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"If you're not paying for the product, you are the product." It's an outdated way of looking at tech. Many classes of paid products (e.g., cars, streaming services, IoT, operating systems) double-dip into tracking and advertisement. Why would a business actually want to do the hard work of serving user needs when they can hedge their bets with ad revenue? Line must go up.


First, in any case, the right solution is to make this business model (treating your users as a product, whether by offering free service or heavily discounted/subsidised product) simply illegal. It violates the way market is supposed to work and exploits information asymmetry—regulation against which there is plenty of precedent of.

This makes the rest moot, but I will still list why I don’t think it’s like you say at least in case of social media.

If social media was paid only (like any actual product or service intended to benefit the customer) and users were choosing between paying different amounts rather than paying vs. not paying, it would kill the network effect outright; platforms would have to struggle to keep users, and to that end would start implementing features users want and need (rather than exploiting their emotional state and employing dark patterns[0] to boost ad impressions).

The interest of a service provider is aligned with the interest of the customer. The incentive to do bad unethical things to the user may exist either way, but it is when the user is not the customer that it becomes a natural course of things. It is still possible to “double-dip”[1], but the difference between users being customers and users not being customers is that in the former you can be an honest service provider and sustain yourself by doing things in the benefit of the user.

[0] For example, have you noticed how Instagram’s GUI is carefully designed to require you to tap two times, with a teeny tiny chevron as the only indicator, every time you open the app to switch to the timeline of people you actually follow, rather than whatever the algorithm suggests (and how carelessly swiping photo carousel left makes you exist that carousel, and lose the scroll position)?

[1] Additionally, note that the examples you named (cars, IoT, OS[2]) make a lot of money from a single purchase and/or are fairly inflexible to switch away from, compared to social media where interoperability is pretty much solved with open standards.

[2] What is a paid-only streaming service that “dips” into advertisement in some unethical way?


How would you write that law?

So now every social network charges $0.01 per month and makes all the rest of their revenue through advertising.

Would you set the minimum price for every service and outlaw advertising entirely?


The solution is probably not to require them to be paid but to make that a natural consequence.

For example,

1) disallow double-sided marketplace where primary users are monetised to a third party, or

2) require open API and interoperability, allowing users to switch providers easily, mobile phone style.


> and outlaw advertising entirely?

This is the actual solution, https://news.ycombinator.com/item?id=43595269


When someone opens with “there oughta, be a law”… they’re almost always shouldn’t be.

No. You’re not going to regulate out human behavior or scammers or MBA’s looking for every avenue to maximize profit.

Make a better system.


This is not about regulating away illegal behaviour. Criminals will exist. It is about making [what we have reasons to consider] de facto scammy behaviour to be de jure illegal behaviour. Then it becomes a matter of enforcement.


>Then it becomes a matter of enforcement.

Really strong record there, especially internationally.

Make a better system.


Don't keep us in suspense. What is this better system you speak of?


"If you're not paying for the product, you are the product."

Technically, it doesn't logically follow that paying means you aren't the product.


However, it makes network effect based de-facto monopolies hell of a lot more difficult!


They aren't double dipping, they are subsidizing the cost with ads.


When ford deployed LexusNexus tracking to my F150, they didn't refund any of my purchase price.

Samsung isn't refunding any of their $3k fridges that now have mandatory ads


The norm is reduced costs because there are ads. The same Samsung also sells deeply discounted TVs that are ridden with ads. Netflix, amazon prime, Hulu, and youtube offer ad-subsidized subscriptions.


They didn't need to offer a refund. It was already priced in. You maybe forgot to ask what was coming in future software updates while standing starry-eyed at the impossibly low price it was being offered at, but they knew it was coming. After all, appropriately specced hardware to be able to do it was already onboard.


Your comment is so naive. Most products out there have a terms and conditions that equate to 'the company can change the product at any time and you're always free to stop using it', while giving their salespeople little to no idea about future progress because that would limit sales. Even if you didn't "maybe forgot to ask", there isn't anyone to respond with the truth.

If you purchase a product that doesn't have ads and then they introduce ads - that is a huge change in the value proposition of the product.


> that is a huge change in the value proposition of the product.

It is, but one that is already calculated at time of purchase. You'd pay a lot more if there were strict guarantees that it would never display ads.

The Belarus tractor company learned that lesson. Once upon a time they tried to infiltrate western agriculture with, under the backing of the USSR, heavily subsidized products offered on the cheap. But farmers saw through the thin veneer and realized that they wouldn't be able to get parts for the machines down the road. As such, the much cheaper price wasn't a winner. Farmers were willing to pay significantly more to American companies, knowing that they would provide not just on day one but also long into the future. The economic lesson learned was that the marketplace doesn't value just initial purchase price, but the full value proposition over its entire lifetime.

Many people are willing to gamble, of course, especially for "disposable" things.


I read it as more rhetorical than not. No one was literally expected to ask about the future. However, one could be expected to ask oneself “what could such a low price tag on such capable hardware mean for the future?”

It is unrealistic, of course, because it is a textbook case of information asymmetry (the enemy of the market)—only a vanishingly small number of people can adequately assess the pricing, having to know enough about hardware and all the various forces that could bring it down, like potential upcoming lineup changes or inventory overflow.

The right move is to fight information asymmetry. Many developed countries, including the US, already do it in countless cases. A mild way could be requiring to disclose things like this in addition to the ToS; a more thorough way could be simply banning this business model.


This is the most HN of HN takes.

Saying it's your (the consumers) fault because you didn't read the crystal ball for what was coming in the future.

The price a product is offered at is the price for the product at that time, you don't get to say well I sold it for $10 but it's worth $20 so I'll just sell your data until I recoup that $10 I "lost".


> the price for the product at that time

Exactly. The necessary hardware to enable the tracking was installed at the time of purchase. It is not like 10 years later someone dreamed up the idea and decided to stealthy in the night start bolting on new components to every vehicle they could find. It was a feature that was there at the time of purchase and the sale was priced accordingly.


So by your standards, it's totally fine for Lenovo to use the laptop you bought from them to mine crypto a year after you bought it from them because the necessary hardware to enable that (it having a GPU) was installed at the time.

I mean it's a viewpoint, it's a certifiably bonkers one but of all the viewpoints it definitely is one.


Much like the F-150, if the license agreement between you and Lenovo allow Lenovo to do so, yes. I mean, if you didn't want that, you wouldn't have agreed to it, right? You are allowed to say no.


Ah... so we find ourselves at

> “But look, you found the notice, didn’t you?”

>“Yes,” said Arthur, “yes I did. It was on display in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying ‘Beware of the Leopard.”


If a contractual party is not acting in good faith, there is a legal system to address that.

But I know you will say that the legal system doesn't act in good faith, so... I guess you're screwed. Such is the pitfall of living under a dictatorship.


What are we supposed to do about the fact that you are not arguing in good faith? I'm not buying what you're selling.


> I'm not buying what you're selling

Which is why I'm not providing what you seek. Production goes to he who is paying, and in this case I am the one doing the paying. Thus, you know the content is written for me and me alone.

> What are we supposed to do about the fact that you are not arguing in good faith?

A rational actor acting in good faith would start talking terms to see the sale go through, but as you are also here in bad faith we can continue to write only for respective selves. Nobody was expecting anything else anyway. I don't imagine anyone has ever paid someone else to write a comment on HN and that isn't about to change today.


You mean "Which is why I'm not arguing in good faith". Or rational, either.


The "you can just not agree to it" argument is so bogus. You can only buy good/services that are for sale, and when they all have the same crappy terms, you have to agree to somebody's to live in the modern world.

That's like the people who claim only idiots live in HOAs but neglect the fact that, in some markets, nearly all real estate worth living in is covered by an HOA of some sort so your alternative isn't "buy a different house" it's "live in an apartment forever"


> You can only buy good/services that are for sale

The world is full of custom car builders. Buying a something like the F-150, but without the undesirable computing components, is quite practical and very possible.

It'll be expensive, which I expect is what you were really trying to say when you pretend there is no such thing for sale, but you're just returning us to the heart of discussion: The F-150 is cheap, comparatively, because it has already priced in the tracking subsidy. You're accepting of those undesirable terms because the lower price makes it compelling enough to do so.


Is it really "accepting a concession" if the "alternative" is so expensive as to not be an option anyway?

This is like telling someone who doesn't like that they have to wait in traffic they should just take a helicopter to work everyday. Yes, it's technically an option for some people, but for the vast majority it's not.


Yes. That concession is what gets one with limited means into an F-150. If it was sold at its true market value, absent of all value diminishing systems like tracking, they wouldn't be able to afford that either.

Same goes for roads. You most definitely can build roads that don't have traffic, but only the rich will be able to afford to use them. Traffic is what enables those of lesser means to also participate.

It's a pretty good tradeoff for those who are poor. And the rich can buy whatever they want anyway.


Yes, the world is full of custom car builders. I'm sure I'll find someone that can build me a replica of the f150 lightning that doesn't enable spyware on me.

Mind to help me out a bit and point me at a few companies doing that? Around Kentucky if you don't mind since that's where I am.


I'd start with Ford. They're well known for their custom builds — what they call VSO. And they're already tooled up for production of an F-150-style vehicle around Kentucky to boot.

It won't come cheap like an F-150, but nobody can expect it to be cheap when the value proposition is much higher.


Ford VSO doesn't include the F150 lightning, just the F150.


That's exactly what they told you when you slapped a billion dollars down in front of them? Color me skeptical. I bet you haven't even talked to them.


Dude. They have a website. It lists what they do.


When someone comes to you with a unique custom request for something, your response is: “Nope. Not on my website, not going to do it”?

Must be nice to have the luxury of being able to do nothing. Ford doesn’t have that luxury, though. It has to answer to angry shareholders if it lets a lucrative customer slip through.

Call them. Talk to a real person.


A license agreement, or a contract in general, cannot permit either party to violate the law. What you're describing in this scenario, and what has actually happened in some cases, is effectively theft of use and arguably fraud.

Fraudulent terms of service are not above the law, nor are they above basic expectations in society of fair dealing. You can try to litigate this any which way you choose, based on the language contained in the contract/TOS, and it fundamentally does not matter. At some point, something has to give and it ends with burning down buildings and building guillotines. History is full of abundant lessons about the supremacy of social mores and standards that suborn the law, and the supremacy of the law over the specific parties of any given contract.


Who exactly would you ever ask to find out that the samsung fridge you were looking at was going to get ads in the future?

Certainly not the appliance salesman, they don't know samsung's plans. And good luck calling samsung and asking for the "future plans" department. This is such a dishonest take.


They do know their own plans, though, and thus can offer a contractual guarantee on how the product they are selling will be treated in the future.

If they aren't willing to stand buy what they are selling, why would you want to buy it from them in the first place? That's what we call a scam.


> You maybe forgot to ask what was coming in future software updates

Who exactly was I supposed to ask that? The check out cashier at the store? The CTO of the company that manufactures it? Who even knows the answer to that question, and how are millions of consumers supposed to find that out and contact them directly, and why are they permitted to reveal proprietary plans if they even know?

Your arguments are delusionally detached from reality.


> The check out cashier at the store?

Normally F-150s, and fridges for that matter, are sold not by cashiers, but salesmen. I suppose there isn't any meaningful difference in the end — except, unlike a cashier, salesmen are named as such because there is greater expectation of them being intimately familiar with the product so that they can answer such questions.

If they can't, that's a pretty big red flag. Why would you conduct business with someone who has proven to be shady (or at least incompetent)?


I'd rather not buy a refrigerator that a salesman has been intimately familiar with.


There's really no difference. If a company must subsidize costs with ad revenue, it clearly shows that they don't want paying customers to be the sole judges of the product's value proposition.


It’s just moving the goal posts though, ars technica was reporting on a 3400 dollars for a Samsung fridge with ads.




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