Tag Archives: affinity

Facebook Makes It Easy for Advertisers to Be Racist

Mother Jones

This story originally appeared on ProPublica.

Imagine if, during the Jim Crow era, a newspaper offered advertisers the option of placing ads only in copies that went to white readers.

That’s basically what Facebook is doing nowadays.

The ubiquitous social network not only allows advertisers to target users by their interests or background, it also gives advertisers the ability to exclude specific groups it calls “Ethnic Affinities.” Ads that exclude people based on race, gender and other sensitive factors are prohibited by federal law in housing and employment.

Here is a screenshot of a housing ad that we purchased from Facebook’s self-service advertising portal:

ProPublica

The ad we purchased was targeted to Facebook members who were house hunting and excluded anyone with an “affinity” for African-American, Asian-American or Hispanic people. (Here’s the ad itself.)

When we showed Facebook’s racial exclusion options to a prominent civil rights lawyer John Relman, he gasped and said, “This is horrifying. This is massively illegal. This is about as blatant a violation of the federal Fair Housing Act as one can find.”

The Fair Housing Act of 1968 makes it illegal “to make, print, or publish, or cause to be made, printed, or published any notice, statement, or advertisement, with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin.” Violators can face tens of thousands of dollars in fines.

The Civil Rights Act of 1964 also prohibits the “printing or publication of notices or advertisements indicating prohibited preference, limitation, specification or discrimination” in employment recruitment.

Facebook’s business model is based on allowing advertisers to target specific groups 2014 or, apparently to exclude specific groups 2014 using huge reams of personal data the company has collected about its users. Facebook’s microtargeting is particularly helpful for advertisers looking to reach niche audiences, such as swing-state voters concerned about climate change. ProPublica recently offered a tool allowing users to see how Facebook is categorizing them. We found nearly 50,000 unique categories in which Facebook places its users.

Facebook says its policies prohibit advertisers from using the targeting options for discrimination, harassment, disparagement or predatory advertising practices.

“We take a strong stand against advertisers misusing our platform: Our policies prohibit using our targeting options to discriminate, and they require compliance with the law,” said Steve Satterfield, privacy and public policy manager at Facebook. “We take prompt enforcement action when we determine that ads violate our policies.”

Satterfield said it’s important for advertisers to have the ability to both include and exclude groups as they test how their marketing performs. For instance, he said, an advertiser “might run one campaign in English that excludes the Hispanic affinity group to see how well the campaign performs against running that ad campaign in Spanish. This is a common practice in the industry.”

He said Facebook began offering the “Ethnic Affinity” categories within the past two years as part of a “multicultural advertising” effort.

Satterfield added that the “Ethnic Affinity” is not the same as race 2014 which Facebook does not ask its members about. Facebook assigns members an “Ethnic Affinity” based on pages and posts they have liked or engaged with on Facebook.

When we asked why “Ethnic Affinity” was included in the “Demographics” category of its ad-targeting tool if it’s not a representation of demographics, Facebook responded that it plans to move “Ethnic Affinity” to another section.

Facebook declined to answer questions about why our housing ad excluding minority groups was approved 15 minutes after we placed the order.

By comparison, consider the advertising controls that the New York Times has put in place to prevent discriminatory housing ads. After the newspaper was successfully sued under the Fair Housing Act in 1989, it agreed to review ads for potentially discriminatory content before accepting them for publication.

Steph Jespersen, the Times’ director of advertising acceptability, said that the company’s staff runs automated programs to make sure that ads that contain discriminatory phrases such as “whites only” and “no kids” are rejected.

The Times’ automated program also highlights ads that contain potentially discriminatory code words such as “near churches” or “close to a country club.” Humans then review those ads before they can be approved.

Jespersen said the Times also rejects housing ads that contain photographs of too many white people. The people in the ads must represent the diversity of the population of New York, and if they don’t, he says he will call up the advertiser and ask them to submit an ad with a more diverse lineup of models.

But, Jespersen said, these days most advertisers know not to submit discriminatory ads: “I haven’t seen an ad with 2018whites only’ for a long time.”

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Facebook Makes It Easy for Advertisers to Be Racist

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Trump Campaign CEO Once Worked for a World of Warcraft Marketplace

Mother Jones

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Stephen Bannon brought quite the varied resume to his new gig as CEO of Donald Trump’s presidential campaign. At various points, Bannon has worked as an investment banker, earned money off Seinfeld royalties, overseen a biosphere, directed films, and run an alt-right news site. But one of the stranger blips on his career path came in the mid-aughts, when Bannon joined and eventually ran a company that made its name and fortune as an online marketplace to sell virtual gold to World of Warcraft players and other online gamers.

World of Warcraft was the most successful of a genre of games termed Massively Multiplayer Online Role-Playing Games (MMORPGs or MMOs) that sprang up in the late 1990s and 2000s. For a monthly fee, people could play these games (which also included EverQuest and installments of the Final Fantasy series) as characters in open-ended fantasy or science fiction worlds. Over time, players upgraded their characters’ status and abilities by going on quests to gain online currency (often gold) along with weapons and other items.

These games required huge time investments to boost characters and attain the best items. A few crafty entrepreneurs realized that time-crunched players might be willing to trade real-world cash for online currency, and they set up so-called gold farms, paying people to acquire currency and goods in the games that would then be sold to other players through an outside system.

One of the first major businesses in the “real-money trading” market was Internet Gaming Entertainment (IGE), founded in 2001 by former child actor Brock Pierce. (You may remember Pierce from the 1996 film First Kid, playing the eponymous White House child opposite Sinbad.) As detailed in a 2008 feature in Wired, Pierce set up an online shop that allowed players to purchase in-game goods, much of it coming from gold farms in China, where people were paid to play the game and rake up loot. According to Fortune, at its peak, IGE earned tens, if not hundreds, of millions of dollars per year.

As Wired reported, IGE brought Bannon on board in the mid-2000s. Bannon’s “mission was to land venture capital.” That mission paid off for IGE. In 2006, Bannon’s former employer, Goldman Sachs, invested $60 million in the company, and Bannon took a seat on the company’s board.

The legality of real-money trading as an industry was never clear; it ran the risk of violating the terms of service of various games. With IGE facing a massive class-action lawsuit led by a World of Warcraft player, the company sold off its online marketplace to a former competitor and rebranded as Affinity Media, which retained a string of community message boards related to MMOs. According to Wired, in June 2007, Affinity’s board pushed out Pierce and made Bannon CEO, a role he would hold until he took over at Breitbart News in 2012. Bannon may have applied his web knowledge gained from his time at IGE and Affinity to Breitbart News, which he transformed into the preeminent destination for the internet-savvy, meme-centric alt-right—in part by stoking the anger behind Gamergate, which saw harassment of female gamers by their male peers.

As for Pierce, he’s now moved on to Bitcoin. His bio at Blockchain Capital says that he’s “a member of Clinton Global Initiative.”

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Trump Campaign CEO Once Worked for a World of Warcraft Marketplace

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