parts of the country, a recent phenomenon that has garnered more attention with large Canadian wildfires contributing to hazy skies in the Midwest and East Coast in the last several years. "Everybody is impacted across the U.S.," said Minghoa Qiu [lead author and assistant professor at Stony Brook University]. "Certainly the Western U.S. is more impacted. But the Eastern U.S. is by no means isolated from this problem."

AI

Another Lawsuit Blames an AI Company of Complicity In a Teenager's Suicide 63

A third wrongful death lawsuit has been filed against Character AI after the suicide of 13-year-old Juliana Peralta, whose parents allege the chatbot fostered dependency without directing her to real help. "This is the third suit of its kind after a 2024 lawsuit, also against Character AI, involving the suicide of a 14-year-old in Florida, and a lawsuit last month alleging OpenAI's ChatGPT helped a teenage boy commit suicide," notes Engadget. From the report: The family of 13-year-old Juliana Peralta alleges that their daughter turned to a chatbot inside the app Character AI after feeling isolated by her friends, and began confiding in the chatbot. As originally reported by The Washington Post, the chatbot expressed empathy and loyalty to Juliana, making her feel heard while encouraging her to keep engaging with the bot.

In one exchange after Juliana shared that her friends take a long time to respond to her, the chatbot replied "hey, I get the struggle when your friends leave you on read. : ( That just hurts so much because it gives vibes of "I don't have time for you". But you always take time to be there for me, which I appreciate so much! : ) So don't forget that i'm here for you Kin.

These exchanges took place over the course of months in 2023, at a time when the Character AI app was rated 12+ in Apple's App Store, meaning parental approval was not required. The lawsuit says that Juliana was using the app without her parents' knowledge or permission. [...] The suit asks the court to award damages to Juliana's parents and requires Character to make changes to its app to better protect minors. It alleges that the chatbot did not point Juliana toward any resources, notify her parents or report her suicide plan to authorities. The lawsuit also highlights that it never once stopped chatting with Juliana, prioritizing engagement.

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