Category Archives: Featured

December 9, 2011

The Great US Paywall

I was recently in Florida for a Vacation and purchased an Amazon Fire device. The device is very similar to the Barnes and Noble Nook I purchased last year but I thought the Amazon content and store would provide a better experience. The first thing I did was sign up for Amazon Prime Trial, with no problems. I purchased some music, no problems and much better prices than iTunes. I also purchased a magazine subscription to 2600, no problems again.

Then I went to get an purchase an app. Suddenly I was unable to purchase any apps. The error message indicated I couldn’t purchase any apps in the my region. My region? What does that mean? I was in Florida, are apps illegal in Florida? After searching for and finding the Amazon customer service contact I sent off an email asking what was going on. Amazon responded that I was unable to purchase apps with a credit card from a Canadian bank and billing address. Basically because I was a Canadian in the US I couldn’t purchase applications for the Kindle Fire. The Kindle was returned the next day.

Apple and iTunes have done something similar for years where you can’t purchase from the US iTunes without a US billing address. The easy solution to this problem is to use the iTunes gift cards exclusively with a fake address ( preferably in a state with no sales tax ). With the launch of iCloud and iTunes Music Match though the company has changed its policy to require a US credit card and matching US billing address to be added to the account.

Donations

Wikileaks recently had problems collecting donations via credit card and Paypal froze its funds, limiting it’s ability to fundraise online. The ban has been so sever the only option to donate is the BitCoins system or to purchase virtual goods.  The BitCoin system has limited support and but may offer the best alternative to avoid the Paywall.

Regretsy has recently encountered problems with Paypal and their donation support. The company seems to allow you to use and collect donations but then freezes the funds. The confusion with the Paypal donation process is outlined in great detail by The Green Geeks.

The Paywall is effectively controlling donations and deciding who can fundraise online.   I’m sure this policy is need for some legitimate cases to prevent terrorist funding etc… but these are US companies that enforcing these policies largely without government direction or oversite.

Like the Great Chinese Firewall, the Paywall is proving to be a fairly effective means to control online purchases. Its surprisingly difficult to make purchases that do not involve your bank, credit card or Paypal.  The best system to get around the Paywall seems to be BitCoin.  The BitCoin system uses encrypted coins can only one person can ‘own’ through cryptology.  BitCoin includes an exchange and a defined Coin generation process.  This process means that once you own a BitCoin it can be transfered or exchange to anyone.  Eventually BitCoin’s must be converted by to real currency, this is where the Paywall may still be effective and few conversion points exist today.

The goal behind these Paywalls seems to be to create online economies of different scales.  For example an iPhone Application that sells for $0.99 in the US might sell for $1.19 in Australia or $1.49 in Europe.  This allows Apple and the application vendors to receive significantly more revenue for the same content from international customer.   The DVD system attempted the same with the DVD region codes a few years ago  but the system was quickly cracked and different pricing regions were never fully exploited.  The digital stores have so far been fairly effective at enforcing these restrictions, largely because they can heavily control the follow of money.

While physically in the US I can purchase just about anything at US retailers using my Canadian credit card and billing address.  As soon as the transaction goes online the Paywall comes into effect and my purchases can be restricted.  A very interesting development given the state of the US economy and the need to consumer spending…

December 8, 2011

I love Canada Post

Over the past few weeks I’ve ordered a number of things online and received shipments for all major shipping companies. My building has conceige that can sign for all packages that don’t require a payment for duty or COD. Its very interesting to see the process each company uses handle deliveries and collect the duty/COD charges:

Purolator

Purolator doesn’t leave a door hanger or and indicator that they’ve visited. Even if there is money owing or its the final shipment. Apparently this is a security feature to prevent someone from paying the duty/handling charges and stealing my shipment. They will attempt to call you if they have a phone number ( often they don’t ) or you have to use your mystic skills and call them when you think your package is due. The only pickup depot for Toronto is actually in Etobicoke. Once your pay any duty or COD charges the package is sent the next day. By far the worst experience…

DHL

DHL has decided to partner with Loomis in Canada for local delivery. The DHL number 1-800 number brilliantly says to call Loomis in Canada and then hangs up. Calling Loomis you are immediately told that DHL handles shipment from international destinations and you need to call them. If you’re lucky you can convince the Loomis rep to transfer you to the DHL otherwise its best to call the DHL US number via Skype and get transfered to DHL Canada. Once you pay the Duty or COD charges the DHL can contact the driver wirelessly and tell them to just drop off the package. This often doesn’t work though and the package will not be delivered until the next day. I wasn’t able to figure if my package would be a Loomis or DHL depot in Toronto, probably not aware near downtown.

UPS

UPS borrows from DHL with a single 1-800 that works in Canada and US but seems to transfer you to the US when the Canadian reps are busy. The US reps seem unaware/able to handle US packages. This means you have to keep dialling and hoping that a Canadian rep answers. The single UPS pickup depot is located up by York University, easily an hour trip on Transit or Car to get my package. And again once you pay the Duty/COD charges UPS can notify the drive but the connection process doesn’t seem very reliable and most of the time the package will be delivered the next day.

USPS/Canada Post

By far the best experience so far. If there is no duty due the package is dropped off without issue. If there is duty due then its a short walk to the Post Office, where I can pay the fees and walk home with my package. Canada Post has offices throughout Toronto and by far the easiest solution to deal with. If I were Canada Post I would make a stronger emphasis of their shipping benefits.

So I will be using USPS or Canada Post where ever possible. Its not an option with most online stores though and I would image that cost and easy of shipment these choices.

In my ideal world I’d love to be able to receive email notifications on shipments and pay duty/cod charges online. I’m really surprise that none of these services offer this yet…

October 15, 2010

The Legality of Groupon?

Groupon has really taken off in Canada.  I think mainly because many popular restaurants have been available as Groupons and that has driven alot of adoption.   One of my favourite restaurants, Utopia Cafe sold almost 1500 Groupons during their promotion.  Today’s Groupon is for the very popular Table 17 Restaurant

If you’re not familar with the concept basically a Groupon is presented for a limited time period, usually 24 hours and a certain number of people have to buy the Groupon for the deal the activate.  In most cases the Groupon offers a 50% discount when you purchase immediately.  Most Groupon’s don’t have alot of restrictions on when they can be used but do have an expiry date.  Groupon also encourages additional Groupons to be purchased as Gifts.  This presents an interesting legal aspect, especially in Ontario, where Gift Cards and Certificates are regulated.

In 2007,  the Consumer Protection Act was amended to ban expiry dates and most fees on gift cards purchased after that date to ensure consumers get their full value, regardless of when they use them. The enhanced consumer protection measures now in force include:

  1. Prohibiting expiry dates on gift cards and certificates
  2. Restricting fees charged for gift cards to a) customizing a gift card, or b) replacing a lost or stolen gift card;
  3. Requiring the clear and prominent disclosure of any terms and conditions relating to a gift card (e.g., any limits to redeeming a card).

Should this protection apply to Groupons?  Are they a gift card or certificate?

October 10, 2010

Campaigning with Social Media

I’ve been watching the Mayoral campaign in Toronto with a lot interest this year, mainly because I wanted to see how the candidates used Social Media. In the Obama campaign in 2008 Social Media is often credited with having a great impact.  With my own limited involvement watching the campaign from Canada I was impressed with how much the campaign engaged everyone.  I registered for the Obama campaign, it recognized I was Canadian and asked me if I could contact American’s that I knew that were on the fence.  Brillant…

Now in Toronto I really haven’t seen anything that engaging.  I’m not going to try to compare campaign platforms or policies, I haven’t decided who I’m going vote for myself.  All of the candidates have the Social Media basics, they all have Websites, E-Mail lists, Twitter and Facebook accounts.  These alone are not that value, its really the content of these campaigns and I think right now the best messaging seems to be coming from Rob Ford campaign.  In my opinion he’s doing the best job of engaging citizens, mainly because he’s not marketing to them. He’s just talking to them.

I joined his mailing list ( I joined all candidates lists and Facebook Pages ) and its very simple and engaging updates. The first email I got contained a survey to collect my opinion on the a variety of issues.  He’s the only candidate who I’ve received a survey from.  Yesterday it was the advanced polls are now open and I could avoid the rush by voting now. Very simple and concise, there has been no cheezy spin, or over the top creative like about mobsters, or crazy promises. I got invited to a Town Hall Call and he was genuinely answering questions from a large group of people.

In all the debates I’ve seen of him he’s pitching the same message, always on topic.  Most of the other candidates either don’t present a plan or seem to change the plan to each group they’re talking too.  I haven’t seen anyone who’s connecting well with Citizens.