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Trouble in FarmVille: Facebook, gaming company face lawsuit over deceptive ads
Mitch Lipka
Dec 10th 2009 at 6:30AM evb_url = ''; evb_small(evb_url); More Text SizeAAA
Filed under: Kids and Money, Technology, Fraud, Consumer Ally
tweetmeme_source = 'walletpopper';

For the players of Mafia Wars, Vampires, FarmVille and a handful of other Facebook games, the temptation of earning "virtual currency" by clicking on the various offers that popped up on the page was too much to pass up. Unfortunately, what these gamers didn't realize at the time was that the advancement of their virtual characters came at the expense of their own personal bank accounts.

Now, some are fighting back by filing a lawsuit against Facebook and Zynga, the maker of the games. The suit, which is seeking class action status, claims that some offers in the games prompted a series of unauthorized charges or triggered enrollments in programs without the user's knowledge. More than 100,000 people fell victim to these offers, losing more than $5 million, the lawsuit claims.

Among several other examples, the lawsuit cites an IQ test that requires the user to provide their cell phone number. After doing so, some were billed for a text messaging service. Another example from the lawsuit involved an offer that asked consumers to sign up for a "risk-free" trial subscription to a green tea herbal supplement program. Yet somehow that trial became a difficult-to-cancel subscription that every month delivered tea and pills from China.

The only named plaintiff in the lawsuit, Rebecca Swift of Santa Cruz, Calif., said she was charged more than $165 for two months' worth of pills and tea before she was allowed to cancel. She said she first tried to cancel during the trial period, for which she was supposed to pay $5.95 to cover shipping.
adsonar_placementId=1436312;adsonar_pid=986767;adsonar_ps=-1;adsonar_zw=230;adsonar_zh=260;adsonar_jv='ads.tw.adsonar.com';
In a written statement to WalletPop, a Facebook spokeswoman said the company was not involved in the ad placement and didn't profit from it. She also said Facebook has been working to clear its pages of scam ads and the company is committed to fighting the suit.

"The ads in question appeared in third-party applications, were not from Facebook, and provided no benefit to Facebook," she wrote. "However, we are concerned about any potential threat to our users' experience. As a result, we have, and will continue to, take action against both the ad networks and developers who violate our principles or policies. We do not see any merit in this suit and we will fight it vigorously."

Facebook said it is committed to banning ad providers that deliver content in violation of Facebook "principles or policies" and already has cut off four providers.

Zynga, billed as the most popular social gaming company, is in a different situation. Its CEO had the misfortune of being videotaped explaining that his hunger for cash outstripped his interest in keeping his users from being subjected to unsavory offers.

In the video, CEO Mark Pinkus said: "I did every horrible thing in the book to, just to get revenues right away. I mean we gave our users poker chips if they downloaded this ... toolbar which ...I downloaded it once and couldn't get rid of it. We did anything possible just to get revenues so that we could grow and be a real business."

A Zynga spokesperson said the company would not comment on the lawsuit, but said it will no longer let scam ads appear with its games.

"Our mission is to provide users with the best possible experience. We deeply regret any difficulty this may have caused users and to make sure we continue to offer the best user experience, we took all offers down," a Zynga spokesperson said in an email to WalletPop. "We take our responsibility to our users very seriously and will continue to take steps to ensure they have a fun and positive game play experience."

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SOCIAL NETWORKS EXPLAINED

From Wikipedia, the free encyclopedia

Not to be confused with social network service.
For the Facebook film, see The Social Network
Sociology
Social Network Analysis diagram
Portal
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Related fields and subfields
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v • d • e

social network is a social structure made of individuals (or organizations) called “nodes,” which are tied (connected) by one or more specific types of interdependency, such as friendshipkinship, financial exchange, dislike, sexual relationships, or relationships of beliefs, knowledge or prestige.

Social network analysis views social relationships in terms of network theory consisting of nodes andtiesNodes are the individual actors within the networks, and ties are the relationships between the actors. The resulting graph-based structures are often very complex. There can be many kinds of ties between the nodes. Research in a number of academic fields has shown that social networks operate on many levels, from families up to the level of nations, and play a critical role in determining the way problems are solved, organizations are run, and the degree to which individuals succeed in achieving their goals.

In its simplest form, a social network is a map of all of the relevant nodes between all the nodes being studied. The network can also be used to measure social capital — the value that an individual gets from the social network. These concepts are often displayed in a social network diagram, where nodes are the points and ties are the lines.

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[edit]Social network analysis

An example of a social network diagram. The node with the highest betweenness centrality is marked in yellow.

Social network analysis (related to network theory) has emerged as a key technique in modernsociology. It has also gained a significant following in anthropologybiologycommunication studies,economicsgeographyinformation scienceorganizational studiessocial psychology, and sociolinguistics, and has become a popular topic of speculation and study.

People have used the idea of “social network” loosely for over a century to connote complex sets of relationships between members of social systems at all scales, from interpersonal to international. In 1954, J. A. Barnes started using the term systematically to denote patterns of ties, encompassing concepts traditionally used by the public and those used by social scientists: bounded groups (e.g., tribes, families) and social categories (e.g., gender, ethnicity). Scholars such as S.D. Berkowitz, Stephen Borgatti, Ronald BurtKathleen Carley, Martin Everett, Katherine Faust, Linton Freeman, Mark Granovetter, David Knoke, David Krackhardt, Peter Marsden, Nicholas Mullins, Anatol Rapoport, Stanley Wasserman, Barry WellmanDouglas R. White, and Harrison White expanded the use of systematic social network analysis.[1]

Social network analysis has now moved from being a suggestive metaphor to an analytic approach to a paradigm, with its own theoretical statements, methods, social network analysis software, and researchers. Analysts reason from whole to part; from structure to relation to individual; from behavior to attitude. They typically either studywhole networks (also known as complete networks), all of the ties containing specified relations in a defined population, or personal networks (also known as egocentric networks), the ties that specified people have, such as their “personal communities”.[2]The distinction between whole/complete networks and personal/egocentric networks has depended largely on how analysts were able to gather data. That is, for groups such as companies, schools, or membership societies, the analyst was expected to have complete information about who was in the network, all participants being both potential egos and alters. Personal/egocentric studies were typically conducted when identities of egos were known, but not their alters. These studies rely on the egos to provide information about the identities of alters and there is no expectation that the various egos or sets of alters will be tied to each other. A snowball network refers to the idea that the alters identified in an egocentric survey then become egos themselves and are able in turn to nominate additional alters. While there are severe logistic limits to conducting snowball network studies, a method for examining hybrid networks has recently been developed in which egos in complete networks can nominate alters otherwise not listed who are then available for all subsequent egos to see. [3] The hybrid network may be valuable for examining whole/complete networks that are expected to include important players beyond those who are formally identified. For example, employees of a company often work with non-company consultants who may be part of a network that cannot fully be defined prior to data collection.

Several analytic tendencies distinguish social network analysis:[4]

There is no assumption that groups are the building blocks of society: the approach is open to studying less-bounded social systems, from nonlocal communities to links among websites.
Rather than treating individuals (persons, organizations, states) as discrete units of analysis, it focuses on how the structure of ties affects individuals and their relationships.
In contrast to analyses that assume that socialization into norms determines behavior, network analysis looks to see the extent to which the structure and composition of ties affect norms.

The shape of a social network helps determine a network’s usefulness to its individuals. Smaller, tighter networks can be less useful to their members than networks with lots of loose connections (weak ties) to individuals outside the main network. More open networks, with many weak ties and social connections, are more likely to introduce new ideas and opportunities to their members than closed networks with many redundant ties. In other words, a group of friends who only do things with each other already share the same knowledge and opportunities. A group of individuals with connections to other social worlds is likely to have access to a wider range of information. It is better for individual success to have connections to a variety of networks rather than many connections within a single network. Similarly, individuals can exercise influence or act as brokers within their social networks by bridging two networks that are not directly linked (called filling structural holes).[5]

The power of social network analysis stems from its difference from traditional social scientific studies, which assume that it is the attributes of individual actors—whether they are friendly or unfriendly, smart or dumb, etc.—that matter. Social network analysis produces an alternate view, where the attributes of individuals are less important than their relationships and ties with other actors within the network. This approach has turned out to be useful for explaining many real-world phenomena, but leaves less room for individual agency, the ability for individuals to influence their success, because so much of it rests within the structure of their network.

Social networks have also been used to examine how organizations interact with each other, characterizing the many informal connections that link executives together, as well as associations and connections between individual employees at different organizations. For example, power within organizations often comes more from the degree to which an individual within a network is at the center of many relationships than actual job title. Social networks also play a key role in hiring, in business success, and in job performance. Networks provide ways for companies to gather information, deter competition, and collude in setting prices or policies.[6]

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ETHICS IN GOVERNMENT

Ethical Procurement
Ethics dictates that business be conducted with integrity, fairness, and openness, which require open communication within and among both buying and supplying organizations, ensuring a competitive procurement, and thereby give any organization a chance to compete for contracts and win. It seems like a week does not go by without one hearing a story demonstrating lapses in business ethics stories, where lucky contract winners share close friends in strategic places, as was the case of Halliburton, which was awarded billions in federal no-bid contracts during the years when Dick Cheney was its chief executive officer (CEO).
Recognizing this longstanding problem of competitive procurement becoming the exception, the US government launched the Federal Acquisition Regulation(FAR) more than twenty years ago, to help federal agencies manage procurement more efficiently. FAR is an official document setting forth procurement policies and procedures that US Federal agencies should follow when soliciting offers (bids or proposals) for goods, products, services, or construction from qualified suppliers. Rules are delineated into eight chapters:
General Information, Definitions, Practices, and Administrative Matters
Competition and Acquisition Planning
Contracting Methods and Contract Types
Socioeconomic Programs
General Contracting Requirements
Special Categories of Contracting
Contract Management
Clauses and Forms
In response to competition becoming the exception rather than the rule in procurement, Part 6 of the FAR, Competitive Requirements, incorporated the Competition In Contracting Act (CICA). It seeks to establish full and open competition (FOC) as the standard, in order to eradicate partiality, favoritism, political lobbying, and bribery.
In light of these corporate scandals and the heightened scrutiny over corporate practices, FAR will have a greater impact on business. It contains key elements that all organizations should be aware of, whether they are conducting business with a government agency, or with private entities. Using the policies and procedures outlined by FAR, we will
define what exactly is a competitive procurement, its purpose and benefits;
present the different competitive and non-competitive procurement methods and their supporting processes; and
detail the two key procurement methods:
Invitation for bids (IFB), and
Request for proposals (RFP).
Competitive Procurement
Benefits of Competitive Procurement
The purpose of competition is to benefit your enterprise, and competition should not be promoted for the sake of competition. Indeed, in some cases, it may cost more to enter into a competitive procurement to do business directly with a supplier because of the unicity of the requested products, theinadequacy of other sources, the immediacy of your needs, or the emergencyor legitimacy of circumstances. In other words, competitive procurement should be promoted pragmatism, with other methods thus becoming exceptions.
Competitive procurement is the contractual acquisition (purchase or lease) by an organization of any kind of asset, whether material (goods, products, or construction) or immaterial (services) with appropriated funds, enabling all deemed responsible sources to compete in a fair and open environment. Competitive procurement is also known as full and open competition (FOC), orcompetitive solicitation.
While procurement is supposed to bring fairness, impartiality, transparency, and suitability to corporate practices, a competitive procurement process will ensure the highest level of openness, thus maximizing the suitability of the requested assets or services, and the best return on investment (ROI).

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