organization:federal trade commission

  • Beyond the Hype of Lab-Grown Diamonds
    https://earther.gizmodo.com/beyond-the-hype-of-lab-grown-diamonds-1834890351

    Billions of years ago when the world was still young, treasure began forming deep underground. As the edges of Earth’s tectonic plates plunged down into the upper mantle, bits of carbon, some likely hailing from long-dead life forms were melted and compressed into rigid lattices. Over millions of years, those lattices grew into the most durable, dazzling gems the planet had ever cooked up. And every so often, for reasons scientists still don’t fully understand, an eruption would send a stash of these stones rocketing to the surface inside a bubbly magma known as kimberlite.

    There, the diamonds would remain, nestled in the kimberlite volcanoes that delivered them from their fiery home, until humans evolved, learned of their existence, and began to dig them up.

    The epic origin of Earth’s diamonds has helped fuel a powerful marketing mythology around them: that they are objects of otherworldly strength and beauty; fitting symbols of eternal love. But while “diamonds are forever” may be the catchiest advertising slogan ever to bear some geologic truth, the supply of these stones in the Earth’s crust, in places we can readily reach them, is far from everlasting. And the scars we’ve inflicted on the land and ourselves in order to mine diamonds has cast a shadow that still lingers over the industry.

    Some diamond seekers, however, say we don’t need to scour the Earth any longer, because science now offers an alternative: diamonds grown in labs. These gems aren’t simulants or synthetic substitutes; they are optically, chemically, and physically identical to their Earth-mined counterparts. They’re also cheaper, and in theory, limitless. The arrival of lab-grown diamonds has rocked the jewelry world to its core and prompted fierce pushback from diamond miners. Claims abound on both sides.

    Growers often say that their diamonds are sustainable and ethical; miners and their industry allies counter that only gems plucked from the Earth can be considered “real” or “precious.” Some of these assertions are subjective, others are supported only by sparse, self-reported, or industry-backed data. But that’s not stopping everyone from making them.

    This is a fight over image, and when it comes to diamonds, image is everything.
    A variety of cut, polished Ada Diamonds created in a lab, including smaller melee stones and large center stones. 22.94 carats total. (2.60 ct. pear, 2.01 ct. asscher, 2.23 ct. cushion, 3.01 ct. radiant, 1.74 ct. princess, 2.11 ct. emerald, 3.11 ct. heart, 3.00 ct. oval, 3.13 ct. round.)
    Image: Sam Cannon (Earther)
    Same, but different

    The dream of lab-grown diamond dates back over a century. In 1911, science fiction author H.G. Wells described what would essentially become one of the key methods for making diamond—recreating the conditions inside Earth’s mantle on its surface—in his short story The Diamond Maker. As the Gemological Institute of America (GIA) notes, there were a handful of dubious attempts to create diamonds in labs in the late 19th and early 20th century, but the first commercial diamond production wouldn’t emerge until the mid-1950s, when scientists with General Electric worked out a method for creating small, brown stones. Others, including De Beers, soon developed their own methods for synthesizing the gems, and use of the lab-created diamond in industrial applications, from cutting tools to high power electronics, took off.

    According to the GIA’s James Shigley, the first experimental production of gem-quality diamond occurred in 1970. Yet by the early 2000s, gem-quality stones were still small, and often tinted yellow with impurities. It was only in the last five or so years that methods for growing diamonds advanced to the point that producers began churning out large, colorless stones consistently. That’s when the jewelry sector began to take a real interest.

    Today, that sector is taking off. The International Grown Diamond Association (IGDA), a trade group formed in 2016 by a dozen lab diamond growers and sellers, now has about 50 members, according to IGDA secretary general Dick Garard. When the IGDA first formed, lab-grown diamonds were estimated to represent about 1 percent of a $14 billion rough diamond market. This year, industry analyst Paul Zimnisky estimates they account for 2-3 percent of the market.

    He expects that share will only continue to grow as factories in China that already produce millions of carats a year for industrial purposes start to see an opportunity in jewelry.
    “I have a real problem with people claiming one is ethical and another is not.”

    “This year some [factories] will come up from 100,000 gem-quality diamonds to one to two million,” Zimnisky said. “They already have the infrastructure and equipment in place” and are in the process of upgrading it. (About 150 million carats of diamonds were mined last year, according to a global analysis of the industry conducted by Bain & Company.)

    Production ramp-up aside, 2018 saw some other major developments across the industry. In the summer, the Federal Trade Commission (FTC) reversed decades of guidance when it expanded the definition of a diamond to include those created in labs and dropped ‘synthetic’ as a recommended descriptor for lab-grown stones. The decision came on the heels of the world’s top diamond producer, De Beers, announcing the launch of its own lab-grown diamond line, Lightbox, after having once vowed never to sell man-made stones as jewelry.

    “I would say shock,” Lightbox Chief Marketing Officer Sally Morrison told Earther when asked how the jewelry world responded to the company’s launch.

    While the majority of lab-grown diamonds on the market today are what’s known as melee (less than 0.18 carats), the tech for producing the biggest, most dazzling diamonds continues to improve. In 2016, lab-grown diamond company MiaDonna announced its partners had grown a 6.28 carat gem-quality diamond, claimed to be the largest created in the U.S. to that point. In 2017, a lab in Augsburg University, Germany that grows diamonds for industrial and scientific research applications produced what is thought to be the largest lab-grown diamond ever—a 155 carat behemoth that stretches nearly 4 inches across. Not gem quality, perhaps, but still impressive.

    “If you compare it with the Queen’s diamond, hers is four times heavier, it’s clearer” physicist Matthias Schreck, who leads the group that grew that beast of a jewel, told me. “But in area, our diamond is bigger. We were very proud of this.”

    Diamonds can be created in one of two ways: Similar to how they form inside the Earth, or similar to how scientists speculate they might form in outer space.

    The older, Earth-inspired method is known as “high temperature high pressure” (HPHT), and that’s exactly what it sounds like. A carbon source, like graphite, is placed in a giant, mechanical press where, in the presence of a catalyst, it’s subjected to temperatures of around 1,600 degrees Celsius and pressures of 5-6 Gigapascals in order to form diamond. (If you’re curious what that sort of pressure feels like, the GIA describes it as similar to the force exerted if you tried to balance a commercial jet on your fingertip.)

    The newer method, called chemical vapor deposition (CVD), is more akin to how diamonds might form in interstellar gas clouds (for which we have indirect, spectroscopic evidence, according to Shigley). A hydrocarbon gas, like methane, is pumped into a low-pressure reactor vessel alongside hydrogen. While maintaining near-vacuum conditions, the gases are heated very hot—typically 3,000 to 4,000 degrees Celsius, according to Lightbox CEO Steve Coe—causing carbon atoms to break free of their molecular bonds. Under the right conditions, those liberated bits of carbon will settle out onto a substrate—typically a flat, square plate of a synthetic diamond produced with the HPHT method—forming layer upon layer of diamond.

    “It’s like snow falling on a table on your back porch,” Jason Payne, the founder and CEO of lab-grown diamond jewelry company Ada Diamonds, told me.

    Scientists have been forging gem-quality diamonds with HPHT for longer, but today, CVD has become the method of choice for those selling larger bridal stones. That’s in part because it’s easier to control impurities and make diamonds with very high clarity, according to Coe. Still, each method has its advantages—Payne said that HPHT is faster and the diamonds typically have better color (which is to say, less of it)—and some companies, like Ada, purchase stones grown in both ways.

    However they’re made, lab-grown diamonds have the same exceptional hardness, stiffness, and thermal conductivity as their Earth-mined counterparts. Cut, they can dazzle with the same brilliance and fire—a technical term to describe how well the diamond scatters light like a prism. The GIA even grades them according to the same 4Cs—cut, clarity, color, and carat—that gemologists use to assess diamonds formed in the Earth, although it uses a slightly different terminology to report the color and clarity grades for lab-grown stones.

    They’re so similar, in fact, that lab-grown diamond entering the larger diamond supply without any disclosures has become a major concern across the jewelry industry, particularly when it comes to melee stones from Asia. It’s something major retailers are now investing thousands of dollars in sophisticated detection equipment to suss out by searching for minute differences in, say, their crystal shape or for impurities like nitrogen (much less common in lab-grown diamond, according to Shigley).

    Those differences may be a lifeline for retailers hoping to weed out lab-grown diamonds, but for companies focused on them, they can become another selling point. The lack of nitrogen in diamonds produced with the CVD method, for instance, gives them an exceptional chemical purity that allows them to be classified as type IIa; a rare and coveted breed that accounts for just 2 percent of those found in nature. Meanwhile, the ability to control everything about the growth process allows companies like Lightbox to adjust the formula and produce incredibly rare blue and pink diamonds as part of their standard product line. (In fact, these colored gemstones have made up over half of the company’s sales since launch, according to Coe.)

    And while lab-grown diamonds boast the same sparkle as their Earthly counterparts, they do so at a significant discount. Zimnisky said that today, your typical one carat, medium quality diamond grown in a lab will sell for about $3,600, compared with $6,100 for its Earth-mined counterpart—a discount of about 40 percent. Two years ago, that discount was only 18 percent. And while the price drop has “slightly tapered off” as Zimnisky put it, he expects it will fall further thanks in part to the aforementioned ramp up in Chinese production, as well as technological improvements. (The market is also shifting in response to Lightbox, which De Beers is using to position lab-grown diamonds as mass produced items for fashion jewelry, and which is selling its stones, ungraded, at the controversial low price of $800 per carat—a discount of nearly 90 percent.)

    Zimnisky said that if the price falls too fast, it could devalue lab-grown diamonds in the eyes of consumers. But for now, at least, paying less seems to be a selling point. A 2018 consumer research survey by MVI Marketing found that most of those polled would choose a larger lab-grown diamond over a smaller mined diamond of the same price.

    “The thing [consumers] seem most compelled by is the ability to trade up in size and quality at the same price,” Garard of IGDA said.

    Still, for buyers and sellers alike, price is only part of the story. Many in the lab-grown diamond world market their product as an ethical or eco-friendly alternative to mined diamonds.

    But those sales pitches aren’t without controversy.
    A variety of lab-grown diamond products arrayed on a desk at Ada Diamonds showroom in Manhattan. The stone in the upper left gets its blue color from boron. Diamonds tinted yellow (top center) usually get their color from small amounts of nitrogen.
    Photo: Sam Cannon (Earther)
    Dazzling promises

    As Anna-Mieke Anderson tells it, she didn’t enter the diamond world to become a corporate tycoon. She did it to try and fix a mistake.

    In 1999, Anderson purchased herself a diamond. Some years later, in 2005, her father asked her where it came from. Nonplussed, she told him it came from the jewelry store. But that wasn’t what he was asking: He wanted to know where it really came from.

    “I actually had no idea,” Anderson told Earther. “That led me to do a mountain of research.”

    That research eventually led Anderson to conclude that she had likely bought a diamond mined under horrific conditions. She couldn’t be sure, because the certificate of purchase included no place of origin. But around the time of her purchase, civil wars funded by diamond mining were raging across Angola, Sierra Leone, the Democratic Republic of Congo and Liberia, fueling “widespread devastation” as Global Witness put it in 2006. At the height of the diamond wars in the late ‘90s, the watchdog group estimates that as many as 15 percent of diamonds entering the market were conflict diamonds. Even those that weren’t actively fueling a war were often being mined in dirty, hazardous conditions; sometimes by children.

    “I couldn’t believe I’d bought into this,” Anderson said.

    To try and set things right, Anderson began sponsoring a boy living in a Liberian community impacted by the blood diamond trade. The experience was so eye-opening, she says, that she eventually felt compelled to sponsor more children. Selling conflict-free jewelry seemed like a fitting way to raise money to do so, but after a great deal more research, Anderson decided she couldn’t in good faith consider any diamond pulled from the Earth to be truly conflict-free in either the humanitarian or environmental sense. While diamond miners were, by the early 2000s, getting their gems certified “conflict free” according to the UN-backed Kimberley Process, the certification scheme’s definition of a conflict diamond—one sold by rebel groups to finance armed conflicts against governments—felt far too narrow.

    “That [conflict definition] eliminates anything to do with the environment, or eliminates a child mining it, or someone who was a slave, or beaten, or raped,” Anderson said.

    And so she started looking into science, and in 2007, launching MiaDonna as one of the world’s first lab-grown diamond jewelry companies. The business has been activism-oriented from the get-go, with at least five percent of its annual earnings—and more than 20 percent for the last three years—going into The Greener Diamond, Anderson’s charity foundation which has funded a wide range of projects, from training former child soldiers in Sierra Leone to grow food to sponsoring kids orphaned by the West African Ebola outbreak.

    MiaDonna isn’t the only company that positions itself as an ethical alternative to the traditional diamond industry. Brilliant Earth, which sells what it says are carefully-sourced mined and lab-created diamonds, also donates a small portion of its profits to supporting mining communities. Other lab-grown diamond companies market themselves as “ethical,” “conflict-free,” or “world positive.” Payne of Ada Diamonds sees, in lab-grown diamonds, not just shiny baubles, but a potential to improve medicine, clean up pollution, and advance society in countless other ways—and he thinks the growing interest in lab-grown diamond jewelry will help propel us toward that future.

    Others, however, say black-and-white characterizations when it comes to social impact of mined diamonds versus lab-grown stones are unfair. “I have a real problem with people claiming one is ethical and another is not,” Estelle Levin-Nally, founder and CEO of Levin Sources, which advocates for better governance in the mining sector, told Earther. “I think it’s always about your politics. And ethics are subjective.”

    Saleem Ali, an environmental researcher at the University of Delaware who serves on the board of the Diamonds and Development Initiative, agrees. He says the mining industry has, on the whole, worked hard to turn itself around since the height of the diamond wars and that governance is “much better today” than it used to be. Human rights watchdog Global Witness also says that “significant progress” has been made to curb the conflict diamond trade, although as Alice Harle, Senior Campaigner with Global Witness told Earther via email, diamonds do still fuel conflict, particularly in the Central African Republic and Zimbabwe.

    Most industry observers seems to agree that the Kimberley Process is outdated and inadequate, and that more work is needed to stamp out other abuses, including child labor and forced labor, in the artisanal and small-scale diamond mining sector. Today, large-scale mining operations don’t tend to see these kinds of problems, according to Julianne Kippenberg, associate director for children’s rights at Human Rights Watch, but she notes that there may be other community impacts surrounding land rights and forced resettlement.

    The flip side, Ali and Levin-Nally say, is that well-regulated mining operations can be an important source of economic development and livelihood. Ali cites Botswana and Russia as prime examples of places where large-scale mining operations have become “major contributors to the economy.” Dmitry Amelkin, head of strategic projects and analytics for Russian diamond mining giant Alrosa, echoed that sentiment in an email to Earther, noting that diamonds transformed Botswana “from one of the poorest [countries] in the world to a middle-income country” with revenues from mining representing almost a third of its GDP.

    In May, a report commissioned by the Diamond Producers Association (DPA), a trade organization representing the world’s largest diamond mining companies, estimated that worldwide, its members generate nearly $4 billion in direct revenue for employees and contractors, along with another $6.8 billion in benefits via “local procurement of goods and services.” DPA CEO Jean-Marc Lieberherr said this was a story diamond miners need to do a better job telling.

    “The industry has undergone such changes since the Blood Diamond movie,” he said, referring to the blockbuster 2006 film starring Leonardo DiCaprio that drew global attention to the problem of conflict diamonds. “And yet people’s’ perceptions haven’t evolved. I think the main reason is we have not had a voice, we haven’t communicated.”

    But conflict and human rights abuses aren’t the only issues that have plagued the diamond industry. There’s also the lasting environmental impact of the mining itself. In the case of large-scale commercial mines, this typically entails using heavy machinery and explosives to bore deep into those kimberlite tubes in search of precious stones.

    Some, like Maya Koplyova, a geologist at the University of British Columbia who studies diamonds and the rocks they’re found in, see this as far better than many other forms of mining. “The environmental footprint is the fThere’s also the question of just how representative the report’s energy consumption estimates for lab-grown diamonds are. While he wouldn’t offer a specific number, Coe said that De Beers’ Group diamond manufacturer Element Six—arguably the most advanced laboratory-grown diamond company in the world—has “substantially lower” per carat energy requirements than the headline figures found inside the new report. When asked why this was not included, Rick Lord, ESG analyst at Trucost, the S&P global group that conducted the analysis, said it chose to focus on energy estimates in the public record, but that after private consultation with Element Six it did not believe their data would “materially alter” the emissions estimates in the study.

    Finally, it’s important to consider the source of the carbon emissions. While the new report states that about 40 percent of the emissions associated with mining a diamond come from fossil fuel-powered vehicles and equipment, emissions associated with growing a diamond come mainly from electric power. Today, about 68 percent of lab-grown diamonds hail from China, Singapore, and India combined according to Zimnisky, where the power is drawn from largely fossil fuel-powered grids. But there is, at least, an opportunity to switch to renewables and drive that carbon footprint way down.
    “The reality is both mining and manufacturing consume energy and probably the best thing we could do is focus on reducing energy consumption.”

    And some companies do seem to be trying to do that. Anderson of MiaDonna says the company only sources its diamonds from facilities in the U.S., and that it’s increasingly trying to work with producers that use renewable energy. Lab-grown diamond company Diamond Foundry grows its stones inside plasma reactors running “as hot as the outer layer of the sun,” per its website, and while it wouldn’t offer any specific numbers, that presumably uses more energy than your typical operation running at lower temperatures. However, company spokesperson Ye-Hui Goldenson said its Washington State ‘megacarat factory’ was cited near a well-maintained hydropower source so that the diamonds could be produced with renewable energy. The company offsets other fossil fuel-driven parts of its operation by purchasing carbon credits.

    Lightbox’s diamonds currently come from Element Six’s UK-based facilities. The company is, however, building a $94-million facility near Portland, Oregon, that’s expected to come online by 2020. Coe said he estimates about 45 percent of its power will come from renewable sources.

    “The reality is both mining and manufacturing consume energy and probably the best thing we could do is focus on reducing energy consumption,” Coe said. “That’s something we’re focused on in Lightbox.”

    In spite of that, Lightbox is somewhat notable among lab-grown diamond jewelry brands in that, in the words of Morrison, it is “not claiming this to be an eco-friendly product.”

    “While it is true that we don’t dig holes in the ground, the energy consumption is not insignificant,” Morrison told Earther. “And I think we felt very uncomfortable promoting on that.”
    Various diamonds created in a lab, as seen at the Ada Diamonds showroom in Manhattan.
    Photo: Sam Cannon (Earther)
    The real real

    The fight over how lab-grown diamonds can and should market themselves is still heating up.

    On March 26, the FTC sent letters to eight lab-grown and diamond simulant companies warning them against making unsubstantiated assertions about the environmental benefits of their products—its first real enforcement action after updating its jewelry guides last year. The letters, first obtained by JCK news director Rob Bates under a Freedom of Information Act request, also warned companies that their advertising could falsely imply the products are mined diamonds, illustrating that, even though the agency now says a lab-grown diamond is a diamond, the specific origin remains critically important. A letter to Diamond Foundry, for instance, notes that the company has at times advertised its stones as “above-ground real” without the qualification of “laboratory-made.” It’s easy to see how a consumer might miss the implication.

    But in a sense, that’s what all of this is: A fight over what’s real.
    “It’s a nuanced reality that we’re in. They are a type of diamond.”

    Another letter, sent to FTC attorney Reenah Kim by the nonprofit trade organization Jewelers Vigilance Committee on April 2, makes it clear that many in the industry still believe that’s a term that should be reserved exclusively for gems formed inside the Earth. The letter, obtained by Earther under FOIA, urges the agency to continue restricting the use of the terms “real,” “genuine,” “natural,” “precious,” and “semi-precious” to Earth-mined diamonds and gemstones. Even the use of such terms in conjunction with “laboratory grown,” the letter argues, “will create even more confusion in an already confused and evolving marketplace.”

    JVC President Tiffany Stevens told Earther that the letter was a response to a footnote in an explanatory document about the FTC’s recent jewelry guide changes, which suggested the agency was considering removing a clause about real, precious, natural and genuine only being acceptable modifiers for gems mined from the Earth.

    “We felt that given the current commercial environment, that we didn’t think it was a good time to take that next step,” Stevens told Earther. As Stevens put it, the changes the FTC recently made, including expanding the definition of diamond and tweaking the descriptors companies can use to label laboratory-grown diamonds as such, have already been “wildly misinterpreted” by some lab-grown diamond sellers that are no longer making the “necessary disclosures.”

    Asked whether the JVC thinks lab-grown diamonds are, in fact, real diamonds, Stevens demurred.

    “It’s a nuanced reality that we’re in,” she said. “They are a type of diamond.”

    Change is afoot in the diamond world. Mined diamond production may have already peaked, according to the 2018 Bain & Company report. Lab diamonds are here to stay, although where they’re going isn’t entirely clear. Zimnisky expects that in a few years—as Lightbox’s new facility comes online and mass production of lab diamonds continues to ramp up overseas—the price industry-wide will fall to about 80 percent less than a mined diamond. At that point, he wonders whether lab-grown diamonds will start to lose their sparkle.

    Payne isn’t too worried about a price slide, which he says is happening across the diamond industry and which he expects will be “linear, not exponential” on the lab-grown side. He points out that lab-grown diamond market is still limited by supply, and that the largest lab-grown gems remain quite rare. Payne and Zimnisky both see the lab-grown diamond market bifurcating into cheaper, mass-produced gems and premium-quality stones sold by those that can maintain a strong brand. A sense that they’re selling something authentic and, well, real.

    “So much has to do with consumer psychology,” Zimnisky said.

    Some will only ever see diamonds as authentic if they formed inside the Earth. They’re drawn, as Kathryn Money, vice president of strategy and merchandising at Brilliant Earth put it, to “the history and romanticism” of diamonds; to a feeling that’s sparked by holding a piece of our ancient world. To an essence more than a function.

    Others, like Anderson, see lab-grown diamonds as the natural (to use a loaded word) evolution of diamond. “We’re actually running out of [mined] diamonds,” she said. “There is an end in sight.” Payne agreed, describing what he sees as a “looming death spiral” for diamond mining.

    Mined diamonds will never go away. We’ve been digging them up since antiquity, and they never seem to lose their sparkle. But most major mines are being exhausted. And with technology making it easier to grow diamonds just as they are getting more difficult to extract from the Earth, the lab-grown diamond industry’s grandstanding about its future doesn’t feel entirely unreasonable.

    There’s a reason why, as Payne said, “the mining industry as a whole is still quite scared of this product.” ootprint of digging the hole in the ground and crushing [the rock],” Koplyova said, noting that there’s no need to add strong acids or heavy metals like arsenic (used in gold mining) to liberate the gems.

    Still, those holes can be enormous. The Mir Mine, a now-abandoned open pit mine in Eastern Siberia, is so large—reportedly stretching 3,900 feet across and 1,700 feet deep—that the Russian government has declared it a no-fly zone owing to the pit’s ability to create dangerous air currents. It’s visible from space.

    While companies will often rehabilitate other land to offset the impact of mines, kimberlite mining itself typically leaves “a permanent dent in the earth’s surface,” as a 2014 report by market research company Frost & Sullivan put it.

    “It’s a huge impact as far as I’m concerned,” said Kevin Krajick, senior editor for science news at Columbia University’s Earth Institute who wrote a book on the discovery of diamonds in far northern Canada. Krajick noted that in remote mines, like those of the far north, it’s not just the physical hole to consider, but all the development required to reach a previously-untouched area, including roads and airstrips, roaring jets and diesel-powered trucks.

    Diamonds grown in factories clearly have a smaller physical footprint. According to the Frost & Sullivan report, they also use less water and create less waste. It’s for these reasons that Ali thinks diamond mining “will never be able to compete” with lab-grown diamonds from an environmental perspective.

    “The mining industry should not even by trying to do that,” he said.

    Of course, this is capitalism, so try to compete is exactly what the DPA is now doing. That same recent report that touted the mining industry’s economic benefits also asserts that mined diamonds have a carbon footprint three times lower than that of lab-grown diamonds, on average. The numbers behind that conclusion, however, don’t tell the full story.

    Growing diamonds does take considerable energy. The exact amount can vary greatly, however, depending on the specific nature of the growth process. These are details manufacturers are typically loathe to disclose, but Payne of Ada Diamonds says he estimates the most efficient players in the game today use about 250 kilowatt hour (kWh) of electricity per cut, polished carat of diamond; roughly what a U.S. household consumes in 9 days. Other estimates run higher. Citing unnamed sources, industry publication JCK Online reported that a modern HPHT run can use up to 700 kWh per carat, while CVD production can clock in north of 1,000 kWh per carat.

    Pulling these and several other public-record estimates, along with information on where in the world today’s lab diamonds are being grown and the energy mix powering the producer nations’ electric grids, the DPA-commissioned study estimated that your typical lab-grown diamond results in some 511 kg of carbon emissions per cut, polished carat. Using information provided by mining companies on fuel and electricity consumption, along with other greenhouse gas sources on the mine site, it found that the average mined carat was responsible for just 160 kg of carbon emissions.

    One limitation here is that the carbon footprint estimate for mining focused only on diamond production, not the years of work entailed in developing a mine. As Ali noted, developing a mine can take a lot of energy, particularly for those sited in remote locales where equipment needs to be hauled long distances by trucks or aircraft.

    There’s also the question of just how representative the report’s energy consumption estimates for lab-grown diamonds are. While he wouldn’t offer a specific number, Coe said that De Beers’ Group diamond manufacturer Element Six—arguably the most advanced laboratory-grown diamond company in the world—has “substantially lower” per carat energy requirements than the headline figures found inside the new report. When asked why this was not included, Rick Lord, ESG analyst at Trucost, the S&P global group that conducted the analysis, said it chose to focus on energy estimates in the public record, but that after private consultation with Element Six it did not believe their data would “materially alter” the emissions estimates in the study.

    Finally, it’s important to consider the source of the carbon emissions. While the new report states that about 40 percent of the emissions associated with mining a diamond come from fossil fuel-powered vehicles and equipment, emissions associated with growing a diamond come mainly from electric power. Today, about 68 percent of lab-grown diamonds hail from China, Singapore, and India combined according to Zimnisky, where the power is drawn from largely fossil fuel-powered grids. But there is, at least, an opportunity to switch to renewables and drive that carbon footprint way down.
    “The reality is both mining and manufacturing consume energy and probably the best thing we could do is focus on reducing energy consumption.”

    And some companies do seem to be trying to do that. Anderson of MiaDonna says the company only sources its diamonds from facilities in the U.S., and that it’s increasingly trying to work with producers that use renewable energy. Lab-grown diamond company Diamond Foundry grows its stones inside plasma reactors running “as hot as the outer layer of the sun,” per its website, and while it wouldn’t offer any specific numbers, that presumably uses more energy than your typical operation running at lower temperatures. However, company spokesperson Ye-Hui Goldenson said its Washington State ‘megacarat factory’ was cited near a well-maintained hydropower source so that the diamonds could be produced with renewable energy. The company offsets other fossil fuel-driven parts of its operation by purchasing carbon credits.

    Lightbox’s diamonds currently come from Element Six’s UK-based facilities. The company is, however, building a $94-million facility near Portland, Oregon, that’s expected to come online by 2020. Coe said he estimates about 45 percent of its power will come from renewable sources.

    “The reality is both mining and manufacturing consume energy and probably the best thing we could do is focus on reducing energy consumption,” Coe said. “That’s something we’re focused on in Lightbox.”

    In spite of that, Lightbox is somewhat notable among lab-grown diamond jewelry brands in that, in the words of Morrison, it is “not claiming this to be an eco-friendly product.”

    “While it is true that we don’t dig holes in the ground, the energy consumption is not insignificant,” Morrison told Earther. “And I think we felt very uncomfortable promoting on that.”
    Various diamonds created in a lab, as seen at the Ada Diamonds showroom in Manhattan.
    Photo: Sam Cannon (Earther)
    The real real

    The fight over how lab-grown diamonds can and should market themselves is still heating up.

    On March 26, the FTC sent letters to eight lab-grown and diamond simulant companies warning them against making unsubstantiated assertions about the environmental benefits of their products—its first real enforcement action after updating its jewelry guides last year. The letters, first obtained by JCK news director Rob Bates under a Freedom of Information Act request, also warned companies that their advertising could falsely imply the products are mined diamonds, illustrating that, even though the agency now says a lab-grown diamond is a diamond, the specific origin remains critically important. A letter to Diamond Foundry, for instance, notes that the company has at times advertised its stones as “above-ground real” without the qualification of “laboratory-made.” It’s easy to see how a consumer might miss the implication.

    But in a sense, that’s what all of this is: A fight over what’s real.
    “It’s a nuanced reality that we’re in. They are a type of diamond.”

    Another letter, sent to FTC attorney Reenah Kim by the nonprofit trade organization Jewelers Vigilance Committee on April 2, makes it clear that many in the industry still believe that’s a term that should be reserved exclusively for gems formed inside the Earth. The letter, obtained by Earther under FOIA, urges the agency to continue restricting the use of the terms “real,” “genuine,” “natural,” “precious,” and “semi-precious” to Earth-mined diamonds and gemstones. Even the use of such terms in conjunction with “laboratory grown,” the letter argues, “will create even more confusion in an already confused and evolving marketplace.”

    JVC President Tiffany Stevens told Earther that the letter was a response to a footnote in an explanatory document about the FTC’s recent jewelry guide changes, which suggested the agency was considering removing a clause about real, precious, natural and genuine only being acceptable modifiers for gems mined from the Earth.

    “We felt that given the current commercial environment, that we didn’t think it was a good time to take that next step,” Stevens told Earther. As Stevens put it, the changes the FTC recently made, including expanding the definition of diamond and tweaking the descriptors companies can use to label laboratory-grown diamonds as such, have already been “wildly misinterpreted” by some lab-grown diamond sellers that are no longer making the “necessary disclosures.”

    Asked whether the JVC thinks lab-grown diamonds are, in fact, real diamonds, Stevens demurred.

    “It’s a nuanced reality that we’re in,” she said. “They are a type of diamond.”

    Change is afoot in the diamond world. Mined diamond production may have already peaked, according to the 2018 Bain & Company report. Lab diamonds are here to stay, although where they’re going isn’t entirely clear. Zimnisky expects that in a few years—as Lightbox’s new facility comes online and mass production of lab diamonds continues to ramp up overseas—the price industry-wide will fall to about 80 percent less than a mined diamond. At that point, he wonders whether lab-grown diamonds will start to lose their sparkle.

    Payne isn’t too worried about a price slide, which he says is happening across the diamond industry and which he expects will be “linear, not exponential” on the lab-grown side. He points out that lab-grown diamond market is still limited by supply, and that the largest lab-grown gems remain quite rare. Payne and Zimnisky both see the lab-grown diamond market bifurcating into cheaper, mass-produced gems and premium-quality stones sold by those that can maintain a strong brand. A sense that they’re selling something authentic and, well, real.

    “So much has to do with consumer psychology,” Zimnisky said.

    Some will only ever see diamonds as authentic if they formed inside the Earth. They’re drawn, as Kathryn Money, vice president of strategy and merchandising at Brilliant Earth put it, to “the history and romanticism” of diamonds; to a feeling that’s sparked by holding a piece of our ancient world. To an essence more than a function.

    Others, like Anderson, see lab-grown diamonds as the natural (to use a loaded word) evolution of diamond. “We’re actually running out of [mined] diamonds,” she said. “There is an end in sight.” Payne agreed, describing what he sees as a “looming death spiral” for diamond mining.

    Mined diamonds will never go away. We’ve been digging them up since antiquity, and they never seem to lose their sparkle. But most major mines are being exhausted. And with technology making it easier to grow diamonds just as they are getting more difficult to extract from the Earth, the lab-grown diamond industry’s grandstanding about its future doesn’t feel entirely unreasonable.

    There’s a reason why, as Payne said, “the mining industry as a whole is still quite scared of this product.”

    #dimants #Afrique #technologie #capitalisme

  • Vie privée des enfants : pourquoi YouTube fait l’objet d’une enquête fédérale aux États-Unis
    https://www.numerama.com/tech/527489-vie-privee-des-enfants-pourquoi-youtube-fait-lobjet-dune-enquete-fe

    YouTube fait l’objet d’une enquête du gouvernement américain à cause de la faible protection de ses jeunes utilisateurs mineurs. La plateforme devra régler le problème au plus vite. YouTube va devoir agir, et vite. Une enquête du gouvernement fédéral américain est sur le point d’aboutir à son sujet. Elle concerne la protection des mineurs sur la plateforme et surtout celle de leurs données personnelles qui serait insuffisante, a révélé le Washington Post mercredi 19 juin.

    YouTube aura-t-il une amende ? (...)

    #Google #YouTube #TikTok #BigData #publicité #[fr]Règlement_Général_sur_la_Protection_des_Données_(RGPD)[en]General_Data_Protection_Regulation_(GDPR)[nl]General_Data_Protection_Regulation_(GDPR) #COPPA #enfants (...)

    ##publicité ##[fr]Règlement_Général_sur_la_Protection_des_Données__RGPD_[en]General_Data_Protection_Regulation__GDPR_[nl]General_Data_Protection_Regulation__GDPR_ ##FTC
    //c2.lestechnophiles.com/www.numerama.com/content/uploads/2019/03/youtube-enfants.jpg

  • YouTube under federal investigation over allegations it violates children’s privacy
    https://www.washingtonpost.com/technology/2019/06/19/facing-federal-investigation-youtube-is-considering-broad-changes-ch

    The U.S. government is in the late stages of an investigation into YouTube for allegedly violating children’s privacy, according to four people familiar with the matter, in a probe that threatens the company with a potential fine and already has prompted the tech giant to reevaluate some of its business practices. The Federal Trade Commission launched its investigation after numerous complaints from consumer groups and privacy advocates, according to the four people, who spoke on the (...)

    #Google #YouTube #TikTok #COPPA #enfants #BigData #publicité #[fr]Règlement_Général_sur_la_Protection_des_Données_(RGPD)[en]General_Data_Protection_Regulation_(GDPR)[nl]General_Data_Protection_Regulation_(GDPR) (...)

    ##publicité ##[fr]Règlement_Général_sur_la_Protection_des_Données__RGPD_[en]General_Data_Protection_Regulation__GDPR_[nl]General_Data_Protection_Regulation__GDPR_ ##FTC

  • Le vent tourne pour les Gafa
    https://www.alternatives-economiques.fr/vent-tourne-gafa/00089624

    Distorsion de concurrence, évitement fiscal, manipulation de l’opinion... Les autorités américaines semblent ne plus vouloir laisser le champ libre aux géants du numérique. La Silicon Valley fourbit ses armes. Après avoir longtemps laissé leur domination prospérer sans entrave, les pouvoirs publics américains semblent décidés à s’attaquer aux géants du numérique, Google, Apple, Facebook et Amazon, souvent désignés sous l’acronyme Gafa (Gafam si l’on y ajoute Microsoft). Le 31 mai dernier, la presse (...)

    #Apple #Google #Microsoft #US_Department_of_Justice_(DoJ) #Amazon #Facebook #manipulation #taxation #domination #GAFAM (...)

    ##US_Department_of_Justice__DoJ_ ##FTC

  • Washington entre en guerre contre les géants du Net
    https://www.lemonde.fr/economie/article/2019/06/08/washington-entre-en-guerre-contre-les-geants-du-net_5473495_3234.html

    Le département américain de la justice, la Commission fédérale du commerce et certains élus ont engagé des procédures visant les GAFA. Une bataille homérique s’annonce à Washington, mais pas entre démocrates et républicains. En effet, elle va opposer un front inédit d’élus des deux bords, avec le soutien de l’administration de Donald Trump, aux géants du numérique. Ces derniers sont soupçonnés de positions dominantes, voire monopolistiques, qui les placeraient en contravention avec le Clayton Act, la loi (...)

    #Apple #Google #Amazon #Facebook #domination #GAFAM #FTC #US_Department_of_Justice_(DoJ)

    ##US_Department_of_Justice__DoJ_

  • Concurrence et antitrust : que reproche-t-on à Facebook, Google, Amazon et Apple ?
    https://www.lemonde.fr/economie/article/2019/06/08/concurrence-et-antitrust-que-reproche-t-on-a-facebook-google-amazon-et-apple

    Deux points concentrent les critiques : le rachat d’entreprise, qui renforcerait leur domination, et les plates-formes qui peuvent être utilisées pour discriminer des concurrents. Le respect de la concurrence, un des angles d’attaque pour la régulation des géants du numérique, vient de revenir sur le devant de la scène aux Etats-Unis : selon la presse américaine, l’autorité de la concurrence – la FTC – a décidé de se pencher sur les pratiques de Facebook et Amazon, le département de la justice sur celle (...)

    #Apple #Google #GoogleSearch #Amazon #Instagram #Facebook #WhatsApp #Shopping #algorithme #procès #domination #publicité (...)

    ##publicité ##FTC

  • Concurrence : l’étau se resserre autour des Gafa aux Etats-Unis
    https://www.latribune.fr/technos-medias/internet/concurrence-l-etau-se-resserre-autour-des-gafa-aux-etats-unis-819293.html


    DR

    Aux Etats-Unis, le département de la Justice et l’autorité de la concurrence (FTC) ont décidé de concert d’enquêter sur les pratiques de Google, Apple, Facebook et Amazon. Cette coordination pourrait marquer un tournant pour les géants de la tech, restés longtemps à l’abri des radars des régulateurs américains.

    Google, Apple, Facebook et Amazon — les fameux Gafa — sont dans le viseur des autorités aux Etats-Unis. Selon la presse Outre-atlantique, le département américain de la Justice (DOJ) a été chargé de la conduite d’une enquête sur Apple et Google, filiale de la maison-mère Alphabet. De son côté, l’autorité de la concurrence américaine (FTC) se chargerait d’enquêter sur Amazon et Facebook. Et ce n’est pas tout : la commission des affaires judiciaires de la Chambre des représentants a annoncé lundi avoir entamé une enquête bi-partisane sur la concurrence sur les marchés numériques.

    « Un petit nombre de plateformes dominantes et non-régulées a des pouvoirs extraordinaires sur le commerce, la communication et l’information en ligne », a justifié la commission, sans citer nommément des entreprises, rapporte Reuters.

    Les potentielles enquêtes devraient se concentrer davantage sur Google et Facebook, selon deux sources anonymes interrogées par le Wall Street Journal. Concernant le célèbre moteur de recherche, les autorités américaines s’intéresseraient à un potentiel abus de position dominante concernant sa régie publicitaire. Un motif pour lequel le géant américain a été condamné en mars dernier par la Commission européenne à une amende de 1,49 milliard d’euros. Selon le cabinet d’études eMarketer, Google détient environ 37% du marché publicitaire en ligne aux Etats-Unis, suivi par Facebook à 22% de part de marché.

    Concernant Facebook, la FTC a déjà passé plus d’un an à enquêter sur la gestion des données personnelles de ses utilisateurs. Si l’autorité n’a toujours pas rendu d’avis définitif, le plus grand réseau social au monde s’attend à devoir débourser entre 3 à 5 milliards de dollars pour une amende potentielle.

  • Taxi loan abuses part of a broader pattern in New York | American Banker
    https://www.americanbanker.com/opinion/taxi-loan-abuses-part-of-a-broader-pattern-in-new-york

    An investigation by The New York Times earlier this week suggested that the massive collapse in New York City taxi medallion prices since 2014 was not primarily the result of new competition from Uber and Lyft. Instead it was the inevitable outcome of unsustainable lending practices.

    Low-paid cab drivers who dreamed of becoming their own bosses took out loans that required them to pay $1 million or more. The payments often covered only the interest that borrowers owed, and interest rates spiked if the loans were not repaid within a few years. From the lenders’ standpoint, the loans only made sense as long as medallion prices continued to rise.

    Cabbies, many of them immigrants, suffered harsh consequences after taking out loans with terms they did not fully understand.

    Cab drivers who dreamed of becoming their own bosses took out loans that required them to pay $1 million or more.

    Since the articles were published, various politicians have floated potential responses that are narrowly targeted at taxi medallion lending.

    New York City Mayor Bill de Blasio ordered a probe of taxi loan brokers. Other local officials suggested that the city should buy onerous loans at discounted prices and then forgive much of the debt.

    Sen. Charles Schumer, D-N.Y., asked the National Credit Union Administration to conduct a review of supervisory practices at institutions that engage in taxi medallion lending.

    But taxi drivers are not the only businesspeople who regularly get deceived by unscrupulous lenders. So do contractors, restaurateurs and the owners of various other kinds of struggling small businesses. Many high-cost business lenders are based in New York, where unusually favorable laws provide a haven to these companies.

    Some aspects of the New York City taxi loan market were unique. For example, local officials had a vested interest in keep medallion prices high, since the city was generating revenue from the proceeds of sales. Indeed, the Times showed that government officials enabled lending that has put many borrowers in dire straits.

    “The City of New York, more or less, is our partner,” Andrew Murstein, president of Medallion Financial, said in a 2011 interview.

    But in other ways, the loans to cab drivers resembled deceptively marketed loans that have ensnared a wide variety of cash-strapped small-business owners.

    Because the New York City taxi loans were classified as business loans, rather than consumer loans, they did not have to include standard disclosures regarding interest rates. They often included large fees and terms that unsophisticated borrowers did not understand.

    And according to the Times, some taxi medallion lenders used a tool that under New York law offers a uniquely powerful way to collect on business debt. Lenders in the Empire State can require applicants for small-business loans to sign a document called a confession of judgment, which prevents them from contesting any subsequent allegation that they have fallen behind on their payments.

    A Bloomberg News investigation last year found that merchant cash advance companies, which offer high-cost financing to small businesses across the country, have at times abused New York’s court system by forging documents and lying about how much money they are owed in order to obtain speedy judgments that cannot be contested by the borrower.

    Small businesses that use merchant cash advances are required to make daily payments based on a percentage of their daily revenue. The merchant cash advance firms avoid complying with New York’s strict usury rules by classifying their financing not as a loan, but rather as a purchase of the company’s future credit card receipts.

    The Bloomberg articles also chronicled the role of New York City marshals — mayoral appointees who enforce the court judgments, get a cut of the proceeds, and have been accused in some cases of improperly seeking to collect money outside of the city.

    As evidence of business lending abuses in New York has mounted, little change has occurred at the state level, though there does appear to be a growing appetite for reform.

    Last year, the New York State Department of Financial Services argued in a report that borrower protection laws and regulations should apply equally to all consumer lending and small-business lending activities.

    The Bloomberg investigation reportedly sparked probes by the New York attorney general’s office and the Manhattan district attorney’s office. On Thursday, Bloomberg reported that the Federal Trade Commission has also opened an investigation of potentially unfair or deceptive practices in the merchant cash advance industry.

    The loan practices that hurt taxi drivers are part of a broader pattern in New York, which has become the nation’s capital for predatory business lending. It remains to be seen whether state lawmakers and regulators will connect the dots.

    Bankshot is American Banker’s column for real-time analysis of today’s news.

    #USA #New_York #Taxi #Betrug #Ausbeutung

  • Privacy Experts, Senators Demand Investigation of Amazon’s Child Data Collection Practices
    https://theintercept.com/2019/05/09/amazon-echo-dot-childrens-privacy

    Last year, a coalition of privacy advocates and child psychologists warned against putting an Amazon Alexa speaker anywhere near your child on the fairly reasonable grounds that developing minds shouldn’t befriend always-on surveillance devices, no matter how cute the packaging. Now, a group of privacy researchers, attorneys, and U.S. senators are calling on the Federal Trade Commission to investigate Amazon’s alleged violations of COPPA, a law protecting the littlest users of all. COPPA, (...)

    #Amazon #Echo #enfants #COPPA

  • Facebook expects FTC fine of up to $5bn in privacy investigation
    https://www.theguardian.com/technology/2019/apr/24/facebook-ftc-fine-first-quarter-financial

    Company makes revelation in financial reports showing first-quarter revenue growth to more than $15bn Facebook is expecting to pay as much as $5bn to the US Federal Trade Commission (FTC), it revealed in first quarter financial reports, which otherwise showed continued revenue growth to more than $15bn for the first three months of the year. Facebook recorded a $3bn legal expense “in connection with the inquiry of the FTC into our platform and user data practices”, the company said. The (...)

    #CambridgeAnalytica #Facebook #élections #manipulation #BigData #publicité #FTC

    ##publicité
    https://i.guim.co.uk/img/media/02fc783e4e591da2c43cec25ff9a29913d300c62/0_155_5760_3456/master/5760.jpg

  • Pour anticiper une amende record, Facebook met de côté 3 milliards de dollars
    https://www.numerama.com/business/507659-pour-anticiper-une-amende-record-facebook-met-de-cote-3-milliards-d

    Facebook s’attend à une amende sévère aux États-Unis dans l’affaire Cambridge Analytica. Le réseau social pourrait provisionner davantage. Facebook se prépare à traverser l’orage. Lucide sur le fait que la Commission fédérale du commerce (FTC) a dans l’idée de lui infliger une sévère amende pour le scandale de Cambridge Analytica, le réseau social a révélé, lors de la présentation de ses résultats pour le premier trimestre 2019, avoir mis de côté 3 milliards de dollars pour se tenir prêt à absorber le choc. (...)

    #CambridgeAnalytica #Facebook #données #BigData #publicité #élections #électeurs #FTC

    ##publicité
    //c0.lestechnophiles.com/www.numerama.com/content/uploads/2018/12/dollars.jpg

  • FTC brings its first case against fake paid reviews on Amazon
    https://techcrunch.com/2019/02/26/ftc-brings-its-first-case-against-fake-paid-reviews-on-amazon

    The Federal Trade Commission announced on Tuesday evening that it has brought its first case against using fake reviews to sell products online. The Commission said it will settle with defendant Cure Encapsulations Inc., a New York City-based company, and owner Naftula Jacobwitz, who it accused of making false claims about a weight loss supplement and paying a third-party website to post fake reviews on Amazon. Fake reviews are a constant nuisance for Amazon shoppers, despite algorithms (...)

    #Amazon #manipulation #marketing #FTC

  • Amazon : la technique malhonnête de certaines entreprises pour vendre leurs produits
    https://www.lalibre.be/economie/libre-entreprise/amazon-la-technique-malhonnete-de-certaines-entreprises-pour-vendre-leurs-pr

    Le site d’information technologique TechCrunch a épinglé cette semaine une première dans la lutte contre les faux témoignages en ligne, à propos de produits disponibles sur des sites d’e-commerce. Sans trop de surprise, c’est une entreprise usant des services du géant américain du secteur, Amazon, qui est dans le collimateur de l’action en justice menée par la Federal Trade Commission (FTC) à propos de ce type de méfaits. Cure Encapsulations Inc., basée à New York, est accusée d’avoir payé un site (...)

    #Amazon #manipulation #marketing #FTC

  • L’autorité de la concurrence américaine lance une task force pour surveiller les géants du numérique
    https://www.numerama.com/politique/468042-lautorite-de-la-concurrence-americaine-lance-une-task-force-pour-su

    Aux États-Unis, l’autorité de la concurrence installe un groupe de travail dédié aux poids lourds de la tech pour mieux les surveiller. La commission fédérale du commerce (FTC), qui s’occupe aux États-Unis du droit de la consommation et des pratiques commerciales anticoncurrentielles, s’adapte face aux évolutions du secteur technologique. Mardi 26 février, elle a annoncé la mise en place d’une « task force » composée d’une petite vingtaine de juristes pour suivre plus attentivement les actualités de ce (...)

    #domination #données #publicité #BigData #GAFAM #profiling #FTC

    ##publicité
    //c2.lestechnophiles.com/www.numerama.com/content/uploads/2018/04/mark-zuckerberg.jpg

  • Scandale Cambridge Analytica : les députés britanniques étrillent Facebook
    https://www.lemonde.fr/pixels/article/2019/02/18/les-deputes-britanniques-etrillent-facebook-pour-son-role-dans-les-campagnes

    La commission parlementaire britannique sur la désinformation et les fausses informations a rendu son rapport final, très sévère contre le réseau social. Dix-huit mois d’enquête, 23 sessions, 170 témoignages écrits de 73 témoins, 4 350 questions posées : la commission parlementaire britannique chargée d’enquêter sur le scandale Cambridge Analytica et les tentatives d’influence étrangères et de désinformation lors de la campagne du Brexit a rendu, lundi 18 février, son rapport final. Et de manière toute (...)

    #CambridgeAnalytica #Google #GSR #Facebook #élections #manipulation #données #publicité #BigData (...)

    ##publicité ##FTC

  • #Facebook bientôt condamné à une #amende de « plusieurs milliards de dollars » aux #Etats-Unis
    https://www.latribune.fr/technos-medias/internet/facebook-vers-une-amende-de-plusieurs-milliards-de-dollars-aux-etats-unis-

    D’après le Washington Post, la FTC est entrée dans une phase de #négociations avec Facebook. En plus de l’amende liée aux non respect des conditions de protections de ses utilisateurs, la FTC demanderait à Facebook de concéder des changements dans ses pratiques. Facebook serait dos au mur. Si Mark Zuckerberg refuse l’accord, l’affaire devrait finir devant les tribunaux. Mais Facebook s’exposerait à un procès très médiatisé qui ternirait encore son image. De plus, si l’amende paraît énorme, elle doit être relativisée : Facebook a réalisé 6,88 milliards dollars de #bénéfices nets sur le seul dernier trimestre de 2018 .

    #encouragement

  • Cambridge Analytica : les régulateurs américains veulent infliger à Facebook sa première (vraie) grosse amende
    https://www.numerama.com/tech/456714-cambridge-analytica-les-regulateurs-americains-veulent-infliger-a-f

    Les régulateurs américains discutent actuellement du montant d’une amende qu’ils pourraient infliger à Facebook. Le motif : la protection insuffisante des données personnelles des utilisateurs. Les régulateurs américains de la FTC (Commission fédérale du commerce) ont discuté ces dernières semaines d’une amende à imposer à Facebook, pour la protection insuffisante des données personnelles de ses utilisateurs. Selon un article du Washington Post publié vendredi 18 janvier, cette amende pourrait être d’un (...)

    #CambridgeAnalytica #Facebook #algorithme #élections #manipulation #données #électeurs #BigData #profiling (...)

    ##FTC
    //c2.lestechnophiles.com/www.numerama.com/content/uploads/2018/11/facebook-locaux.jpg

  • Comment Facebook a permis à Netflix et Spotify de lire vos messages privés
    https://www.numerama.com/tech/449604-comment-facebook-a-permis-a-netflix-et-spotify-de-lire-vos-messages

    Des partenariats ont été conclu entre Facebook et environ 150 entreprises tierces entre 2010 et 2018. Ces dernières avaient accès à des données personnelles, comme les messages privés des utilisateurs. Ces derniers mois, les révélations sur l’utilisation des données personnelles par Facebook se sont multipliées. Après Cambridge Analytica, des failles de sécurité ou un bug donnant accès à nos photos à des applications, le New York Times a publié une nouvelle enquête édifiante sur ce sujet mardi 18 décembre. (...)

    #Altaba/Yahoo ! #Microsoft #Sony #Amazon #Facebook #Netflix #Spotify #Bing #données #écoutes (...)

    ##Altaba/Yahoo_ ! ##FTC
    //c0.lestechnophiles.com/www.numerama.com/content/uploads/2018/11/facebook-logo.jpg

  • As Facebook Raised a Privacy Wall, It Carved an Opening for Tech Giants
    https://www.nytimes.com/2018/12/18/technology/facebook-privacy.html

    Internal documents show that the social network gave Microsoft, Amazon, Spotify and others far greater access to people’s data than it has disclosed. For years, Facebook gave some of the world’s largest technology companies more intrusive access to users’ personal data than it has disclosed, effectively exempting those business partners from its usual privacy rules, according to internal records and interviews. The special arrangements are detailed in hundreds of pages of Facebook documents (...)

    #CambridgeAnalytica #Microsoft #Amazon #Bing #Facebook #Spotify #données #écoutes (...)

    ##FTC

  • Cheap Words | The New Yorker
    https://www.newyorker.com/magazine/2014/02/17/cheap-words

    Amazon is a global superstore, like Walmart. It’s also a hardware manufacturer, like Apple, and a utility, like Con Edison, and a video distributor, like Netflix, and a book publisher, like Random House, and a production studio, like Paramount, and a literary magazine, like The Paris Review, and a grocery deliverer, like FreshDirect, and someday it might be a package service, like U.P.S. Its founder and chief executive, Jeff Bezos, also owns a major newspaper, the Washington Post. All these streams and tributaries make Amazon something radically new in the history of American business.

    Recently, Amazon even started creating its own “content”—publishing books. The results have been decidedly mixed. A monopoly is dangerous because it concentrates so much economic power, but in the book business the prospect of a single owner of both the means of production and the modes of distribution is especially worrisome: it would give Amazon more control over the exchange of ideas than any company in U.S. history. Even in the iPhone age, books remain central to American intellectual life, and perhaps to democracy. And so the big question is not just whether Amazon is bad for the book industry; it’s whether Amazon is bad for books.

    According to Marcus, Amazon executives considered publishing people “antediluvian losers with rotary phones and inventory systems designed in 1968 and warehouses full of crap.” Publishers kept no data on customers, making their bets on books a matter of instinct rather than metrics. They were full of inefficiences, starting with overpriced Manhattan offices. There was “a general feeling that the New York publishing business was just this cloistered, Gilded Age antique just barely getting by in a sort of Colonial Williamsburg of commerce, but when Amazon waded into this they would show publishing how it was done.”

    During the 1999 holiday season, Amazon tried publishing books, leasing the rights to a defunct imprint called Weathervane and putting out a few titles. “These were not incipient best-sellers,” Marcus writes. “They were creatures from the black lagoon of the remainder table”—Christmas recipes and the like, selected with no apparent thought. Employees with publishing experience, like Fried, were not consulted. Weathervane fell into an oblivion so complete that there’s no trace of it on the Internet. (Representatives at the company today claim never to have heard of it.) Nobody at Amazon seemed to absorb any lessons from the failure. A decade later, the company would try again.

    Around this time, a group called the “personalization team,” or P13N, started to replace editorial suggestions for readers with algorithms that used customers’ history to make recommendations for future purchases. At Amazon, “personalization” meant data analytics and statistical probability. Author interviews became less frequent, and in-house essays were subsumed by customer reviews, which cost the company nothing. Tim Appelo, the entertainment editor at the time, said, “You could be the Platonic ideal of the reviewer, and you would not beat even those rather crude early algorithms.” Amazon’s departments competed with one another almost as fiercely as they did with other companies. According to Brad Stone, a trash-talking sign was hung on a wall in the P13N office: “people forget that john henry died in the end.” Machines defeated human beings.

    In December, 1999, at the height of the dot-com mania, Time named Bezos its Person of the Year. “Amazon isn’t about technology or even commerce,” the breathless cover article announced. “Amazon is, like every other site on the Web, a content play.” Yet this was the moment, Marcus said, when “content” people were “on the way out.” Although the writers and the editors made the site more interesting, and easier to navigate, they didn’t bring more customers.

    The fact that Amazon once devoted significant space on its site to editorial judgments—to thinking and writing—would be an obscure footnote if not for certain turns in the company’s more recent history. According to one insider, around 2008—when the company was selling far more than books, and was making twenty billion dollars a year in revenue, more than the combined sales of all other American bookstores—Amazon began thinking of content as central to its business. Authors started to be considered among the company’s most important customers. By then, Amazon had lost much of the market in selling music and videos to Apple and Netflix, and its relations with publishers were deteriorating. These difficulties offended Bezos’s ideal of “seamless” commerce. “The company despises friction in the marketplace,” the Amazon insider said. “It’s easier for us to sell books and make books happen if we do it our way and not deal with others. It’s a tech-industry thing: ‘We think we can do it better.’ ” If you could control the content, you controlled everything.

    Many publishers had come to regard Amazon as a heavy in khakis and oxford shirts. In its drive for profitability, Amazon did not raise retail prices; it simply squeezed its suppliers harder, much as Walmart had done with manufacturers. Amazon demanded ever-larger co-op fees and better shipping terms; publishers knew that they would stop being favored by the site’s recommendation algorithms if they didn’t comply. Eventually, they all did. (Few customers realize that the results generated by Amazon’s search engine are partly determined by promotional fees.)

    In late 2007, at a press conference in New York, Bezos unveiled the Kindle, a simple, lightweight device that—in a crucial improvement over previous e-readers—could store as many as two hundred books, downloaded from Amazon’s 3G network. Bezos announced that the price of best-sellers and new titles would be nine-ninety-nine, regardless of length or quality—a figure that Bezos, inspired by Apple’s sale of songs on iTunes for ninety-nine cents, basically pulled out of thin air. Amazon had carefully concealed the number from publishers. “We didn’t want to let that cat out of the bag,” Steele said.

    The price was below wholesale in some cases, and so low that it represented a serious threat to the market in twenty-six-dollar hardcovers. Bookstores that depended on hardcover sales—from Barnes & Noble and Borders (which liquidated its business in 2011) to Rainy Day Books in Kansas City—glimpsed their possible doom. If reading went entirely digital, what purpose would they serve? The next year, 2008, which brought the financial crisis, was disastrous for bookstores and publishers alike, with widespread layoffs.

    By 2010, Amazon controlled ninety per cent of the market in digital books—a dominance that almost no company, in any industry, could claim. Its prohibitively low prices warded off competition.

    Publishers looked around for a competitor to Amazon, and they found one in Apple, which was getting ready to introduce the iPad, and the iBooks Store. Apple wanted a deal with each of the Big Six houses (Hachette, HarperCollins, Macmillan, Penguin, Random House, and Simon & Schuster) that would allow the publishers to set the retail price of titles on iBooks, with Apple taking a thirty-per-cent commission on each sale. This was known as the “agency model,” and, in some ways, it offered the publishers a worse deal than selling wholesale to Amazon. But it gave publishers control over pricing and a way to challenge Amazon’s grip on the market. Apple’s terms included the provision that it could match the price of any rival, which induced the publishers to impose the agency model on all digital retailers, including Amazon.

    Five of the Big Six went along with Apple. (Random House was the holdout.) Most of the executives let Amazon know of the change by phone or e-mail, but John Sargent flew out to Seattle to meet with four Amazon executives, including Russ Grandinetti, the vice-president of Kindle content. In an e-mail to a friend, Sargent wrote, “Am on my way out to Seattle to get my ass kicked by Amazon.”

    Sargent’s gesture didn’t seem to matter much to the Amazon executives, who were used to imposing their own terms. Seated at a table in a small conference room, Sargent said that Macmillan wanted to switch to the agency model for e-books, and that if Amazon refused Macmillan would withhold digital editions until seven months after print publication. The discussion was angry and brief. After twenty minutes, Grandinetti escorted Sargent out of the building. The next day, Amazon removed the buy buttons from Macmillan’s print and digital titles on its site, only to restore them a week later, under heavy criticism. Amazon unwillingly accepted the agency model, and within a couple of months e-books were selling for as much as fourteen dollars and ninety-nine cents.

    Amazon filed a complaint with the Federal Trade Commission. In April, 2012, the Justice Department sued Apple and the five publishers for conspiring to raise prices and restrain competition. Eventually, all the publishers settled with the government. (Macmillan was the last, after Sargent learned that potential damages could far exceed the equity value of the company.) Macmillan was obliged to pay twenty million dollars, and Penguin seventy-five million—enormous sums in a business that has always struggled to maintain respectable profit margins.

    Apple fought the charges, and the case went to trial last June. Grandinetti, Sargent, and others testified in the federal courthouse in lower Manhattan. As proof of collusion, the government presented evidence of e-mails, phone calls, and dinners among the Big Six publishers during their negotiations with Apple. Sargent and other executives acknowledged that they wanted higher prices for e-books, but they argued that the evidence showed them only to be competitors in an incestuous business, not conspirators. On July 10th, Judge Denise Cote ruled in the government’s favor.

    Apple, facing up to eight hundred and forty million dollars in damages, has appealed. As Apple and the publishers see it, the ruling ignored the context of the case: when the key events occurred, Amazon effectively had a monopoly in digital books and was selling them so cheaply that it resembled predatory pricing—a barrier to entry for potential competitors. Since then, Amazon’s share of the e-book market has dropped, levelling off at about sixty-five per cent, with the rest going largely to Apple and to Barnes & Noble, which sells the Nook e-reader. In other words, before the feds stepped in, the agency model introduced competition to the market. But the court’s decision reflected a trend in legal thinking among liberals and conservatives alike, going back to the seventies, that looks at antitrust cases from the perspective of consumers, not producers: what matters is lowering prices, even if that goal comes at the expense of competition.

    With Amazon’s patented 1-Click shopping, which already knows your address and credit-card information, there’s just you and the buy button; transactions are as quick and thoughtless as scratching an itch. “It’s sort of a masturbatory culture,” the marketing executive said. If you pay seventy-nine dollars annually to become an Amazon Prime member, a box with the Amazon smile appears at your door two days after you click, with free shipping. Amazon’s next frontier is same-day delivery: first in certain American cities, then throughout the U.S., then the world. In December, the company patented “anticipatory shipping,” which will use your shopping data to put items that you don’t yet know you want to buy, but will soon enough, on a truck or in a warehouse near you.

    Amazon employs or subcontracts tens of thousands of warehouse workers, with seasonal variation, often building its fulfillment centers in areas with high unemployment and low wages. Accounts from inside the centers describe the work of picking, boxing, and shipping books and dog food and beard trimmers as a high-tech version of the dehumanized factory floor satirized in Chaplin’s “Modern Times.” Pickers holding computerized handsets are perpetually timed and measured as they fast-walk up to eleven miles per shift around a million-square-foot warehouse, expected to collect orders in as little as thirty-three seconds. After watching footage taken by an undercover BBC reporter, a stress expert said, “The evidence shows increased risk of mental illness and physical illness.” The company says that its warehouse jobs are “similar to jobs in many other industries.”

    When I spoke with Grandinetti, he expressed sympathy for publishers faced with upheaval. “The move to people reading digitally and buying books digitally is the single biggest change that any of us in the book business will experience in our time,” he said. “Because the change is particularly big in size, and because we happen to be a leader in making it, a lot of that fear gets projected onto us.” Bezos also argues that Amazon’s role is simply to usher in inevitable change. After giving “60 Minutes” a first glimpse of Amazon drone delivery, Bezos told Charlie Rose, “Amazon is not happening to bookselling. The future is happening to bookselling.”

    In Grandinetti’s view, the Kindle “has helped the book business make a more orderly transition to a mixed print and digital world than perhaps any other medium.” Compared with people who work in music, movies, and newspapers, he said, authors are well positioned to thrive. The old print world of scarcity—with a limited number of publishers and editors selecting which manuscripts to publish, and a limited number of bookstores selecting which titles to carry—is yielding to a world of digital abundance. Grandinetti told me that, in these new circumstances, a publisher’s job “is to build a megaphone.”

    After the Kindle came out, the company established Amazon Publishing, which is now a profitable empire of digital works: in addition to Kindle Singles, it has mystery, thriller, romance, and Christian lines; it publishes translations and reprints; it has a self-service fan-fiction platform; and it offers an extremely popular self-publishing platform. Authors become Amazon partners, earning up to seventy per cent in royalties, as opposed to the fifteen per cent that authors typically make on hardcovers. Bezos touts the biggest successes, such as Theresa Ragan, whose self-published thrillers and romances have been downloaded hundreds of thousands of times. But one survey found that half of all self-published authors make less than five hundred dollars a year.

    Every year, Fine distributes grants of twenty-five thousand dollars, on average, to dozens of hard-up literary organizations. Beneficiaries include the pen American Center, the Loft Literary Center, in Minneapolis, and the magazine Poets & Writers. “For Amazon, it’s the cost of doing business, like criminal penalties for banks,” the arts manager said, suggesting that the money keeps potential critics quiet. Like liberal Democrats taking Wall Street campaign contributions, the nonprofits don’t advertise the grants. When the Best Translated Book Award received money from Amazon, Dennis Johnson, of Melville House, which had received the prize that year, announced that his firm would no longer compete for it. “Every translator in America wrote me saying I was a son of a bitch,” Johnson said. A few nonprofit heads privately told him, “I wanted to speak out, but I might have taken four thousand dollars from them, too.” A year later, at the Associated Writing Programs conference, Fine shook Johnson’s hand, saying, “I just wanted to thank you—that was the best publicity we could have had.” (Fine denies this.)

    By producing its own original work, Amazon can sell more devices and sign up more Prime members—a major source of revenue. While the company was building the Kindle, it started a digital store for streaming music and videos, and, around the same time it launched Amazon Publishing, it created Amazon Studios.

    The division pursued an unusual way of producing television series, using its strength in data collection. Amazon invited writers to submit scripts on its Web site—“an open platform for content creators,” as Bill Carr, the vice-president for digital music and video, put it. Five thousand scripts poured in, and Amazon chose to develop fourteen into pilots. Last spring, Amazon put the pilots on its site, where customers could review them and answer a detailed questionnaire. (“Please rate the following aspects of this show: The humor, the characters . . . ”) More than a million customers watched. Engineers also developed software, called Amazon Storyteller, which scriptwriters can use to create a “storyboard animatic”—a cartoon rendition of a script’s plot—allowing pilots to be visualized without the expense of filming. The difficulty, according to Carr, is to “get the right feedback and the right data, and, of the many, many data points that I can collect from customers, which ones can tell you, ‘This is the one’?”

    Bezos applying his “take no prisoners” pragmatism to the Post: “There are conflicts of interest with Amazon’s many contracts with the government, and he’s got so many policy issues going, like sales tax.” One ex-employee who worked closely with Bezos warned, “At Amazon, drawing a distinction between content people and business people is a foreign concept.”

    Perhaps buying the Post was meant to be a good civic deed. Bezos has a family foundation, but he has hardly involved himself in philanthropy. In 2010, Charlie Rose asked him what he thought of Bill Gates’s challenge to other billionaires to give away most of their wealth. Bezos didn’t answer. Instead, he launched into a monologue on the virtue of markets in solving social problems, and somehow ended up touting the Kindle.

    Bezos bought a newspaper for much the same reason that he has invested money in a project for commercial space travel: the intellectual challenge. With the Post, the challenge is to turn around a money-losing enterprise in a damaged industry, and perhaps to show a way for newspapers to thrive again.

    Lately, digital titles have levelled off at about thirty per cent of book sales. Whatever the temporary fluctuations in publishers’ profits, the long-term outlook is discouraging. This is partly because Americans don’t read as many books as they used to—they are too busy doing other things with their devices—but also because of the relentless downward pressure on prices that Amazon enforces. The digital market is awash with millions of barely edited titles, most of it dreck, while readers are being conditioned to think that books are worth as little as a sandwich. “Amazon has successfully fostered the idea that a book is a thing of minimal value,” Johnson said. “It’s a widget.”

    There are two ways to think about this. Amazon believes that its approach encourages ever more people to tell their stories to ever more people, and turns writers into entrepreneurs; the price per unit might be cheap, but the higher number of units sold, and the accompanying royalties, will make authors wealthier. Jane Friedman, of Open Road, is unfazed by the prospect that Amazon might destroy the old model of publishing. “They are practicing the American Dream—competition is good!” she told me. Publishers, meanwhile, “have been banks for authors. Advances have been very high.” In Friedman’s view, selling digital books at low prices will democratize reading: “What do you want as an author—to sell books to as few people as possible for as much as possible, or for as little as possible to as many readers as possible?”

    The answer seems self-evident, but there is a more skeptical view. Several editors, agents, and authors told me that the money for serious fiction and nonfiction has eroded dramatically in recent years; advances on mid-list titles—books that are expected to sell modestly but whose quality gives them a strong chance of enduring—have declined by a quarter.

    #Amazon