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NYC To Become First In US To Ban Deceptive Subscription Practices

2 months 2 weeks ago
On October 1st, New York City will become the first U.S. city to ban deceptive subscription practices, requiring companies to offer simple cancellation options or face fines of $525 per user subscription, back fees, and additional penalties. The Mamdani administration is also proposing a junk-fee rule requiring sellers, landlords, hotels, and other businesses to "advertise the total price for any good or service, including all mandatory additional charges and fees, up front." The Guardian reports: "People shouldn't have to wait on hold for half an hour or send a certified letter or show up to a store in person in order to cancel" a subscription, said Samuel AA Levine, the city's commissioner of consumer and worker protection, in an interview. The new measures are expected to be announced in a press conference on Friday morning. The proposed fee rule could have an especially wide impact, sending ripples through New York's expensive housing market, where about 70% of residents rent. Apartment renters in the US face a rising tide of add-on fees such as "boiler management" and "lifestyle" charges from management companies, which make true rental costs hundreds of dollars higher than the price stated on real-estate company websites. If the proposed renters rule passes after public comment and hearing, any mandatory fees, including annual ones, would need to be included in the stated monthly rental price, Levine said. The current situation creates "a scenario where rather than competing on price, companies are competing on their ability to hide the true price. That's the worst kind of incentive" -- and one that deeply distorts the market, Levine said.

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Disable Autoplay and Infinite Scroll Or Risk Massive Fines, EU Tells Meta

2 months 2 weeks ago
An anonymous reader quotes a report from Ars Technica: The European Union is ramping up pressure on Meta to make big changes to Facebook and Instagram after the European Commission preliminarily found that features like autoplay, infinite scroll, and highly personalized content recommendations were addictive. On Thursday, the EC said its investigation indicated that "Meta did not adequately assess the risks of its addictive design on the physical and mental wellbeing of users, including minors and vulnerable adults." "These features fuel the user's urge to keep scrolling and shift the brain into 'autopilot mode,' contributing to unhealthy habits and compulsive use," the commission said. Over the next few months, Meta will have an opportunity to dispute the claims, and it has already taken a defensive stance. Meta's spokesperson, Ben Walters, told Reuters that Meta disagrees with the commission's preliminary findings, which supposedly "don't accurately take into account the significant steps we've taken to protect teens." "Since this investigation began, we rolled out Teen Accounts that automatically protect teens and put parents in control -- allowing them to block access to Instagram at night and cap daily screen time at just 15 minutes," Walters said. However, the EC emphasized that Meta's current mitigation efforts, including time management tools activated by default for teens, "failed to effectively tackle the risks stemming from its addictive design." Additionally, parental controls were deemed "only effective if parents and guardians possess adequate technical expertise" and dedicated "effort and time to understand them effectively." "This undermines the efficiency of such measures in addressing the inherent risks posed by Instagram and Facebook's addictive design," the EC said, particularly for minors. At this stage, the EC recommended that Meta consider "disabling key addictive features such as 'autoplay' and 'infinite scroll' by default, implementing effective 'screen time breaks,' and adapting its recommender system to make it less engagement-oriented." If Meta fails to make changes to comply with the EU's Digital Services Act, the company risks fines up to 6 percent of its global annual turnover when the EC makes its final decision in the coming months. "Our starting point is that, based on our findings, this design is too addictive and changes need to be made," Henna Virkkunen, the EU's tech chief, told Reuters. "The next step is either that Meta changes its design or a non-compliance decision will follow," she said, noting in the press release that the EU's priority is "protecting the physical and mental health of Europeans." "The Digital Services Act provides a clear framework to hold platforms accountable for the addictive design and effects of their services," Virkkunen said. "We are fully committed to enforcing our legislation in Europe." The report also notes that the EC will share findings from experts on Monday that "could help pave the way for a Europe-wide social media ban for teenagers." It's not looking much better for Meta in the U.S., either. The company faces a lawsuit from 29 states that claim Meta's platforms addict kids. "That trial begins in August, and states may seek up to $1.4 trillion in penalties if Meta is found guilty," reports Ars.

Read more of this story at Slashdot.

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