• On mySimon: Nike SB Eugene Backpack

The Social

Read all 'Facebook' posts in The Social
December 3, 2009 2:57 PM PST

Facebook notifies members about Beacon settlement

by Caroline McCarthy
  • 2 comments
Share

An e-mail was sent on Thursday to Facebook users who were members at the time that its controversial, now-defunct Beacon advertising program was operated: it's the official notice about the proposed settlement for the class-action lawsuit against Beacon. The terms of the settlement have been public since September, but the court-ordered summary notice is the last step in the process before final approval on February 26.

"This is not a settlement in which class members file claims to receive compensation," the notice explained (possibly crushing the hopes of any Facebook members who might have got excited that this would be an easy way to make some pizza money). "Under the proposed settlement, Facebook will terminate the Beacon program. In addition, Facebook will provide $9.5 million to establish an independent nonprofit foundation that will identify and fund projects and initiatives that promote the cause of online privacy, safety, and security."

A Web site has been set up to explain the terms of the settlement for the case Lane et al. vs. Facebook Inc. et al., which was originally filed last summer.

Beacon, an advertising program that shared members' activity on participating third-party sites on their Facebook profiles without much warning or notification, was a much-hyped part of the Facebook Ads initiative that debuted in the fall of 2007. But it was, unfortunately for Facebook, a complete public relations disaster.

Pressure from privacy and activist groups resulted in notable changes to the product and member controls thereof, but image repair proved to not be enough and Facebook let Beacon fade to black.

December 3, 2009 9:18 AM PST

Orangutan takes photos, shares them on Facebook

by Caroline McCarthy
  • 18 comments
Share

An orangutan in the Vienna Zoo takes pictures that are uploaded to Facebook. No, she didn't take the self-portrait.

(Credit: Nonja's Facebook page)

She's like the Ashton Kutcher of the ape world: an orangutan in the Vienna Zoo now has a Facebook fan page to showcase the photos she takes with a digital camera. The orangutan, named Nonja, uses a Samsung ST 1000 point-and-shoot that automatically uploads the photos.

When this post was published, Nonja had over 9,000 "fans" subscribed to her page.

But there's a catch: coverage of the camera-toting ape in the U.K.'s Daily Mail explains that the camera has been modified to dispense a raisin whenever the shutter button is pushed. So Nonja is evidently more interested in tasty treats than in artistic endeavors.

The non-orangutan version of the Samsung ST 1000 was released this summer (though not in the U.S.) and is equipped with Wi-Fi, Bluetooth, and GPS.

December 1, 2009 8:53 PM PST

Mark Zuckerberg's grand missive: The translation

by Caroline McCarthy
  • 14 comments
Share

Facebook CEO Mark Zuckerberg put out an "open letter" to the site's massive membership on Tuesday, explaining the site's revised privacy controls that are finally going into effect after being announced this summer, and additionally announcing the milestone that the site has reached 350 million active users around the world.

But CEOs are notoriously deft with spin, and Zuckerberg is a clever fellow. So, luckily, CNET has translated his entire letter for you! In italics are Zuckerberg's words. Below are the ones we found to be an appropriate substitution after extensive research, experimentation, and a little inspiration from a fluffy-white-cat-stroking supervillain.

It begins.

It has been a great year for making the world more open and connected. Thanks to your help, more than 350 million people around the world are using Facebook to share their lives online.

What he means: "We are taking over the freaking world. Eat it, MySpace."

To make this possible, we have focused on giving you the tools you need to share and control your information. Starting with the very first version of Facebook five years ago, we've built tools that help you control what you share with which individuals and groups of people. Our work to improve privacy continues today.

What he means: "I KNOW ALL YOUR SECRETS. But I promise I won't tell that ex-girlfriend of yours whom you chucked onto Limited Profile setting after she dumped you even though I totally know you check up on her profile every three days because I know everything. Have you met my fluffy white cat?" OK, well, maybe that's a little bit fanciful.

Facebook's current privacy model revolves around "networks"--communities for your school, your company or your region. This worked well when Facebook was mostly used by students, since it made sense that a student might want to share content with their fellow students.

Over time people also asked us to add networks for companies and regions as well. Today we even have networks for some entire countries, like India and China.

What he means: "Some of my Harvard classmates wanted to brag that they get to live in Buenos Aires or Sydney. Or that they wanted to find hot girls who lived nearby. That worked for a while."

However, as Facebook has grown, some of these regional networks now have millions of members and we've concluded that this is no longer the best way for you to control your privacy. Almost 50 percent of all Facebook users are members of regional networks, so this is an important issue for us. If we can build a better system, then more than 100 million people will have even more control of their information.

The plan we've come up with is to remove regional networks completely and create a simpler model for privacy control where you can set content to be available to only your friends, friends of your friends, or everyone.

What he means: "I could be deceptively upfront and say that this was just getting messy and that it makes little sense for millions of you with only a passport in common to be grouped under the same label. But let's be honest. I am simply preparing you for the day in the not-so-distant future when you all willfully renounce your national affiliations and become citizens of the Grand Republic of Facebook. And I shall be your Fearless Leader. Did I mention I own a white fluffy cat?"

We're adding something that many of you have asked for--the ability to control who sees each individual piece of content you create or upload. In addition, we'll also be fulfilling a request made by many of you to make the privacy settings page simpler by combining some settings. If you want to read more about this, we began discussing this plan back in July.

What he means: "It's taken a while to get this out of the gates. But you'll dig it. When we launched privacy controls that let you see who sees what on your profile, a lot of you already had big friends lists (because you are totally addicted to my brilliant creation). So we're making it all less messy. And now you'll also be able to be more specific about controls on content, like letting your mom have access to the 'note' where you talk about how much you love her chocolate chip cookies but not the one where you ask for all your friends' phone numbers because you got crunked and dropped your iPhone in the toilet.

More importantly, this means that I can hand-pick which of you get to see each video of my white fluffy cat that I upload. Wait till you see the one where he chases a laser pointer! YouTube would die for it!"

Since this update will remove regional networks and create some new settings, in the next couple of weeks we'll ask you to review and update your privacy settings. You'll see a message that will explain the changes and take you to a page where you can update your settings. When you're finished, we'll show you a confirmation page so you can make sure you chose the right settings for you. As always, once you're done you'll still be able to change your settings whenever you want.

What he means: "We know the indoctrination process can take some time. So we'll be patient with you, minions."

We've worked hard to build controls that we think will be better for you, but we also understand that everyone's needs are different. We'll suggest settings for you based on your current level of privacy, but the best way for you to find the right settings is to read through all your options and customize them for yourself. I encourage you to do this and consider who you're sharing with online."

What he means: "The press loves to write about it when some numb skull puts all his Halloween party photos on Facebook and his boss sees them and sacks him. And that scares everybody and makes Facebook look less like the future of the open and connected social graph and more like an oozing vat of scandal and danger. I don't want that and neither does my white fluffy cat. So, please don't be stupid."

Thanks for being a part of making Facebook what it is today, and for helping to make the world more open and connected.

What he means: "My work here is complete. Now, Elliot, have you located the map of all the air vents in Twitter's new headquarters that are large enough to accommodate a mutant panther-raccoon hybrid?"

Disclaimer: CNET is unable to confirm whether Mark Zuckerblofeld, uh, I mean Mark Zuckerberg, actually owns a white fluffy cat.

Also, this post is not intended to be taken seriously.

November 24, 2009 2:59 PM PST

Facebook changes stock structure: IPO on the way?

by Caroline McCarthy
  • 8 comments
Share

Facebook is changing the structure of its company stock to a dual-class system, a move that hints the company may be looking toward an initial public offering--even though it says it has no plans to do so yet.

Here's how it works. Existing Facebook shareholders currently have Class A stock. That'll be converted to Class B stock, which has 10 times the voting power of Class A. Should those shareholders sell their stock when Facebook goes public, they'll be converted back into Class A stock--otherwise, they'll stay the way they are.

The story was first reported by The Wall Street Journal, which added the detail that this stock structure change will give founder and CEO Mark Zuckerberg more power unless he opts to sell stock during an IPO. But while Zuckerberg and other executives have said that they eventually plan to take Facebook public, they continue to say that there are no concrete plans for it. Two years ago, Zuckerberg said that it was "years out."

"This revision to the stock structure should not be construed as a signal the company is planning to go public," a statement from Facebook read. "Facebook has no plans to go public at this time."

November 22, 2009 11:59 PM PST

'Jurassic Park' kid cast as Facebook co-founder

by Caroline McCarthy
  • 6 comments
Share

The Winklevoss twins will probably be scary, too. This is a 'Jurassic Park' promo shot of actor Joseph Mazzello, who was recently cast as Facebook co-founder Dustin Moskovitz. NB: He's nearly two decades older now.

(Credit: Amblin Entertainment/filmdope.com)

This isn't particularly Earth-shattering news, but it's sort of hilarious.

Dustin Moskovitz, one of Facebook's co-founders and its head of engineering until he left last year, will be played by the little boy from "Jurassic Park" in the tell-all flick "The Social Network."

According to details in the Internet Movie Database, the role of Moskovitz has been filled by Joseph Mazzello, the actor best known for playing Timmy, the skinny 8-year-old who fell out of trees, nearly got electrocuted, and narrowly escaped getting eaten by all kinds of meany dinosaurs in the 1993 blockbuster. In other words, he already has experience as a member of the supporting cast of over-the-top movies about high-tech innovations.

Mazzello is now 26, which should make you feel very old.

Moskovitz was instrumental in Facebook's origins, but in "The Social Network" (helmed by "Fight Club" director David Fincher with a screenplay by Aaron Sorkin) he has a relatively minor role. The film is not supported or authorized by Facebook or Mark Zuckerberg, its CEO and co-founder. And the book that the movie is based on--Ben Mezrich's "The Accidental Billionaires"--relies on sourcing, much of it anonymous, from other figures early in Facebook's history. We can confirm that Moskovitz, who has been loyal to the company even after leaving, was not one of them. Putting too much of him in there could lead to legal problems.

The young cast of the movie has proven to be an amusing blend, with "Adventureland" star Jesse Eisenberg starring as Mark Zuckerberg (likely a very good fit), pop star Justin Timberlake playing Silicon Valley entrepreneur Sean Parker (really?), and "Gossip Girl" actor Armie Hammer playing both Cameron and Tyler Winklevoss, the identical twins who claimed Zuckerberg's founding of Facebook amounted to a theft of their own idea.

November 19, 2009 3:57 PM PST

Offerpal revises terms amid continued scandal

by Caroline McCarthy
  • Post a comment
Share

Offerpal Media, one of the companies at the center of a bitter dispute over misleading advertisements on social networks, on Thursday launched a revised policy designed to "forbid any offers that are misleading, deceptive or otherwise objectionable."

Companies like Offerpal are enlisted by many of the big gaming companies built on social networks like Facebook; they help those companies make money by letting game players earn points and virtual goods by completing offers and surveys rather than paying real money.

They make a lot of money doing so. So do the game companies, like Zynga and Playfish (recently acquired by Electronic Arts), which in turn advertise heavily on the likes of Facebook to recruit new players.

But then the negative press started to emerge: many of these "free" offers and surveys actually had hidden costs attached to them that weren't adequately disclosed. Some companies like Zynga started backtracking and going so far as to ban offers altogether. Facebook and MySpace, the two biggest social-network platforms, made very public revisions to their policies. But the controversy continued, and both Facebook and Zynga were named as defendants in a federal class-action lawsuit.

Offerpal, which replaced its CEO amid the controversy, has now come out and said that while it's setting a basic standard for advertisement quality, game makers and publishers enlisting Offerpal's services can opt to be even more stringent. "Offerpal will rate all offers by quality and allow its partners to select a quality level of compliance ranging from 'Level 1' for minimal restrictions to 'Level 5' for highly conservative restrictions," a release explained.

Will the new restrictions keep angry bloggers and consumers--not to mention lawmakers--at bay? More importantly, are they going to amount to anything more than smoke and mirrors? We'll see.

November 17, 2009 4:04 PM PST

Chase commits $5 million to Facebook charity campaign

by Caroline McCarthy
  • 3 comments
Share

Chase announced Monday a partnership with Facebook to power the finance company's inaugural "Community Giving" campaign, which will allocate a total of $5 million to small, local nonprofits voted on by Facebook members.

The campaign takes the form of--you guessed it--a Facebook Platform application, in which members can choose their favorite of more than 500,000 nonprofits. Naturally, then, they're encouraged to use the hallowed "social graph" to encourage their friends to do so as well.

The winner gets $1 million in a grand-prize announcement slated for February 1; five runners-up get $100,000 apiece, and then the entire top 100 receives $25,000 apiece. There's an advisory board consisting of celebrities and Chase execs, as well as Facebook vice president of communications Elliot Schrage.

The publicity effort for Community Giving, which reached out to celebrity Twitter users in both the entertainment and nonprofit space in addition to the mainstream press to spread the word, says it's been an early success: over 12,000 Facebook members signed on in the first day.

That's not quite as many as the hundreds of thousands who rallied to support a prospective Stephen Colbert presidential campaign in the matter of a week, or the tens of thousands who opted to follow actor Neil Patrick Harris in his first 24 hours on Twitter, but for something that's a legitimate charity effort rather than a goofy viral meme, it's respectable.

Facebook has traditionally been hands-off about partnerships on its application platform, but nonprofit and public interest-related projects have been the exception: the social network forged several media-outlet deals during the 2008 presidential election, partnered with nonprofits to create virtual gifts for its "Facebook for Good" campaign, and synced up with the Huffington Post for a "social news" experiment.

It was less than two years ago that Facebook founder Mark Zuckerberg said that corporate philanthropy wasn't an immediate goal for the social network because, at the time, it simply didn't have the profits.

November 16, 2009 10:05 AM PST

Oxford's word of the year? 'Unfriend'

by Caroline McCarthy
  • 31 comments
Share

Perhaps in a sign of how the plague of social media has numbed us all to the value of legitimate human connections, the New Oxford American Dictionary has picked the verb "unfriend," or "to remove someone as a 'friend' on a social networking site such as Facebook," as its 2009 Word of the Year.

At the very least, it's a testament to the ubiquity of Facebook, which now has well over 300 million members around the world.

Facebook itself takes the process of "friending" and "unfriending" very seriously. It once sent warning notes to players of a third-party game called PackRat because it encouraged players to amass huge friends lists (good heavens! they're polluting the social graph!), banned a Burger King ad campaign that let members "sacrifice" their friends to get a free cheeseburger ("Friendship is strong, but the Whopper is stronger"), and still puts a cap of 5,000 on personal profiles' friends lists.

Last year's Oxford word of the year was the decidedly less mainstream "hypermiling."

A correction was made at 9:25 a.m. PT on November 21. It was players of PackRat, not PackRat itself, that were threatened with account suspension.

November 13, 2009 5:10 PM PST

Running a contest on Facebook? That'll cost you

by Caroline McCarthy
  • 6 comments
Share

For Madison Avenue, Facebook just got a little less free.

Last week, the massive social network announced that brands, advertisers, and marketers that want to run contests or sweepstakes on its platform have to go through an approval process first.

Getting that approval could be a new revenue stream for Facebook: according to multiple sources in the marketing industry, they're being told that running a promotion in a Facebook application or "fan page" requires buying ad space too.

It's pricey. The minimum ad buy is $10,000 for 30 days, using Facebook's self-service advertising system, according to documents seen by CNET, or $30,000 for 30 days of Facebook home page ads. Priority in the approval process will be scaled, based on how much advertising space has been purchased. It's a move that one marketing industry professional called, in perhaps a bit of hyperbole, "a little Death Star-ish."

A Facebook representative declined to confirm and said the company did not have any comment beyond official documents released on its Facebook Marketing Solutions page.

Let's step back. Cracking down on contests and promotions might seem draconian, but it's actually important for Facebook: the U.S. state and federal laws that govern sweepstakes are extremely complicated, and by allowing only approved contests, Facebook is making sure that its bases are covered.

"Any promotion that any brand, product, or company would run has to have a terms of service against it," said Gunter Pfau, CEO of the Stuzo Group, an agency that has developed numerous Facebook contests and sweepstakes for clients. "Also, depending on the prize value, they need to be filed with various state regulatory agencies."

What, exactly, is new for contests? If a brand is running a contest on its fan page, it has to be handled through an embedded, separately developed application--not, for example, in the page's "wall." Promotions also can't involve Facebook users manipulating their user photos or status messages specifically for the contest.

Legal experts agree that this is necessary. "The (new Facebook) guidelines really cover only a narrow subset of promotions, specifically sweepstakes, contests, and similar competitions," explained Thomas Williams, a partner at the Chicago law firm Howrey, who specializes in trademark law. "That type of contest or promotion is governed by a myriad of state and federal regulations, so what I think Facebook is attempting to do here is merely shield itself from liability that arises out of its users' potential violations of these laws."

Williams continued: "I think it's a prudent and reasonable step on Facebook's part. There are lawyers who specialize in sweepstakes law, and there really are a lot of twists and turns to it."

One thing it'll also do, Stuzo Group's Gunter Pfau explained, is keep dishonest campaigns and promotions off the Facebook platform. "I think it's great news for consumers," he said. "I think what Facebook is doing is really laying these guidelines in place for companies to protect consumers more."

But what about the new ad spend requirements? Facebook has historically pitched its developer platform and fan pages as a free way for advertisers and marketers to tap into the power of "the social graph"--its 300 million-plus active users and their connections to one another. And while it's clear that the company sees these free pages and applications as a stepping stone for ad dollars--Chief Operating Officer Sheryl Sandberg, for example, regularly gives Madison Avenue talks about the company's "engagement ads"--it doesn't have a long track record of requiring advertisers to pay for something that used to be free.

"It makes sense for Facebook, but (it's) a little discouraging to advertisers," commented Alisa Leonard-Hansen, who holds the title of social-media evangelist at digital-marketing firm iCrossing. "Facebook is continually trying to discover new ways to monetize, and they picked up on the trend that advertisers were using their pages to run contests and other promotions. I think Facebook was looking to be able to benefit from this marketing trend."

The ad spend requirements, too, could be considered partial compensation for the new human resources required in Facebook's approval process. Each company running contests on Facebook now has a designated advertising sales representative, and fan pages will continue to have to be policed for potential violations of both advertiser regulations and sweepstakes law.

There might not be a lot of friction as the new regulations go into effect. Companies that don't run contests on their Facebook fan pages or applications won't be affected. Even some that do, especially small-scale fan pages that could easily go unnoticed by Facebook, won't have to change much. "Of course, there are going to be savvy marketers who skirt this and run (contests) under the radar," Alisa Leonard-Hansen said.

It really goes without saying the obvious: this is Facebook's service, and it can do what it wants with it. That doesn't mean marketers will stop grumbling. As one put it in a phone call to CNET, "This is another example of Facebook saying, 'Sorry, eat it, you've got no choice.'"

November 12, 2009 3:12 PM PST

Playdom exec: Social gaming to look 'a lot more like Hollywood'

by Caroline McCarthy
  • Post a comment
Share

If social gaming is Hollywood, the people aren't as pretty. Well, maybe the avatars are.

Yes, yes, we know that social games are taking over the bloody world: earlier this week, gamemaker Playfish announced its $300 million sale to Electronic Arts, and on Thursday, rival Playdom retorted with the announcement of $43 million in venture funding at a $260 million valuation, and the acquisitions of smaller gaming companies Green Patch (manufacturer of Facebook-based games like Lil Green Patch and Farm Life) and Trippert Labs. Green Patch's games will up Playdom's reach on Facebook by 30 percent, the company said.

Expect to see more of these sales, as smaller developers find they're having trouble treading water in an industry where the big guys--Zynga, Playfish, Playdom--have chomped up most of the market share, and where Facebook, the biggest destination for these games, has shown that it can change the rules at whim. And the big companies, too, want to scramble to get bigger.

Plus, as Playdom co-founder and chairman Rick Thompson explained to CNET News: When gaming companies grow large, they have to deal with a lot of stuff that can get in the way of producing new games and staying on top of consumer trends. That's one reason to keep investing in new talent through acqusitions.

"The hitmakers start spending all their time on operations, and on things that don't improve or enhance the games, and so they become essentially owners and operators," he said. And likewise, "people who can create things shouldn't necessarily be operating a gaming company."

He drew the evolution of a social gaming company parallel to an entertainment studio: "a lot more like Hollywood or the traditional gaming industry" than a Web start-up.

But here's the catch when it comes to acquisitions in this space: Gaming, especially social gaming, is a hit-driven business. If a parent company buys up a hot Facebook game, that game could already be running out of shelf life: which is, indeed, sort of like a Hollywood establishment signing a contract with an actor who's had five hit films in a row, as he could easily be over the hill before long. (Hello, Rob Lowe.)

"I think we're getting pretty good at really looking at their data now, and modeling how these games will evolve over time," Thompson said. "But I think there's essentially a life cycle of growth and then decay. What we really look at in acquisitions is not just daily active users, but bringing on additional team members that can really help create new games in the future."

advertisement

The yogurt makers of tech: Gadgets to avoid

Don't buy these one-trick ponies--unless you like gizmos that gather dust.

Google wants to unclog Net's DNS plumbing

The Net giant, ever eager for a faster Internet, debuts its Google Public DNS service. With it, Google could become even more central to the Net.

About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

Add this feed to your online news reader

The Social topics

Most Discussed



advertisement

Inside CNET News

Scroll Left Scroll Right