Random Thoughts of Mine...

E-tailers snagged in marketing 'scam' blame customers

First, the good news for consumers: the U.S. government's investigation into how dozens of well-known online stores worked with controversial marketers to "deceive" customers out of $1.4 billion has prompted some retailers, including Continental Airlines, to sever ties with the marketers.

Now, the bad news: the marketers--Affinion, Vertrue, and Webloyalty--are still in business and judging from the responses of many of the retailers involved, such as Priceline, Classmates.com, FTD, Shutterfly, and Orbitz, it will be business as usual. They see nothing wrong with the marketing practices that millions of angry online shoppers and members of the U.S. Senate have called a "scam," "robbery" and "theft."

While the U.S. Senate Commerce committee produced a staggering amount of documentation during a hearing last week that appears to show consumers are misled into signing up for so-called loyalty programs, the retailers continue to suggest it's their customers who are at fault.

The controversy began last May, when the Commerce committee launched an investigation into the practices employed by Vertrue, Affinion, and Webloyalty. The committee's investigators found thousands of complaints going back years from people who said they discovered "mysterious charges" on their credit cards and struggled to discover how they got there.

McAfee warns about '12 Scams of Christmas'

Retailers aren't the only ones gearing up for the holiday season. Criminals are also out in force.

To highlight the increased crime during the holidays, security company McAfee has come up with the "12 Scams of Christmas" ranging from bogus electronic greeting cards that deliver malware instead of cheer to fake charities that steal your money and your identity.

It's especially important to be extra careful this time of year, says McAfee's David Marcus. "The bad guys know people are spending more time online, they're paying more bills online so [the criminals] stand a chance of being a bit more successful this time of year.

In a podcast interview (scroll down to listen), Marcus counted down the 12 scams of Christmas starting with:

1. Charitable phishing scams: Marcus warns consumers to be wary of e-mails that appear to be from legitimate charities. Not only will they take your money and deprive charities of needed funds, but they will also steal your credit card information and identity.

2. Fake invoices from delivery services: During this period, scammers will send out fake invoices and delivery notifications appearing to come from Federal Express, UPS, the U.S. Postal Service or even the U.S. Customs Service saying that they were unable to deliver a package to your address. They ask you to confirm your address and give them credit card information to pay for delivery.

3. Social networking friend requests: Bad guys take advantage of this social time of year by sending out authentic looking friend requests via e-mail. Marcus recommends that you not click on those links but sign into Facebook and other services and look for friend requests from the site itself. Clicking on a link could install malware on your computer or trick you into revealing your password.

FTC Guns for Blogger Shills—and Misses

Blogger payola is risible, but the new FTC guidelines are misguided, unenforceable, and utterly useless.

by Dan Costa

The FTC released guidelines designed to crackdown on the blogger payola—the risible practice of paying people to write favorable things about your products or company. As the editor who runs the Reviews team here at PCMag.com, I thought it would be worth my time to wade through the 81-page guide of regulations. After all, the penalty could be $11,000 per violation. Near as I can tell, the regulation will require every blogger to disclose payments, gifts, and professional interests for every tweet, post, or email that supports a given company. In other words, this mess of regulations misunderstands media, creates unenforceable rules, and, quite possibly, violates our First Amendment right to free speech.

For starters, let me review how PCMag.com does business. Vendors loan us products to review. We test them. We send them back. That's pretty much it. Staff can't take cash or gifts of value from vendors—although you will be hard-pressed to find a staffer without at least a dozen 512MB USB keys filled with press releases and images. There is also a drawer full of T-shirts. Our advertising department has no say in what we write and neither do vendors. Sometimes companies are upset about what we write, but they know the deal going in.

PCMag has been in business for longer than I have, and I take lot of pride in working here. Truth be told, many of our competitors also have rigorous editorial standards. A lot of established blogs have standards that are just as high. For that matter, I know individual bloggers who are informed, scrupulous, and utterly enjoyable to read. So why is the FTC setting up different types of rules for PCMag, or indeed, why is it setting up rules at all?

The new rules extend far beyond bloggers. Facebook updates, Twitter posts, Tumblr photos, even word-of-mouth marketing can be now be regulated by the FTC. Like most people, I despise this type of covert marketing more than anything. But, at some point, I think we have to let people post, blog, tweet, and say what they want to one another. We can decide whether or not to believe them.

Microsoft fans call for Opera boycott
Don't pick on little ol' Redmond

Windows enthusiast site JCXP.net is asking fellow fans to delete the Opera web browser from PCs and devices in an act of solidarity against European antitrust action.

"Today we are proposing a complete boycott of all Opera software," David Taraso, editor of the JCXP group, wrote in a blog post late on Friday. Taraso blames Opera Software for goading European regulators into a regulatory showdown with Microsoft.

The European Commission filed antitrust charges in January alleging Microsoft unfairly stifles competition by bundling Internet Explorer with Windows. The investigation was spurred by a 2007 complaint from Opera Software, maker of a rival web browser and long-time outspoken critic of Microsoft's dominance. Although the lawsuit was later joined by Google and Mozilla, Taraso blames Opera as the instigator.

The plot thickened in the EU case on Thursday, when Microsoft said it would ship the upcoming Windows 7 operating system in Europe without Internet Explorer, in an apparent attempt to preempt antitrust measures. The EU hastily rejected Microsoft's response as inadequate, with Opera jeering at the sidelines.

"This is absolutely nothing more than a company who can't legitimately gain market share trying to squeeze their unpopular browser onto Windows systems," Taraso wrote. "Opera is simply upset because their browser is dead last in market share, and has already been surpassed by the recent released Google Chrome browser and Apple's Safari browser for Windows."