May 6, 2024

Facebook Leads an Effort to Lower Barriers to Internet Access

On Wednesday, Facebook plans to announce an effort aimed at drastically cutting the cost of delivering basic Internet services on mobile phones, particularly in developing countries, where Facebook and other tech companies need to find new users. Half a dozen of the world’s tech giants, including Samsung, Nokia, Qualcomm and Ericsson, have agreed to work with the company as partners on the initiative, which they call Internet.org.

The companies intend to accomplish their goal in part by simplifying phone applications so they run more efficiently and by improving the components of phones and networks so that they transmit more data while using less battery power.

For Mr. Zuckerberg, the formation of the coalition is yet another way in which he is trying to position himself as an industry leader. He has been speaking out more forcefully than other tech executives on topics like immigration overhaul, which the industry sees as critical to its hiring needs. With Internet.org, he is laying out a philosophy that tries to pair humanitarian goals with the profit motive.

“The Internet is such an important thing for driving humanity forward, but it’s not going to build itself,” he said in a recent interview. “Ultimately, this has to make business sense on some time frame that people can get behind.”

But the effort is also a reflection of how tech companies are trying to meet Wall Street’s demands for growth by attracting customers beyond saturated markets in the United States and Europe, even if they have to help build services and some of the infrastructure in poorer, less digitally sophisticated parts of the world.

Google, for example, began a program with phone carriers last year that offers wireless users in some developing countries free access to Gmail, search and the first page clicked through from a search’s results. Google is also reaching for the sky with Project Loon, an attempt to beam Internet access down to earth from plastic balloons floating more than 11 miles in the atmosphere.

Twitter, which is preparing to offer shares to the public in an initial stock offering, has struck its own deals with about 250 cellphone companies in more than 100 countries to offer some free Twitter access, and worked to make sure its service is easy to use on even the cheapest cellphones.

These companies have little choice but to look overseas for growth. More than half of Americans already use Facebook at least once a month, for instance, and usage in the rest of the developed world is similarly heavy. There is nearly one active cellphone for every person on earth, making expansion a challenge for carriers and phone makers.

Poorer countries in Asia, Africa and Latin America present the biggest opportunity to reach new customers — if companies can figure out how to get people there online at low cost.

The immediate goals of the new coalition are to cut the cost of providing mobile Internet services to 1 percent of its current level within five to 10 years by improving the efficiency of Internet networks and mobile phone software. The group also hopes to develop new business models that would allow phone companies to provide simple services like e-mail, search and social networks for little or no charge.

While that sounds far less exciting than, say, Google’s idea of delivering the Internet by balloon, Mr. Zuckerberg says small efforts can add up to big changes.

“No one company can really do this by itself,” he said.

Facebook is already working on techniques to reduce the average amount of data used by its Android mobile app from the current 12 megabytes a day to 1 megabyte without users noticing.

Qualcomm, whose chip technology is prevalent in advanced cellphones, has created new designs to stretch a phone’s battery life, slice the amount of data needed to transmit a video and extend the reach of mobile networks through tiny devices similar to Wi-Fi routers.

The coalition partners have also begun trying new ways of reducing the data charges paid by cellphone customers while still enabling phone makers and carriers to make money.

For example, Nokia, the Finnish cellphone maker, ran a recent experiment with Facebook and the Mexican phone carrier Telcel, in which it bundled free Facebook access with some of its Asha feature phones. Sales rose significantly, and the company decided to run similar promotions for customers of Bharti Airtel, a mobile carrier in India and Africa.

Article source: http://www.nytimes.com/2013/08/21/technology/facebook-leads-an-effort-to-lower-barriers-to-internet-access.html?partner=rss&emc=rss

Faux Fur Case Settled by Neiman Marcus and 2 Other Retailers

The problem was that the faux fur was, in fact, real fur.

That’s right: it was faux faux fur.

In a forehead-slapping development, Neiman Marcus and two other retailers, DrJays.com and Eminent, on Tuesday settled federal claims that they had marketed real fur as fake fur. The supposedly fake stuff was actually rabbit, raccoon and, possibly, dyed mink.

Animal protection groups applauded the settlement, reached with the Federal Trade Commission, saying many retailers have been selling real fur disguised as fake fur.

On the face of it, the real-for-fake switch might not seem to make business sense. But because many people are no longer buying real fur, manufacturers and retailers are scrambling to meet growing demand for faux fur. As a result, some products are being mislabeled.

“The lines between real and fake have gotten really blurry,” said Dan Mathews, a senior vice president with People for the Ethical Treatment of Animals. “In this global marketplace, there are fur farms in China that raise dogs for clothing that is labeled as fake fur here in the U.S. because that’s what the market best responds to.”

Others chalk up the incorrect labeling to sloppy product descriptions.

Hymie Betesh, the founder and chief executive of DrJays.com, says his company sells about 50,000 styles of products each year on its Web site.

“There were a handful of instances where a word may have been omitted in our product descriptions, and others where the word ‘fur’ was used to describe the style of a product, not intending to describe fabric content,” Mr. Betesh said in an e-mail.

Eminent, doing business as Revolve Clothing, according to the F.T.C., did not respond to an e-mail requesting a comment.

Under the F.T.C. settlement, which is preliminary and carries no financial penalties, the retailers will be subject to significant fines if they mislabel fur again in the next 20 years.

Mislabeling real fur — inexpensive rabbit as luxurious mink, say — is an old game. But mislabeling real fur as fake fur is relatively new. The three retailers were accused of violating a fur law that was enacted in the 1950s and, at the time, was meant to prevent people from marketing furs like rabbit under its English name, Coney, or selling muskrat as Hudson Seal.

The F.T.C. investigation was prompted by a petition filed last fall by the Humane Society of the United States.

Each year since 2006, when the Humane Society received an anonymous communication that a retailer was going to be advertising an animal fur product as fake fur in a printed circular, the group has conducted investigations. It scours Web sites and stores for mislabeled products. Suspected real-fur items are sent to a lab for testing.

Last fall, the group found fur where it was not supposed to be in a handful of products sold at 11 retailers, including the three in settlement announced Tuesday, as well as Dillard’s and Barneys New York, according to a complaint filed by the organization.

“We continue to find animal fur sold as faux fur every single season,” said Pierre Grzybowski, the research and enforcement manager of the Fur-Free campaign for the Humane Society.

Neiman Marcus is a frequent target of the group. In 2007, for instance, the Human Society found a children’s Andrew Marc jacket whose label said it was 100 percent polyester.

Testing, however, identified fur from a raccoon dog, a member of the Canid family, which includes dogs, wolves, foxes and coyotes.

A later investigation by the F.T.C. resulted in no action.

In 2008, when the Humane Society discovered raccoon dog fur misidentified as fake fur on several coats sold at Neiman Marcus and other national retailers, it sued the retailers. In 2010, Neiman Marcus paid a $25,000 judgment after a District of Columbia court found that the retailer had violated consumer protection laws.

That same year, a $1,895 St. John coat that was advertised as raccoon fur on the Neiman Marcus Web site tested as being raccoon dog.

In an e-mailed statement, a spokeswoman for Neiman Marcus said the company maintained a robust program to comply with all laws and regulations. And under the F.T.C. agreement, Neiman Marcus “has committed to identify correctly and promote accurately the fur and faux fur products offered in our catalogs and on our Web sites,” the statement said.

Article source: http://www.nytimes.com/2013/03/20/business/faux-fur-case-settled-by-neiman-marcus-and-2-other-retailers.html?partner=rss&emc=rss