Amazon Book Reviews Deleted in a Purge Aimed at Manipulation





Giving raves to family members is no longer acceptable. Neither is writers’ reviewing other writers. But showering five stars on a book you admittedly have not read is fine.




After several well-publicized cases involving writers buying or manipulating their reviews, Amazon is cracking down. Writers say thousands of reviews have been deleted from the shopping site in recent months.


Amazon has not said how many reviews it has killed, nor has it offered any public explanation. So its sweeping but hazy purge has generated an uproar about what it means to review in an era when everyone is an author and everyone is a reviewer.


Is a review merely a gesture of enthusiasm or should it be held to a higher standard? Should writers be allowed to pass judgment on peers the way they have always done offline or are they competitors whose reviews should be banned? Does a groundswell of raves for a new book mean anything if the author is soliciting the comments?


In a debate percolating on blogs and on Amazon itself, quite a few writers take a permissive view on these issues.


The mystery novelist J. A. Konrath, for example, does not see anything wrong with an author indulging in chicanery. “Customer buys book because of fake review = zero harm,” he wrote on his blog.


Some readers differ. An ad hoc group of purists has formed on Amazon to track its most prominent reviewer, Harriet Klausner, who has over 25,000 reviews. They do not see how she can read so much so fast or why her reviews are overwhelmingly — and, they say, misleadingly — exaltations.


“Everyone in this group will tell you that we’ve all been duped into buying books based on her reviews,” said Margie Brown, a retired city clerk from Arizona.


Once a populist gimmick, the reviews are vital to making sure a new product is not lost in the digital wilderness. Amazon has refined the reviewing process over the years, giving customers the opportunity to rate reviews and comment on them. It is layer after layer of possible criticism.


“A not-insubstantial chunk of their infrastructure is based on their reviews — and all of that depends on having reviews customers can trust,” said Edward W. Robertson, a science fiction novelist who has watched the debate closely.


Nowhere are reviews more crucial than with books, an industry in which Amazon captures nearly a third of every dollar spent. It values reviews more than other online booksellers like Apple or Barnes & Noble, featuring them prominently and using them to help decide which books to acquire for its own imprints by its relatively new publishing arm.


So writers have naturally been vying to get more, and better, notices. Several mystery writers, including R. J. Ellory, Stephen Leather and John Locke, have recently confessed to various forms of manipulation under the general category of “sock puppets,” or online identities used to deceive. That resulted in a widely circulated petition by a loose coalition of writers under the banner, “No Sock Puppets Here Please,” asking people to “vote for book reviews you can trust.”


In explaining its purge of reviews, Amazon has told some writers that “we do not allow reviews on behalf of a person or company with a financial interest in the product or a directly competing product. This includes authors.” But writers say that rule is not applied consistently.


In some cases, the ax fell on those with a direct relationship with the author.


“My sister’s and best friend’s reviews were removed from my books,” the author M. E. Franco said in a blog comment. “They happen to be two of my biggest fans.” Another writer, Valerie X. Armstrong, said her son’s five-star review of her book, “The Survival of the Fattest,” was removed. He immediately tried to put it back “and it wouldn’t take,” she wrote.


In other cases, though, the relationship was more tenuous. Michelle Gagnon lost three reviews on her young adult novel “Don’t Turn Around.” She said she did not know two of the reviewers, while the third was a longtime fan of her work. “How does Amazon know we know each other?” she said. “That’s where I started to get creeped out.”


Mr. Robertson suggested that Amazon applied a broad brush. “I believe they caught a lot of shady reviews, but a lot of innocent ones were erased, too,” he said. He figures the deleted reviews number in the thousands, or perhaps even 10,000.


The explosion of reviews for “The 4-Hour Chef” by Timothy Ferriss shows how the system has evolved from something spontaneous to a means of marketing and promotion. On Nov. 20, publication day, dozens of highly favorable reviews immediately sprouted. Other reviewers quickly criticized Mr. Ferriss, accusing him of buying supporters.


He laughed off those suggestions. “Not only would I never do that — it’s unethical — I simply don’t have to,” he wrote in an e-mail, saying he had sent several hundred review copies to fans and potential fans. “Does that stack the deck? Perhaps, but why send the book to someone who would hate it? That doesn’t help anyone: not the reader, nor the writer.”


As a demonstration of social media’s grip on reviewing, Mr. Ferriss used Twitter and Facebook to ask for a review. “Rallying my readers,” he called it. Within an hour, 61 had complied.


A few of his early reviews were written by people who admitted they had not read the book but were giving it five stars anyway because, well, they knew it would be terrific. “I am looking forward to reading this,” wrote a user posting under the name mhpics.


A spokesman for Amazon, which published “The 4-Hour Chef,” offered this sole comment for this article: “We do not require people to have experienced the product in order to review.”


The dispute over reviews is playing out in the discontent over Mrs. Klausner, an Amazon Hall of Fame reviewer for the last 11 years and undoubtedly one of the most prolific reviewers in literary history.


Mrs. Klausner published review No. 28,366, for “A Red Sun Also Rises” by Mark Hodder. Almost immediately, it had nine critical comments. The first accused it of being “riddled with errors in grammar, spelling and punctuation.” The rest were no more kind. The Harriet Klausner Appreciation Society had struck again.


Mrs. Klausner, a 60-year-old retired librarian who lives in Atlanta, has published an average of seven reviews a day for more than a decade. “To watch her in action is unbelievable,” said her husband, Stanley. “You see the pages turning.”


Mrs. Klausner, who says ailments keep her home and insomnia keeps her up, scoffs at her critics. “You ever read a Harlequin romance?” she said. “You can finish it in one hour. I’ve always been a speed reader.” She has a message for her naysayers: “Get a life. Read a book.”


More than 99.9 percent of Mrs. Klausner’s reviews are four or five stars. “If I can make it past the first 50 pages, that means I like it, and so I review it,” she said. But even Stanley said, “She’s soft, I won’t deny that.”


The campaign against Mrs. Klausner has pushed down her reviewer ratings, which in theory makes her less influential. But when everything is subject to review, the battle is never-ending.


Ragan Buckley, an aspiring novelist active in the campaign against Mrs. Klausner under the name “Sneaky Burrito,” is a little weary. “There are so many fake reviews that I’m often better off just walking into a physical store and picking an item off the shelf at random,” she said.


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Overhaul of state government payroll system at risk of collapse









SACRAMENTO — One of the state's biggest technology endeavors, a $371-million overhaul of the government payroll system, is beset with problems and "in danger of collapsing," according to the state controller's office.


The company hired for the project is in over its head and may be unable to deliver on its promise to update a payroll system so old that even simple salary adjustments can tie it in knots, the controller's chief administrative officer said in a letter.


The state has spent at least $254 million so far on contractors, staff salaries, software and more for the system upgrade, which is five years overdue and has nearly tripled in cost since lawmakers authorized it in 2005.








"The project … is foundering and is in danger of collapsing," administrator Jim Lombard wrote to the contractor, SAP Public Services, in October. Lombard said the new system is not capable of processing "any portion of the state payroll population, let alone the full population of approximately 240,000 employees."


An SAP spokesman, Andy Kendzie, said the company is meeting its contractual obligations.


"Considering the project's complexity, and the many requirements involved in payroll processing, there have been some challenges," Kendzie said in a statement. "Despite these, SAP remains committed to the overall success of the project."


Technology quagmires have become a hallmark of California state government, with delays and cost overruns common.


A new computer system for the public pension fund was finished in September 2011 at twice the original budget. An effort to upgrade accounting databases and allow agencies to coordinate purchasing has fallen years behind schedule, and the estimated cost has increased by hundreds of millions of dollars. Back in 1994, a failed DMV system was canned after $50 million had been spent.


Lombard wrote in his letter that the new payroll system was tested on 1,300 employees this year and failed. Some paychecks were issued to the wrong employees or for the wrong amounts.


Testing began in June, Lombard wrote, and since then "every pay cycle has experienced problems" despite SAP's repeated assurances that improvements were being made. A second trial run, set for September, has been delayed until at least March.


SAP failed to meet nine of its 44 deadlines in the first eight months of this year, says the 37-page letter. Lombard demanded that SAP fix all of the problems identified by the state, including replacing inexperienced project managers and staff.


The controller's spokesman, Jacob Roper, said officials are reviewing a plan that SAP submitted last month to address the state's concerns.


The company has already been paid $50 million. Roper said an additional $6.9 million hasn't been turned over because the project has missed various milestones, and the state plans to withhold remaining funds until problems are fixed.


The goal of the effort, called the 21st Century Project, is to integrate and replace six different human resources systems, some installed in the 1970s and now at risk of failure.


The new system will have to handle a $15-billion payroll across 160 state departments, agencies, boards and commissions, calculating data on 36 medical plans, 12 dental plans and dozens of paycheck deductions.


When finished, it is supposed to allow managers and employees to access and update human resources data much more easily, according to outlines of the project on the controller's website.


The first contractor on the project, BearingPoint, was fired in January 2009 amid mutual finger-pointing and lawsuits, and the project ground to a halt. The company had already been paid nearly $26 million, although the state was able to collect $2.8 million in insurance payments and keep any completed work.


SAP replaced BearingPoint in February 2010.


chris.megerian@latimes.com





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Digital Social Visibility: How Facebook Gifts Change Our Choices



Facebook Gifts rolled out after a two-month beta last week, seamlessly melding social with shopping. Not to be outdone, Amazon recently released its Friends and Family Gifting option with the same kind of social gifting visibility.


For Facebook, another puzzle piece of its business model falls into place. For users, gift giving becomes by default a public rather than private activity: People can now fluidly and visibly give their friends holiday presents ranging from iTunes cards to Chandon champagne.


For our culture, however, an era of subtlety and “secret” Santa gives way to the era of reality TV. In many ways social gifting shrouds purchasing in a cloak of generosity, since the social streaming context removes the gaucheness of sharing these gifts. Yet these new social features also signal a culture where broadcasting our behaviors – whether gifting or other digitally shared activities – becomes the norm rather than the exception.


Digital social visibility doesn’t just turn our private lives inside out, though: It changes the choices we make, both online and offline.




Lauren Rhue is a doctoral candidate and Arun Sundararajan (@digitalarun) is a professor at NYU Stern School of Business, where they conduct research about how digital technologies transform business and society. 




How so? Our research and observations here are based on analyzing visibility behaviors across a range of social platforms over the last three years. Our data includes over 10,000 users who shared more than a million purchases on Blippy across two years, as well as a recent sample of over 1,000 Pinterest users with more than 200,000 connections and close to a million re-pins.


I Anticipate, Therefore I Change


Social influence always seemed to flow from the person who makes the choice, to the people who observe it. But digital visibility reverses the direction and creates a new form of anticipatory influence: What we do is now influenced by the peers who observe us.


We anticipate how people might perceive us or react, and those anticipatory effects change our choices.


Facebook Gifts, for example, might make us think twice about and possibly revise our shopping lists. Because our gifts aren’t just between us and our loved ones anymore: They become part of our social Timelines, our online personas. They’re the future digital ghosts of our Christmas pasts.


Social psychologists have long documented how introducing passive audience observers into situations affects athletic performance, productivity, decision times, memory recall, and even the sunny-ness of our smiles. Interestingly, modifying what one does in response to an audience isn’t simply a socially learned human trait: Similar behavior has also been recognized in non-human species ranging from Budgerigars birds to peacocks to Siamese fighting fish.


So these audience effects are primal; they’re deeply ingrained in who we are. The underlying behavior we’re witnessing now isn’t new. Rather, social technologies are creating a broader and more visible digital public persona by letting us choose our audiences; expanding the audience beyond the individual or an intimate few; making the audience persistent; and transcending the constraints of space and time.


Consider maverick economist Thorsten Veblen‘s theory of conspicuous consumption, which formalized the idea that we make some of our purchases – particularly luxury goods – to advertise economic power and gain social status. Velben wrote his masterpiece “The Theory of the Leisure Class” over a century ago, when we could not transport our real-world social networks across all of our purchasing, gifting, and other consuming sites and moments.


But we no longer need physical and temporal co-location to realize the benefits of being conspicuous. We can now name-drop our Prada bag purchase or dinner at Masa instantly via a data trail or an Instagram picture … or through a Facebook gift in our stream.


Our audience might not be online when we do this, but they’ll probably see it tomorrow, next week, or maybe even next year.


Are You There, Audience? It’s Me, Social


Of course, the audience only matters if it’s actually there. But we don’t really know how many people see what we post on Facebook, which friends are online when, or what fraction of daily incoming tweets our followers actually notice.


This audience uncertainty is due to the absence of any real surroundings, environmental factors, and tactile cues for situating our digital visibility. These are the kinds of familiar cues that, according to sociologist Erving Goffman, shape our presentation in face-to-face settings.


One way of dealing with this audience uncertainty is to picture the group toward which we aim our shares, from whom we seek to maximize approval (or minimize disapproval): our imagined audience. When you buy your favorite employee a cool Facebook gift this holiday, it’s not just the gift recipient audience you’re playing to – you’re also orienting your largesse to other colleagues and maybe your boss too.


Digital social visibility doesn’t just turn our private lives inside out: It changes the choices we make.


The trouble is, you might get the audience wrong. Your audience might instead end up being your spouse or your employee’s significant other, who could misinterpret the intent of your gift. The fissure between imagined and realized audiences can lead to conflict or the feeling that our privacy has been compromised — even though our intent was social.


This is an example of context collapse: facing multiple and unknown contexts for each of our online shares. It’s the result of having a variety of relationships (including those whittled down to just “Facebook friendships”) with competing social norms on the same platform, along with the online data trails that persist long after we leave them.


Digital social visibility is therefore a double-edged sword: As we transcend the boundaries of physical space and time, we also give up the familiar anchors and cues provided in our face-to-face interactions.


How then do people deal with context collapse? By focusing on the small fraction of our network that does provide visible acknowledgement or cues in the form of likes, re-pins, and votes.


Context collapse is the result of having a variety of relationships with competing social norms on the same platform


The problem is that this approach, however, is that it also changes the products we buy. Our research reveals that people buy more in the categories of products for which they get more feedback.


We’re just beginning to understand the phenomenon of image management as commerce and networks merge. The implications are many: for advertising (how should businesses surface choices for gifting?), for measuring influence (Klout doesn’t even begin to capture tacit persuasiveness and cues), for privacy (losing contextual integrity of our shares); and more.


But for us as individuals, the implications go beyond just buying and gifting. Luxury purchases are only one aspect of conspicuous consumption; individual taste-based goods and services are another. You’ll soon – if you’re not already – spend more time hanging out at hip restaurants or rock concerts, monster car rallies or museums, benefit dinners or book readings. Not just because you want to … but because you’ll detract from your digital visible image if you don’t.


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“It’s a Wonderful Life” is top Christmas film with critics






LOS ANGELES (Reuters) – When it comes to Christmas films, “It’s a Wonderful Life” can still melt critics’ hearts nearly 70 years after it was released, according to a survey of the best-reviewed Christmas films.


The survey, to be released on Friday by review aggregator Rotten Tomatoes, found that the 1946 redemption story starring Jimmy Stewart edged out the 1942 Bing Crosby and Fred Astaire musical “Holiday Inn” and Tim Burton‘s 1993 stop-motion fantasy “The Nightmare Before Christmas.”






World War Two drama “Stalag 17,” released in 1953, and 1947′s “Miracle on 34th Street” round out the top five.


“It’s a Wonderful Life” vaulted to the top spot from No. 5 in 2009, when the list was last compiled, bumping “The Nightmare Before Christmas” from its best-reviewed status.


Films that use the holiday as a backdrop for the plot such as 1988′s “Die Hard,” which was No. 6 on the list, and 1983′s “Trading Places” at No. 9, were also eligible, the website said.


Rotten Tomatoes, which analyzes film reviews and assigns a score based on total critical reception, applied that same formula to Christmas films for the list, Matt Atchity, the website’s editor in chief, told Reuters.


“You look at the list and it’s all the classics … the cream floats to the top,” Atchity said, adding that the rankings were weighted to reflect the amount of reviews a film received, which could artificially boost or decline a score.


Films from the 1960s and 1970s were notably absent from the list. Atchity said studios were more focused at that time on work by big-name directors than on seasonal films.


Here are the 25 best-reviewed Christmas films of all time, according to website Rotten Tomatoes:


* “It’s a Wonderful Life” (1946)


* “Holiday Inn” (1942)


* “The Nightmare Before Christmas” (1993)


* “Stalag 17″ (1953)


* “Miracle on 34th Street” (1947)


* “Die Hard” (1988)


* “Arthur Christmas” (2011)


* “A Christmas Story” (1983)


* “Trading Places” (1983)


* “Rare Exports: A Christmas Tale” (2010)


* “Lethal Weapon” (1987)


* “A Midnight Clear” (1992)


* “A Christmas Tale” (2008)


* “While You Were Sleeping” (1995)


* “Scrooge (A Christmas Carol)” (1951)


* “Elf” (2003)


* “Kiss Kiss, Bang Bang” (2005)


* “Gremlins” (1984)


* “The Santa Clause” (1994)


* “The Bishop’s Wife” (1947)


* “Bad Santa” (2003)


* “8 Women” (2002)


* “Batman Returns” (1992)


* “White Christmas” (1954)


* “The Ref” (1994)


The full list can been seen at http://www.rottentomatoes.com/guides/best_christmas_movies_2012/?hub=10


(Reporting by Eric Kelsey, editing by Jill Serjeant and Stacey Joyce)


Movies News Headlines – Yahoo! News





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Medicare’s Chief Actuary, Richard Foster, Retiring


Carol T. Powers for The New York Times


Richard S. Foster testifying before the House Ways and Means Committee in 2004







WASHINGTON — Richard S. Foster, who as chief actuary of the Medicare program for the last 18 years nettled presidents of both parties with his projections of rapid growth in federal health care spending, will retire next month, the Obama administration said Friday.




Mr. Foster, 63, a career civil servant known for his fierce independence, has been an influential voice on Medicare, Medicaid and the new health care law.


With 100 million people on Medicare or Medicaid and an additional 20 million expected to get federal subsidies for private insurance under President Obama’s health care law, the need for accurate estimates of health spending has never been greater, lawmakers say.


Mr. Foster said that Medicare savings in the 2010 health care law, based on cutbacks in payments to hospitals and other health care providers, were probably unsustainable and could jeopardize access to care for beneficiaries, a judgment that displeased the Obama administration.


In 2003, Mr. Foster found himself in conflict with the Bush administration when he raised questions about the cost of a Republican bill adding a prescription drug benefit to Medicare. Federal investigators later found that a top Medicare official had threatened to fire Mr. Foster if he provided certain cost estimates to Congress.


Marilyn B. Tavenner, acting administrator of the federal Centers for Medicare and Medicaid Services, praised Mr. Foster for “his adherence to the highest levels of professional independence and ethical conduct.” She said he “will be sorely missed by policy makers and officials throughout the administration and Congress.”


Ms. Tavenner said “we will soon begin a national recruitment effort” to find a successor to Mr. Foster, who began working for the federal government 40 years ago.


Proposals to rein in Medicare spending have been at the center of budget negotiations between President Obama and Speaker John A. Boehner. Both sides have relied on data from Mr. Foster’s office.


Congress bolstered the actuary’s independence in a 1997 law stipulating that the holder of the job can be removed from office “only for cause.”


In a report accompanying the law, Congress said that “the office of the actuary has a unique role,” serving both the administration and Congress, and often must work with lawmakers developing legislation.


With help from a staff of nearly 100, the chief actuary issues detailed annual reports on national health spending and the financial outlook for Medicare. In addition, the actuary’s office collects data used to calculate Medicare payment rates for doctors, hospitals and many other health care providers.


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Gun Shop Owners Report Spike in Sales as Enthusiasts Fear Possible New Laws


Larry Deklinski/The News-Item, via Associated Press


Linda Kahler with customers at Kahler’s Gun Shop in Helfenstein, Pa., where the business has been crowded the past few days.







Rainier Arms, a gun dealer in Auburn, Wash., receives great Yelp reviews for its responsiveness. But a call to the dealer on Friday led to a full voice mail box, and an e-mail to its sales team drew this automatic response: “Thank you for contacting Rainier Arms for your AR-15 needs.  Due to an overwhelming response to the latest political climate, we are experiencing longer-than-normal response times.”




At Bud’s Gun Shop in Maryland, a message on the Web site said that customer service was “completely overwhelmed” and it discouraged customers from calling or e-mailing.


And on GunBroker.com, an Oracle .223 that normally retails for around $650 had been bid up to $1,175 with three days left in the auction.


With gun-control legislation getting more serious discussion than it has in years, gun sales are spiking as enthusiasts stock up in advance of possible restrictions.


Gun sales have been increasing over the past five years, with marked increases around the 2008 and 2012 elections, and after mass shootings like the one in Aurora, Colo., and now in Newtown, Conn.


“The largest factor by far is fears over a potential change in gun laws — that’s what’s driving most guns enthusiasts or even first-time buyers to go buy a gun,” said Nima Samadi, senior guns and ammunition analyst for the research firm IBISWorld.


There is increasing demands for guns in the United States. Last year, the Federal Bureau of Investigation conducted 16.45 million background checks for firearm sales through the National Instant Criminal Background Check System, a 14 percent jump from the previous year. In the first 11 months of this year, the bureau conducted 16.8 million background checks, a record since the system’s founding in 1998.


Since the shootings at Sandy Hook Elementary School in Newtown, though, a few companies associated with gun sales have backed away. Cerberus Capital Management put the company that makes the Bushmaster, a gun used in the shootings, up for sale on Tuesday, saying, “The Sandy Hook tragedy was a watershed event that has raised the national debate on gun control to an unprecedented level.”


Dick’s Sporting Goods temporarily ceased selling all guns in its location closest to Newtown, and has also put a hold on sales of so-called modern sporting rifles, which include semiautomatic guns, nationwide.


And Deseret Digital Media, which owns KSL.com, a Web site that has been criticized by Mayor Michael R. Bloomberg for allowing unregulated gun sales, said it was suspending classified advertisements for guns.


Elsewhere, though, consumers are hurrying to buy guns, leading to some models being out of stock, warnings of shipping and customer-service delays, and significant premiums on assault rifles.


“We are seeing a total madhouse of buying everything in sight,” said Bob Irwin, owner of the Gun Store, a Las Vegas shooting range and retailer. Thursday, he said, was the largest sales day in the history of the store, which has been open for 30 years. “We have not only a run on the guns, but a run on ammunition.”


Mr. Irwin has begun limiting how much of some types of ammunition customers can buy, and he has canceled employees’ days off to handle the demand.


Walmart, the largest retailer of guns and ammunition in the United States, indicated that several semiautomatic guns were out of stock at locations across the country. Kory Lundberg, a spokesman, said the company was not sold out of guns altogether, but had low inventory in some situations. Walmart carries guns in about half its stores, and about one-third carry so-called modern sporting rifles, the category including the Bushmaster and other AR-15 weapons.


Other retailers around the country were selling out of guns and accessories. On Friday on ImpactGuns.com, the Bushmaster .223 was out of stock. Davidson’s, a supplier to gun retailers, placed a notice on its Web site that said it was seeing “unprecedented demand,” and at MidwayUSA.com, more than 100 parts for AR-15 guns were out of stock and on back order.


On AR15.com, a gun-enthusiast Web site, a user posted that a barrel for a gun disappeared from an online shopping cart overnight, and is now on back order. Another user, named warplg8654, responded, “Dealers can’t keep anything in stock for what I think are obvious reasons given the current political climate.”


When a user called JazzFan asked whether paying a $100 premium for a Stag Model 3 was a good deal, another user said that seemed “reasonable with all of the panic buying.”


Gavin Gear, the founder of the enthusiast site Northwest Gun, said gun owners were feeling “apprehension.”


“People are trying to think ahead, and if they want to own a particular firearm and they think it’s going to be outlawed or restricted, they’re more likely to buy now,” he said.


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Net Neutrality, Data-Cap Legislation Lands in Senate



A proposal forbidding internet service providers from turning the data-cap meter off to grant a so-called internet fast lane to preferential online services was introduced Thursday in the Senate.


The bill by Sen. Ron Wyden (D-Oregon) comes a week after a report found that the institutionalization of data caps by ISPs is geared toward profiteering rather than the stated goal of managing traffic congestion.


“A covered internet service provider may not, for purposes of measuring data usage or otherwise, provide preferential treatment of data that is based on the source or the content of the data,” (.pdf) Wyden’s bill reads.


Ars Technica noted that Comcast had not counted its Xbox video-streaming app against its data caps. Comcast, however, no longer enforces its data caps.


“Data caps create challenges for consumers and run the risk of undermining innovation in the digital economy if they are imposed bluntly and not designed to truly manage network congestion,” Wyden said in a statement.


Among other things, the proposal demands a standardized method for measuring data and also questions data caps altogether. That’s because it grants the Federal Communications Commission with regulatory power over data-cap pricing.


“The commission shall evaluate a data cap proposed by an internet service provider to determine whether the data cap functions to reasonably limit network congestion in a manner that does not unnecessarily discourage use of the internet,” according to the proposal.


That means internet companies might have to explain why the caps are imposed at low-traffic times, such as in the middle of the night.


The proposal was immediately applauded by the digital rights group Public Knowledge.


“Data caps create an artificial scarcity in the broadband market that limits consumer choice and hinders the creation of new competitive content online,” Christopher Lewis, the group’s vice president, said in a statement.


For the moment, the proposal is going nowhere as lawmakers are expected to adjourn for the year in the coming days.



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‘Homeland’ star Claire Danes gives birth to first child






LOS ANGELES (Reuters) – Emmy-winning actress Claire Danes has given birth to her first child, a boy, the publicist for the “Homeland” star said on Wednesday.


Cyrus Michael Christopher Dancy was born on Monday to Danes, 33, and her husband, British actor Hugh Dancy.






Danes’ performance as CIA operative Carrie Matheson on Showtime’s “Homeland” series scored her an Emmy win in September, while the psychological thriller won the TV industry’s highest honor of best drama series.


Danes is nominated for her second Golden Globe award in the role at the Hollywood awards show in January. She also has won multiple awards for her past work on 2010 TV film “Temple Grandin,” and as a 15-year-old on the 1990s coming-of-age television drama “My So-Called Life.”


(Reporting by Eric Kelsey, editing by Jill Serjeant and Lisa Shumaker)


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Stigma Fading, Marijuana Common in California


Jim Wilson/The New York Times


At a San Francisco concert in 2010, marijuana use was general while signatures were collected for a measure to decriminalize it.







LOS ANGELES — Let Colorado and Washington be the marijuana trailblazers. Let them struggle with the messy details of what it means to actually legalize the drug. Marijuana is, as a practical matter, already legal in much of California.




No matter that its recreational use remains technically against the law. Marijuana has, in many parts of this state, become the equivalent of a beer in a paper bag on the streets of Greenwich Village. It is losing whatever stigma it ever had and still has in many parts of the country, including New York City, where the kind of open marijuana use that is common here would attract the attention of any passing law officer.


“It’s shocking, from my perspective, the number of people that we all know who are recreational marijuana users,” said Gavin Newsom, the lieutenant governor. “These are incredibly upstanding citizens: Leaders in our community, and exceptional people. Increasingly, people are willing to share how they use it and not be ashamed of it.”


Marijuana can be smelled in suburban backyards in neighborhoods from Hollywood to Topanga Canyon as dusk falls — what in other places is known as the cocktail hour — often wafting in from three sides. In some homes in Beverly Hills and San Francisco, it is offered at the start of a dinner party with the customary ease of a host offering a chilled Bombay Sapphire martini.


Lighting up a cigarette (the tobacco kind) can get you booted from many venues in this rigorously antitobacco state. But no one seemed to mind as marijuana smoke filled the air at an outdoor concert at the Hollywood Bowl in September or even in the much more intimate, enclosed atmosphere of the Troubadour in West Hollywood during a Mountain Goats concert last week.


Arnold Schwarzenegger, the former Republican governor, ticked off the acceptance of open marijuana smoking in a list of reasons he thought Venice was such a wonderful place for his morning bicycle rides. With so many people smoking in so many places, he said in an interview this year, there was no reason to light up one’s own joint.


“You just inhale, and you live off everyone else,” said Mr. Schwarzenegger, who as governor signed a law decriminalizing possession of small amounts of marijuana.


Some Californians react disdainfully to anyone from out of state who still harbors illicit associations with the drug. Bill Maher, the television host, was speaking about the prevalence of marijuana smoking at dinner parties hosted by Sue Mengers, a retired Hollywood agent famous for her high-powered gatherings of actors and journalists, in an interview after her death last year. “I used to bring her pot,” he said. “And I wasn’t the only one.”


When a reporter sought to ascertain whether this was an on-the-record conversation, Mr. Maher responded tartly: “Where do you think you are? This is California in the year 2011.”


John Burton, the state Democratic chairman, said he recalled an era when the drug was stigmatized under tough antidrug laws. He called the changes in thinking toward marijuana one of the two most striking shifts in public attitude he had seen in 40 years here (the other was gay rights).


“I can remember when your second conviction of having a single marijuana cigarette would get you two to 20 in San Quentin,” he said.


In a Field Poll of California voters conducted in October 2010, 47 percent of respondents said they had smoked marijuana at least once, and 50 percent said it should be legalized. The poll was taken shortly before Californians voted down, by a narrow margin, an initiative to decriminalize marijuana.


“In a Republican year, the legalization came within two points,” said Chris Lehane, a Democratic consultant who worked on the campaign in favor of the initiative. He said that was evidence of the “fact that the public has evolved on the issue and is ahead of the pols.”


A study by the California Office of Traffic Safety last month found that motorists were more likely to be driving under the influence of marijuana than under the influence of alcohol.


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DealBook: Exchange Sale Reflects New Realities of Trading


On a warm day in Boca Raton, Fla., the host of a reception for an annual financial conference was not a big bank or a powerful exchange as in years past, but a young firm based in Atlanta.

Guests who gathered at the oceanfront resort were surprised. They were greeted with bottled ice water that carried the company’s logo, and as they left, were invited to grab iPod Shuffles.

That event, some four years ago, was the Wall Street equivalent of a coming-out party for the firm, IntercontinentalExchange, or ICE, an electronic operator of markets for derivatives and commodities. Now, the markets upstart is announcing itself to a much larger world with an $8.2 billion deal to buy the symbolic cradle of American capitalism, the New York Stock Exchange.

The takeover illustrates starkly how trading in commodities and derivatives has become much more lucrative than trading in the shares of companies. Warren E. Buffett warned in 2003 that the “derivatives genie is now well out of the bottle,” and that the genie, even after a global financial crisis, was not going back. Currently, derivatives — financial bets tied to underlying assets like oil prices or interest rates, among other things — are a $600 trillion market. Even the parent of the N.Y.S.E. attracted its suitor largely because of its ownership of Liffe, a major derivatives exchange in London.

For many, the Beaux-Arts New York Stock Exchange, and images of traders looking despondent or exuberant on its floor, represent what making money is all about. Yet Wall Street itself has found it more profitable to bet on fluctuations in natural gas or corn or on interest rates. The financial industry often does so electronically and through platforms in cities as scattered as London, Chicago and Atlanta. The biggest bonuses each year are typically for traders who reaped rich gains on these often complex financial products.

That change, decades in the making, has left the New York exchange, with roots going back 220 years, in an increasing difficult position as trading volumes slump and profit margins stay razor thin. While its acquirer has pledged to keep a dual headquarters in the exchange building in Lower Manhattan, as well as in Atlanta, the center of power in finance long ago migrated elsewhere.

The success of the newly combined companies hinges on the derivatives business. ICE is hoping that a greater share of derivatives trading will go through its clearinghouse operations, which act as backstops in case one party defaults. It is being aided by the Dodd-Frank financial regulatory overhaul, which is forcing Wall Street banks to push their derivatives trades into clearinghouses and regulated exchanges.

“For the past decade, our solutions made our markets increasingly electronic and increasingly clear,” Jeffrey C. Sprecher, chief executive of ICE, said this month. “Today, financial reform is imposing that vision on many markets through a rule-making process.”

While Dodd-Frank compliance is still in its early days, and the volume of derivatives trading remains depressed amid broader economic uncertainty, the law is ultimately expected to cement ICE’s business model into the regulatory code.

“Despite the complaints, there’s no question that at the end of the day, Dodd-Frank will be a financial boon to exchanges,” said Bart Chilton, a Democratic member of the Commodity Futures Trading Commission, which regulates derivatives.

Still, such a development will not do much for the traditional business of the New York Stock Exchange. Mr. Sprecher said on Thursday that he was committed to keeping the floor of the exchange open. But according to people briefed on his plans, he intends to use the stock trading operation and its steady cash-generating abilities to finance future deals and expansion efforts.

Nowhere have the changing fortunes of ICE and the parent of the New York exchange, NYSE Euronext, been more apparent than in their value on the stock market. In April 2011, when ICE first tried to acquire NYSE Euronext in league with Nasdaq OMX, it was worth about $1.5 billion less than the New York company. Just over a year later, ICE was worth nearly $4 billion more than NYSE Euronext, even with less than a third of its revenue.

ICE was founded in 2000 by Mr. Sprecher, who began his career developing power plants. In the 1990s, he saw that many power companies and financial firms wanted to hedge their investments in energy with financial contracts, but the market for these contracts was disorganized and opaque.

Mr. Sprecher bought an obscure exchange for buying and selling electricity in Atlanta and turned it into ICE with financing from BP and Wall Street firms, including Goldman Sachs and Morgan Stanley.

Banks were drawn to the idea of a standardized place to buy and sell derivatives tied to the value of oil and other commodities. But they also hoped to create a competitor to the virtual monopoly position being built up by the Chicago Mercantile Exchange in futures trading.

“You talk to people in Chicago, they basically think that ICE is just a front for the banks,” said Craig Pirrong, an expert in futures trading and director of the Global Energy Management Institute at the University of Houston.

As the company grew through a quick series of acquisitions, Mr. Sprecher won a reputation for being the “enfant terrible” of the energy industry, with a “sharp eye for identifying opportunities and seizing on them in a very aggressive way,” Dr. Pirrong said.

Early on, ICE sought to move all trading onto computers, allowing firms to buy and sell contracts 24 hours a day. Soon after buying the International Petroleum Exchange in London, ICE shut down its trading floor.

“They were a technology company from Day 1,” said Brad Hintz, an analyst with Sanford C. Bernstein.

ICE also decided to fashion its own clearinghouse, rather than tap an outsize firm. It expanded through acquisitions, planting the seeds for growth in 2008, when it took over the Clearing Corporation, home to a popular derivative known as a credit-default swap.

The Dodd-Frank overhaul may provide additional benefits for ICE. Under the law, exchanges must turn over public and private information to outside data warehouses, which will, in turn, share the information with regulators. Sensing an opportunity, ICE created its own warehouse, named ICE Trade Vault.

ICE and its Chicago rival, CME Group, have also moved in recent months to convert swaps trades, which are facing more scrutiny under Dodd-Frank, into old-fashioned futures contracts. Futures trading is lucrative territory for the exchanges in part because they can shut out competitors.

“The reality is that there are incentives to convert swaps into futures, where there’s less competition,” said Richard M. McVey, chief executive of MarketAxess, an independent trading platform that is expanding into the swaps business. “There’s no requirement for CME and ICE to open their futures clearinghouses to other exchanges.”

Despite its growing prominence, ICE has a small footprint in Washington. With only two full-time lobbyists, the company relies on Mr. Sprecher to communicate with regulators.

“Jeff is the company,” one official said, though others said he had loosened his grip over the last year or so.

He is well received, officials say, in part because he has embraced some reforms. Unlike executives of other exchanges and financial firms, Mr. Sprecher did not resist an effort in 2009 by the Commodity Futures Trading Commission to close certain loopholes.

Officials recall him saying, “Tell me what the rules are, and I’ll make money with them.”

Michael J. de la Merced contributed reporting.

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