China Doesn't Appreciate Starbucks' Prices

This week, China decided to let Starbucks know their coffee is not appreciated. CCTV, China Central Television, a government controlled broadcaster, targeted the chain in a segment. According to “Starbucks caught in China’s crosshairs over posh prices” by Le Li of NBCnews, “[the report] said the price of a tall latte in Beijing is 27 Yuan or $4.43. That’s higher than in London, Chicago or Mumbai where the same drinks costs $4.00, $3.26 and $2.40 respectively”. The article quotes a Starbucks China spokesperson as saying “each Starbucks market is unique” and thus isn’t comparable. It wasn’t clear in the article if CCTV was aware that Starbucks prices also vary in U.S. markets – recently I purchased a Tall Caramel Macchiato for about $4. My Macchiato came from a Starbucks in the financial district of Providence, RI and probably would have been different in price had I went to a different location. While I didn’t appreciate the price compared to my preferred cheaper Dunkin' Donuts , I have always understood that Starbucks is a little more than the average coffee. Maybe CCTV broadcasters didn’t spend much time doing an extensive study into price variances between countries, cities, and intranational regions.

I digress from the bigger picture…

While the government and its mouthpiece may not find any joy in a $4 latte, the consumers of Starbucks China are avid drinkers of this expensive product. Shaun Rein, a managing director of a strategic market intelligence firm in China told NBCnews that “Starbucks is a luxury product in China… this is a lifestyle experience. Its main customers in China are women in their 20s who see it as a fashionable place to go…. If it’s too cheap, consumers will doubt its quality”. The article suggested the CCTV segment probably further marketed Starbucks as a luxury, continuing its popularity amongst the elite and luxurious wannabes. There you have it: Starbucks vs. the government controlled CCTV vs. people who actually love a $4 latte.  While I might only partake in Starbucks for some occasional fancy taste bud action, my drinking counterparts in China will maintain their high life images posing next to a posh hot cup of latte.

Are We Taking PayPal Money into Space?

While the average business probably has a 10 year plan and a 20 year vision, PayPal is thinking of business in the future of space traveling. In a very serious manner, PayPal announced today they would begin research for their planned inter-planetary payment system. According to “PayPal to launch their inter-planetary payment system” by Julianne Pepitone of CnnMoney.com, “PayPal said its goal is simply to start thinking about complicated issues concerning space commerce.”

The article reports PayPal will partner with the Search for Extraterrestrial Intelligence (SETI) Institute and the Space Tourism Society to begin this vast research project. The research project should map the commerce system of space. PayPal president David Marcus is quoted saying “…it’s clear we won’t be using cash when we’re in space… we feel it’s time now… to start figuring out what this looks like”.

PayPal’s plans are not far-fetched; Richard Branson’s Virgin Galactic is already the beginning of space tourism. Virgin is offering seats to space for $250,000.  Space travel may not be here, yet. But Virgin Galactic, PayPal and their partners are letting you know they’re thinking of servicing you in your space travels.

International Expansion Forces Bourbon Maker to Reduce Quality

When your product becomes internationally demanded and you can’t supply this demand, you could find yourself in a rock and hard place - either lessen the quality to increase supply or maintain quality to satisfy your domestic consumers. Beam Inc. a company that makes Maker’s Mark, a high quality American bourbon has decided to lessen the potency of their popular liquor. “Maker’s Mark waters down its bourbon to meet rising demand” by Zachary M. Seward of qz.com (Quartz) reports “The bourbon brand, known for its bottles sealed with red wax, told customers today that it’s reducing the amount of alcohol in the beverage in order to meet rising global demand”.

Beam Inc. sent an email to “loyal customers” (email is in the article) and stated the alcohol by volume (ABV) will be reduced by 3%. American bourbon has become steadily popular over the past years – in “the United States, [it] accounts for 35% of all spirit sales”; however, international demand is the motivation behind lowering the ABV. The article reports, “International growth is what’s driving demand for bourbon makers like Beam Inc…. Beam executives earlier this month said Australia, Germany, and Japan were strong markets”.

Instagram Snatches Back Policy & Claims They Will Not Sell Pics

Today while checking my Twitter timeline on my break, I came across a blogger asking followers if they would delete their Instagram account. I didn’t know what she was referring to – so, I checked my timeline more, went online, and read from CNNmoney.com that Instagram users were livid with the announcement of changes to the company's policies. “Instagram says it won’t sell your photos to advertisers” by Julianne Pepitone and Stacy Cowley of CNNMoney.com reports Instagram would implement new changes in their policies starting January 16. The article states this as the controversial change:

“‘A business or other entity may pay’ Instagram to display users’ photos and other details ‘in connection with paid or sponsored content or promotions, without any compensation to you’”

The announcement of the change was yesterday and many users took to their other social media accounts to voice very critical angry opinions about the change. Today, Instagram responded with a blog post. Here are some notable statements from the post:

“…we’re listening and to commit to you that we will be doing more to answer your questions, fix any mistakes, and eliminate the confusion”

“legal documents are easy to misinterpret”

Papa John's Sued for Sending Spam

Papa John’s is hoping a judge doesn’t blame them for 500,000 illegal text messages sent in 2010. If so, Papa John’s would at least pay $250 million to plaintiffs. “Papa John’s faces $250 million spam lawsuit” by Olivia Smith of CNNMoney.com reports customers claim they were sent “spam texts [offering] deals for pizza, and some customers complained they were getting 15 or 16 texts in a row…” The article reports the spam was actually sent but the issue is whether Papa John’s is responsible.

The texts were sent via “a mass text messaging service called OnTime4U, which is also a defendant…” In late 2010, Papa John’s ended their affiliation with OnTime4U and then “informed its corporate stores and franchisees that sending unsolicited messages to cellphones ‘is most likely illegal’”. The plaintiffs are “seeking $500 per text but could be awarded up to $1500 for each message.”

According to the article, Papa John’s defense is since the texts were sent through third parties the “corporate text messaging program is not subject to the lawsuit”. It’s interesting the company would claim the “program is not subject to a lawsuit.” As far as most know, spam is illegal whether sent by an overall company or it’s franchisees.  

Amazon Will Have Opt-out Option from Ads on New Tablets

This previous Thursday, Amazon revealed a new line of tablets and e-readers. The company has three new HD tablets including a $499 8.9” 4G tablet to compete with the iPad and two new Paperwhite e-readers. The company also announced that the tablets “would come with ads known as ‘special offers’ that appear when screens are locked in the corner of the home screen, helping keep prices low.” However, “Amazon, in switch, will let Kindle users pay to opt out of ads” by Reuters.com reports online forums revealed criticism of the ads and disappointment that “the company would not allow buyers to pay to block the ads as it had done with earlier tablets”. The article reports the company will be providing an opt-out option for users. 

Amazon spokesman Kinley Pearsall responded to Reuters:

“With Kindle Fire and Kindle Fire HD there will be a special offers opt-out option for $15. We know from our Kindle reader line that customers love our special offers and very few people choose to opt out. We’re happy to offer customers the choice.”

This opt-option fiasco comes after Reuters.com reported that Amazon has not “received approval for their sale from the Federal Communications Commission, which requires that products operate safely and won’t interfere with other signals.” The company responded by saying they would be ready “to meet its planned shipping date of Nov. 20.”

I own a Kindle Fire. It doesn’t have and has never had special offers. Thus, it explains the criticism of the planned special offers for the new tablets. While Pearsall responds by saying the users of the Kindle reader line “love” special offers, he’s using an e-reader experience to assume a tablet user experience, which is illogical. Also, it was a stretch for him to say customers “loved” the offers. “Settling” or “dealing with it” would be a better description. It’s good that the opt-out option is available - the company can move on to making sure they can actually the sell the tablets.

Dish Network Makes Nasty Move against AMC

Is it true that for Dish Network subscribers channel AMC went blank on Sunday night? According to “Fight between Dish and AMC gets nastier” by Joe Flint of Latimes.com, it was a move by Dish network in a legal battle with AMC.  AMC and Dish Network have been in a legal fight over their contract, which is ending June 30 and an apparent “unrelated lawsuit”.  The issue is, as always, price.  AMC wants more money and DISH network is claiming the company’s networks, AMC, Sundance, and WE, are not worth it. The article mentioned states that this Sunday Dish and AMC got a little too nasty as their fight included customers.

Flint reports AMC “ran a spot [during “Mad Men”] alerting viewers that Dish was planning to drop the channel at the end of the month.”  AMC encouraged Dish subscribers to call or email Dish to complain. About two hours after the spot, “Dish relocated AMC from Channel 130 to Channel 9069 – without warning”. The article reports the screen went from AMC, blank screen, then to HD Net. Subscribers who called in to inquire/complain were met with operators who were unaware of the channel move.

AMC’s statement: “It is unfortunate that, in retaliation for an unrelated lawsuit DISH is punishing its customers by threatening to drop the AMC Networks…”

The article reports a Dish network spokesperson “said the channels were moved to a location better suited to their ratings performance.”

Someone cue the baby crying and pass out the pacifiers.

I’m sure that plenty of legal issues are brewing amongst the many service providers we use. However, the typical result of such issues is either the customer never knows because the service continues; or contractual affiliations end and customers notified before service interruptions. It is never professional to use customers as pawns when legal issues get nasty.

For Dish subscribers, there was nothing wrong with AMC suggesting they call Dish to inquire about the channels being cut. However, to run a spot during “Mad Men” and put out the email address was a little much – considering subscribers are already aware of how to contact Dish. Dish’s response was asinine and juvenile. Don’t screw over subscribers because of ratings, anger, emotions, and/or money. They’re forgetting that the nastier it’s gets, the more they show their a$% to subscribers. 

Quick Steps for Professional Dreamers

Hello again, it’s been some time. All I can say is I’ve been busy. While cruising for something substantial to write about, I decided to skip daily news and write about positive business advice. I came across “How to Be a Visionary Thinker” by Maria Tabaka from Inc.com. This amazing article is a guide to putting our professional dreams to work. By professional dreams, the article means “something that we are excited and passionate about—and will also be very profitable” (don’t let "profitable" throw off social/non-profit entrepreneurial dreams). It is viable, practical and strategic.

Tabaka used advice from Marcia Wieder. Wieder is CEO of Dream University and a “personal transformation expert, former president of the National Association of Women Business Owners, and has been the catalyst for thousands of individuals turning their dreams into realities over the past 20 years”. She says, “I think that sometimes people forget that we need to marry the two ideals, passion and strategy, to achieve success.”

Wieder advises to take time to explore our dreams and really ask ourselves if our dream is our passion and are we willing to put in the work to make that dream a reality. This “passion quest” should then manifest into mastering “the skill of enrollment”. Wieder describes enrolling as “sharing your vision in a way that inspires others to join you, hire you, or even invest in you”. During the enrollment process, it is very important to articulate your dream well to others and have them see your dream from your eyes.

Tabaka delivers Marcia Wieder’s “four-step process” for professional dreamers (I’m not listing every word - so please read the article):

1. Establish Rapport

Get people to trust you in order to have them work with you and/or invest in you. “In the enrollment process you are inspiring people, not selling to them.”

2. Build Value

“To build value you must understand what your customers want.” Communicate with your target audience - use social media, talk to them, survey them.

3. Overcome Obstacles

Continue the conversation with the people around you. “Make it easy for people to say yes to you by encouraging them to share their ideas with you”. Ask open questions - What? When? Where? Why? - inspire people to open up and stay open. Often, obstacles are not overcome because those involved are not communicating and it leads to misunderstanding.

4. Secure an Agreement

“Don’t leave a discussion without determining the next step”.  When the conversation has ended, understand from where it continues.

These four steps can be applied to everyone - dreamers, workers, executives, etc. Specifically for professional dreamers, if you have already decided that your dream is real and practical, these steps help to get others to become part of the dream and help you to better mold the dream into reality. 

Customer service, Social Media, and Outsourcing

Last night, I finally watched “Customer (Dis)Service” by CNBC. Evident by the title, the special was about customer service, its evolution, its problems, and the process, good or bad. The special premiered more than a week ago, so, first let me apologize for being late on this commentary. I found a lot of it relatable and also sympathetic for both customer representatives and customers. Obvious things were discussed – people want excellent service regardless of price, social media has given the customer more power and businesses quicker feedback, and that sometimes people, both customer and representative, have bad moments.

There was one very informative portion of the show. The program explained the training program for outsourced call centers, specifically a call center in Delhi, India. The program reports that businesses give these reps little information regarding the service/product. There was a moment when a rep was being filmed during a live call. A customer wanted a definitive answer to when his computer would be fixed. The rep did not have an answer; all she could do was repeat, “the parts are on order”. The customer got frustrated and asked again if he could get an answer. The rep got nervous but couldn’t do anything but repeat herself. The customer asked to speak with a supervisor. The rep responded she didn’t have one. According to CNBC, in call centers, like the one represented, reps are not allowed to “escalate” calls aka send customers to supervisors. The result was that the customer was infuriated and the rep was stuck repeating herself.

Banks to Abandon Fees in Response to Backlash UPDATED

At the beginning of this year, news outlets warned customers that free checking would slowly but surely become extinct. While some smaller/regional banks may have already started their debit fees, national banks had yet to respond until about a month ago. At that time, Bank of America announced that they would charge a debit fee to all customers whom used their bankcard for debit/credit transactions. As one of the biggest national banks, the announcement drew a lot of criticism.

The reaction to the announcement has been swift and angry. Last week, NBC nightly news reported credit unions have seen increases in new accounts, many of those new customers were angry about their previous bank fees. This should come as no surprise as the best way for customers to show their anger is to take their business elsewhere (as Netflix recently experienced). Banks are also responding to backlash – some are doing away with bank fees.

“SunTrust, Regions latest banks to retreat on debit fees” by Jason Kessler of CNNMoney.com reports the two banks mentioned in the title would stop charging monthly debit fees and “both banks said they will refund any customers previously charged fee”. The irony is both are responding to criticism mostly aimed at Bank of America, but nevertheless a bank debit fee is a fee regardless of whether it’s from Bank of America or regional known banks.  JPMorganChase and Wells Fargo have responded by abandoning plans to charge fees.

Now, the pressure is on Bank of America to see whether they will also forgo their fee plan.  So far, the update is they are “considering proposals that would allow customers to avoid them, according to a person familiar with the bank’s plans.”


Update 11/1/11 12:50pm


According to NYTimes.com's "Bank of America Nixes $5 Debit Card Fee", Bank of America "said Tuesday that the decision to scrap the plan came after listening to customer feedback in recent weeks". Although, the article mentions the bank will be introducing non-fee checking accounts in a pilot program in a few states. Bank of America's decision shows that the bank has the sense to understand that they are are dependent on their customers. Nothing bothers me more than a service-based company that makes major decisions disregarding customer sentiment. In a service-based company, the customer is the business, it is always possible to piss them off enough to inspire an exodus.

International Blackberry Outage Could Kill RIM [Updated]

There is a blackberry outage. First, it started this Monday “in Europe, the Middle East and Africa”. By yesterday, the outage spread to the South America, the U.S., and Canada. According to “BlackBerry outage is another black eye for RIM” by Julianne Pepitone of CNNMoney.com, “the outage appears primarily to affect text messaging and Internet access, not voice calling”.

The response from RIM (Research In Motion) has been the usual “we’re working on it” response most companies give with major product malfunctions. But that hasn’t stopped the #DearBlackberry trends from sweeping across the net with tweets and blog posts from angry Blackberry users. The biggest problem with this outage is it’s not the first.  With the count given in the article, this outage is #6 (or five if two in a week count as one).

At this moment, many customers are asking, “why should I stay?”  This outage is very hurtful to businesses, solo, big and small, that depend on communication to operate. Those businesses and entrepreneurs can do without outages that cost them money and waste their time.

As far as technology, RIM may have had sophisticated phones with above-the-line software, especially attractive to on-the-go busy bodies and business professionals. But other smartphones have competitive features, updated software and enough memory to store plenty of apps to help organize almost any busy lifestyle.

RIM is already suffering from fleeing customers and delayed software updates. In this moment, when millions around the world are upset, RIM’s two CEOs need to work on fixing the crisis of this consistent outage. What is the point of having two CEOs when not one can give a valid answer as to why this happened and when it can be fixed? Customers want answers and investors want action. The whole world is watching to see if RIM can pull itself out of this.

update 10/13 12:39pm:

"RIM CEO says Blackberry service restored, apologizes for outage" by Jim Puzzanghera of LAtimes.com reports, "a top Research in Motion executive" stated the outage is over. The article reports Lazaridis stated, in a conference call, that any other problems is "caused by the lengthy backlog of messages". His suggestions to customers is for them to remove their battery in order to reset their phone.

Yet, the video posted by Blackberry (which is in the article) with Lazaridis giving his statement on the outage tells a different story. He states in the video that full normal service has not been restored internationally and it's too soon to state the "issue" has been fully resolved. He also states he cannot give an estimated time for full recovery. 

Sounds like RIM is not on the same page as their CEO. 

Netflix Lowers Subscription Expectation and Shares Fall 19%

After Netflix has been ridiculed and loathed for raising their DVD subscription fee by 60%, the company has lowered their subscription forecast. According to “Netflix lowers U.S. subscriber forecast; shares fall” by Yinka Adegoke and Lisa Richwine, the company “cut its third-quarter forecast by 1 million U.S. subscribers”. The immediate result was an almost 19% drop in shares Thursday.

In the article, Analyst Barton Crockett states the less-than-expected forecast for the third quarter could be a foreshadowing of a bad fourth quarter. CNBC’s "Fast Money" also had the same feeling. Analysts and anchors of the show felt that Netflix literally shot themselves in the foot by raising their prices 60%. The decrease in shares and forecast is just the obvious result of angry customers, which could lead to the downfall of the company.

Although Netflix claimed that they were not phasing out the DVD division, the article states that Ted Sarandos, chief content officer, “said the pricing decision gave customers a chance to choose whether to keep DVD services or move to a cheaper streaming-only option”. To me, this translates as “we raised the price in order to force you to choose streaming-only option” or even better put, “we are phasing out the DVD division”.  Then the article actually has Sarandos quoted as saying

“Being able to precisely forecast and predict the behavior of that many people on fairly radical change is something we’ll get better at all the time”

Netflix Finally Responds to Angry Customers

Yesterday, Netflix had an earnings release. The company reported better-than-expected earnings at $1.26 per share and a 52% revenue increase. According to “Netflix addresses customers ‘upset’ with price hike” by Julianne Pepitone of CNNMoney.com their earnings report dealt with angry subscribers and it sent a gray cloud over the release.

A few weeks ago Netflix announced they would be charging more for DVD subscribers; the new price for DVD and online subscription is $15.98 which is almost the same as paying for each subscription, DVD and online, separately. That subscription includes only having one DVD out at a time and for more than one, the price is higher. Netflix received a lot of anger considering the previous subscription price for both services was $9.99. That is almost a 60% increase. 

The response from Netflix:

“It is expected and unfortunate that our DVD subscribers who also use streaming don’t like our change, which can be as much as 60% increase”

“…some subscribers will cancel Netflix or downgrade their Netflix plans, we expect most to stay with us”

The optimism behind the second quote could be inspired by the fact that “75% of Netflix’s new customers during the quarter signed up for streaming-only plans”. It could be that the price increase is Netflix’s way of phasing out DVDs although they claim they are standing by the DVD division. But the problem is whether phasing out DVDs or trying to cater more to online subscribers, Netflix has drastically pissed off some customers. And now the anger is going to affect earning expectations.  

For Netflix to say it’s “unfortunate” that people are angry is ridiculous. I could understand a gradual increase but 60% price increase is really testing the loyalty of customers.  Netflix should have done a price increase when they had no competition. Now, customers can jump ship and they won’t drown. With more competition and media content expected to get more expensive possibly meaning less content on Netflix, Netflix needs the support of its customers and their forgetting the customers that helped them with their success.

To Recover Revenue Lost to eBooks Some Booksellers are Charging for Events

The bookstore industry has it rough; they’ve been hit by the success of eBooks and online booksellers and the state of the economy.  According to “Come Meet the Author, but Open Your Wallet” by Julie Bosman and Matt Richtel of NYTimes.com, one of the strategies to raise money is to charge admission to author events, which is unusual.  Typically, author events are free, with attendees having to already have purchased the book to speak to the author or get an item signed.  But to attend the event and hear the author speak is free.

According to some of the independent booksellers in the article, they are trying to prevent the bookstore from becoming a library. As Nancy Salmon from Kepler’s stated: “They type titles into their iPhones and go home… We know what they’re doing, and it has tested my patience”.  Some of the prices mentioned in the article range from $5 to $10 or the price of the author’s book.

While the strategy makes sense for booksellers, it conflicts with authors and their publishers. The purpose of an event is to reach the author’s audience, including those who choose to buy the eBook or from an online retailer. Neither author nor publisher cares from where the book is legally purchased. Pricing an author event could leave some fans left out and could interfere with the success of a book. Author Eleanor Henderson’s reaction to pricing events:

“I’m not sure that charging readers would be a) useful or b) friendly. While I understand the need for bookstores to make money, I don’t think they should discourage readers.”

Nokia CTO Leaves Adding to More Bad News

Chief Tech Officer of Nokia, Richard Green, is on leave from the company. According to “Nokia CTO on Leave Amid Report of Strategy Disarray” by Ritsuko Ando and Georgina Prodham of Reuters.com, there is speculation that Green left “over Nokia’s Microsoft-focused smartphone strategy and might not return”.  The official and only response from Nokia is that he is on leave for personal reasons. 

Nokia is not doing as well as its competitors. As the mobile market has advanced, the company has been run over by competitors in the smartphone market and cheaper competitors in the low-end market. The company’s market value and ratings have dropped. According to one analyst “We will probably see more of these negative news from Nokia in the coming weeks…”

The news about the leave came on a day when CEO Stephen Elop spoke at a conference in London. Elop avoided the CTO leave issue and instead focused on Nokia’s current state. He shut down all rumors that Nokia was up for sale. Yesterday, CNBC reported rumors of Microsoft buying Nokia, along with other companies.  The article reports Elop is probably telling the truth as Nokia does not seem attractive to any potential buyer. Nokia will be working with Microsoft to develop phones using Windows Phone OS. According to the article, “Elop stuck to this line that the company needed not a fundamental rehaul but a more focus and better execution”.  Nokia’s focus is clearly competition as Elop stated: 

“It is more important for us today to compete with Android and Apple than to compete with a Samsung Windows phone”

Phil Ivey Sues Full Tilt Poker, Claims the Site has not Refunded Money to Players

Last month, I wrote about the government seizures of online poker sites. It is illegal to gamble online in the U.S. and it also illegal for any poker site, even based overseas, to allow players to use their bank accounts to play. Many sites, including Full Tilt Poker were accused of creating fake transactions as means to allow people to gamble. A few days after the seizure, the government let the poker sites go up again only as a means for players to get their money. Well, Phil Ivey, one of the most popular and successful professional players, filed a lawsuit against Full Tilt Poker.  The basis of the lawsuit is that other online players have not gotten their money back.

Sony CEO Stringer Unaware of Attack 3 Years Ago and Still Surprised by April Attack

Here we go again. I previously wrote about Sony’s failure to inform customers of a data breach in reasonable time, and then subsequent failure to notify customers directly, by email, of their remedies. Since the April data breach, the theory behind the attack is hackers were seeking revenge for Sony suing hackers who modified their system (modifying or unlocking a console is considering hacking). It is also known that Sony did not have an effective firewall in place to defend the PlayStation network and those who wrote on company forums months before the attack noted this. Sony has been bashed in the media and by security experts as not being prepared despite threats of an attack. I recently read “Sony Chief Stringer Blindsided by Hackers Seeking Revenge” by Cliff Edwards, Michael Riley and Joseph Galante. As the title suggests, CEO Stringer is sticking by his claim that the massive hacker attack was a complete surprise.

But… oh but…

“Three years earlier, the company faced three breaches in Europe, including one in which Sony said some PlayStation Network user data might have been stolen.” Since then, evidence proves Sony did not put in a good security defense to prevent or lessen the wounds of a future attack. Another attack has happened since the April attack: the So-net Entertainment Corp. was breached, Sony websites have been down in some countries because they were targeted, and the PlayStation network is still down in some countries. The response from Stringer to the criticism of their security and response of previous attacks:

“Sony believed it had ‘good, robust security,’ Stringer said. He rejected suggestions that the company is paying for a lack of vigilance and said he was unaware of the 2008 intrusion on the PlayStation Network”

Google to Announce Mobile Credit Cards on New Phones

Google’s next move is to turn your phone into a credit card. “Google Expected to Introduce a Wireless Payment System” by Tara Siegel Bernard and Claire Cain Miller reports Google should be introducing the “mobile payment” service tomorrow. Google will be teaming with MasterCard and Citibank to make the credit card phones usable at PayPass terminals.  Macy’s, American Eagle Outfitters and Subway are also joining the venture.

The article reports many companies have been working on mobile credit card services for years but lack of consensus amongst those involved seems to prevent introduction. Newer models of Android phones and the Nexus S will include the near-field communication chip, which allows phones to be scanned and credit card information to be digitally read.  None of the companies involved in the deal have commented and Google has not made public acknowledgement of it.

Personally, I am not attracted to having a credit card connected with my phone. Lately, security breaches have reminded consumers that the more integrated our information becomes with advanced technology the more crucial security is. If Google is smart, they should already have security answers lined up and an ironclad security feature with the new phones that will have the chip. Also, it will take time for this to adapt and expand; the article reports, “only merchants in San Francisco and New York will participate”. With so many companies that would have to participate in order for expansion, it will take time to overhaul the retail system.

Sony Tries to Pacify Consumers but Notifies Through Their Blog

I’m cruising through various websites, checking business news. I find “Sony Chief Says Playstation Network to Return Soon” by Nick Bilton of NYtimes.com. The first line reads: “Sony posted a series of announcements on its PlayStation blog Thursday” and I pause. I begin to fury with anger; my boyfriend has/had a PlayStation Network account and he received no email from PlayStation announcing any update on the security breach and PSN outage. I clicked the link to the PlayStation blog and read two announcements from the company “A Letter from Howard Stringer” and “Sony Offering Free ‘AllClear ID Plus’ Identity Theft Protection in the United States through Debix, Inc.”.

Howard Stringer is the Chairman, CEO and President of Sony Corporation. The summation of the letter from Stringer and the Identity Theft Protection announcement:

According to Sony, there is no proof that “any credit card or personal information has been misused”. But they will play it safe and offer Identity Theft Protection to all PSN and Qriocity consumers.

Sony will email a code to customers to sign up for the free 12 month Identity Protection program provided by Debix, Inc. “one of the Industry’s most reputable identity protection firms”. The program consists of “but are not limited to”: “Cyber monitoring and surveillance”; “Priority access to licensed private investigators and identity restoration specialists”; and “A $1 million identity theft insurance policy per user”.

Sony PlayStation Waits 6 Days to Inform Customers of Security Breach... Insulting Move

A week ago the PlayStation Network (PSN) went down. PSN provides online community gaming, online purchases, access to Netflix installed on PS3, movie purchases, game extensions, and other similar services. The network became and still is unavailable. After more than 24 hours of downtime, I advised my boyfriend, an avid user of PSN, to do what most consumers would do: check the company website. The official PlayStation site gave no reason for the downtime but stated it was for “maintenance”.

On April 26, 6 days after PSN went down, Sony released a statement that PSN had been hacked. Log in information, names, birthdates, passwords, and addresses had been taken by hackers; credit card information along with all purchases made through the network may have also been taken. An email was sent out to PSN subscribers advising them of the breach and to watch out for scams, any contact from Sony (according to them Sony would never contact for more personal information), and unauthorized credit card purchases. According to “Sony Faces Lawsuit, Regulators’ Probe over PlayStation Hack” by Cliff Edwards, Karen Gullo, & Michael Riley of Bloomberg, Sony’s 6 day wait in informing consumers of the breach has also inspired investigations by Ireland, the U.S., and Britain and a lawsuit.

All three countries are seeking information concerning the breach and the reasons it took Sony so long to make an official statement on the breach. The breach occurred April 17 to April 19. According to the article and news reports, Sony shut down the network because of the breach.

“It was necessary to conduct several days of forensic analysis, and it took our experts until yesterday to understand the scope of the breach. We then shared that information with our consumers and announced it publicly.”

-Patrick Seybold, a Sony spokesman