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Calls to regulate AI are growing louder. But how exactly do you regulate a technology like this?

<p>Last week, artificial intelligence pioneers and experts urged major AI labs to immediately pause the training of AI systems more powerful than GPT-4 for at least six months. </p> <p>An <a href="https://futureoflife.org/open-letter/pause-giant-ai-experiments/">open letter</a> penned by the <a href="https://www.theguardian.com/technology/commentisfree/2022/dec/04/longtermism-rich-effective-altruism-tech-dangerous">Future of Life Institute</a> cautioned that AI systems with “human-competitive intelligence” could become a major threat to humanity. Among the risks, the possibility of AI outsmarting humans, rendering us obsolete, and <a href="https://time.com/6266923/ai-eliezer-yudkowsky-open-letter-not-enough/">taking control of civilisation</a>.</p> <p>The letter emphasises the need to develop a comprehensive set of protocols to govern the development and deployment of AI. </p> <p>It states, "These protocols should ensure that systems adhering to them are safe beyond a reasonable doubt. This does not mean a pause on AI development in general, merely a stepping back from the dangerous race to ever-larger unpredictable black-box models with emergent capabilities."</p> <p>Typically, the battle for regulation has pitted governments and large technology companies against one another. But the recent open letter – so far signed by more than 5,000 signatories including Twitter and Tesla CEO Elon Musk, Apple co-founder Steve Wozniak and OpenAI scientist Yonas Kassa – seems to suggest more parties are finally converging on one side. </p> <p>Could we really implement a streamlined, global framework for AI regulation? And if so, what would this look like?</p> <h2>What regulation already exists?</h2> <p>In Australia, the government has established the <a href="https://www.csiro.au/en/work-with-us/industries/technology/national-ai-centre">National AI Centre</a> to help develop the nation’s <a href="https://www.industry.gov.au/science-technology-and-innovation/technology/artificial-intelligence">AI and digital ecosystem</a>. Under this umbrella is the <a href="https://www.csiro.au/en/work-with-us/industries/technology/National-AI-Centre/Responsible-AI-Network">Responsible AI Network</a>, which aims to drive responsible practise and provide leadership on laws and standards. </p> <p>However, there is currently no specific regulation on AI and algorithmic decision-making in place. The government has taken a light touch approach that widely embraces the concept of responsible AI, but stops short of setting parameters that will ensure it is achieved.</p> <p>Similarly, the US has adopted a <a href="https://dataconomy.com/2022/10/artificial-intelligence-laws-and-regulations/">hands-off strategy</a>. Lawmakers have not shown any <a href="https://www.nytimes.com/2023/03/03/business/dealbook/lawmakers-ai-regulations.html">urgency</a> in attempts to regulate AI, and have relied on existing laws to regulate its use. The <a href="https://www.uschamber.com/assets/documents/CTEC_AICommission2023_Exec-Summary.pdf">US Chamber of Commerce</a> recently called for AI regulation, to ensure it doesn’t hurt growth or become a national security risk, but no action has been taken yet.</p> <p>Leading the way in AI regulation is the European Union, which is racing to create an <a href="https://artificialintelligenceact.eu/">Artificial Intelligence Act</a>. This proposed law will assign three risk categories relating to AI:</p> <ul> <li>applications and systems that create “unacceptable risk” will be banned, such as government-run social scoring used in China</li> <li>applications considered “high-risk”, such as CV-scanning tools that rank job applicants, will be subject to specific legal requirements, and</li> <li>all other applications will be largely unregulated.</li> </ul> <p>Although some groups argue the EU’s approach will <a href="https://carnegieendowment.org/2023/02/14/lessons-from-world-s-two-experiments-in-ai-governance-pub-89035">stifle innovation</a>, it’s one Australia should closely monitor, because it balances offering predictability with keeping pace with the development of AI. </p> <p>China’s approach to AI has focused on targeting specific algorithm applications and writing regulations that address their deployment in certain contexts, such as algorithms that generate harmful information, for instance. While this approach offers specificity, it risks having rules that will quickly fall behind rapidly <a href="https://carnegieendowment.org/2023/02/14/lessons-from-world-s-two-experiments-in-ai-governance-pub-89035">evolving technology</a>.</p> <h2>The pros and cons</h2> <p>There are several arguments both for and against allowing caution to drive the control of AI.</p> <p>On one hand, AI is celebrated for being able to generate all forms of content, handle mundane tasks and detect cancers, among other things. On the other hand, it can deceive, perpetuate bias, plagiarise and – of course – has some experts worried about humanity’s collective future. Even OpenAI’s CTO, <a href="https://time.com/6252404/mira-murati-chatgpt-openai-interview/">Mira Murati</a>, has suggested there should be movement toward regulating AI.</p> <p>Some scholars have argued excessive regulation may hinder AI’s full potential and interfere with <a href="https://www.sciencedirect.com/science/article/pii/S0267364916300814?casa_token=f7xPY8ocOt4AAAAA:V6gTZa4OSBsJ-DOL-5gSSwV-KKATNIxWTg7YZUenSoHY8JrZILH2ei6GdFX017upMIvspIDcAuND">“creative destruction”</a> – a theory which suggests long-standing norms and practices must be pulled apart in order for innovation to thrive.</p> <p>Likewise, over the years <a href="https://www.businessroundtable.org/policy-perspectives/technology/ai">business groups</a> have pushed for regulation that is flexible and limited to targeted applications, so that it doesn’t hamper competition. And <a href="https://www.bitkom.org/sites/main/files/2020-06/03_bitkom_position-on-whitepaper-on-ai_all.pdf">industry associations</a>have called for ethical “guidance” rather than regulation – arguing that AI development is too fast-moving and open-ended to adequately regulate. </p> <p>But citizens seem to advocate for more oversight. According to reports by Bristows and KPMG, about two-thirds of <a href="https://www.abc.net.au/news/2023-03-29/australians-say-not-enough-done-to-regulate-ai/102158318">Australian</a>and <a href="https://www.bristows.com/app/uploads/2019/06/Artificial-Intelligence-Public-Perception-Attitude-and-Trust.pdf">British</a> people believe the AI industry should be regulated and held accountable.</p> <h2>What’s next?</h2> <p>A six-month pause on the development of advanced AI systems could offer welcome respite from an AI arms race that just doesn’t seem to be letting up. However, to date there has been no effective global effort to meaningfully regulate AI. Efforts the world over have have been fractured, delayed and overall lax.</p> <p>A global moratorium would be difficult to enforce, but not impossible. The open letter raises questions around the role of governments, which have largely been silent regarding the potential harms of extremely capable AI tools. </p> <p>If anything is to change, governments and national and supra-national regulatory bodies will need take the lead in ensuring accountability and safety. As the letter argues, decisions concerning AI at a societal level should not be in the hands of “unelected tech leaders”.</p> <p>Governments should therefore engage with industry to co-develop a global framework that lays out comprehensive rules governing AI development. This is the best way to protect against harmful impacts and avoid a race to the bottom. It also avoids the undesirable situation where governments and tech giants struggle for dominance over the future of AI.</p> <p><em>Image credits: Shutterstock</em></p> <p><em>This article originally appeared on <a href="https://theconversation.com/calls-to-regulate-ai-are-growing-louder-but-how-exactly-do-you-regulate-a-technology-like-this-203050" target="_blank" rel="noopener">The Conversation</a>. </em></p>

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Alcohol marketing has crossed borders and entered the metaverse – how do we regulate the new digital risk?

<p>The World Health Organization’s newly <a href="https://www.who.int/publications/i/item/9789240046504" target="_blank" rel="noopener">released report</a> on regulating cross-border alcohol marketing raises the alarm for countries like Australia and New Zealand, given their light touch towards alcohol advertising.</p> <p>Alcohol is widely consumed in Australasia but there is ongoing tension over how much restraint, if any, should be placed on the marketing of these products.</p> <p>Australia and New Zealand are at the unrestrained end of the marketing continuum. Both countries rely on industry-led policy in the form of voluntary codes – an approach identified as insufficient by the WHO report.</p> <p><strong>What is cross-border alcohol marketing?</strong></p> <p>Alcohol marketing, created and disseminated in one country and spread across borders into others, is commonly used by multinational corporations striving to increase sales and normalise alcohol as an everyday product. Much of this advertising is taking place in the digital media sphere.</p> <p>The increased use of these media platforms by alcohol corporations allows them access to cheap advertising opportunities. For as <a href="https://au.reset.tech/uploads/resettechaustralia_profiling-children-for-advertising-1.pdf" target="_blank" rel="noopener">little as US$2</a>, an advertising campaign based in Australia could reach a thousand young people profiled as interested in alcohol, for example.</p> <p>Marketing across digital media has also increased the impact of those messages.</p> <p>Brands interact with users on social media platforms, encouraging the posting, sharing and liking of <a href="https://pubmed.ncbi.nlm.nih.gov/33573719/" target="_blank" rel="noopener">branded images and messages</a>. Higher user engagement is associated with <a href="https://pubmed.ncbi.nlm.nih.gov/32079562/" target="_blank" rel="noopener">more drinking</a>.</p> <figure class="align-center "><img src="https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/464113/original/file-20220518-21284-beeqsu.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=3 2262w" alt="AB InBev logo behind a smartphone also showing the logo" /><figcaption><em><span class="caption">Multinational corporations like AB InBev have been quick to embrace digital platforms as a new way to advertise alcohol products.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/in-this-photo-illustration-an-ab-inbev-logo-is-seen-on-a-news-photo/1234971135?adppopup=true" target="_blank" rel="noopener">Pavlo Gonchar/Getty Images</a></span></em></figcaption></figure> <p><strong>Targeting the individual</strong></p> <p>The increased power of these advertisements reflects the effectiveness of “personalised marketing”. Companies can now target individuals and “look alike” audiences.</p> <p>This approach is made possible thanks to the enormous amount of data collected as we interact together, purchase products and indicate our interests and passions through our clicks and likes.</p> <p>This data is extremely valuable to marketers and alcohol corporations. It gives them insight into the best time of day, the best brand of alcohol and the best type of marketing message to send our way.</p> <p>All groups across society are vulnerable to being bombarded by messages encouraging the purchase and consumption of alcohol.</p> <p>Digital advertising can target everyone: teenagers looking for brands which exemplify their identity; young adults, the heaviest “occasion drinkers” in Australia and New Zealand, some of whom are developing drinking habits that may be hard to change in later life; and adults of all ages who wish to reduce their consumption, often for health reasons.</p> <p>Digital media has become an all-encompassing marketing environment in which the “buy” button – with home delivery and often no checks on age or intoxication – provides a seamless marketing and distribution system.</p> <p>In New Zealand, <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/dar.13222" target="_blank" rel="noopener">online sales</a> increased significantly during the COVID-19 lockdowns, particularly among heavier drinkers.</p> <p><strong>Entering the metaverse</strong></p> <p>The alcohol industry is now showing its initiative by entering the emerging <a href="https://www.ypulse.com/article/2022/02/03/metaverse-mansions-more-tiktok-how-brands-are-marketing-for-this-years-super-bowl/" target="_blank" rel="noopener">metaverse</a>. To understand the metaverse, <a href="https://thedecisionlab.com/insights/technology/brave-new-world-how-the-metaverse-may-shape-our-psychology" target="_blank" rel="noopener">according to one commentator</a>, you should</p> <blockquote> <p>take today’s social media, add a splash of sophisticated 3D, fold in a plethora of options for entertainment and gaming, garnish it all with data-driven personalisation, and you are all set to take away your order of a supersized social media network, the metaverse.</p> </blockquote> <p>In terms of marketing, this provides a new opportunity. The biometric data essential to a virtual reality experience is also available to develop “<a href="https://scholarship.law.vanderbilt.edu/jetlaw/vol23/iss1/1/" target="_blank" rel="noopener">biometric psychographics</a>”, allowing for the even greater personalisation of advertising.</p> <p>Virtual alcohol brands created and used by avatars in the metaverse support the development of brand allegiance in real life, and virtual reality will transform e-commerce experiences and increase the power of sponsorship.</p> <p>AB InBev, the largest global alcohol corporation, was an early adopter of the metaverse. One of its brands, <a href="https://sifted.eu/articles/metaverse-brands-nft/" target="_blank" rel="noopener">Stella Artois</a>, is sponsoring the Australian Zed Run platform on which virtual horses can be raced, bred and traded. The Zed Run platform experienced 1,000% growth in early 2021.</p> <figure class="align-center "><em><img src="https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/464116/original/file-20220518-23-f6cjil.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=3 2262w" alt="Two people stand in front of a screen with a digital image of a horse." /></em><figcaption><em><span class="caption">Digital horse racing game Zed Run has exploded in popularity, with alcohol companies using the digital platform to reach a new audience.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/news-photo/performers-tyra-cartledge-and-kendall-drury-takes-part-in-a-news-photo/1329475903?adppopup=true" target="_blank" rel="noopener">Lisa Maree Williams/Getty Images</a></span></em></figcaption></figure> <p><strong>Regulating to reduce alcohol harm</strong></p> <p>The digital world is extremely dynamic. It is also opaque to most policy makers and public health practitioners. It is telling that there is no reference to the metaverse as a cross-border alcohol marketing opportunity in the WHO report.</p> <p>There is an urgent need for debate regarding how policy makers should better understand the risks involved with the targeted marketing of hazardous products such as alcohol.</p> <p>The WHO report outlines various partial and unsuccessful approaches to regulating marketing in the digital media.</p> <p>Attempts, such as <a href="https://helda.helsinki.fi/bitstream/handle/10138/303690/Alcohol_marketing_on_social_media_sites_in_Finland_and_Sweden_2019.pdf" target="_blank" rel="noopener">Finland’s</a> regulation of user-shared branded material, have failed because they did not interfere with the basic architecture of the social media platforms, which is predicated on engagement via sharing and liking.</p> <p>The most successful examples offered by the WHO report have been countries like Norway, which have imposed a complete ban on alcohol marketing including in the digital media.</p> <p>The report emphasises the need for surveillance and enforcement, suggesting ways in which alcohol companies could be penalised for marketing breaches.</p> <p>The support provided by international agreements such as the <a href="https://fctc.who.int/who-fctc/overview" target="_blank" rel="noopener">Framework Convention on Tobacco Control</a> is identified as a possible template for future discussions.</p> <p>The response to tobacco marketing provides a good and largely effective model for officials and policy makers. That said, the public health goal for alcohol is not equivalent to the smokefree goal. Advocates are not trying to eliminate alcohol altogether.</p> <p>However, there are parallel arguments in favour of creating a healthier media environment through regulation to prevent the promotion of alcohol products via increasingly sophisticated technological and psychological tools.</p> <p>These products are significant causes of reduced well-being, and this marketing increases consumption and therefore harm. The messages of the WHO report are timely and should be heeded.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/183334/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><em><a href="https://theconversation.com/profiles/sally-casswell-862029" target="_blank" rel="noopener">Sally Casswell</a>, Professor of public health policy, <a href="https://theconversation.com/institutions/massey-university-806" target="_blank" rel="noopener">Massey University</a></em></p> <p><em>This article is republished from <a href="https://theconversation.com" target="_blank" rel="noopener">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/alcohol-marketing-has-crossed-borders-and-entered-the-metaverse-how-do-we-regulate-the-new-digital-risk-183334" target="_blank" rel="noopener">original article</a>.</em></p> <p><em>Image: Getty Images</em></p>

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Convenient but susceptible to fraud: Why it makes sense to regulate charitable crowdfunding

<p>Within 24 hours of <a rel="noopener" href="https://theconversation.com/why-the-southern-us-is-prone-to-december-tornadoes-173643" target="_blank">devastating tornadoes striking six states</a> in December 2021, Kentucky Gov. Andy Beshear launched the <a rel="noopener" href="https://secure.kentucky.gov/formservices/Finance/WKYRelief" target="_blank">Team Western Kentucky Tornado Relief Fund</a>. That the leader of the state this disaster hit hardest would immediately tap into <a rel="noopener" href="https://www.councilofnonprofits.org/tools-resources/crowdfunding-nonprofits" target="_blank">crowdfunded charity</a> – raising money from the public directly – to complement relief dollars from official sources should come as no surprise.</p> <p>Crowdfunded donations have become a key source of disaster assistance – and often raise significant sums. In 2017, for example, football star J.J. Watt quickly raised more than $40 million help people affected by <a rel="noopener" href="https://www.houstontexans.com/news/j-j-watt-foundation-announces-hurricane-harvey-recap-and-2018-19-plans" target="_blank">Hurricane Harvey</a>. Following a series of Australian wildfires, entertainer Celeste Barber made a public appeal that eventually raised more than AU$50 million for the <a rel="noopener" href="https://eprints.qut.edu.au/200554" target="_blank">New South Wales Rural Fire Service &amp; Brigades Donation Fund</a>. And to date, the CDC Foundation has raised more than $51 million to support its “<a rel="noopener" href="https://give4cdcf.org/?utm_source=CDCF&amp;utm_medium=web&amp;utm_campaign=combat-coronavirus" target="_blank">Crush COVID</a>” campaign.</p> <p>What’s not to like about this new way to raise funds for a good cause? Well, as long as there has been charitable fundraising there has been the <a rel="noopener" href="https://theconversation.com/how-donors-can-help-make-nonprofits-more-accountable-85927" target="_blank">potential for scams</a>.</p> <p>As a <a rel="noopener" href="https://scholar.google.com/citations?user=uplx-M8AAAAJ&amp;hl=en&amp;oi=ao" target="_blank">law professor who studies the regulation of charities</a>, as well as a lawyer who has represented numerous charities and donors in legal disputes, I’ve seen that two aspects of charitable crowdfunding make it particularly vulnerable to fraud.</p> <p><strong>Sometimes it turns out to be crowd-frauding</strong></p> <p>In late 2017, a New Jersey couple posted an inspiring story on GoFundMe. A homeless veteran, they said, had come to the wife’s rescue after she ran out of gas on a highway exit ramp. Their “<a rel="noopener" href="https://abc7ny.com/homeless-hero-gofundme-money-stolen-from-man-john-bobbitt-gofund-me-go-fund/4690185/" target="_blank">Paying it Forward</a>” campaign raised more than $400,000 to help the veteran.</p> <p>Heartwarming, right? Trouble is, it was a lie. All three of the people involved in this trickery eventually <a rel="noopener" href="https://www.inquirer.com/news/mark-damico-johnny-bobbitt-kate-mcclure-gofundme-guilty-20211122.html" target="_blank">pleaded guilty to federal charges</a> of “<a rel="noopener" href="https://www.dicindiolaw.com/what-constitutes-theft-by-deception/" target="_blank">theft by deception</a>.”</p> <p>Fraudulent crowdfunding can also prey on political sentiments rather than just exploiting sympathy.</p> <p>In 2020, <a rel="noopener" href="https://www.justice.gov/usao-sdny/pr/leaders-we-build-wall-online-fundraising-campaign-charged-defrauding-hundreds-thousands" target="_blank">federal prosecutors charged</a> former senior Trump adviser Steve Bannon and three others with defrauding thousands of donors to a crowdfunding campaign for <a rel="noopener" href="https://theconversation.com/why-steve-bannon-faces-fraud-charges-4-questions-answered-144834" target="_blank">building portions of a wall</a> along the U.S. border with Mexico. Bannon and his partners allegedly instead used some of the funds raised to compensate themselves and pay for personal expenses.</p> <p>Although then-President <a rel="noopener" href="https://www.cnbc.com/2021/01/19/trump-pardons-expected-day-before-biden-inauguration.html" target="_blank">Donald J. Trump pardoned Bannon</a> in advance of any trial, the former White House aide still <a rel="noopener" href="https://www.forbes.com/sites/alisondurkee/2021/05/25/steve-bannon-officially-cleared-of-federal-charges-after-trump-pardon---but-this-state-probe-still-looms/?sh=1a58e95657c4" target="_blank">faces possible state charges</a>.</p> <p><strong>Reasons for vulnerability</strong></p> <p>Making a special website isn’t necessary to raise charitable funds this way. Some 45 million people donated to or created a fundraiser using Facebook from 2015 to 2020, raising over <a rel="noopener" href="https://about.fb.com/news/2019/09/2-billion-for-causes/" target="_blank">$3 billion for charities</a>, according the company.</p> <p>And crowdfunding efforts can help people without <a rel="noopener" href="https://www.irs.gov/taxtopics/tc506" target="_blank">technically counting as tax-deductible charity</a>. <a rel="noopener" href="https://www.gofundme.com/" target="_blank">GoFundMe</a>, a popular charitable crowdfunding platform, lets people raise funds for both personal needs, such as covering medical expenses, and for specific charities of all kinds.</p> <p>Being fast and cheap to operate makes charitable crowdfunding ideal in some ways, not others. More traditional fundraising campaigns that rely on mailings and phone calls are time-consuming to establish. In contrast, it’s possible to set up a new campaign on GoFundMe that is then visible both nationally and internationally within a few minutes.</p> <p>In the wake of a highly publicized disaster, when many people are <a rel="noopener" href="https://theconversation.com/how-to-select-a-disaster-relief-charity-83928" target="_blank">looking for a quick way to help</a>, everyone – even governors – will want to move fast. Opportunities for fraud are perhaps at their peak.</p> <p>Compounding this problem: Laws governing charitable fundraising do not clearly apply to campaign organizers and crowdfunding platforms. As I detail in an article <a rel="noopener" href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686612" target="_blank">soon to be published in the Indiana Law Journal</a>, state legislatures wrote those laws decades ago, when charities raised money either directly or using paid solicitors. As a result, those laws do not usually apply to individuals who voluntarily raise money for individuals or charities to which they have no formal ties. Nor do they apply to the recently emerged platforms where people crowdfund for causes.</p> <p><strong>California takes aim</strong></p> <p>So far, there’s no regulation taking shape to address these issues at the federal level.</p> <p>California became the first state to pass legislation specifically targeting charitable crowdfunding when Gov. Gavin Newson signed Assembly Bill No. 488 into law in October 2021. The measure, which will not <a rel="noopener" href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB488" target="_blank">take effect until Jan. 1, 2023</a>, requires both charities raising funds online and platforms hosting campaigns for specific charities to register and file regular reports with the state’s <a rel="noopener" href="https://oag.ca.gov/charities" target="_blank">Registry of Charitable Trusts</a>.</p> <p>The new law will also require these charities and platforms to make certain public disclosures and receipts, as needed. It will also require platforms to promptly distribute donations to the designated charities and obtain a charity’s written consent before soliciting funds for its benefit – with some exceptions.</p> <p>In my view, California’s new law is a good first effort.</p> <p>It places the burden of compliance on the charities themselves and the handful of online platforms engaged in this work, not on the numerous individuals who start campaigns. But it remains to be seen whether the registration, reporting, disclosure and other requirements will create enough transparency and accountability to sufficiently deter fraud without over burdening legitimate charities and platforms.</p> <p>I appreciate the difficult task legislators face in striking a balance that avoids both over- and underregulation. Lawmakers do not want to overregulate charitable crowdfunding to the point that generous individuals and legitimate charities shy away from launching campaigns because of the legal burdens of doing so.</p> <p>That is, all new laws and regulations, in addition to discouraging crowdfunding fraud, ought to encourage generosity.</p> <p>At the same time, lawmakers want to regulate charitable crowdfunding enough to ensure that all or almost all funds raised go the individuals and charities that the donors intend to support. Time will tell whether California and the states that follow its example have struck the right balance.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/172029/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a rel="noopener" href="https://theconversation.com/profiles/lloyd-hitoshi-mayer-1148002" target="_blank">Lloyd Hitoshi Mayer</a>, Professor of Law, <a rel="noopener" href="https://theconversation.com/institutions/university-of-notre-dame-990" target="_blank">University of Notre Dame</a></em></p> <p><em>This article is republished from <a rel="noopener" href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a rel="noopener" href="https://theconversation.com/convenient-but-susceptible-to-fraud-why-it-makes-sense-to-regulate-charitable-crowdfunding-172029" target="_blank">original article</a>.</em></p> <p><em>Image: Getty Images</em></p>

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Is it even possible to regulate Facebook effectively? Time and again, attempts have led to the same outcome

<p>The Australian government’s <a href="https://theconversation.com/this-is-why-australia-may-be-powerless-to-force-tech-giants-to-regulate-harmful-content-169826">recent warning</a> to Facebook over misinformation is just the latest salvo in the seemingly constant battle to hold the social media giant to account for the content posted on its platform.</p> <p>It came in the same week as the US Senate heard <a href="https://www.bbc.com/news/world-us-canada-58805965">whistleblowing testimony</a> in which former Facebook executive Frances Haugen alleged the company knew of harmful consequences for its users but chose not to act.</p> <p>Governments all over the world have been pushing for years to make social media giants more accountable, both in terms of the quality of information they host, and their use of users’ data as part of their business models.</p> <p>The Australian government’s <a href="https://www.aph.gov.au/Parliamentary_Business/Bills_LEGislation/Bills_Search_Results/Result?bId=r6680">Online Safety Act</a> will <a href="https://perma.cc/95A5-T79H">come into effect in January 2022</a>, giving the eSafety Commissioner unprecedented powers to crack down on abusive or violent content, or sexual images posted without consent.</p> <p>But even if successful, this legislation will only deal with a small proportion of the issues that require regulation. On many such issues, social media platforms have attempted to regulate themselves rather than submit to legislation. But whether we are talking about legislation or self-regulation, past experiences do not engender much confidence that tech platforms can be successfully regulated and regulation put in action easily.</p> <p>Our <a href="https://aisel.aisnet.org/ecis2021_rip/35">research</a> has examined previous attempts to regulate tech giants in Australia. We analysed 269 media articles and 282 policy documents and industry reports published from 2015 to 2021. Let’s discuss a couple of relevant case studies.</p> <h2>1. Ads and news</h2> <p>In 2019, the Australian Competition and Consumer Commission (ACCC) <a href="https://www.accc.gov.au/publications/digital-platforms-inquiry-final-report">inquiry into digital platforms</a> described Facebook’s algorithms, particularly those that determine the positioning of advertising on Facebook pages, as “opaque”. It concluded media companies needed more assurance about the use of their content.</p> <p>Facebook initially welcomed the inquiry, but then <a href="https://www.accc.gov.au/system/files/Facebook_0.pdf">publicly opposed it</a> when the government argued the problems related to Facebook’s substantial market power in display advertising, and Facebook and Google’s dominance of news content generated by media companies, were too important to be left to the companies themselves.</p> <p>Facebook argued there was <a href="https://www.accc.gov.au/system/files/Facebook.pdf">no evidence of an imbalance of bargaining power</a>between it and news media companies, adding it would have no choice but to withdraw news services in Australia if forced to pay publishers for hosting their content. The standoff resulted in Facebook’s <a href="https://theconversation.com/facebook-has-pulled-the-trigger-on-news-content-and-possibly-shot-itself-in-the-foot-155547">infamous week-long embargo on Australian news</a>.</p> <p><span>The revised and amended News Media Bargaining Code was </span><a href="https://www.accc.gov.au/system/files/Final%20legislation%20as%20passed%20by%20both%20houses.pdf">passed by the parliament in February</a><span>. Both the government and Facebook declared victory, the former having managed to pass its legislation, and the latter ending up striking its own bargains with news publishers without having to be held legally to the code.</span></p> <h2>2. Hate speech and terrorism</h2> <p>In 2015, to deal with violent extremism on social media the Australian government initially worked with the tech giant to develop joint AI solutions to improve the technical processes of content identification to deal with countering violent extremism.</p> <p>This voluntary solution worked brilliantly, until it did not. In March 2019, mass shootings at mosques in Christchurch were live-streamed on Facebook by an Australian-born white supremacist terrorist, and the recordings subsequently circulated on the internet.</p> <p>This brought to light <a href="https://www.stuff.co.nz/national/christchurch-shooting/111473473/facebook-ai-failed-to-detect-christchurch-shooting-video">the inability Facebook’s artificial intelligence algorithms</a> to detect and remove the live footage of the shooting and how fast it was shared on the platform.</p> <p>The Australian government responded in 2019 by <a href="https://www.ag.gov.au/crime/abhorrent-violent-material">amending the Criminal Code</a>to require social media platforms to remove abhorrent or violent material “in reasonable time” and, where relevant, refer it to the Australian Federal Police.</p> <h2>What have we learned?</h2> <p>These two examples, while strikingly different, both unfolded in a similar way: an initial dialogue in which Facebook proposes an in-house solution involving its own algorithms, before a subsequent shift towards mandatory government regulation, which is met with resistance or bargaining (or both) from Facebook, and the final upshot which is piecemeal legislation that is either watered down or only covers a subset of specific types of harm.</p> <p>There are several obvious problems with this. The first is that only the tech giants themselves know how their algorithms work, so it is difficult for regulators to oversee them properly.</p> <p>Then there’s the fact that legislation typically applies at a national level, yet Facebook is a global company with billions of users across the world and a platform that is incorporated into our daily lives in all sorts of ways.</p> <p>How do we resolve the impasse? One option is for regulations to be drawn up by independent bodies appointed by governments and tech giants to drive the co-regulation agenda globally. But relying on regulation alone to guide tech giants’ behaviour against potential abuses might not be sufficient. There is also the need for self-discipline and appropriate corporate governance - potentially enforced by these independent bodies.</p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article first appeared on <a rel="noopener" href="https://theconversation.com/is-it-even-possible-to-regulate-facebook-effectively-time-and-again-attempts-have-led-to-the-same-outcome-169947" target="_blank">The Conversation</a>.</em></p>

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