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How MacKenzie Scott’s $12 billion in gifts to charity reflect an uncommon trust in the groups she supports

Above: Photo Collage / Lynxotic

MacKenzie Scott disclosed on March 23, 2022, that she had given US$3.9 billion to 465 nonprofits in the previous nine months. These no-strings-attached donations bring the total she has given away in the past two years to at least $12 billion. We asked philanthropy historian Tyrone Freeman to weigh in on Scott’s approach to donating large sums of money and her emphasis on other forms of generosity.

Is Scott’s philanthropic philosophy unique?

After her 2019 divorce from Jeff Bezos, Scott signed the Giving Pledge, a commitment that extremely affluent people make to give away at least half their wealth.

The pledge’s signatories may write a letter summing up why they are giving so much to charity and what their priorities are, which gets posted to the internet. Scott did that and amended the letter when she remarried. What makes her stand out from others who have signed the Giving Pledge is that she continues to write about her donations and what she’s learning about giving in general. As a historian of philanthropy, I study the philosophies and motivations of donors, which I call their “gospels of giving.”

Her approach is clearly unique among her peers – other billionaire donors – because of how she relates to the organizations she supports and the diversity of those causes. She says her overarching goal is “to support the needs of underrepresented people from groups of all kinds.”

Scott values the expertise of the groups she supports and their leadership. She says she doesn’t adhere to the conventional concept of philanthropy, and she questions the way many of us think about generosity. To her it is not just a numbers game. It’s more about the spirit of giving, the sacrifice in the gift.

One major difference is that very wealthy donors tend to drill down in a single focused area, such as higher education, or a few causes – perhaps the arts or medical research. There are advisers who often recommend this approach to have the most impact.

But the nonprofits she has funded cover pretty much everything charitable donors support, from education to health, from social justice to the arts. Her latest donations even include global organizations like CARE and HIAS that are serving the needs of Ukrainians whose lives have been turned upside down.

Which other gifts stand out?

Some of the largest gifts among the most recently announced are for Girls & Boys Clubs of America, Communities in Schools, Habitat for Humanity and Planned Parenthood Federation of America.

I think it’s important that she didn’t give to only their affiliates in major cities. Foundations have been underinvesting in rural America for years. Scott’s supporting dozens of local and regional affiliates in suburban and rural counties.

As I have explained before, her support for historically Black colleges and universities is important. Two recent gifts that she made, to Meharry Medical College and Charles R. Drew University of Medicine and Science, $20 million apiece, were very significant in light of how elite white donors undercut Black higher ed institutions in the early 20th century.

Does it matter when she publicly discloses information?

Scott posted an update in December 2021 without any details about her latest donations.

Instead, she praised other forms of giving by people without billions to their name. One thing she has drawn attention to is how there’s a lot of informal giving, and that it’s not valued. This puts Scott where the average person is, especially in communities of color, where people look after neighbors and family members regularly in their giving.

Since these are charitable activities you can’t deduct from your taxes, you might not think of these helping behaviors and many forms of civic engagement as philanthropy.

Unlike nearly all donors operating on a big scale, she has no offices and, so far, no website. She’s been criticized for a lack of transparency, especially after she didn’t divulge details in December. This sentiment has to do with the widespread belief that the public has a right to know when private interests spread their resources around for public benefit.

Her blog posts draw attention to trends people might miss regarding the groups she supports. She states the percentage of these organizations that are led by women, people of color or people she says have “lived experience in the regions they support and the issues they seek to address.”

When somebody shows you how they’re thinking about their giving and what they support, that could have an impact on others. It may change whether they donate only to their alma mater, for example. Colleges and museums are used to getting these big gifts, but many of the organizations Scott is giving tens of millions of dollars to say these are the largest donations they’ve ever received. She’s shattering the notion of who is a worthy recipient – the unspoken idea that only the elite institutions and the most well-known are worthy of big gifts.

How does Scott talk about giving that isn’t purely monetary?

For her it’s about generosity, not just dollars. She’s definitely thinking beyond the tax breaks she’ll get for charitable gifts.

Her December 2021 post alludes to volunteering and other activities she calls the “work of practical beneficence” practiced by millions of people, estimating that it’s worth about $1 trillion. Researchers have reached similar conclusions.

She also highlighted the estimated $68 billion in annual global remittances in that post. When people come to this country, begin working and send money to their homelands, that is a form of philanthropy. They may not use the word, but it’s the same idea, because it’s giving back to your family and your country of origin, and it responds to the same motivation as a donation to an established charity.

I agree that there’s much more to American philanthropy than the roughly half a trillion dollars donated annually. There are other kinds of giving that fly below the radar screen that are important for survival, community-building, meeting basic needs and even for democracy.

She also addresses the role and value of using your voice as an important part of social change. The history of the abolition, women’s suffrage, civil rights movements and various movements today bear this out. That is something I focus on in my research. https://www.youtube.com/embed/KS2n7VUBOa0?wmode=transparent&start=0 Historian Tyrone McKinley Freeman joined Bridgid Coulter Cheadle and Kimberly Jeffries Leonard to discuss how Black leaders are following in the footsteps of history’s trailblazers by devoting their time, talent and voice to many causes.

What do you hope the public takes away from Scott’s approach to giving?

Scott has emerged as the most notable practitioner of what’s called trust-based philanthropy. That refers to the notion that there should be fewer strings attached to donations and that reporting requirements and other expectations that often come with grants from foundations can be excessive.

In December 2020, Scott mentioned that she has a team of advisers to help her with screening, although she hasn’t shared what that process looks like. But after that, she is not asking anything else of the organizations she funds. Instead, she has chosen to step back and let them exercise responsibility, giving them space and flexibility.

I hope the public hears her answers to what I like to ask: Who counts as a philanthropist and what counts as philanthropy? I agree with Scott that it’s about more than money and that philanthropy is not only the domain of the wealthy.

Tyrone McKinley Freeman, Associate Professor of Philanthropic Studies, IUPUI

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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700 US Billionaires Got $1.7 Trillion Richer During Two Years of Pandemic

A new analysis finds that the 704 billionaires in the U.S. now own more wealth than the bottom half of Americans—roughly 165 million people.

During the first two years of the coronavirus pandemic, the collective wealth of billionaires in the United States grew by a staggering $1.7 trillion as Covid-19 killed millions of people across the globe and threw entire nations into turmoil, worsening extreme poverty, hunger, and other preexisting crises.

“We can’t accept an economy and tax code that allows billionaires to hoard trillions while working families struggle.”

Released Friday to coincide with the second anniversary of the World Health Organization’s official pandemic declaration for Covid-19, the latest billionaire fortune analysis by Americans for Tax Fairness (ATF) finds that the 704 billionaires in the U.S. now own more combined wealth than the 165 million people in the bottom half of the country’s wealth distribution.

“For billionaires, it’s been two years of raking in the riches, while for most families it’s been two years of fear, frustration, and financial worry,” ATF executive director Frank Clemente said in a statement.

The new analysis stresses that billionaires’ pandemic windfall “may never be taxed” because it consists of unrealized capital gains, which are not subject to taxation under current U.S. law. As one possible solution, ATF voices support for Sen. Ron Wyden’s (D-Ore.) proposed Billionaires Income Tax, legislation that would impose an annual levy on ultra-wealthy Americans’ unrealized gains from tradable assets such as stocks.

“The rising asset values billionaires have enjoyed over the past two years are not taxable unless the assets are sold,” ATF explains. “But billionaires don’t need to sell assets to benefit from their increased value: they can live off money borrowed at cheap rates secured against their rising fortunes. And when all those wealth gains are passed along to the next generation, they entirely disappear for tax purposes.”

While Democrats in Congress considered a tax on billionaires as part of their Build Back Better package, that legislation was tanked by a handful of corporate Democrats—including Sen. Joe Manchin (D-W.Va.)—and a unified Republican caucus.

“Why should our economic system allow billionaires to hoard wealth unchecked, letting almost all of it go tax-free?”

Earlier this month, Manchin floated a further watered-down version of the Build Back Better proposal that calls for tax reforms targeting the wealthy and corporations, but it’s unclear whether the West Virginia Democrat would accept a tax on billionaires.

“Working families pay what they owe in taxes each paycheck. Billionaires generally pay little or nothing in taxes on these extraordinary gains in wealth,” Clemente said Friday. “Congress should enact a Billionaires Income Tax to directly tax these wealth gains as income each year, so that billionaires begin to pay their fair share of taxes. Such a reform is not yet part of President Biden’s investment and tax legislation now being revised by Congress, but it should be.”

According to ATF’s new analysis, the biggest billionaire winners during the coronavirus pandemic’s first two years were:

  • Tesla and SpaceX CEO Elon Musk, who saw his net worth skyrocket by $209 billion;
  • Google co-founder Larry Page, whose fortune grew by $63 billion; and
  • Google co-founder Sergey Brin, whose wealth increased by $60 billion.

“Not one of the 15 richest U.S. billionaires gained less than $10 billion,” ATF noted on Twitter, pointing out that during the same two-year period 80 million Americans were infected by Covid-19 and nearly a million were killed by the virus.

“We can’t accept an economy and tax code that allows billionaires to hoard trillions while working families struggle to afford healthcare, childcare, education, and housing,” the group added. “It’s wrong, and we can do better.”

Originally published on Common Dreams by JAKE JOHNSON and republished under Creative Commons (CC BY-NC-ND 3.0

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‘Inappropriate Giveaway of Galactic Proportions’: Outrage Over $10 Billion Taxpayer Gift to Bezos Space Obsession

“No,” said Sen Bernie Sanders. “Congress should not provide a $10 billion handout to Jeff Bezos for space exploration as part of the defense spending bill. Unbelievable.”

Progressives on Wednesday slammed what they called a proposed $10 billion handout to Amazon founder Jeff Bezos—the world’s first multi-centibillionaire—in the 2022 National Defense Authorization Act as a “giveaway of galactic proportions” in the face of growing wealth inequality and the inability of U.S. lawmakers to pass a sweeping social and climate spending package.

“Jeff Bezos’s business model includes feasting on public subsidies—and the U.S. Senate must not acquiesce to his demands.”

According to Defense News, Senate Majority Leader Chuck Schumer (D-N.Y.) plans to merge the $250 billion U.S. Innovation and Competition Act of 2021 (USICA)—aimed largely at countering the rise of China—with next year’s NDAA, which would authorize up to $778 billion in military spending. That’s $37 billion more than former President Donald Trump’s final defense budget and $25 billion more than requested by President Joe Biden. The NDAA includes a $10 billion subsidy to Bezos’ Blue Origin space exploration company.

“Providing Jeff Bezos with $10 billion of taxpayer money would be an inappropriate giveaway of galactic proportions,” Stuart Appelbaum, president of the Retail, Wholesale, and Department Store Union (RWDSU), said in a statement Wednesday.

“Jeff Bezos shouldn’t receive taxpayer subsidies for his personal projects—period,” he continued. “In at least two recent years, one of the richest people on the planet paid no income tax; yet he then demands billions in taxpayer funds for a project that’s already been awarded to another company. This is the height of hubris.”

“Rather than waste $10 billion on a redundant space contract for Bezos, that money could be used to adequately fund Social Security Disability, Medicare and Medicaid, and the food stamps that many of his own employees at Amazon and elsewhere have to rely on to make ends meet,” Appelbaum said.

“Jeff Bezos’s business model includes feasting on public subsidies—and the U.S. Senate must not acquiesce to his demands,” he added. “Furthermore, until Jeff Bezos changes the way his employees are mistreated and dehumanized at Amazon and elsewhere, no elected official should support the passage of subsidies for him or any of his projects.”

Sen. Bernie Sanders (I-Vt.) has condemned the NDAA for containing $52 billion in “corporate welfare” for Big Tech. Explaining why he would vote against the NDAA, Sanders said Tuesday that “combining these two pieces of legislation would push the price tag of the defense bill to over $1 trillion—with very little scrutiny.”

“Meanwhile,” he added, “the Senate has spent month after month discussing the Build Back Better Act and whether we can afford to protect the children, the elderly, the sick, the poor, and the future of our planet. As a nation, we need to get our priorities right.”

Originally published in Common Dreams by BRETT WILKINS and republished under Creative Commons license (CC BY-NC-ND 3.0)

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Amazon’s Enforcement Failures Leave Open a Back Door to Banned Goods—Some Sold and Shipped by Amazon Itself

Photo by Bryan Angelo on Unsplash

The online giant bans products related to drugs, spying and weapons, but we found plenty for sale; one of the items bought on the site left a grim trail of overdoses

By: Annie Gilbertson and Jon Keegan

Eric Falkowski said he made an easy living working a few hours a week making counterfeit prescription opioids before some two-dozen people overdosed and the authorities caught up with him.

He mixed fentanyl with active ingredients from Xanax and Tylenol and pressed the compound into pills that looked like Percocet, he said, down to the exact color and markings.

Where did he get the equipment? According to federal court records and Falkowski himself: Amazon.com.

“I purchased two pill presses on there. I also purchased the pill press dies, which are the molds to shape the pills and imprint them with whatever number they need be,” Falkowski said in a phone interview from prison, where he is serving a 22-year sentence for crimes connected to his counterfeit drug business.

“You search under the code on the pill … and it’ll just come up,” he added. “It really wasn’t that complex.”

Two people died after taking Falkowski’s pills, and another woman was found dead from an overdose on the property where he kept his makeshift lab, according to officials, law enforcement documents, and autopsy reports. More than 20 others were sickened by the pills but survived.

“Someone could wipe out a whole town” with these “poisonous pills,” said Derrick Helton, a former sheriff’s deputy for Rutherford County, Tenn., where the mass overdose took place. One of the fatalities was his sister Tiffanie Scott, a 33-year-old mother of a young daughter.

Amazon bans pill presses used to make prescription drugs. They’re included among 38 pages of third-party seller rules and prohibitions for its U.S. marketplace.

Yet an investigation by The Markup found that Amazon fails to properly enforce that list, allowing third-party sellers to put up and sell banned items.

Alongside its third-party marketplace, Amazon sells products to consumers directly, and The Markup found it was also selling banned items itself, revealing cracks in the largely automated purchasing system that feeds its massive product catalog.

We found nearly 100 listings for products that the company bans under its categories of drugs, theft, spying, weapons and other dangerous items, a virtual back alley where mostly third-party sellers peddle prohibited goods, some of which are used for illicit and potentially criminal activities.

Amazon’s Choice?

The Markup filled a shopping cart with a bounty of banned items: marijuana bongs, “dab kits” used to inhale cannabis concentrates, “crackers” that can be used to get high on nitrous oxide, and compounds that reviews showed were used as injectable drugs.

We found two pill presses and a die used to shape tablets into a Transformers logo, which is among the characters that have been found imprinted on club drugs such as ecstasy. We found listings for prohibited tools for picking locks and jimmying open car doors. And we found AR-15 gun parts and accessories that Amazon specifically bans.

Almost three dozen listings for banned items were sold by third parties but available to ship from Amazon’s own warehouses. At least four were listed as “Amazon’s Choice.”

The phrase “ships from and sold by Amazon.com” appeared beneath the buy button of five of the banned items we found, which two former employees confirmed means those products are, in fact, sold by Amazon. In addition, one of the sellers we were able to reach also confirmed it sold the items to Amazon.

Many of the items we found had been up for sale for months, some with positive reviews showing they had been sold, including some of the items sold directly by Amazon.

And Amazon led us right to the prohibited listings. When we typed “bong” into the website’s search bar, autocomplete suggestions included “bongs for smoking weed.” When we typed “pill press,” autocomplete suggested “pill press for making pills xanax.”

In a written statement to The Markup, Amazon spokesperson Patrick Graham said the company has “proactive measures in place to prevent suspicious or prohibited products from being listed,” and that the company stopped more than six billion “suspected bad listings” from posting last year, repeating the company’s remarks to Congress earlier this year.

“If products that are against our policies are found on our site, we immediately remove the listing, take action on the bad actor, and further improve our systems,” he said.

Graham did not respond directly to many of our specific questions, including how many of the banned items that The Markup found had been sold, why the company had not noticed some of them for months, why some were listed as Amazon’s Choice, and why many were stored in Amazon’s warehouses for shipment.

He did not respond at all to questions about why Amazon itself had offered banned items for sale.

Most of the banned listings we reported to Amazon have been removed, although at least three have popped back up.

The company removed the six specific terms that we mentioned from autocomplete, according to Graham, who said that feature is informed by “similar searches by other customers.” He wouldn’t say whether the company also removed all other banned items from autocomplete.

Graham also declined to explain why the company chose to allow 13 listings for banned items that we reported to the company to remain for sale. These products were specifically named as banned in Amazon’s rules, met the U.S. Department of Justice’s definition of drug paraphernalia, or were confirmed by two weapons experts to be a gun part or tool. Two of them were items that Amazon sells itself.

In addition to the nearly 100 listings for banned items we found for sale in the U.S. marketplace, we found several pill presses for sale on Amazon’s Canadian marketplace that were available for shipment to the United States. Amazon took them down after we reported them to the company, including a $4,100 TDP 5 Desktop Tablet Press, one of the models Falkowski used.

“Almost dead”

Michael “Shane” Shipley, 39, a native of Rutherford County, Tenn., was one of the people who died after taking Falkowski’s fake pills. He’d worked his entire adult life operating machinery at a local factory.

“I couldn’t even tell you what my dad’s death has done to my family,” his daughter Brittany Conway said in an interview.

Within a day of her father’s death, Conway said, she woke up in a hospital bed herself. She didn’t realize her father had slipped the counterfeit pills into his prescription bottle of Percocet at home and, distraught with grief, she had taken what she thought was a safe medication to help her relax.

“I went from up, talking—to almost dead,” Conway said.

Graham said Amazon’s policies allowed pill press sales when Falkowski was making counterfeit drugs in 2016. He declined comment on the overdoses and said, speaking in general, that the company is not responsible for harm from third-party product sales.

“We are not liable for those products because we do not make, distribute, or sell those products,” he said. He said that also applies to third-party products that are fulfilled by Amazon, which charges sellers to store and ship their items.

The company has successfully shielded itself from legal liability for harm caused by third-party products sold on its website by invoking Section 230 of the federal Communications Decency Act, which states websites are not responsible for third-party content that appears on their sites.

Last year, one federal appeals court ruled that Amazon may shoulder liability for a customer’s injuries from a defective product sold on its site, in part because the company “enables third-party vendors to conceal themselves from the customer, leaving customers injured by defective products with no direct recourse to the third-party vendor.”

Three million third parties from across the globe are now selling on Amazon’s platforms, according to e-commerce intelligence firm Marketplace Pulse. And third-party sellers have fueled the company’s explosive growth for years, according to a 2019 report to shareholders. Last year, Amazon third-party sales reportedly topped $200 billion—a sum that rivals the annual GDP of New Zealand.

Will It “Kill Someone?”

Multiple current and former employees, most of whom asked not to be named for fear of retaliation, said the company struggles to oversee that army of independent sellers.

“Because sellers have the ability to upload items themselves to the website, it makes it very difficult to police all of that without hindering the ability to do business,” said a former member of the product safety team who left the company in 2018. “Amazon knows there’s tons and tons and tons of stuff that shouldn’t be on the website.

“We basically would categorize risks based on their severity,” the former employee added. “Will this product injure or kill someone? Is it high legal risk?”

An Amazon executive acknowledged in the statement to Congress earlier this year that “bad listings” get through but said the company is working to shore up the slippage of “counterfeits, unsafe products, and other types of abuse” by requiring sellers of certain items to be preapproved, partnering with brands to pull counterfeits, and enhancing “proactive” tools to spot problems.

Yet Amazon’s sellers’ tools sometimes help, rather than hinder, the listing of banned items, The Markup found.

When we opened a new seller account and started listing a bong for sale, Amazon suggested we list it as a vase in home decor. We never posted it.

Last month, we successfully listed two banned items for sale: an AR-15 10-round magazine and an AR-15 armorer’s wrench. We removed them within minutes of confirming they had posted. We were able to evade detection by Amazon’s automated filters by purchasing a universal product code for the magazine and by both avoiding specific keywords and miscategorizing the items.

The listings went up even though we had no seller history and had already twice been prohibited from listing the same items using more precise descriptions.

Graham declined to comment on why we were able to post these items but said Amazon’s sellers’ tools “suggest listing categories to help sellers easily categorize their products, but sellers are responsible for choosing the correct category, as they know their products best.” He also declined to comment on why the tools suggested an incorrect product category for listing bongs.

Other media have exposed Amazon’s lax product controls, including three reports just last year: a CNN investigation that documented dangerous child car seats, a CNBC report that revealed Amazon was shipping expired food and baby formula, and a Wall Street Journal investigation that found thousands of unsafe, banned, and deceptively labeled products on the site.

Graham said Amazon investigated these “with urgency” and sought to improve systems when needed but gave no specifics.

Consumer advocates say the company isn’t doing enough to protect the public, and regulators need to step in.

“It’s clear there’s not a major prioritization or investment in resources in policing the terms of service or ensuring that prohibited products are not sold,” said Lori Wallach, a director at the nonprofit organization Public Citizen. “It may be more profitable to have the ‘wild, wild west’ of sales, but it’s also much more dangerous for consumers.”

“We categorically disagree with this claim,” Graham replied.

Automating Enforcement

When Rachel Johnson Greer joined Amazon in 2010 as a product safety program manager, she said she found many problematic products for sale, from unapproved treatments of erectile dysfunction to illegal police radar jammers.

“They were up for sale and selling happily away on Amazon,” Greer said.

She said some troubling products were sold directly by Amazon itself, which she and others said relies on a mostly automated purchasing process.

“Ships and sold by Amazon is Amazon. This is how it all started,” said Greer, who worked for the company until 2017. “They built algorithms to figure out which books they needed to buy and then how much.”

It was Greer’s job to put an end to sketchy sales, she said. Her team wrote programs to flag undesirable products and amassed a universe of terms to feed an automated policing system. She said the tool eventually could scan billions of line items in the catalog in about five minutes.

But it proved flawed, she said. The system by its nature was confined to known threats—things it had seen before. Greer said new problems emerged all the time and slipped right through initial safeguards, only to be flagged by customers after something went wrong.

“The biggest problem with Amazon’s system to begin with is that nearly everything is reactive,” she said. “The reality is when you have a system that relies on finding defects per million, that means that there will always be defects.”

She said some third-party sellers devised “clever, tricky ways to list products. And these rules couldn’t catch it because they hadn’t been written by a human who was thinking in clever, tricky ways.”

One current employee of the restricted products team wearily put it like this: “No matter how much we remove, there’s always more.”

Graham did not directly respond to these descriptions of the company’s difficulties in keeping restricted items off the site. Instead, he said more generally that Amazon strives “to make sure that all products in our store are safe” and “we continuously monitor the products sold in our stores.”

Yet we found an unproven treatment to fight cancer with electromagnetic frequencies that is banned by Amazon’s policies—a rife machine—had been on the site for five years. The listing was removed after we contacted Amazon.

While most of the specific banned listings we brought to Amazon’s attention were removed, similar items that we did not report to the company remained live, including some listings by the same third-party sellers.

Many of the sellers of the banned items that we found continued to sell banned products, including Lead and Steel, which sold gun accessories, and another company, which sold a compound that reviewers said they used as injectable drugs. When we asked Amazon about this in follow-up questions, those storefronts disappeared from Amazon.com.

Graham denied that injectable drugs were sold on its platform, saying they were not sold for that purpose but rather marketed for “research” in the listing. Of the two compounds we found, the World Anti-Doping Agency designates one, TB-500, as a “prohibited substance,” and the U.S. Anti-Doping Agency warned athletes about the risks of the second one, BPC-157, as not approved for human use. Customer reviews on the listing showed people were injecting the product.

Graham said the company removed the listings and would add them to its banned product list “out of an abundance of caution.” But as of publication, both compounds could be found for sale by other sellers on Amazon.com.

Amazon isn’t the only online retailer that has had to grapple with policing the unruly world of third-party e-commerce, where just about anybody can sell just about anything. Falkowski said he bought some of his drug-making supplies on another site.

Some marketplaces are known for thoroughly reviewing products before they go up.

Apple, which offers mobile apps from third-parties, checks the code before any app or update appears in the App Store, for instance. According to its site, Apple uses a combination of automated systems and hundreds of human experts speaking a total of 81 languages to review them before posting.

“We take responsibility for ensuring that apps are held to a high standard for privacy, security, and content,” Apple’s website states, “because nothing is more important than maintaining the trust of our users.”

Amazon’s users appear to know exactly what they’re buying, even when banned products are lightly disguised.

Lead and Steel listed a gunsmithing tool for an AR-15 as a “paperweight desk organizer,” posting a photo of the vise block holding paper clips and erasers.

Customers joined in on the ruse in reviews. “Helps when you need to do a hands free clean up of your desktop,” wrote one. “Locks items solidly into place, will Load plenty of paper clips or tacks.”

Another customer retorted, “Sorry. I’m not playing along. I can buy AR-15 parts all day on Amazon.”

To go along with the vise block, Amazon’s “frequently bought together” tool suggested other gunsmithing tools, showing at least one of Amazon’s automated systems received signals that it was not an office product.

Graham, the Amazon spokesperson, declined to explain why the items were still for sale, even though the “frequently bought together” tool seemed to recognize they were related to firearms.

Lead and Steel, which declined to be interviewed for this story, had sold at least four dozen vise blocks from that posting since it went up in December, according to reviews, until we reported it to Amazon, which pulled the listing.

On the Hunt for Honey Oil Equipment

Vic Massenkoff, a retired fire investigator from Contra Costa County, Calif. said he tried years ago to get Amazon to take down dangerous equipment—but said he was frustrated by what he sees as the company’s inaction.

He said he’d seen too many fires caused by the process of extracting highly potent hash oil, or “honey oil,” from marijuana using butane and in 2013 decided to investigate where the equipment could be found for sale. He said he found it on Amazon.com.

“There it was lined up, everything from the extraction tubes, to the grams digital scales, to the silicone pads, the silicone containers, to the digital thermometers,” Massenkoff said. “Everything you would need to set up shop.”

When he clicked on a listing for the glass tubes, Amazon’s recommendation engine suggested he buy the other items needed to make and use hash oil. He kept screenshots of the suggestions.

“There is no safe way to make butane honey oil,” he said in an interview.

He said he emailed Amazon from his work email to alert the company to the danger. He still remembers the reply: “Thanks for bringing this to our attention. We have assigned it to someone on our staff to research this.”

He said he got one other email from Amazon and then heard nothing.

Graham, the Amazon spokesperson, declined to say how the company handled Massenkoff’s complaint, for which he said The Markup had provided no “evidence.”

Amazon’s current rules ban the sale of equipment to make hash oil; we were able to find it on the site.

This article was originally published on The Markup and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.


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Google Shopping, following Walmart, tries to lure 3rd party sellers and sales away from Amazon

Each of the big four have new strategies to diversify into each other’s garden

‘This is the beginning of the end of Big Tech as we know it’ according to professor Scott Galloway and the Big Tech giants are well aware of this fact. Unsurprisingly, they are already at work to undermine one another and find ways to grab pieces of each other’s pies.

Where one has a stranglehold, such as Amazon does based on the sheer size and breath of its 3rd party marketplace, another, such as Google, will look for a way to gain a foothold, no matter how small, as the winds of change rise in Washington and among the public.

Read More: Cracks in The Wall: Apple, Google, Amazon and Facebook Silently Declare War

Amazon’s dominance is based on its virtual monopoly in eCommerce transactions, which is itself, a result of “bribing” customers with below wholesale prices on hot items, giving the customer the illusion of an unbeatable deal site.

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The strategy is powerful for obvious reasons (unless you are a foreign exporter to the US, then it is illegal). Who doesn’t like to pay below wholesale prices with “free” shipping (if you pay for Prime)? A second benefit of this strategy (also potentially against antitrust laws) is that no competitor can afford to use a similar strategy unless they want to go bankrupt in short order.

Enter another untouchable giant: Google. Since it’s Google Shopping and other eCommerce search features struggle based on the unbeatable system Amazon has devised (even as Google commands 91.75% of search traffic), the only way to get a jump on the game is to fight back in kind. Bribe somebody. Fortunately for the US economy, truth and justice, this time the parties to be enticed are the 3rd party sellers.

With fees for 3rd party sales on Amazon rising as high as 30% in some cases, even as Amazon competes directly against those small businesses (“internal competitors” in Amazonian parlance), Google’s new idea of a zero commission structure just might gain some traction.

Already under fire for rigging search results to favor itself, Google is doubling down, in a sense, via drastically lowering fees for 3rd party sellers to use Google Shopping to get direct sales from Shopify or other non-Amazon sources. 

Since Amazon’s fees can approach 30% for some lower cost items (such as books) this will be a powerful incentive for sellers to shift focus away from Amazon’s predatoryfee structure and to a platform that potentially could bring in sales with less cost to the seller (and therefore a better end value to the buyer).

Change is welcome, especially at zero percent

Google is offering zero commission listing and, in a big announcement, also currently charging zero, in the US, for the “buy on google” checkout system. This is in the process of expanding and rolling out, and, potentially, by the fall and holiday season, could provide an interesting shift in how small business can operate online.

Read More: Facebook, Amazon and Google Surveillance facing US scrutiny and danger from New Software and Apple

Walmart started allowing 3rd party sellers onto its online store several years ago but, recently, kicked that process into overdrive with a new system that allows all Shopifyaccounts the choice to sell on Walmart.com via a direct link between the two. 

Bookshop.org, with whom Lynxotic is affiliated via our sister site Cherrybooks.org, is also a company that is attempting to break the stranglehold Amazon has had on online book sales. Surprisingly successful already, its B Corp non-profit-like structure and alliances with independent bookstores has exploded. Affiliate advertising from huge media companies such as the New York Times have climbed on board and the largest book distributor in the US is a partner for fulfillment. Bookshop.Org has been able to put a tiny dent in the largest, most powerful competitor imaginable, showing, perhaps, that there are cracks emerging in the corrupt business models of these giants and they are not 100% invulnerable after all.


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Cracks in The Wall: Apple, Google, Amazon and Facebook Silently Declare Wars Against Each Other

Above: Photo Collage / Lynxotic / Adobe Stock / Pink Floyd

Virtually every day a targeted feature or software change is announced in an attempt to damage the monopoly next door

Competition is the cornerstone of capitalism. Except, sometimes, when monopolies take hold. This week CEO’s of the largest tech firms will be grilled (or at least questioned) on just how each of them got so big, and why they should not be broken up or regulated, in order to improve competition in the online marketplace that is now the world’s lifeblood.

The mistake of history that allowed Google, Amazon and Facebook to emerge from the dot-com era of zero profit companies as winner-take-all trillion dollar behemoths is finally being questioned by the masses, which has led to government investigation and inquiry.

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Apple was not founded during the 90s, actually produces products and does not rely on the monetization of user data as it’s main revenue generator; it does not sell below cost in a loss-leader system designed to cripple any competition and has a completely different business ethos, all of which separates the three mentioned above into a different category for this writer.

Nevertheless, in a world where giants from an earlier time are dwarfed by the sheer size and power of these 4 (Microsoft and Tesla are excluded from this article since each has its own backstory and are best looked at separately), a situation has arisen where only one giant has the power to even touch, let alone threaten, another giant.

There are many ways that these giants have always fought one another, yet as they staked out territories and empires, there seemed to be, at times, a tacit agreement that the domain of one would not be violated by another, like an unspoken mafia code or territorial claim.

Those lines between the giants are getting blurry as a silent siege is building and those previously “untouchable” areas of commerce are being targeted.

The fight may be about dollars in the end, but it is the essential control of data and user behavior that leads to all power, and therefore value and income. And each giant has staked a claim to a method or means to control and influence the behavior of billions of eyeballs and souls. Any change in that status quo is a big deal for these entrenched companies, and potentially good news for small businesses and consumers who are, without a doubt, little more than victims of the current insanely evil system.

Those lines between the giants are getting blurry as a silent siege is building and those previously “untouchable” areas of commerce are being targeted.

– D.L.

Here are a few of the new fronts where this hidden and secret battle is being fought:

Google Shopping, following Walmart, is trying to lure 3rd party sellers and sales away from Amazon

Already under fire for rigging search results to favor itself, Google is doubling down, in a sense, via drastically lowering fees for 3rd party sellers to use Google Shopping to get direct sales from Shopify or other non-Amazon sources.

Since Amazon’s fees can approach 30% for some lower cost items (such as books) this will be a powerful incentive for sellers to shift focus away from Amazon’s predatory fee structure and to a platform that potentially could bring in sales with less cost to the seller (and therefore a better end value to the buyer).

Click to See deals on Apple Products and to help Lynxotic.

Google is offering zero commission listing and, in a big announcement, also currently charging zero, in the US, for the “buy on google” checkout system. This is in the process of expanding and rolling out, and, potentially, by the fall and holiday season, could provide an interesting shift in how small business can operate online.

Walmart started allowing 3rd party sellers onto its online store several years ago but, recently, kicked that process into overdrive with a new system that allows all Shopify accounts the choice to sell on Walmart.com via a direct link between the two.

Bookshop.org, with whom Lynxotic is affiliated via our sister site Cherrybooks.org, is also a company that is attempting to break the stranglehold Amazon has had on online book sales. Surprisingly successful already, with its B Corp non-profit-like structure and alliances with independent bookstores sale have exploded. Affiliate advertising from huge media companies such as the New York Times have climbed on board and the largest book distributor in the US is a partner for fulfillment. Bookshop.Org has been able to put a tiny dent in the largest, most powerful competitor imaginable, showing, perhaps, that there are cracks emerging in the corrupt business models of these giants and they are not 100% invulnerable after all.

https://video-lynxotic.akamaized.net/iPadOS14Safari-AppleNews2.mov
Live iPad OS 14 exampleS & Excerpt from Apple’s WWDC 2020 Presentation

Apple’s iOS 14 and iPad OS 14 (along with mac 11 OS Big Sur) will begin to break Google’s search monopoly with direct links in Safari and Spotlight

For companies wanting to bring traffic and customers to their web sites for many years there has been only one very big game available, so-called SEO. SEO stands for Search Engine Optimization which refers in the words “search” and “engine” to one that controls over 90% of search traffic: Google (91.75% as of June 2020).

So it could be called GEO or just GO for Google Optimization. And this is a massive industry in and of itself.

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Increasingly, however, this monopoly is also being challenged. Not only in Europe where massive fines against the search giant have been levied, but in the growing options for sites to be found in ways other than qualifying for a first page placement (paid for or otherwise) in Googles search results.

Soon, for the billion + apple device users worldwide, there will be a new way to find news sources and other web sites. Both search in Safari and Spotlight, which is the device level search system on iPhone, iPad and Mac computers, will soon have results that link directly to the source, bypassing google in the process.

This is a small statement but will have a huge effect in the real world. The reason is simple but mind-blowing: a search result choice not controlled by google, available on one billion plus devices, has the potential to begin to break the monopoly, and Google’s ability (and how much) to charge for the privilege of being found through its search results.

How the Apple search results are generated and what companies would be featured in those direct results is as yet unknown and may never be released (like Google’s proprietary algorithm). The emergence of ASO (Apple Search Optimization) notwithstanding, just the fact that there is a new player presenting new opportunities for news outlets and eCommerce companies to be found by Apple device owners, is very interesting news indeed.

https://video-lynxotic.akamaized.net/Safari-Privacy-BigSur.mov
EXCERPTs FROM APPLE PRESENTATION FOR privacy settings FROM WWDC 2020

Apple will expose the worst of predatory surveillance by Facebook, Amazon and Google with new privacy features

Announced at WWDC 2020, the new operating systems are coming with serious features that track, and block as desired, all manner of data intrusions. These are not only identified, but shown and tracked and analyzed with a kind of professional dashboard, showing just how invasive and persistent these invisible spies are.

…the overall stance being taken regarding online tracking and surveillance should be seen for what it is: the first step to correcting the mistake of history that allowed the internet to be kidnapped and held hostage by a handful of companies that pretend to be “free” or “customer obsessed” while they are, in fact, Robber Barons that make the Standard Oil monopoly look like Santa Claus.

– D.L.

Tracking the trackers is a clear and aggressive privacy stance, taken by the one company among the big four, that does not have a huge stake in you being the victim of online surveillance and tracking.

Not to say that Apple is blameless. Many are complaining about its fee structure for software sold by third parties via the app stores. While this issue is certainly a valid one, the overall stance being taken regarding online tracking and surveillance should be seen for what it is: the first step to correcting the mistake of history that allowed the internet to be kidnapped and held hostage by a handful of companies that pretend to be “free” or “customer obsessed” while they are, in fact, Robber Barons that make the Standard Oil monopoly look like Santa Claus.

Above: Photo / Bansky


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A Bully with a “Nice” Promise is Still just a Bully: Big tech Behemoth Plays Coronavirus Card

Not long ago it was a pledge of billions for the climate crisis, now $4 billion for “safety”. Where are the audited accounts?

Above: Photo Collage / Lynxotic

Funny thing about promises made by politicians and owners of public companies. Although truth will eventually come out due to public access to accounting, these are often so far in the future that virtually anything can be promised today with no need for a specific plan or transparent numbers to back them up.

On May 3rd, in a dramatic “you may want to sit down” moment Jeff Bezos announced that the company he runs, and is the principal shareholder of, would take all of the $4 billion in expected 2nd quarter operating profit and “invest” it in “COVID-related” costs:

“Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit. But these aren’t normal circumstances. Instead, we expect to spend the entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses getting products to customers and keeping employees safe.”

Now those who follow Amazon news might remember that in February the online retail giant’s owner pledged $10 billion as a “donation” toward battling climate change, under the moniker “Bezos Earth Fund”.

Read more: “Deadliest Enemy” for Deep Background on Pandemics and the Danger of a Second Wave

Even as these ego boosting promises are helping with the image of this company, often otherwise described as “the grim reaper” in the press for its murderous behavior toward any potential competition, a cursory look beneath the surface quickly yields another story. The announcement on Friday suspiciously coincided with fallout from a WSJ article alleging that false information was given in testimony relating to Amazon’s well known extreme competitive behavior against its own so-called marketplace sellers. On the same day as the “generous” promise came to light the WSJ published a follow up piece indicating that Bezos has been “asked” to testify before Congress and to clarify what appears to be an attempted cover-up of the well known practice.

A long history of incredibly consistent behavior points to something lurking beneath the headlines

While we are digging into the weeds here it’s important to note that both the promised, not yet existent, $4 billion and the “pledge” to set up the “Bezos Earth Fund” are not binding in any way, but simply vague promises. It will be months and likely years before any solid information could come out as to just what the various monies will be spent on, if at all.

For example, Amazon has made it well known that it intends to take its “Grim Reaper” show to the health care industry in an attempt to cause the same kind of carnage that it achieved in the book retail and publishing industries, not to mention Diapers and countless other product categories. Who’s to stop this push into a new area to conquer from being funded by this “generous promise” of $4 billion even while stating that all of Q2 profit will be used for “protecting employees as this crisis continues”. Who will prevent that from happening? Yes, you have it right, no one.

Read more: ’Blowout’ by Rachel Maddow: Corrupted Democracy, Rogue State Russia and the Richest, Most Destructive Industry on Earth

Meanwhile, even as these lovely pledges and promises get the digital ink equivalent of a small ocean, the usual slash, burn and pillage continues in plain sight. Many of those same digital outlets crowing about the generosity of the great emperor of Amazon’s promise, just had their business models turned to something more suited to a cremation urn than the daily news shelf. Amazon Affiliate payments to media outlets, a mainstay keeping many news organizations afloat (barely) were suddenly slashed up to 80% this week. So, in other words, a huge constituency that created the success of the giant firm is once again being rewarded by almost certain financial collapse. Big surprise.

There are two that “win”: one is Amazon, second a bribed customer and all others are lured into a death trap

This warrants a deeper look into the process and train of thought that can be deduced from the recent facts, actions and events. Amazon’s income has exploded since the coronavirus crisis began; hence the anticipated $4 billion operating profit projection.

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Warehouse workers ? A million allegedly working in almost sweatshop (or worse) conditions for slave wages. Do they benefit financially from this obscene windfall? Yes, they get, possibly, free masks. Perhaps a tiny pay raise for certain “teams”.

How about the marketplace sellers (you know the ones that Congress and the WSJ appear to believe have been systematically defrauded and cheated for decades) that generate nearly 60% of the gross income of the retail site? They will be rewarded with increased scrutiny, higher fees, higher costs and the usual brutal death camp treatment. Lower fees for the best among them? Never.

Ultimately, this charade is business as usual and par for the course from a company that did not get the nickname “Grim Reaper” for nothing. $14 billion for altruistic causes that represent selfless generosity towards others? That’s as likely as a Camel jumping through the eye of a needle.

full statement released by Amazon / Bezos:

From online shopping to AWS to Prime Video and Fire TV, the current crisis is demonstrating the adaptability and durability of Amazon’s business as never before, but it’s also the hardest time we’ve ever faced,” said Jeff Bezos, Amazon founder and CEO. “We are inspired by all the essential workers we see doing their jobs—nurses and doctors, grocery store cashiers, police officers, and our own extraordinary frontline employees. The service we provide has never been more critical, and the people doing the frontline work—our employees and all the contractors throughout our supply chain—are counting on us to keep them safe as they do that work. We’re not going to let them down. Providing for customers and protecting employees as this crisis continues for more months is going to take skill, humility, invention, and money.

If you’re a shareowner in Amazon, you may want to take a seat, because we’re not thinking small. Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit. But these aren’t normal circumstances. Instead, we expect to spend the entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses getting products to customers and keeping employees safe.

Read more: Dark Towers tells Deutsche Bank Story of Trump, post Bankruptcy yet Swimming in Loans

This includes investments in personal protective equipment, enhanced cleaning of our facilities, less efficient process paths that better allow for effective social distancing, higher wages for hourly teams, and hundreds of millions to develop our own COVID-19 testing capabilities. There is a lot of uncertainty in the world right now, and the best investment we can make is in the safety and well-being of our hundreds of thousands of employees. I’m confident that our long-term oriented shareowners will understand and embrace our approach, and that in fact they would expect no less.

Find books on BusinessSustainable EnergyScreenwriting and many other topics at our sister site: Cherrybooks on Bookshop.org

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