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Facebook admits 18% of Research spyware users were teens, not – TechCrunch

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Facebook has changed its story after initially trying to downplay how it targeted teens with its Research program that a TechCrunch investigation revealed was paying them gift cards to monitor all their mobile app usage and browser traffic. “Less than 5 percent of the people who chose to participate in this market research program were teens” a Facebook spokesperson told TechCrunch and many other news outlets in a damage control effort 7 hours after we published our report on January 29th. At the time,  Facebook claimed that it had removed its Research app from iOS. The next morning we learned that wasn’t true, as Apple had already forcibly blocked the Facebook Research app for violating its Enterprise Certificate program that supposed to reserved for companies distributing internal apps to employees.

It turns out that wasn’t the only time Facebook deceived the public in its response regarding the Research VPN scandal. TechCrunch has obtained Facebook’s unpublished February 21st response to questions about the Research program in a letter from Senator Mark Warner, who wrote to CEO Mark Zuckerberg that “Facebook’s apparent lack of full transparency with users – particularly in the context of ‘research’ efforts – has been a source of frustration for me.”

In the response from Facebook’s VP of US public policy Kevin Martin, the company admits that (emphasis ours) “At the time we ended the Facebook Research App on Apple’s iOS platform, less than 5 percent of the people sharing data with us through this program were teens. Analysis shows that number is about 18 percent when you look at the complete lifetime of the program, and also add people who had become inactive and uninstalled the app.” So 18 percent of research testers were teens. It was only less than 5 percent when Facebook got caught. Given users age 13 to 35 were eligible for Facebook’s Research program, 13 to 18 year olds made of 22 percent of the age range. That means Facebook clearly wasn’t trying to minimize teen involvement, nor were they just a tiny fraction of users.

WASHINGTON, DC – APRIL 10: Facebook co-founder, Chairman and CEO Mark Zuckerberg testifies before a combined Senate Judiciary and Commerce committee hearing in the Hart Senate Office Building on Capitol Hill April 10, 2018 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)

Warner asked Facebook “Do you think any use reasonable understood Facebook was using this data for commercial purposes includingto track competitors?” Facebook response indicates it never told Research users anything about tracking “competitors”, and instead dances around the question. Facebook says the registration process told users the data would help the company “understand how people use mobile apps,” “improve . . . services,” and “introduce new features for millions of people around the world.”

Facebook had also told reporters on January 29th regarding teens’ participation, “All of them with signed parental consent forms.” Yet in its response to Senator Warner, Facebook admitted that “Potential participants were required to confirm that they were over 18 or provide other evidence of parental consent, though the vendors did not require a signed parental consent form for teen users.” In some cases, underage users merely had to check a box to claim they had parental consent, and there was no verification of users’ ages or that their parents actually approved.

So to quickly recap:

  • TechCrunch reports on January 29th that Facebook is paying teens and adults up to $20 in gift cards per month to install a Research VPN with Root network access to spy on all their mobile app activity, web browsing, and even encrypted communications.
  • TechCrunch informs Facebook and Apple that Facebook’s Research app violates Apple’s Enterprise Certificate rules.
  • That night, Facebook claims it shut down the Research app on iOS but didn’t violate Apple’s policy, and tells reporters only 5 percent of Research users were teens and they all had signed parental consent forms.
  • The next morning, Apple tells TechCrunch that it forcibly shut down Facebook Research on iOS for violating the Enterprise Certificate rules, and invalidates Facebook’s Certificate thereby breaking its internal iOS apps for 30 hours, including its Workplace chat and task management apps as well as its shuttle schedule and lunch menu
  • TechCrunch reports Google’s Screenwise Meter market research app was also breaking Apple’s Enterprise Certificate rules, but it quickly apologies and shuts down the app on iOS though it still has its internal iOS apps invalidated for 6 hours.
  • Senator Warner issues a letter demanding answers about Facebook Research from Mark Zuckerberg, while Senators Blumenthal and Markey also issue sternly worded reprimands of Facebook.
  • Facebook’s VP of production engineering and security Pedro Canahuati publishes an internal memo disputing our reporting by saying the program was never secret, but its points are swiftly dismantled by TechCrunch after we reveal that legal action was threatened if a Research user spoke publicly about the app.
  • TechCrunch reports that Apple failed to block dozens of hardcore pornography and real-money gambling apps abusing Enterprise Certificate program to sidestep the App Store’s rules, and Apple shuts them down.
  • Facebook tells TechCrunch on February 21st that it’s ceased recruiting users for its Research program on Android where it was still running, and  that it will shut down its similar Onavo market research spyware VPN on Android after Apple banned it last year.
  • That same day, Facebook issues this response to Senator Warner that shows its initial response to reporters wasn’t accurate.

Facebook targeted teens with ads on Instagram and Snapchat to join the Research program without revealing its involvement

The contradictions between Facebook’s initial response to reporters and what it told Warner, who has the power to pursue regulation of the the tech giant, shows Facebook willingness to move fast and play loose with the truth when it’s less accountable. It’s no wonder the company never shared the response with TechCrunch or posted a blog post or press release about it.

Facebook’s attempt to minimize the issue in the wake of backlash exemplifies the trend of of the social network’s “reactionary” PR strategy that employees described to BuzzFeed’s Ryan Mac. The company often views its scandals as communications errors rather than actual product screwups or as signals of deep-seeded problems with Facebook’s respect for privacy. Facebook needs to learn to take its lumps, change course, and do better rather than constantly trying to challenge details of negative press about it, especially before it has all the necessary information. Until then, the never-ending news cycle of Facebook’s self-made disasters will continue.

Below is Facebook’s full response to Senator Warner’s inquiry, and following that is Warner’s original letter to Mark Zuckerberg.

Additional reporting by Krystal Hu

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Afterpay unveils BNPL subscription offering for US customers – TechCrunch

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“Buy now, pay later” company Afterpay announced Wednesday that it was going after the $1.5 trillion global subscription payments market by offering to its U.S. customers payment installments for subscriptions, like gym memberships, entertainment subscriptions and online services.

The service will launch in both the U.S. and Australia beginning early in 2022 and will be free for customers who pay on time. IPSY, BoxyCharm, Savage X Fenty and Fabletics are among the initial list of merchants that will offer the feature. The company plans to expand the feature in-store and into other regions later, including Canada, New Zealand, the U.K. and Europe.

In addition to paying for subscriptions in installments, Afterpay is also enabling its offering to be used on preordered items, where users can pay in four installments over time once the item ships. Another feature coming soon will allow merchants to accept deposits on custom items.

“By offering customers the option to pay for subscriptions with Afterpay, we’re not only giving consumers flexibility to pay for more expensive monthly costs, but we’re also helping our merchant partners capture a wider consumer base through this convenient experience,” said Zahir Khoja, general manager of North America for Afterpay, in a written statement.

Klarna, Afterpay’s competitor in the BNPL space, also announced news this week for its U.S. customers that it was offering its “Pay Now” option.

Meanwhile, in August, Square announced that it was buying Afterpay in an all-stock deal valued at $29 billion. Afterpay has also been on a roll with feature debuts recently, launching both Afterpay Ads, a suite of advertising products for brands to engage with shoppers within the ecosystem, and merchant analytics tool Afterpay IQ, in August.

Afterpay works with 100,000 retailers and has approximately 10.5 million active customers in North America as of June 30, up from 5.6 million the year prior. North America is the company’s “largest region in terms of underlying sales,” which grew 145% year over year, or from $4 billion in fiscal year 2020 to $9.8 billion in fiscal year 2021, according to the company.

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Fairphone hits software support longevity akin to Apple’s iPhone – TechCrunch

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Fairphone, the Dutch social enterprise dedicated to making consumer electronics (more) sustainable and ethical, including by supporting repairability so that users can hold onto their hardware for longer, has announced public testing of Android 10 for the six-year-old Fairphone 2.

Owners of the modular handset that was first released back in 2015, running Android 5, should expect to be able to upgrade to Android 10 (released date: 2019) in early 2022, Fairphone said today, announcing the beta rollout of the upgrade.

Fairphone stopped producing (but not supporting) the Fairphone 2 back in 2018 — going on to release the Fairphone 3 (in 2019), the Fairphone 3+ (in 2020, also available as a modular upgrade to the 3) and, earlier this fall, the Fairphone 4, its first 5G handset — which it said would be supported until at least 2025.

Given the Fairphone 2’s impending update to Android 10 next year — which will mean it will have been supported for a total of seven years — 2025 looks like a conservative estimate of how long Fairphone 4 owners should expect to receive software support.

Fairphone says it collaborated with its community of users for the Android 10 upgrade project — and with a software developer in India, Bharath Ravi Prakash, which it says worked as a volunteer open source dev — and by doing that says it was able to streamline the process and shrink the time required to carry out the upgrade.

So while the prior Fairphone 2 OS update (to Android 9) took 18 months, this time the process has been condensed to 10 months.

Google, meanwhile, has gone on to release Android 11 (2020) and Android 12 (last month) — for a sense of how far behind the Fairphone 2 upgrades are trailing the latest OS release.

“The company learned a lot from the Android 9 upgrade and although still complex, Android 10 was more predictable than Android 9,” Fairphone notes in a press release, which also quotes its head of software longevity & IT, Agnes Crepet, who writes: “Our unique approach to software has allowed us to help our users keep their devices for as long as possible. We’re pleased to be able to provide our Fairphone 2 community with yet another software upgrade, reaching our goal to provide at least five years of support from launch for our phones and with the Android 10 upgrade, we’re going beyond that to seven years of support. We are constantly raising the bar for ourselves and the industry, showing that doing things more sustainably in software is possible.”

Seven years’ support puts Fairphone into Apple iPhone software support timespans. But of course the average Android-based handset can expect fair fewer years of software love — typically Android smartphones only get around three years’ support. So it’s a major achievement.

And while Fairphone may only now be catching up to Apple on the software longevity front it is already years ahead of Cupertino in another respect: Hardware sustainability through repairability via modular construction and offering direct-to-consumer spare parts.

Earlier this month Apple announced that, starting next year, it would kick off a “Self Service Repair” program — shipping spare parts and repair tools to iPhone and Mac users to let them perform basic repairs at home.

It’s by no means full modularity from the company that has — historically — loved a hermetically sealed, stupidly thin, often literally glued shut box, but it is a small step in a more sustainable direction. And one that Fairphone has long pioneered.

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Spotify tests a TikTok-like vertical video feed in its app – TechCrunch

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TikTok has seen its short-form video feed copied by a host of competitors, from Instagram to Snap to YouTube and even Netflix. Now it looks like you can add Spotify to that list. The company has confirmed it’s currently testing a new feature in its app, Discover, which presents a vertical feed of music videos that users can scroll through and optionally like or skip. For those who have access to the feature, it appears as a fourth tab in the navigation bar at the bottom of the Spotify app, in between Home and Search.

The new addition was first spotted by Chris Messina, who tweeted out a video of the Discover feature in action. He described it as a “pared-down version” of a TikTok-style feed of music videos.

Messina told us he found the feature in Spotify’s TestFlight build (a beta version for iOS), where a new icon in the navigation toolbar brings you immediately to the video feed when tapped. You can then swipe up and down to move through the feed, much like you would on TikTok. In addition to tapping the heart to like songs, you also can tap the three-dot menu to bring up the standard song information sheet, he notes.

Messina also speculated the feature may be taking advantage of Spotify’s existing Canvas format.

Introduced broadly in 2019, Canvas allows artists to create videos that accompany their music on the Spotify app. The feature had mixed reviews from users, as some reported they preferred to see just the static album art when listening to music and found the video and its looping imagery distracting. But others said they liked it. Canvas, however, appears to drive the engagement metrics that Spotify wants — the company reports that users are more likely to keep streaming, share tracks or save tracks when they see a Canvas.

From the video Messina shared and others we viewed, we can confirm that the videos playing in the vertical feed are the artists’ existing Canvas videos. But Spotify would not confirm this to us directly.

TechCrunch asked Spotify for further information on the feature, including whether it had plans to roll this out further, whether it was available on both iOS and Android, which markets had access to the feature and more. The company declined to share any details about the feature but did confirm, via a statement, it was exploring the idea of a vertical video feed.

“At Spotify, we routinely conduct a number of tests in an effort to improve our user experience,” a spokesperson told TechCrunch. “Some of those tests end up paving the way for our broader user experience and others serve only as an important learning. We don’t have any further news to share at this time,” they added.

In other words, the test is still very early and may not make its way to the public. But if it did, it wouldn’t be a surprising move on Spotify’s part. The company has before looked to popular social media formats to engage its users. In the past, Spotify tested a Stories feature that allowed influencers to post Stories to introduce their own, curated playlists. But that option never became available to all Spotify users.

While the TikTok format has been adopted by top social platforms, including Instagram (Reels), Snapchat (Spotlight), YouTube (Shorts) and Pinterest (Idea Pins), it’s also proving to be an ideal format for content discovery. Netflix, for instance, recently adopted the short-form vertical video feed in its own app with the launch of its “Fast Laughs” feature, which offers clips from its content library and tools to save the programs to a watch list or just start streaming them. Similarly, Spotify’s video-based Discover feature could help introduce users to new music and offer a way to signal their interests to Spotify in a familiar format.

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