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Consumer

A week ago I wrote a post called “Is it Ever Okay to Steal Entertainment?”, which produced great comments from our readers, many of whom were clearly incensed that I would ever try to rationalize stealing from content creators. I’ve been thinking about the criticism and understanding that was added to the original article. I wanted to see if I could ever become the person that never even accidentally steals entertainment.

I got the impression from your comments, and correct me if I’m wrong, but a lot of people feel that if I’m enjoying any kind of entertainment, then I should have paid for it first.

The problem, I’ve concluded, is that we all steal. All of us. Not always on purpose, but it happens. Some examples:

The Problem with Having Friends

Your friends want you to enjoy the things they enjoy. I really enjoy the band “Cake”, and I never would’ve been exposed to them if someone hadn’t burned me a copy of “Fashion Nugget” back in 2001. Now, over eight years after that, I still haven’t paid for that album, but I enjoy at least one of those songs at least once a month. I’m willing to admit right here that I “stole” that album. And as a direct result, I paid for three other albums of theirs. So the band “Cake” was down one, then up three. “Cake” profits.

This is true of most of the bands that my friends share with me. Friends know best what you’re likely to enjoy.

The DVR Problem

I don’t think there’s any Cable/Satellite/FiOS TV provider that doesn’t offer a DVR box for their customers. Unless you’re watching a Superbowl-type event, or keeping tabs on a weather event or election, you’re probably skipping commercials. That’s stealing: it breaks the model of “we’ll make shows, you pay us, and we’ll insert ads for your product, and there’s an infinitesimal chance our viewers will buy your product over someone else’s”.

If you have a DVR, and you’re decidedly not skipping commercials out of a noble effort to continue this outdated model, then my hat’s off to you, and also, I don’t believe it.

Not to mention the fact that most of the time, the volume of commercials during the break is set so loud that I feel I’m being screamed at.

The “Album Only” Problem

The list of albums that I can listen to all the way through is about half a page long, double-spaced. Nearly every album contains filler material: stuff that the artists know most people won’t like. For about thirty years, record companies sold single songs, with B-sides, and they did very well. The popularity of the CD somehow brought about a trend for people to buy whole albums.

I bought plenty of albums on CD, and have been disappointed with plenty of songs. That’s not an accident, that’s the record company stealing from me. I’m not saying “two wrongs make a right”. I’m just pointing it out. Apple and the record companies know that people much prefer buying single songs, and not wasting money, so they’re working on a new add-on for people who buy whole albums. We’ll see how that turns out, but at present, I predict it will be a miserable failure.

Entertainment in the 21st Century

I much prefer the Creative Commons approach to releasing entertainment. Since Day One, Jonathan Coulton has made it possible and easy to enjoy his music for free. Just as importantly, he’s made it possible and easy to pay him for the songs you like. His music makes me so happy that I’ve paid for the MP3s, as well as a collector’s set of “Thing a Week” CDs, a DVD, and tickets for three concerts.

I know the system works for him, too, since he recently moved into a bigger house with his wife and children.

A Larger View

I think we’re in between payment models at the moment. I’m seeing a 21st century where people only pay for the things they enjoy. My wife and I are already working on a computer-based system, using content from places like Hulu (which includes ads that you can’t skip, but only a couple minutes’ worth), and I’m looking forward to reporting on it, if I can get the bugs all worked out.

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As a part-time producer of creative works that I think are worth something (though I’m not currently requiring payment for anything), I struggle with the urge to acquire my entertainment media as conveniently, quickly and cheaply as possible. My viewpoints on this have changed over time, especially as my disposable income grew, and I’d like to share with you my current ideas / rationalizations on when it’s okay to steal.

Music you’ve already paid for

Depending on when you were born, you may have bought some of your favorite albums in upwards of five formats: vinyl, 8-track, cassettee, CD, and MP3 (if you lost the CD, or it got too scratchy). I’ve never actually held an 8-track tape, but I’ve owned albums in all the other formats, and I’ve decided I’m not re-buying anything.

When I bought my first CD in 1989, (Faith No More’s “The Real Thing”, which still rocks really hard), the people who produced it had no intention of tracking its sale for more than a couple of years, not to mention that conventional wisdom at the time considered the new Compact Disc format to be practically immortal.

Practical concerns aside, I paid for it once, and music isn’t meant to expire. So, even though the CD itself got lost somewhere along the last twenty years, when I decide I want it back in my music library, I won’t be paying for it. It was already paid for. I’ll just acquire it somewhere.

Shows your location won’t allow you to watch

My wife and I deeply enjoy a few shows that are produced and released by the BBC. We have BBC America, but even the shows that make it over to this country are delayed, usually six months or more, and they’re often edited, censored and shown in standard definition (as opposed to HD).

So I download those shows as soon as they’re available online. This is not the same as downloading, say, “True Blood” without being a subscriber to HBO. I feel a little more justified in yanking “Doctor Who” down to my hard drive because BBC content is produced without regard for sponsors or subscription fees, as we understand them.

Movies and TV from used/rental stores

I’m a little more iffy on this one; sometimes it depends on the quality of the movie, but after a DVD is bought once, the studio got paid as much as they were ever going to. If the DVD then ends up in a used/rental store, I don’t have a moral problem with copying the DVD to my hard drive, and then taking the DVD back to the store.

There’s also the case that I saw the movie when it was new in the theater, and I’ve rented it at least once. In that case, I can’t bring myself to pay for it again, and I’ll just make a digital copy.

Frankly, if it were easier, and a little bit cheaper, to legitimately buy and download (and keep, forever, free of DRM… otherwise it’s leasing, not buying) a movie. I’d probably do that instead of “stealing” it.

The flipside

On the other hand, when a show originates online (e.g. Homestar Runner, Dr. Horrible’s Sing-a-long Blog, Ask a Ninja), I’m more than happy to support the creators by buying DVDs and merchandise. Why? Because they don’t bother me with commercials. They can’t keep making the show without me, and that’s a business model I can get behind.

Your ideas

Do you have similar rules for yourself? I’d love to hear them in the comments.

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Summertime is traditionally when most people take their annual vacations, and since the social media explosion, more aspects of a given person’s vacation will end up as photos on Flickr, or “wish you were here” messages on Facebook.

I’m a big fan of openness (with the obvious exception of my use of a pseudonym on this site), and so I’m a little sad, though not surprised, to see at least one victim of a burglary who suspects his tweeting about being on vacation is the cause of his trouble.

The Trouble

“We had mentioned that we were going out of town for an extended period and even Twittered about the trip as we drove for three days,” he told an Arizona television station. While he was gone, video editing equipment was stolen from his home.

The Subtleties

My first reaction was to assume that the man in the story has some people following him on Twitter who aren’t exactly friendly. But then I remembered that anybody can do a search on Twitter for a phrase like “vacation” and find results like these:

Master Chase on vacation

Then, if you can cross-reference a likely victim with their address found online, and you have criminal tendencies, then you know which house to burglarize.

Additionally, many Twitter apps (and possibly for other services) have the option of finding your current location and looking nearby for specific criteria.

The Solution(s)

Take an inventory of which of your information can be found online easily. Some starting points:

  • Is your username the same as your real name?
  • Are you and your address listed in the phone book?
  • Does your wireless router know where it’s located? Does it broadcast that location?
  • Is your profile public? Do you want to keep it that way?
  • Are you on LinkedIn? How much of that profile is public?
  • and so on…

You may decide that a simple solution would be to keep the vacation secret until you get home, but remember, even if you decide to avoid the magic word “vacation” in your own online updates, your friends may inadvertently be helping potential burglars:

other vacation

Going on a trip? Keep tweets discreet, Kathleen Pender, San Francisco Chronicle, July 6, 2009

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Businesses are hoping to get more bargaining power when it comes to how much they are charged to accept credit and debit card purchases.

The Credit Card Fair Fee Act (read the whole bill), was reintroduced this year and is now being discussed in Congressional committees. I first heard about it when I was buying an emergency breakfast at one of the various 7-Elevens that are sprinkled on my way to work.

They had a binder of papers on the counter and were asking for people to sign their petition. It seems that groups like the National Restaurant Association feel the credit card companies are treating them unfairly with a lack of transparency in the way they do business and arbitrarily raising fees.

Convenience store owner Bruce Mitchell said his operation paid out more than $3 million in credit card fees last year.

“I am paying 25 percent more for credit card fees than I pay in wages,” he said.

Business owners say that these fees, and their frequent increases, are being passed along to consumers in the form of higher prices.

What do you think? Should the “free market” sort it out, or do credit card companies have too much power?

Small business pushes credit card reform, Susan R. Miller, South Florida Business Journal, June 8 2009

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On July 20, TIAA-Cref will be holding its annual participant meeting. There is an effort underway to encourage the company to be more socially responsible and accountable to its customers, and representatives will be attending the meeting to bring any common problems directly to the board’s attention.

Are you having customer service problems with TIAA-Cref? Please see the instructions below. Here are my past notable experiences with the company.

In March 2006, I scheduled a transfer from ING Direct to create my first SEP IRA on April 7, leaving enough time for the account to be created before the tax deadline. I noticed the problem the day after the account should have been created. The company did not create the account nor did they deduct funds from my ING account. There was still a week before the tax deadline, so I was not yet up in arms.

By April 18, 2006, the TIAA-Cref account had been created but they still did not deduct my funds. This was after the tax deadline, so I was very concerned that the funds would not be attributed to my 2005 SEP IRA. I had difficulties getting the correct department on the phone.

My 2005 SEP IRA was not funded until April 28, 2006, and my level of concern was much higher. I spoke to an account representative who assured me that even though they were late, my money would be applied to 2005’s tax year and I would get April 7’s price for the investment. My account information online confirmed this.

Fast forward to January 2007. I received my received my tax forms from TIAA-Cref which indicated my SEP applied to the 2006 tax year. I did eventually have this issue resolved, but it surfaced only one week after I reported that thousands of people were having problems with TIAA-Cref. Customers could not access their money, didn’t receive their payments, and couldn’t get in touch with any customer service representative who could fix the problems.

The company acknowledged the problems and attributed the mishaps to implementation of a new computer system. This excuse carried on as the problems did for at least a year, with updated in March and June 2007. Even today, visitors are still voicing their concerns with TIAA-Cref in these comments this year.

Most people’s problems were a lot more frustrating than mine, involving restricted access to money and missing payments from the company. Although I think it may be too late, Neil Wollman, an author who has been following TIAA-Cref’s activities as a socially responsible company over the past twenty-five years, is looking to speak up for consumers at the company’s annual meeting later this month.

If you are currently having issues with TIAA-Cref that you have not been able to resolve by going through the normal channels, please let me know by commenting here using an email address where you can be reached or email me directly at flexo at this domain name. I will pass your information along to Mr. Wollman who will speak to the board of directors on your behalf.

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Håkan Djuphammar, VP of Systems Architecture for Ericsson, made a prediction recently that all new mobile phones sold after Summer 2010 would have two-way RFID chips in them that would allow them to act as a tag or a reader.

If what you just read sounds like technobabble, watch this short news excerpt to get up to speed. Even if you’re not interested in technology, you should learn about the possibilities and the dangers of RFID:

Back to the mobile phone: yes, it would be perfectly easy for all mobile phones on the planet to have an RFID tag/scanner in them. The possibilities for making use of RFID, like the numbering scheme itself, are practically endless. People in Asia use their mobile phones to buy drinks from vending machines all the time, and according to Djuphammar:

the chip might also be used by credit card companies to track the location of cardholders to cut down on fraud.

This was followed up on the Wired Magazine article about this story with a great user comment:

So, the myriad of privacy concerns aside, does this mean I won’t be able to use my credit card if I leave my phone at home?

RFID doesn’t inherently scare me. I already use one in the keyfob for my car when unlocking the door and starting the engine. It raises ethical concerns, and I think we should plan our next moves carefully. We don’t have a great history of moving carefully forward (people still drive without seatbelts all the time), which is one of the reasons I’m hoping you’ll educate yourself and your friends about this starting today.

If you have the means and the time, I highly recommend the book Everyware: the dawning age of ubiquitous computing, which not only details many possibilities for taking advantage of RFID, it also contains a great starting point for a positively ethical “post-PC” future (including some really neat new icons).

RFID-Enabled Phones Could Let Credit Card Companies Track Users, Kim Zetter, Wired Magazine, June 25, 2009

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A new law signed by the president yesterday gives the Food and Drug Administration the ability to regulate the tobacco industry. The primary focus of the law is to stop cigarette companies from aggressively marketing to children.

To that end, it will soon be illegal to:

  • sell candy-flavored and fruit-flavored cigarettes
  • put tobacco company logos on sporting, athletic or entertainment events or on clothing and other promotional items
  • place outdoor tobacco ads within 1,000 feet of schools and playgrounds

There are some other changes coming for all smokers, including adults:

  • tobacco companies will be prohibited from using terms such as “low tar,” “light” or “mild” – so-called light cigarettes make no difference to a smoker’s health
  • cigarette packages will carry larger warning labels, up to 50% of the surface of one side
  • depending on the results of upcoming FDA studies, tobacco companies may be required to reduce the amount of nicotine in cigarettes – nicotine is the strongly-addictive stimulant which makes cigarettes a logical part of the FDA’s oversight

To summarize: cigarettes, aside from the candy-flavored kind, aren’t going anywhere, though they may become less addictive.

Picture-5

Lawmakers have been trying to pass this legislation for over a decade. 70% of the House voted in favor, as well as 79% of the Senate.

And according to CNN:

Despite a significant decrease in the percentage of Americans who smoke in recent decades, more than 400,000 Americans still die from tobacco-related illnesses every year, the president noted. Tobacco-related health care costs exceed $100 billion annually.

Obama signs bill putting tobacco products under FDA oversight, CNN, June 22, 2009

Photo by isabel bloedwater

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It is in any consumer’s best interest to try to get the lowest price on all purchases, yet haggling, negotiating, or bargaining, at least in my culture, is not a social norm. Other than in specific situations such as buying a car that is not a “non-negotiable” brand like Saturn or Scion, haggling is uncommon. A few months ago, Smithee presented an article summarizing several tips for haggling.

If you look around the internet, you can find even more tips, sure to help readers on the path to getting what they want to buy at a price they want to pay. But most people won’t even get to the point where they can use these tips due to a number of emotional barriers.

Emotional barriers

The impressions of strangers. As haggling is not a “normal” social activity, someone who considers haggling might refrain for doing so for the fear of being seen as “abnormal.” Most retailers operate in public, so it is more than likely other people will be able to observe your purchases. Once you ask a salesperson in a retail electronics store, “What is the best price you can offer?” you might get stares from strangers.

What could they be thinking? She can’t afford to shop here. He is cheap. She thinks she deserves special treatment. He doesn’t know how to manage his money.

The opinions of strangers are irrelevant. It is simply in your best interest to buy what you want for the best price possible. The best way to bypass this barrier is to ignore everyone other than the salesperson, the sales manager, and yourself. As far as you are concerned, no one else is in the room.

Your self-image. One thing that might be preventing you from starting the dance of number-offering is the idea that the strangers might be right: you are cheap. If the item to be purchased is something you can legitimately afford, why bother haggling at all? People buy things they can’t afford every day without negotiating the price. Perhaps you think they should be the people haggling while those who can afford the purchase should be happy to pay full price.

The only reason your self-image is at stake is today’s culture. But if you would feel inadequate for trying to pay less than other people, take yourself out of the picture. Approach the negotiating as if you were speaking on someone else’s behalf or consider the purchase a business transaction where it is your reponsibility to your shareholders to achieve the best price.

Fear of rejection. This is the powerful force that stops awkward teenage boys from asking pretty young girls on dates. The word “no” is one of the most displeasing sounds to the human ear and brain, and people will try to avoid hearing it at all costs. The avoidance means that many important questions never get asked.

A great way to haggle without having to hear no is to ask the right questions. The right questions would never result in a yes or no answer. For example, try, “Considering this is a discontinued product and you’re making room for the new model, what is the lowest price I could pay for it?” rather than, “Can you do any better than that?”. And even if your line of questioning doesn’t result in any savings, at least you tried.

My haggling experience

My best haggling experience was about two years ago when I helped my girlfriend purchase a new television. We found a discontinued model of a standard-definition LCD television. We shopped around, and found the best prices and availability at the now bankrupt Circuit City. The store had two models left, one with a scratch on the side, one without. She didn’t want the scratched model, so negotiation would be a little more difficult.

We had the advantage, however, because we knew the store received the models a long time ago and would be interested in unloading them. The initial salesperson was not authorized to adjust the price, so we involved a manager early in the discussion. We asked to take away the television priced over $300, an already-discounted clearance price, for $200.

At this point, we were starting to attract a little attention. I don’t think strangers were judging us as cheap; they seemed to be curious about whether our negotiation would succeed. $100 off a clearance price was an aggressive discount, but the manager didn’t say no. He went behind the scenes and returned with a price sheet indicating the cost of each television to the store, and I assumed that the document was legitimate. The manager said he would let me have the television for 10% over the store’s cost, so we walked away with the television after paying $220 for a television originally priced more than twice that amount.

Perhaps it was this one incident that set Circuit City on the path towards bankruptcy.

Once you have overcome the emotional barriers to haggling, you will be ready to apply the tips and suggestions like these:

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