Businesses

Steam Will Let You Sue Valve Now (theverge.com) 28

Steam just removed its forced arbitration policy, opening the door for lawsuits against its parent company, Valve. From a report: In an update on Thursday, Steam says its subscriber agreement "now provides that any disputes are to go forward in court instead of arbitration." Many companies include a forced arbitration clause in their user agreement, waiving a person's right to a trial in court. Arbitration involves settling a dispute outside a legal system before an impartial third party. This method is often faster but may not get the best results for consumers, as arbitrators don't need to consider the law when issuing a decision.
Businesses

Dell Mandates Five-Day Office Presence For Global Sales Team 47

Dell is requiring global sales employees to work from offices five days a week starting September 30, according to an internal memo. The move aims to foster collaboration and skill development. Field representatives must spend five days weekly with customers, partners, or in-office, up from the previous three-day requirement, Dell says in the memo, according to Reuters. Remote workers unable to access Dell offices will continue working from home.
Businesses

Turning OpenAI Into a Real Business Is Tearing It Apart (msn.com) 41

OpenAI, creator of ChatGPT, is experiencing significant internal turmoil as a wave of high-profile departures, including Chief Technology Officer Mira Murati, rocks the company. Over 20 researchers and executives have left this year, reflecting deepening tensions between the organization's original nonprofit mission and its new profit-driven focus, WSJ reported Friday.

Employees report rushed product launches and inadequate safety testing, raising concerns about OpenAI's technological edge. CEO Sam Altman's global promotional efforts have reportedly left him detached from daily operations. The shift towards a conventional business model, with new C-suite appointments and a $6.5 billion funding drive, has alienated longtime staff who fear the company is abandoning its founding principles.
The Almighty Buck

Promises of 'Passive Income' On Amazon Led To Death Threats For Negative Online Review, FTC Says (cnbc.com) 78

"The Federal Trade Commission is cracking down on 'automation' companies that launch and manage online businesses on behalf of customers in exchange for an upfront investment," reports CNBC's Annie Palmer. "The latest case targets Ascend Ecom, which ran an e-commerce money-making scheme, primarily on Amazon." The FTC accuses the e-commerce company of defrauding consumers of at least $25 million through false claims, deceptive marketing practices, and attempts to suppress negative reviews. From the report: Jamaal Sanford received a disturbing email in May of last year. The message, whose sender claimed to be part of a "Russian shadow team," contained Sanford's home address, social security number and his daughter's college. It came with a very specific threat. The sender said Sanford, who lives in Springfield, Missouri, would only only be safe if he removed a negative online review. "Do not play tough guy," the email said. "You have nothing to gain by keeping the reviews and EVERYTHING to lose by not cooperating."

Months earlier, Sanford had left a scathing review for an e-commerce "automation" company called Ascend Ecom on the rating site Trustpilot. Ascend's purported business was the launching and managing of Amazon storefronts on behalf of clients, who would pay money for the service and the promise of earning thousands of dollars in "passive income." Sanford had invested $35,000 in such a scheme. He never recouped the money and is now in debt, according to a Federal Trade Commission lawsuit unsealed on Friday. His experience is a key piece of the FTC's suit, which accuses Ascend of breaking federal laws by making false claims related to earnings and business performance, and threatening or penalizing customers for posting honest reviews, among other violations. The FTC is seeking monetary relief for Ascend customers and to prevent Ascend from doing business permanently.

Businesses

Dozens of Fortune 100 Companies Have Unwittingly Hired North Korean IT Workers (therecord.media) 29

"Dozens of Fortune 100 organizations" have unknowingly hired North Korean IT workers using fake identities, generating revenue for the North Korean government while potentially compromising tech firms, according to Google's Mandiant unit. "In a report published Monday [...], researchers describe a common scheme orchestrated by the group it tracks as UNC5267, which has been active since 2018," reports The Record. "In most cases, the IT workers 'consist of individuals sent by the North Korean government to live primarily in China and Russia, with smaller numbers in Africa and Southeast Asia.'" From the report: The remote workers "often gain elevated access to modify code and administer network systems," Mandiant found, warning of the downstream effects of allowing malicious actors into a company's inner sanctum. [...] Using stolen identities or fictitious ones, the actors are generally hired as remote contractors. Mandiant has seen the workers hired in a variety of complex roles across several sectors. Some workers are employed at multiple companies, bringing in several salaries each month. The tactic is facilitated by someone based in the U.S. who runs a laptop farm where workers' laptops are sent. Remote technology is installed on the laptops, allowing the North Koreans to log in and conduct their work from China or Russia.

Workers typically asked for their work laptops to be sent to different addresses than those listed on their resumes, raising the suspicions of companies. Mandiant said it found evidence that the laptops at these farms are connected to a "keyboard video mouse" device or multiple remote management tools including LogMeIn, GoToMeeting, Chrome Remote Desktop, AnyDesk, TeamViewer and others. "Feedback from team members and managers who spoke with Mandiant during investigations consistently highlighted behavior patterns, such as reluctance to engage in video communication and below-average work quality exhibited by the DPRK IT worker remotely operating the laptops," Mandiant reported.

In several incident response engagements, Mandiant found the workers used the same resumes that had links to fabricated software engineer profiles hosted on Netlify, a platform often used for quickly creating and deploying websites. Many of the resumes and profiles included poor English and other clues indicating the actor was not based in the U.S. One characteristic repeatedly seen was the use of U.S-based addresses accompanied by education credentials from universities outside of North America, frequently in countries such as Singapore, Japan or Hong Kong. Companies, according to Mandiant, typically don't verify credentials from universities overseas.
Further reading: How Not To Hire a North Korean IT Spy
Government

US Justice Department Probes Super Micro Computer (yahoo.com) 22

According to the Wall Street Journal, the U.S. Department of Justice is investigating Super Micro Computer after short-seller Hindenburg Research alleged "accounting manipulation" at the AI server maker. Super Micro's shares fell about 12% following the report. Reuters reports: The WSJ report, which cited people familiar with the matter, said the probe was at an early stage and that a prosecutor at a U.S. attorney's office recently contacted people who may be holding relevant information. The prosecutor has asked for information that appeared to be connected to a former employee who accused the company of accounting violations, the report added.

Super Micro had late last month delayed filing its annual report, citing a need to assess "its internal controls over financial reporting," a day after Hindenburg disclosed a short position and made claims of "accounting manipulation." The short-seller had cited a three-month investigation that included interviews with former senior employees of Super Micro and litigation records. Hindenburg's allegations included evidence of undisclosed related-party transactions, failure to abide by export controls, among other issues. The company had denied Hindenburg's claims.

Google

Google Maps is Cracking Down on Fake Reviews (theverge.com) 19

An anonymous reader shares a report: Google Maps is reeling in business pages engaging in fake reviews, and highlighting such activity to its users. Google will now impose restrictions against business profiles that violate the search giant's Fake Engagement policy, such as temporarily removing reviews, blocking new reviews or ratings, and displaying a warning message on profiles that have had fake reviews deleted.

The business profile restrictions were introduced in the UK earlier this year, but Search Engine Roundtable notes that the support page was updated in mid-September to seemingly apply globally. For the moment, however, only users in the UK are seeing the business warnings.

Robotics

McDonald's Touchscreen Kiosks, Feared As Job Killers, Created More Jobs Instead (cnn.com) 204

An anonymous reader quotes a report from CNN: Some McDonald's franchisees -- which own and operate 95% of McDonald's in the United States -- are now rolling out kiosks that can take cash and accept change. But even in these locations, McDonald's is reassigning cashiers to other roles, including new "guest experience lead" jobs that help customers use the kiosks and assist with any issues. "In theory, kiosks should help save on labor, but in reality, restaurants have added complexity due to mobile ordering and delivery, and the labor saved from kiosks is often reallocated for these efforts," said RJ Hottovy, an analyst who covers the restaurant and retail industries at data analytics firm Placer.ai. Kiosks "have created a restaurant within a restaurant." And in some cases, kiosks have even been a flop. Bowling ally chain Bowlero added kiosks in lanes for customers to order food and drinks, but they went unused because staff and customers weren't fully trained on using them. "The unintended consequences have surprised a lot of people," Hottovy said.

Even some of the benefits of kiosks touted by chains -- they upsell customers by suggesting menu items and speed up orders -- don't always play out. A recent study from Temple University researchers found that, when a line forms behind customers using kiosks, they experience more stress when placing their orders and purchase less food. And some customers take longer to order tapping around on kiosks and paying than they do telling a cashier they'd like to order a burger and fries. Not to mention the kiosks can malfunction or break down. "If kiosks really improved speed of service, order accuracy, and upsell, they'd be rolled out more extensively across the industry than they are today," Hottovy said.

Kiosks have also been threatened as a fast-food industry response to higher minimum wage laws. [...] But the quick-service and fast-casual segments of the restaurant industry continue to grow. Staffing levels were nearly 150,000 jobs, or 3%, above pre-pandemic levels, according to the latest Labor Department data. Christopher Andrews, a sociologist at Drew University who studies the effects of technology on work, said the impacts of kiosks were similar to other self-service technology such as ATMs and self-checkout machines in supermarkets. Both technologies were predicted to cause job losses. "The introduction of ATMs did not result in massive technological unemployment for bank tellers," he said. "Instead, it freed them up from low-value tasks such as depositing and cashing checks to perform other tasks that created value."
Self-checkout have also not resulted in retail job losses, the report adds. "In some cases, self-checkout backfired for chains because self-checkout leads to higher merchandise losses from customer errors and more intentional shoplifting than when human cashiers are ringing up customers."
Television

Disney Officially Launches Password-Sharing Crackdown With Paid Sharing Program (hollywoodreporter.com) 22

Disney has officially launched its password and account-sharing crackdown, rolling out what it is calling its "paid sharing program" to users in the U.S. and in many regions around the world this week. The rollout follows the company sharing plans to crackdown on unauthorized usage on its streaming service earlier this year. From a report: The paid sharing program has a couple of options for users, per a blog post published Wednesday: People sharing an account with someone outside their household can add that person as an "Extra Member" for $6.99 per month for Disney+ Basic, or $9.99 for Disney+ Premium, both discounts to the normal retail price. Only one Extra Member will be allowed per account, and it is not available as part of the Disney Bundle. In addition, users sharing an account can also subscribe to Disney+ themselves, and can transfer an eligible profile to the new account to keep their watch history and settings. The password-cracking effort has helped Netflix boost its subscribers count in recent quarters.
Businesses

Amazon Employees Plead For Reversal of 5-Day RTO Mandate in Anonymous Survey (fortune.com) 100

An anonymous reader shares a report: Some Amazon workers are refusing to "disagree and commit," as one of the company's famed leadership principles requires of those who aren't on board with a decision. Instead, hundreds of the online retailing giant's employees are complaining that CEO Andy Jassy's five-days-per-week return-to-office mandate, announced last week, will negatively impact their lives -- and productivity at work -- and how they hope the company will reverse course.

The feedback is from an anonymous survey created by Amazon employees that was viewed by Fortune on Tuesday. Corporate employees have shared it widely via the messaging app Slack, including in one "remote advocacy" Slack channel with more than 30,000 members that a former employee created when Amazon first announced a three-day return-to-office mandate last year. As a result, employees who are in favor of remote or hybrid work may have been more likely to respond to the survey and therefore skew the findings.

As of the afternoon of September 24, the average satisfaction rating related to the RTO mandate among survey respondents was 1.4 out of scale up to 5 (with 1 meaning "strongly dissatisfied" and 5 representing "strongly satisfied"). The survey's creators said in an introduction to their questionnaire that they plan to aggregate and share the results by email with Jassy and other company executives "to provide them with clear insight into the impact of this policy on employees, including the challenges identified and proposed solutions."

Businesses

As IBM Pushes For More Automation, Its AI Simply Not Up To the Job of Replacing Staff (theregister.com) 38

An anonymous reader shares a report: IBM's plan to replace thousands of roles with AI presently looks more like outsourcing jobs to India, at the expense of organizational competency. That view of Big Blue was offered to The Register after our report on the IT giant's latest layoffs, which resonated so strongly with several IBM employees that they contacted The Register with thoughts on the job cuts. Our sources have asked not to be identified to protect their ongoing relationships with Big Blue. Suffice to say they were or are employed as senior technologists in business units that span multiple locations and were privy to company communications: These are not views from the narrow entrance to a single cubicle. We're going to refer to three by the pseudonyms Alex, Blake, and Casey.

"I always make this joke about IBM," said Alex. "It is: 'IBM doesn't want people to work for them.' Every six months or so they are doing rounds of [Resource Actions -- IBM-speak for layoffs] or forcing folks into impossible moves, which result in separation." That's consistent with CEO Arvind Krishna's commitment last year to replace around 7,800 jobs with AI. But our sources say Krishna's plan is on shaky ground: IBM's AI isn't up to the job of replacing people, and some of the people who could fix that have been let go. Alex observed that over the past four years, IBM management has constantly pushed for automation and the use of AI. "With AI tools writing that code for us ... why pay for senior-level staff when you can promote a youngster who doesn't really know any better at a much lower price?" he said. "Plus, once you have a seasoned programmer write code that is by law the company's IP and it is fed into an AI library, it basically learns it and the author is no longer needed." But our sources tell us that scenario has yet to be realized inside IBM.

Businesses

OpenAI To Remove Non-Profit Control and Give Sam Altman Equity (reuters.com) 80

OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation that will no longer be controlled by its non-profit board. "Chief executive Sam Altman will also receive equity for the first time in the for-profit company, which could be worth $150 billion after the restructuring as it also tries to remove the cap on returns for investors," reports Reuters. From the report: The OpenAI non-profit will continue to exist and own a minority stake in the for-profit company, the sources said. The move could also have implications for how the company manages AI risks in a new governance structure. [...] The details of the proposed corporate structure, first reported by Reuters, highlight significant governance changes happening behind the scenes at one of the most important AI companies. The plan is still being hashed out with lawyers and shareholders and the timeline for completing the restructuring remains uncertain, the sources said. "We remain focused on building AI that benefits everyone, and we're working with our board to ensure that we're best positioned to succeed in our mission. The non-profit is core to our mission and will continue to exist," an OpenAI spokesperson said.

Earlier today, OpenAI's chief technology officer Mira Murati announced her departure from the company. Her resignation follows the departures of founders Ilya Sutskever and John Schulman.

Further reading: OpenAI Pitched White House On Unprecedented Data Center Buildout
Google

Google Paid $2.7 Billion To Bring Back an AI Genius Who Quit in Frustration (msn.com) 71

At a time when tech companies are paying eye-popping sums to hire the best minds in artificial intelligence, Google's deal to rehire Noam Shazeer has left others in the dust. From a report: A co-author of a seminal research paper that kicked off the AI boom, Shazeer quit Google in 2021 to start his own company after the search giant refused to release a chatbot he developed. When that startup, Character.AI, began to flounder, his old employer swooped in.

Google wrote Character a check for around $2.7 billion, according to people with knowledge of the deal. The official reason for the payment was to license Character's technology. But the deal included another component: Shazeer agreed to work for Google again. Within Google, Shazeeer's return is widely viewed as the primary reason the company agreed to pay the multibillion-dollar licensing fee. The arrangement has thrust him into the middle of a debate in Silicon Valley about whether tech giants are overspending in the race to develop cutting-edge AI, which some believe will define the future of computing.

Music

ByteDance Is Shutting Down TikTok Music Globally (techcrunch.com) 10

In November, ByteDance's TikTok Music will be shut down in all the countries it currently operates in, including Indonesia, Brazil, Australia, Singapore, and Mexico. A notice on the service's website reads: "We are sorry to inform you that TikTok Music will be closing on 28 November 2024." TechCrunch reports: Subscribers can continue to use the service until November 28, after which renewals will be automatically canceled, the notice said. Users who want to transfer their playlists to other streaming services will need to do so by October 28, and refund requests need to be submitted by November 28. TikTok said that it will continue partnering with music streaming services rather than competing with them. In February, the company launched the "Add to Music" feature on TikTok that lets users add tracks directly to a playlist on Apple Music, Amazon Music, or Spotify.

TikTok Music was rooted in a ByteDance product called Resso, which was first launched in India and Indonesia in 2019 and later expanded to Brazil. In 2023, ByteDance rebranded Resso to TikTok Music in Brazil and Indonesia, and soon after expanded it to Singapore, Australia, and Mexico. Resso was banned early this year in India.
"Our Add to Music App feature has already enabled hundreds of millions of track saves to playlists on partner music streaming services. We will be closing TikTok Music at the end of November in order to focus on our goal of furthering TikTok's role in driving even greater music listening and value on music streaming services, for the benefit of artists, songwriters, and the industry," Ole Obermann, global head of Music Business Development, TikTok, said in a statement.
Movies

James Cameron Joins Board of Stability AI In Coup For Tech Firm 23

An anonymous reader quotes a report from the Hollywood Reporter: In a major coup for the artificial intelligence company, Stability AI says that Avatar, Terminator and Titanic director James Cameron will join its board of directors. Stability AI is the firm that developed the Stable Diffusion text-to-image generative AI model, an image- and video-focused model that is among those being closely watched by many in Hollywood, particularly in the visual effects industry. In fact, Stability AI's CEO, Prem Akkaraju, is no stranger to the business, having previously served as the CEO of visual effects firm WETA Digital. Sean Parker, the former president of Facebook and founder of Napster, also recently joined the AI firm as executive chairman.

As a director, Cameron has long been eager to push the boundaries of what is technologically possible in filmmaking (anyone who has seen the Terminator franchise knows that he is also familiar with the pitfalls of technology run amok). He was among the earliest directors to embrace the potential of computer-generated visual effects, and he continued to use his films (most recently Avatar: The Way of Water) to move the entire field forward.
"I've spent my career seeking out emerging technologies that push the very boundaries of what's possible, all in the service of telling incredible stories," Cameron said in a statement. "I was at the forefront of CGI over three decades ago, and I've stayed on the cutting edge since. Now, the intersection of generative AI and CGI image creation is the next wave. The convergence of these two totally different engines of creation will unlock new ways for artists to tell stories in ways we could have never imagined. Stability AI is poised to lead this transformation. I'm delighted to collaborate with Sean, Prem, and the Stability AI team as they shape the future of all visual media."
Government

California Governor Vetoes Bill Requiring Opt-Out Signals For Sale of User Data (arstechnica.com) 51

An anonymous reader quotes a report from Ars Technica: California Gov. Gavin Newsom vetoed a bill that would have required makers of web browsers and mobile operating systems to let consumers send opt-out preference signals that could limit businesses' use of personal information. The bill approved by the State Legislature last month would have required an opt-out signal "that communicates the consumer's choice to opt out of the sale and sharing of the consumer's personal information or to limit the use of the consumer's sensitive personal information." It would have made it illegal for a business to offer a web browser or mobile operating system without a setting that lets consumers "send an opt-out preference signal to businesses with which the consumer interacts."

In a veto message (PDF) sent to the Legislature Friday, Newsom said he would not sign the bill. Newsom wrote that he shares the "desire to enhance consumer privacy," noting that he previously signed a bill "requir[ing] the California Privacy Protection Agency to establish an accessible deletion mechanism allowing consumers to request that data brokers delete all of their personal information." But Newsom said he is opposed to the new bill's mandate on operating systems. "I am concerned, however, about placing a mandate on operating system (OS) developers at this time," the governor wrote. "No major mobile OS incorporates an option for an opt-out signal. By contrast, most Internet browsers either include such an option or, if users choose, they can download a plug-in with the same functionality. To ensure the ongoing usability of mobile devices, it's best if design questions are first addressed by developers, rather than by regulators. For this reason, I cannot sign this bill." Vetoes can be overridden with a two-thirds vote in each chamber. The bill was approved 59-12 in the Assembly and 31-7 in the Senate. But the State Legislature hasn't overridden a veto in decades.
"It's troubling the power that companies such as Google appear to have over the governor's office," said Justin Kloczko, tech and privacy advocate for Consumer Watchdog, a nonprofit group in California. "What the governor didn't mention is that Google Chrome, Apple Safari and Microsoft Edge don't offer a global opt-out and they make up for nearly 90 percent of the browser market share. That's what matters. And people don't want to install plug-ins. Safari, which is the default browsers on iPhones, doesn't even accept a plug-in."
Businesses

Online Discounts Are Getting Stingier (sherwood.news) 29

Steep online discounts aren't as sweet as they used to be. From a report: The average discount offered by online retailers in the US is down to 36% so far this year, data from Centric Market Intelligence shows. That's down two percentage points from last year, and down from an average of 42% in 2019 -- a 14% drop in real terms. Finding a bargain is getting tougher for a variety of reasons, according to retail experts who spoke with Sherwood. Sellers are having to pay more for raw materials, and they're shelling out more in customer-acquisition costs to get you to order from them. Fulfilling online orders is also generally more expensive than selling items in person. All these add up to increased costs that make it harder to offer discounts.
Government

California Bans All Plastic Bags (nytimes.com) 347

An anonymous reader quotes a report from the New York Times: Paper or paper? In California, shoppers will have only one bag option at the checkout line starting in 2026. A decade ago, California became the first U.S. state to ban single-use plastic bags, the flimsy sacks that regularly blew into waterways, littered streets and collected in landfills. The prohibition, in the nation's most populous state, was considered a turning point in the effort to reduce plastic waste. But the move backfired in a way that few supporters expected. Californians in 2021 actually tossed nearly 50 percent more plastic bags, by weight, than when the law first passed in 2014, according to data from CalRecycle, California's recycling agency. A loophole in the initial ban allowed retailers to provide thick-walled plastic bags and charge 10 cents a piece for them. Though technically reusable and recyclable, the heavier-duty sacks still ended up in many trash cans after a shopping trip.

Gov. Gavin Newsom signed legislation on Sunday banning the sale at grocery checkouts of all plastic bags (Warning: source may be paywalled; alternative source), regardless of thickness. The only option for customers who lack their own reusable shopping bags will be buying paper bags for 10 cents each. "We deserve a cleaner future for our communities, our children and our earth," said Rebecca Bauer-Kahan, a Democratic assemblywoman and co-author of the bill, in a statement. "It's time for us to get rid of these plastic bags and continue to move forward with a more pollution-free environment." Plastic bags are typically used for 12 minutes before being discarded, according to the California Public Interest Research Group, a consumer advocacy group. But those bags live in oceans and landfills for hundreds of years, and can contaminate drinking water and food in the form of microplastics.
SB 1053 will go into effect on January 1st, 2026. It also changes the definition of a "recycled paper bag," requiring all bags with that label to be made of at least 50% post-consumer recycled materials starting January 1st, 2028.
Open Source

Startups Are Going 'Fair Source' To Avoid Pitfalls of Open Source Licensing (techcrunch.com) 82

An anonymous reader quotes a report from TechCrunch: With the perennial tensions between proprietary and open source software (OSS) unlikely to end anytime soon, a $3 billion startup is throwing its weight behind a new licensing paradigm -- one that's designed to bridge the open and proprietary worlds, replete with new definition, terminology, and governance model. Developer software company Sentry recently introduced a new license category dubbed "fair source." Sentry is an initial adopter, as are some half dozen others, including GitButler, a developer tooling company from one of GitHub's founders. The fair source concept is designed to help companies align themselves with the "open" software development sphere, without encroaching into existing licensing landscapes, be that open source, open core, or source-available, and while avoiding any negative associations that exist with "proprietary." However, fair source is also a response to the growing sense that open source isn't working out commercially.

"Open source isn't a business model -- open source is a distribution model, it's a software development model, primarily," Chad Whitacre, Sentry's head of open source, told TechCrunch. "And in fact, it places severe limits on what business models are available, because of the licensing terms." Sure, there are hugely successful open source projects, but they are generally components of larger proprietary products. Businesses that have flown the open source flag have mostly retreated to protect their hard work, moving either from fully permissive to a more restrictive "copyleft" license, as the likes of Element did last year and Grafana before it, or ditched open source altogether as HashiCorp did with Terraform. "Most of the world's software is still closed source," Whitacre added. "Kubernetes is open source, but Google Search is closed. React is open source, but Facebook Newsfeed is closed. With fair source, we're carving a space for companies to safely share not just these lower-level infrastructure components, but share access to their core product."
Further reading: As Companies Try 'Open Source Rug Pull', Open Source Foundations Considered Helpful

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