Sneaky Software: From VW to Newspapers

VW’s fall from grace as a trusted automotive engineering powerhouse resulted from its hubris and greed for better profits by executing a deceit on consumers facilitated by sneaky software.   This is consistent with a new rash of brash corporate behavior including the salmonella-peanut-CEO who said “just ship it” and the price-gouging prescription drug CEO who said “this is about trying to stay in business.”   But, what is yet to emerge is the widespread misuse of sneaky software for corporate profits across many industries, including newspapers. 

A New York Times editorial asked “what was Volkswagen thinking?...It is incredible that anyone at the company thought that the company could get away with it.”  But, the Times should get off its pedestal and critically examine its own practices with sneaky software. 

A bit of background.  The Time’s stock price is down almost 20% over the last three months and it is barely scratching out a profit.  But, the bright spot in Q1 was digital advertising which increased 14%.  It now accounts for one third of all advertising.  And advertising accounts for 40% of the newspaper’s revenue.  At this growth rate, compared to its circulation growth (i.e., people actually buying the product), the company will be predominately an advertising company in just a few years.  An industry analyst said “the company needs to continue execution on digital to return to a path of revenue growth.”

The digital strategy is all about getting more ad revenues through targeted ads based on cookie spies injected into computing devices that discover where you have traveled, what you have read, what you have shared with your connections on social media, and more.  I have suggested in another piece that you may not want your mother to know that you were at the Happy Times Hotel at 2 in the morning, so why would you share that with the Times?  

What’s interesting about digital advertising is its audaciousness.  The Times is “open” about its policies if you have the wherewithal to find, read and understand its 4000 word privacy policy.   There you will find some brazen statements such as the following.  (My comments are italicized.)

•  “If you choose to use NYTimes.com…you will be agreeing to abide by all of the terms and conditions… which we may change at any time… It is your responsibility to review these Terms of Service prior to each use.”  This lawyerly statement means that just clicking on the site absolves them of any actions they take as described in the terms and conditions that may be harmful to you. 
•  “You may register or enhance your profile by linking to your Facebook or Google account… and you are authorizing us to collect, store, and use what they send us…”  What you record on other sites is shared with the NYT for its data mining purposes.
• “We may collect non-personal information about the computer, mobile device or other device you use to access the NYT Services, such as IP address, geolocation information, unique device identifiers, browser type, browser language and other transactional information.”  This is a curious use of the term “non-personal” since this information is very personal.  It is an obfuscating attempt to give the impression that it does not collect personal information.
• “We may transmit non-personally identifiable website usage information to third parties in order to show you advertising.”  This sharing is the bedrock of targeted digital advertising.  
•  “We gather certain information automatically and store it in log files.”  How long is it stored, how is it protected, when and how is it destroyed?
•   “Some of the services and advertisements included in the NYT Services…are delivered or served by third-party companies…These companies may place or recognize cookies, Web beacons or other technology to track certain non-personal information about our website users… an advertiser or ad server may also be able to collect your device’s unique identifier in the course of serving an ad.   In many cases, this information could be used to show you ads… We do not have access to, nor control over, these third parties' use of cookies or other tracking technologies or how they may be used.”  They acknowledge that they facilitate the spying by third parties.  But, why are they not responsible for the activities of their paid advertising partners?  Are these third parties trustworthy?  Do we need to check out their Terms of Service on a daily basis?  But, how do we find out who they are?

The New York Times is my favorite newspaper.  I have been a subscriber for decades.  It has a dedication to reporting excellence.  I had the same loyalty to VW.  Sneaky software got in the way.  The desperate reach for revenues distorted smart thinking.  It is foolish to believe that all these data collected for advertising will not end up being stolen or used for purposes such as profiling people that may result in a loss of a job, mortgage, or marriage.  As the New York Times pursues it digital advertising strategy, I sincerely hope that hubris, profits, and sneaky software do not conspire to ruin it.