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(Does this count as CW? Happy to post it somewhere else if that would be more appropriate.)
I really liked the idea of banning advertising from this blog post (though the post itself is somewhat poorly written and light on the details). HN has a lively discussion of it. I've seen some mentions of this idea here and there but never a really good analysis on it. And I want to change that!
The first step is of course to tighten up the definitions. The most important is to define advertising. I would define it as:
(Maybe the resident lawyers here could have a crack at cleaning this up?)
The underlying theory of harm is that party C is getting inaccurate information designed (often very well designed) to manipulate them into a decision not in their interests. Note that crowding out good information is also very much part of the harm. If C is getting good information from sources not paid for it, it is reasonable that these unpaid sources won't put as much effort into disseminating information as sources paid to spread information (which presumably won't be as truthful due to the conflicting interests from party A).
To clean up potential fuzzy boundaries (I'm sure I've missed a bunch):
So, what is illegal?
Why do I want this?
Possible objections?
Any thoughts?
There is no way this is feasible to implement in a well-defined way. There are too many incredibly powerful incentives to find loopholes that the only way you'll close them down is by being so strict and draconian that you prohibit regular behavior. You won't be able to tighten the definitions without strangling the life out of them. Just taking what you've defined here, off the top of my head:
-What if party A advertises their own product on their own website without involving "Party B"? If that's not allowed you'll strangle all sorts of regular behavior. But if they are then now you have an incentive for companies to share ownership of streaming websites and create monopolies under one umbrella. Amazon owns Twitch, can they advertise Amazon products on Twitch? Because then everyone selling anything is going to want to use Amazon to list their products so that it can be advertised there. If you try to prohibit that by saying Twitch streamers count as "Party B" because they aren't official Amazon employees then Amazon will hire them as official employees. If you try to prohibit that by saying "Twitch and Amazon marketplace are different websites" then Amazon will merge them and annoyingly integrate them together enough to loophole whatever your law is. If you say "Amazon can't have their employees advertise for them" then nobody can do anything unless they're privately owned and the CEO designs their own website without hiring any employees, which is ridiculous.
The spirit of the law is clear, but you can't enforce the spirit of the law. You can only enforce the letter, and anything where a company is allowed to do their own advertising on their own platforms just encourages consolidation and rewards megacorps at the expense of all the small people. I suspect that if you try to add epicycles to close these loopholes then the megacorps will pay thousands of dollars to clever people who will work harder than the 5 minutes I spent here and find cleverer loopholes. Lobbying, free gifts and perks, wink wink nudge nudge, favors traded between supposed rivals, etc. We can't even keep money out of politics, we're not going to keep money out of advertising. Any attempts to do so are inevitably going to be 10% intended benefit and 90% collateral damage.
This seems unnecessarily defeatist. The law is ultimately semi-formalised human judgements, and humans are perfectly capable of making judgements without rigid rubrics. You just need a 'safe zone' of examples that are fine, a 'lawless zone' of examples that are not fine, and a 'here be dragons' zone in between. The reason that megacorps frolic so happily is that lawyers are too lawyer-brained to actually apply the spirit of the law when working out loopholes in the letter of it is so much more fun and rewarding, and because governments don't actually want to apply it. When they do want to apply it, suddenly the corps fall in line.
But if you make any mistake in your 'safe zone' that's still effectively a loophole. How do you let Coca Cola link you to their shop with a bunch of products and merchandise on their own website (which I expect you intend since it's "opt in") but not allow Amazon to link you to their shop and products during a Twitch stream on their own website? (which I expect you don't intend, because even though you've opted into a Twitch stream you didn't intend to opt into the Amazon store)
Keeping in mind that you can't just take the state of the world as it exists right now this very instant, you have to draw the categories in a way that fundamentally cannot be worked around? If the law says "you can only advertise your own products on your own website" then the Lawyers don't need to do anything, they've already won because you forgot the websites are owned by the same company (and they could just as easily have made them the same website). There's no infraction of the law for the government to enforce because they're not breaking the law, it's just badly written.
How do you make it stronger without accidentally crushing normal people just trying to honestly sell things?
That's how. Like, Amazon and Twitch are separate brands and people use them for separate things, and everybody with eyes can see that. It's not a grand political dilemma like the Minneapolis car incident.
The 'safe zone' is 'you make cola and you advertise your own cola'. The bad zone is 'you run an advertising agency'. 'you make cola but you advertise life insurance from your life insurance subsidiary' is well within 'here be dragons' and you're risking serious issues. It's like when you threaten massive fines for disinformation and everyone bans anything that could even possibly look like something government might consider disinfo. You don't actually have to tolerate autistic winkling out of loopholes.
Could you give some examples? My model of the world is broadly 'if people want what you are trying to sell, they will go looking for it'. If people buy something and they like it, they tell their friends or they write reviews (I am okay with free samples to review sites etc.). But the idea that 'no, you don't know you want this yet' is IMO a lie that advertisers and salesmen tell themselves and deserves very short thrift.
This is BAD. This is a bad outcome! This is exactly what I'm afraid of. Nobody was allowed to question the Covid vaccine or masking or any sort of government approved narrative on social media because it might possibly be construed as disinformation. The chilling effect caused by ambiguous rules that might or might not be arbitrarily enforced on a whim is bad. The ability for the government to selectively target anyone they dislike for rules that normal people occasionally violate because they're not quite sure where the boundary gives the government an extra cudgel to manipulate people with.
And again, once the boundaries become a little better known this is solved by a little Goodharting to integrate things to be within the boundaries. Ie, Facebook Marketplace is a logical offshoot of Facebook. Stopping them from having, or forcing it to be separate from Facebook would be bad because the networking ability on it is useful for customers. But allowing them to have it would probably also allow them to start selling their own stuff on it. Maybe Amazon makes "Amazon Marketplace", or "Twitchmazon" where Twitch streamers have their own merchandise branded to them just enough that it counts as "their own product" and skirts within your guidelines. Is Pokimane not allowed to have her own cookie company that sells Pokimane cookies? What if Pokimane just happens to be hanging out with some friends (which happen to be filmed because they're all Twitch Streamers) and mentions her own Cookie company? If she is allowed, then you're once again allowing large people to advertise while blocking the little people who don't have a whole team to create advertising and entire companies internally. If that's not allowed then you're restricting the ability for people with cookie companies to even talk about their own product out loud.
95% of the time this is true, but 5% it's not, and that 5% might be disproportionately impactful. Take Uber. Lots of people like Uber. As soon as people found out about Uber they were usually like "that sounds like a good idea". People didn't know they wanted it, because it didn't exist and nothing like it existed, but they did know that they wanted something like that because nobody was happy with Taxi prices or availability.
Uber could not have worked without advertising. The networking effects between drivers and customers do not scale linearly. If you have 1% as many drivers and 1% as many users it's awful because users spend forever waiting to get picked up and drivers spend forever not working and not being paid. It needed to be quickly noticed and adopted or it would have died instantly. A world without advertising is a world where Uber (and all similar rideshare and foodshare apps) that scale nonlinearly would have never been brought to market because they obviously wouldn't have worked. Word of mouth only works on things that people already know about, and if you literally can't advertise anywhere then you can't kickstart that process in the first place.
Or take Ozempic/GLP-1. People didn't know they wanted Ozempic, but people have wanted a weight loss pill that actually works for decades. Advertisements actually did help people here because it's a thing they wanted and looked for and tried and gave up because it didn't exist, and then one day it did exist. The knowledge that the thing they've always wanted but didn't exist suddenly now does exist (in a form they can legally and practically access) is useful knowledge.
Again, I think you're right 95% of the time. And I'm generally in favor of fixing advertising... somehow. But the exceptions exist, and I think a blanket ban is doomed to failure in a way that disproportionately harms smaller and newer people, pushing us even further into the hands of monopolistic megacorps that already exist and everyone already knows about. We need more small businesses and competitors, not fewer.
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