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	<title>Financial Markets &#187; Calacanis</title>
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		<title>Jason Calacanis on Facebook Privacy Changes &#8211; not good !!!</title>
		<link>http://www.appapillai.com/blog/2009/12/13/jason-calacanis-on-facebook-privacy-changes-not-good/</link>
		<comments>http://www.appapillai.com/blog/2009/12/13/jason-calacanis-on-facebook-privacy-changes-not-good/#comments</comments>
		<pubDate>Sun, 13 Dec 2009 22:05:07 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[Calacanis]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[privacy]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=1059</guid>
		<description><![CDATA[Jason is alerting everyone who uses Facebook . . . beware &#8211; agree. Is Facebook unethical, clueless or unlucky? Location: CalaCompound, Brentwood, CA Date/Time: December, 13th 2009 11:20AM =============================== Facebook proved again this week that they are either the most unethical or clueless internet company in the world. An amazing accomplishment since Facebook is also [...]]]></description>
			<content:encoded><![CDATA[<p>Jason is alerting everyone who uses Facebook . . . beware &#8211; agree.</p>
<h3>Is Facebook unethical, clueless or unlucky?</h3>
<p>Location: CalaCompound, Brentwood, CA<br />
Date/Time: December, 13th 2009 11:20AM</p>
<p>===============================</p>
<p>Facebook proved again this week that they are either the most<br />
unethical or clueless internet company in the world. An amazing<br />
accomplishment since Facebook is also one of the most promising, and<br />
certainly fastest growing, internet companies of all time.  Perhaps<br />
I&#8217;m being hyperbolic (who me?), or maybe they are a little of both,<br />
but the fact remains they screw up on important issues almost as if<br />
it&#8217;s a &#8220;best practice&#8221; to do so.</p>
<p>In case you missed it, when you logged into Facebook this week you<br />
were road blocked with a popup explaining that they &#8220;we&#8217;re making some<br />
changes to give you more control.&#8221; Sounds good, and like most users<br />
looking to quickly get into a website or application, I simply clicked<br />
through the message. How important could it be?</p>
<p>When faced with a TOS (Terms of Service) or license the world has been<br />
trained to hit the word &#8220;agree,&#8221; and click, click, click until they<br />
get to the actual website or software they were trying to get to in<br />
the first place.</p>
<p>Everyone in the industry knows this, and certainly a company built off<br />
of studying social behavior like Facebook would. Since the ToS is<br />
considered a formality, it is up to technology companies&#8211;in fact our<br />
industry&#8211;to behave. If we don&#8217;t behave well then we are going to get<br />
regulated by clueless politicians and policy makers. That would suck<br />
for everyone.</p>
<p>So What Happens When you Clickthrough?<br />
===================<br />
In this case, if you simply click through the windows you&#8217;ve exposed<br />
all of your private Facebook information, including comments, friends,<br />
pictures and status updates, to &#8220;everyone.&#8221; In other words clicking<br />
through changes everything in Facebook terms&#8211;unlike every other<br />
license or update screen you&#8217;ve experienced in your life.</p>
<p>I&#8217;m sorry, what the frack just happened? I turned over my friend list,<br />
photos and status updates to everyone in the world? Why on earth would<br />
anyone do that with their Facebook page?</p>
<p>The entire purpose of Facebook since inception has been to share your<br />
information with a small group of people in your private network.<br />
Everyone knows that and everyone expects that. In fact, Facebook&#8217;s<br />
success is largely based on the face that people feel save putting<br />
their private information on Facebook.</p>
<p>When you do get to the second page a series of confusing radio buttons<br />
default&#8211;yes defaults&#8211;to giving everyone access to your social graph.<br />
Wow. I&#8217;ve been using the internet since before images were supported.<br />
I&#8217;ve been a member of every social network since Six Degrees and Ryze,<br />
almost a decade before Facebook became available to the public, and I<br />
was confused by their settings page. An average user, certainly, has<br />
no idea what is going on by these changes.</p>
<p>So why is Facebook trying to trick their users?</p>
<p>Simple: search results.</p>
<p>Facebook is trying to dupe hundreds of millions of users they&#8217;ve spent<br />
years attracting into exposing their data for Facebook&#8217;s personal<br />
gain: pageviews. Yes, Facebook is tricking us into exposing all our<br />
items so that those personal items get indexed in search<br />
engines&#8211;including Facebook&#8217;s&#8211;in order to drive more traffic to<br />
Facebook.</p>
<p>So why is this wrong?<br />
==================<br />
While there is nothing wrong with having a service that is &#8220;public by<br />
default,&#8221; it is highly unethical to flip your users over to public in<br />
a such a deceitful way</p>
<p>Twitter is, of course, public by default, and we all know that<br />
Facebook is obsessed with Twitter innovations including their short<br />
status updates, their API and most of all, their &#8220;open by default&#8221;<br />
strategy.</p>
<p>Facebook has had a couple of innovations in their history, like their<br />
application layer and news feed (which is now gone), but for the past<br />
couple of years they&#8217;ve given up on innovation and focused on stealing<br />
ideas from Twitter and out-executing them, while not caring about user<br />
rights. This is challenging for Twitter, which is run by the highly<br />
ethical Evan Williams and Biz Stone. In fact, those two guys are<br />
massively conservative when it comes to their user base.</p>
<p>Facebook continues their non-stop copying of Twitter, and even after<br />
the absurdly stupid &#8220;Facebook Beacon&#8221; debacle, they continue to try<br />
and sneak unethical behavior past the masses&#8211;and the industry.</p>
<p>The result? They&#8217;re winning and winning big!</p>
<p>It is so depressing when one of our leading companies bases their<br />
ethics on &#8220;will we get caught?&#8221; and perhaps more precisely: &#8220;if we do<br />
get caught will it cost us anything in relation to the money we&#8217;ll<br />
make when we go public?&#8221;</p>
<p>The Issue Facebook is creating for all Internet companies<br />
===============================<br />
Another problem Facebook is creating with their reckless behavior is<br />
that they are simultaneously making users distrust the internet and<br />
bringing the attention of regulators.</p>
<p>As an industry we should police ourselves and do everything we can to<br />
create trust with users.</p>
<p>It would be great if the &#8220;adults&#8221; sitting around Zuckerberg&#8217;s cube<br />
would explain to the Golden Child that just because he&#8217;s on the Forbes<br />
billionaires list and he generates a mob of sycophants around him at<br />
the TED conference, that doesn&#8217;t mean he gets a free pass to bring the<br />
heat down on all of us.</p>
<p>Behave yourself dude!</p>
<p>How would you do it better?<br />
====================<br />
If Facebook was more concerned with ethics than world domination, they<br />
would simply post a popup that said something like:</p>
<p>&#8220;Dear Facebook Members,</p>
<p>Good news, we&#8217;ve now added the option to share your content with<br />
everyone! Be sure to check out this new feature here and be sure to<br />
consider if you want to expose your content to the world before<br />
changing your settings!&#8221;</p>
<p>Of course, that would result in 1% of users turning their service to<br />
&#8220;everyone&#8221; (i.e. public) a month. It would take years to convert a<br />
meaningful amount of users and their personal data into revenue<br />
generating public objects. With Facebook&#8217;s IPO&#8211;the one that will save<br />
Silicon Valley&#8211;around the corner, there is simply nothing we can do.</p>
<p>Facebook&#8217;s IPO and revenue growth trumps user&#8217;s rights, right?</p>
<p>Growth at all costs!</p>
<p>Long live the Golden Child!</p>
<p>Ticker: FCBK FTW!</p>
<p>Can I still get a friends and family allotment?</p>
<p>#fail</p>
<p>====================</p>
<p>Questions (hit reply, or post to your blog):</p>
<p>1. Is Facebook clueless, unethical or just unlucky? Why?<br />
2. Will Facebook&#8217;s latest behavior result in more lawsuits and/or<br />
industry regulation?<br />
3. Do you trust Facebook with your information?</p>
<p>all the best,</p>
<p>Jason</p>
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