Showing posts with label facebook. Show all posts
Showing posts with label facebook. Show all posts

Friday, September 28, 2012

California Leader in Passing Password Privacy Laws – AB 1844 and SB 1349 Signed by Jerry Brown



On September 27, California Governor Jerry Brown signed a pair of privacy laws, AB 1844 and SB 1349, protecting the rights of individuals from having to personal account names and passwords  to schools, employers, and prospective employers.  California is the first state to enact laws protecting both students and workers.   These include passwords for such accounts as Facebook, Twitter, Linked in and personal email accounts.  Notice the word "personal". Very important.

Undoubtedly, other states that may not have these in process will follow California’s lead.  "The Golden State is pioneering the social media revolution, and these laws will protect all Californians from unwarranted invasions of their personal social media accounts,"   Brown said in a statement. Maryland and Illinois have laws in affect for workers, and Delaware, for students.

These laws    will become effective on January 1.  Kudos to the legislature for doing this and to Brown for signing the measures.   "No boss should be able to ask for this kind of personal information," said state Sen. Leland Yee, D-San Francisco.  Yee wrote California bill SB 1349.  Assemblywoman Nora Campos was the primary driver for AB 1844.

  • Under AB 1844, it will be illegal for employers  ask employees or job applicants for the user names and passwords to their social media accounts.  Five state senators actually voted no on this - Anderson, Blakeslee, Correa, Gaines, and Walters!
  • Under SB 1349, it will be   illegal for colleges/universities to ask students/perspective students for their social media account info.  No one voted against this measure.

 What this does not do (of course) is protect individuals from themselves.  While employers ask for neither account names nor passwords, there is nothing to prevent them from using Google, Bing, or any other search engines to find out information or to go onto Facebook, for example, to see what you may have posted for the universe to see.  Fear the default privacy settings! The bill don't talk about enforcement or penalties for non-compliance.


You may want to read "25 most-used passwords revealed: Is yours one of them?" There are numerous articles online on creating (more) difficult to figure out passwords. 




The text of the two bills passed and links to additional details are below.

LEGISLATIVE COUNSEL'S DIGEST
AB 1844, Campos.  Employer use of social media.  

Existing law generally regulates the conduct of employers in the state.

This bill would prohibit an employer from requiring or requesting an employee or applicant for employment to disclose a username or password for accessing personal social media, to access personal social media in the presence of the employer, or to divulge any personal social media.  This bill would also prohibit an employer from discharging, disciplining, threatening to discharge or discipline, or otherwise retaliating against an employee or applicant for not complying with a request or demand by the employer that violates these provisions.

Under existing law, the Labor Commissioner, who is the Chief of the Division of Labor Standards Enforcement in the Department of Industrial Relations, is required to establish and maintain a field enforcement unit to investigate specified violations of the Labor Code and other labor laws and to enforce minimum labor standards.  Existing law authorizes, and under specified circumstances requires, the Labor Commissioner to investigate employee complaints of violations of the Labor Code, provide for a hearing, and determine all matters arising under his or her jurisdiction.

This bill would provide that the Labor Commissioner is not required to investigate or determine any violation of a provision of this bill.

SECTION 1.

 Chapter 2.5 (commencing with Section 980) is added to Part 3 of Division 2 of the Labor Code, to read:
CHAPTER 2.5.  Employer Use of Social Media

 (a) As used in this chapter, “social media” means an electronic service or account, or electronic content, including, but not limited to, videos, still photographs, blogs, video blogs, podcasts, instant and text messages, email, online services or accounts, or Internet Web site profiles or locations.
(b) An employer shall not require or request an employee or applicant for employment to do any of the following:

(1) Disclose a username or password for the purpose of accessing personal social media.
(2) Access personal social media in the presence of the employer.
(3) Divulge any personal social media, except as provided in subdivision (c).
(c) Nothing in this section shall affect an employer’s existing rights and obligations to request an employee to divulge personal social media reasonably believed to be relevant to an investigation of allegations of employee misconduct or employee violation of applicable laws and regulations, provided that the social media is used solely for purposes of that investigation or a related proceeding.
(d) Nothing in this section precludes an employer from requiring or requesting an employee to disclose a username, password, or other method for accessing an employer-issued electronic device.
(e) An employer shall not discharge, discipline, threaten to discharge or discipline, or otherwise retaliate against an employee or applicant for not complying with a request or demand by the employer that violates this section.  However, this section does not prohibit an employer from terminating or otherwise taking an adverse action against an employee or applicant if otherwise permitted by law.

SEC. 2.

 Notwithstanding any other provision of law, the Labor Commissioner, who is Chief of the Division of Labor Standards Enforcement, is not required to investigate or determine any violation of this act.


LEGISLATIVE COUNSEL'S DIGEST
SB 1349, Yee.  Social media privacy: postsecondary education.

Existing law establishes and sets forth the missions and functions of the public and independent institutions of postsecondary education in the state.

This bill would prohibit public and private postsecondary educational institutions, and their employees and representatives, from requiring or requesting a student, prospective student, or student group to disclose, access, or divulge personal social media, as defined, information, as specified.  The bill would prohibit a public or private postsecondary educational institution from threatening a student, prospective student, or student group with or taking specified pecuniary actions for refusing to comply with a request or demand that violates that prohibition.  The bill would require a private nonprofit or for-profit postsecondary educational institution to post its social media privacy policy on the institution’s Internet Web site.

SECTION 1.

 The Legislature finds and declares that quickly evolving technologies, social media services, and Internet Web sites create new challenges when seeking to protect the privacy rights of students at California’s postsecondary educational institutions.  It is the intent of the Legislature to protect those rights and provide students with an opportunity for redress if their rights are violated.  It is also the intent of the Legislature that public postsecondary educational institutions match compliance and reporting requirements for private nonprofit and for-profit postsecondary educational institutions imposed by this act.

SEC. 2.

 Chapter 2.5 (commencing with Section 99120) is added to Part 65 of Division 14 of Title 3 of the Education Code, to read: CHAPTER 2.5.  Social Media Privacy

As used in this chapter, “social media” means an electronic service or account, or electronic content, including, but not limited to, videos or still photographs, blogs, video blogs, podcasts, instant and text messages, email, online services or accounts, or Internet Web site profiles or locations.
(a) Public and private postsecondary educational institutions, and their employees and representatives, shall not require or request a student, prospective student, or student group to do any of the following:
(1) Disclose a user name or password for accessing personal social media.
(2) Access personal social media in the presence of the institution’s employee or representative.
(3) Divulge any personal social media information.
(b) A public or private postsecondary educational institution shall not suspend, expel, discipline, threaten to take any of those actions, or otherwise penalize a student, prospective student, or student group in any way for refusing to comply with a request or demand that violates this section.
(c) This section shall not do either of the following:
(1) Affect a public or private postsecondary educational institution’s existing rights and obligations to protect against and investigate alleged student misconduct or violations of applicable laws and regulations.
(2) Prohibit a public or private postsecondary educational institution from taking any adverse action against a student, prospective student, or student group for any lawful reason.

A private nonprofit or for-profit postsecondary educational institution shall post its social media privacy policy on the institution’s Internet Web site.

 

Tuesday, September 04, 2012

Facebook Cancels Secondary Offering

Facebook continued its downward trend Tuesday.  They announced Tuesday that they are cancelling their secondary offering.  This was announced after the market closed on Tuesday, with the stock reaching a low of $17.55 and a market cap of 37.98B.  Facebook’s plans are detailed in an 8-K filed with the SEC (the first link at end of blog includes the text of the 8-K) There will still be a substantial number of shares eligible to be sold over the coming months by employees and other individuals.  This may not be enough to keep them from cashing out.  Well, they may sell enough shares  for a Tesla and/or a house in Los Alto Hills or Menlo Park.  The following change was made for current employees as detailed in the 8-K:


Our employees are subject to “market-stand-off” provisions that prohibit them from selling or otherwise transferring any of their common stock or securities convertible into or exchangeable for shares of common stock until November 14, 2012.  We intend to waive this market stand-off provision to allow our employees who were employed by Facebook through October 15, 2012, to sell shares held by them or shares subject to Pre-2011 RSUs (to the extent the service condition has been met) or vested stock options on the date that is four trading days following the announcement of our third quarter 2012 financial results, which announcement is currently scheduled for October 23, 2012.”  

This gives employees the chance to go to the head of the line (in some respects) and sell up to 234 million shares in advance of another 777 million shares that will become eligible to be sold on November 14.  These shares aren’t subject to a reduced tax when sold.  They’ll be taxed as ordinary income.  No 15% here!

It’ll be an interesting day when the quarter’s financial are announced October 23.  There may not be a lot of Zuckerberg trick or treaters on October 31 following the earnings announcement.

Tuesday’s market cap of $37.98 billion is within $13B projected by Anup Srivastava, an assistant professor of accounting information and management, Kellogg School of Management.  He ran a valuation model prior to the initial public offering  and arrived at a base case valuation of $25 billion.  Sometimes the smartest guys in the room are, uh, overly optimistic.

 

Thursday, August 09, 2012

Google Agrees to Pay $22.5M for Apple Browser Breach


To paraphrase  a song from several years ago,  “Oops, you did it again.”  Google will pay   $22.5 million to settle allegations by the U.S. Federal Trade Commission that it breached Apple’s   Safari Internet browser to track individuals browsing behavior.    To put the size of the penalty into perspective, at the end of the last fiscal year, Google had total cash of $41.7 billion.  The penalty won’t  put too large a dent in their cash.  

According to the FTC, Google deceived consumers and violated terms of a consent decree signed with the commission in 2011 when it planted   cookies on Safari, bypassing Apple software’s privacy settings.  This allowed Google track users’ Internet browsing behavior.  The FTC charged that Google's actions violated the  decree that was to prevent Google from misrepresenting the extent of control that customers have over the collection of their information.   

The FTC is empowered to levy penalties as large as $16,000 a day.  Perhaps a larger and more appropriate penalty, $4.99 per user.  In addition, force the little Android person to wear a cone of shame from Pixar’s “Up” and “Monster’s Inc.”  for a year on the Google search site.  Create a little cartoon app that causes the Android  to jerk its  head around when you type in either “cookie” or “squirrel”. 

This is the largest fine the FTC has ever levied against a company. The FTC  also ordered Google to disable all the tracking cookies.   The FTC is giving a fair amount of time for Google to come into complete compliance  Google has  until February 2014 to do so.  
  
 “No matter how big or small, all companies must abide by FTC orders against them and keep their privacy promises to consumers, or they will end up paying many times what it would have cost to comply in the first place,” stated FTC Chairman Jon Leibowitz. Other companies the FTC has entered into settlements on privacy allegations in the past  include Facebook,   Twitter Inc. and MySpace Inc.

“Trust no one” seems to be the operative phrase when it comes to protecting your personal privacy.  Individuals should read up on how to turn off tracking in their web browser,  both in Apple’s and other browsers. 


Thursday, August 02, 2012

August 31 - Facebook Face Plant Continues

August 31 Update  -  The day isn't over and after having one early investor sell millions of shares last week, and the "pundits" saying that revenues will slow down even more, the stock has reached $18.11 and a valuation of under $40 B. 

What do the artist Prince and CEO founder Zuckerberg have in common?  Both are associated with the number 1999.  In Zuckerberg’s  case, only briefly, as on Thursday, Facebook stocks continued to plummet, dropping as low as 19.82, before closing at $20.04. Not good for investors who jumped on board on the day of the IPO. 

Should the stock keep dropping, there will be fewer sales of little red corvettes, or Teslas, in Silicon Valley in mid August, when the lock-up ends and  employees can start selling up to 268 million of the 1.7 billion shares they have.
   
Facebook’s market cap (valuation) as of end of day Thursday was  $37.6  billion.  This   means that those who were projecting a  $100 billion valuation have to remain in hiding.  The person still coming out good in this is Kellogg School of Management assistant  professor  Anup Srivastava,  (accounting information      management). Srivastava;s   valuation model  arrived at  a base case valuation  of $25 billion.  http://kensek.blogspot.com/2012/02/is-facebook-really-worth-100-billion-in.html
 
Meanwhile, Facebook reported that as many as 83 million  (about 8.7%) of its accounts may be illegitimate. The includes duplicate accounts, misclassified accounts, and accounts deemed “undesirable”.  This 83 million figure is greater than the number of people who use Google on a daily basis.   
 http://www.bbc.co.uk/news/technology-19093078 .

So August isn’t starting out well for the firm. There’s the above and some of the team is starting to depart.  Ethan Beard, Facebook's director of platform partnerships, and Katie Mitic, the company's director of partnership marketing,  are both leaving the company.

To view Facebook’s quarterly financials, and learn more about their risk factors and issues they’ve identified, go to their updated  10-Q. This document is only about 60 pages.

Saturday, July 28, 2012

What is Facebook worth Revisited - Latest Earnings Report - Employee Stock Lock-Up Expiring Shortly


Facebook released their financial results on Thursday.  Facebook’s  growth figures in their first quarter   as a public company following their IPO would have been impressive for most companies.  Nonetheless,    

Facebook stock took ­­ a  face plant following   the earnings release.  Below is a second quarter summary of their financial results. On Friday, Facebook closed at $23.71.  This gives them a market capitalization of $44.5 billion.  Click to enlarge the table.  CEO Zuckerberg may stay under the radar for the next several weeks.  


 
















 The $95 to $100 billion  IPO pundits are taking a low profile.  Probably focusing on their tweeting.

In May, GreenCrest Capital’s Max Wolf felt that Facebook's  financial numbers suggested a valuation of $60 billion.  This is 37%   less than the $96 billion Facebook was thinking of.  His figure as of July 27, is off by only $15 billion, on the high side. 

Also in May,  Anup Srivastava, an assistant professor of accounting information and management, Kellogg School of Management, ran a valuation model and arrived at  a base case valuation  of $25 billion.  “This is based on the firm’s revenues reaching approximately $21 billion in ten years’ time from approximately $4 billion today, and the firm maintaining a high return on assets of approximately 20 percent.”   His model, as of July 27, is off by only $19 billion, on the low side.  The last link at the bottom of this blog leads to Srivastava’s original article in “Expertly Wrapped” an online publication by Kellogg faculty. This also provides  a link to his valuation model.  Discounted cash flow analyses can be a good thing!

As an amusing aside, average the two figures above by these individuals - $44.8 billion, off by only $0.3 billion !  A sample of two smartest guys in the room probably doesn’t qualify for wisdom of crowds status. 

Facebook will free up nearly 1.7 billion shares -  four times the number now trading,  beginning in August.  Provisions   currently barring  employees from selling their holdings will start.  Unfortunately for the employees, if they execute these immediately, they are taxed as regular income. 

Shares of online coupon purveyor Groupon Inc. declined 8.9% when its lock-up expired on June 1.  The stock dropped nearly 20% that week. Likewise, shares of online gaming company Zynga Inc. fell 7.9% when its lock-up expired on May 29. The stock price ended up falling    9.1% for the week.  Look for some sort of dip as Facebook employees start selling some of their stock,  and people continue accessing Facebook on their mobiles. No revenue for Facebook when they do this.

Real estate agents in Palo Alto,  Atherton, and Menlo Park (where Facebook is headquartered), are probably looking at Facebook’s stock price a lot more than mortgage lending rates.