tag:theconversation.com,2011:/id/topics/online-marketplaces-25056/articlesonline marketplaces – The Conversation2024-03-21T12:23:26Ztag:theconversation.com,2011:article/2228722024-03-21T12:23:26Z2024-03-21T12:23:26ZHow safe are your solar eclipse glasses? Cheap fakes from online marketplaces pose a threat, supply-chain experts say<figure><img src="https://images.theconversation.com/files/582258/original/file-20240315-20-z9c7t4.jpg?ixlib=rb-1.1.0&rect=59%2C7%2C4923%2C3287&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Don't trust. Verify.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/woman-with-solar-glasses-looking-at-sun-royalty-free-image/82714690">Andrew Holt/The Image Bank via Getty Images</a></span></figcaption></figure><p>Americans from Maine to Texas are set for a rare treat on April 8, 2024, when a <a href="https://science.nasa.gov/eclipses/future-eclipses/eclipse-2024/where-when/">total solar eclipse</a> will be visible across much of the U.S. </p>
<p>In ancient times, eclipse-viewers thought they were watching the Sun be eaten by <a href="https://www.exploratorium.edu/eclipse/eclipse-stories-from-around-the-world">wolves</a>, a <a href="https://www.vox.com/culture/2017/8/18/16078886/total-solar-eclipse-folklore">dragon</a> or a <a href="https://www.livescience.com/53961-solar-eclipse-myths-and-superstitions.html">demon</a>.</p>
<p>Of course, we now know that the Sun isn’t really eaten during an eclipse. Instead, it does what it always does: rain ultraviolet rays on everything in its path. That’s why you should never look at a solar eclipse without protective eyewear. </p>
<p>But not just any eyewear will do. To make sure that you enjoy the total solar eclipse safely, the American Astronomical Society has specifically <a href="https://eclipse.aas.org/eye-safety/viewers-filters">warned against</a> buying eclipse glasses at the lowest price from online marketplaces like Amazon or eBay.</p>
<p>What gives? Why not save a buck on something you’ll use possibly just once for a few minutes?</p>
<p>It turns out there’s a very good reason: Deceptive counterfeit products have infiltrated retail supply chains. And some of them can pose a threat to your health.</p>
<h2>Invasion of the bogus products</h2>
<p><a href="https://scholar.google.com/citations?user=JMgbELkAAAAJ&hl=en">As experts in</a> <a href="https://scholar.google.com/citations?user=fbARgoUAAAAJ">supply-chain management</a>, we know that counterfeit products have become a growing problem in recent years.</p>
<p>While counterfeit products can be found at brick-and-mortar shops, they’re an especially big problem at online marketplaces. <a href="https://economictimes.indiatimes.com/tech/technology/amazon-removes-6-million-counterfeit-items-from-supply-chains/articleshow/99247317.cms?from=mdr">Amazon removed more than 6 million counterfeit items</a> from its supply chain in 2022 alone.</p>
<p>There are several reasons for this. First, our recent research shows that <a href="https://doi.org/10.1111/poms.13833">consumers often consider the reputation of an online retailer</a> while judging a product’s quality. Unscrupulous third-party sellers can take advantage of this fact by selling their wares through a reputable online marketplace. </p>
<p>Another complication arises from the fulfillment services offered by some marketplaces, such as Amazon, where third-party sellers directly send their merchandise to the online retailer’s warehouse for shipping and handling. These sorts of fulfillment services offer a little-known benefit to retailers: If a product is running out of stock, <a href="https://www.amazonsellers.attorney/blog/amazons-commingled-inventory-policy-risks-and-recommendations">they can “borrow” from a third-party seller’s inventory</a>. </p>
<p>Unfortunately, this also means that a consumer who agrees to buy from one retailer may actually receive merchandise – perhaps counterfeit – from a third-party seller. While there aren’t statistics showing how frequently this happens, <a href="https://www.ft.com/content/f6d85b96-359e-384d-a255-f60bf152e992">there’s evidence</a> it’s a significant problem. </p>
<p>Thankfully, customers are becoming more aware of counterfeit products and have increasingly pushed online retailers to separate inventories of authorized sellers of merchandise from those that aren’t. For instance, Amazon maintains a list of “<a href="https://www.thesellingguys.com/identifying-amazon-gated-restricted-brands-avoid-suspension/">gated</a>” brands, such as Asics and Under Armour, that require authorization before they can be sold. </p>
<p>But these protections don’t apply across the board. In fact, some counterfeit-prone brands, such as <a href="https://www.retaildive.com/news/birkenstock-pulls-products-from-amazon-over-counterfeiting-concerns/423027/#:%7E:text=Citing%2520concerns%2520over%2520counterfeiting%2520and,%252Dparty%2520Marketplace%252C%2520CNBC%2520reports.">Birkenstock</a>, refuse to sell their products through some online retailers entirely. That leaves an opening for counterfeiters, who tend to offer the lowest prices. </p>
<p>That’s why the American Astronomical Society recommends eclipse-watchers avoid buying protective glasses from the lowest-price sellers on online marketplaces. And we completely agree. After all, counterfeit sunglasses can be returned, but damage to your eyes is permanent. In 2017, one California man wearing counterfeit eclipse glasses was <a href="https://www.indystar.com/story/news/2017/08/29/eclipse-eyes-only-few-people-have-lasting-effects-staring-sun/609367001/">left with retina damage</a>.</p>
<h2>How to find safe solar eclipse glasses</h2>
<p>If you’re in the market for eclipse glasses, it’s not hard to get a safe pair. First, buying directly from one of the American Astronomical Society’s <a href="https://eclipse.aas.org/eye-safety/viewers-filters">approved list of brands and manufacturers</a> is the most reliable way. Unfortunately, many of them only sell cheaper, disposable solar eclipse viewers in bulk.</p>
<p>If you need a single pair, your next best option is to purchase one from a major brick-and-mortar chain retailer in person. Many organizations are also <a href="https://www.forbes.com/sites/jamiecartereurope/2024/03/01/where-to-get-free-solar-eclipse-glasses-for-aprils-event/?sh=3f3051ce102b">handing out free viewers</a>. If you take one, you should make sure it was made by a manufacturer on the American Astronomical Society’s list.</p>
<p>If you must buy from an online marketplace, look for evidence of manufacturer authorization. For instance, American Paper Optics – an American Astronomical Society-approved brand – maintains <a href="https://www.eclipseglasses.com/pages/amazon-approved-vendors">a list of Amazon sellers</a> approved for reselling their viewers. </p>
<p>What if you’ve already bought something from a no-name seller on Amazon? Let’s say you bought a pair of sunglasses, or eclipse glasses, with UV protection. It’s hard to verify UV protection properties. Sure, there are standards and certifications such as UV400 and <a href="https://www.iso.org/standard/59289.html">ISO 12312-2</a>, but as you have probably guessed, even those can be faked. For instance, you can easily buy entire rolls of UV400 stickers online. </p>
<p>Thankfully, most local opticians can <a href="https://www.allaboutvision.com/sunglasses/how-to-tell-if-have-uv-protection/">test your sunglasses’ UV protection properties in seconds</a>. In other words, when in doubt, verify.</p><img src="https://counter.theconversation.com/content/222872/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Don’t skimp on your eye safety.Yao "Henry" Jin, Associate Professor of Supply Chain Management, Miami UniversitySimone Peinkofer, Assistant Professor of Supply Chain Management, Michigan State UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2146692023-10-06T07:34:41Z2023-10-06T07:34:41ZUS regulator is suing Amazon – here’s what this could mean for your online shopping<figure><img src="https://images.theconversation.com/files/552132/original/file-20231004-27-j64e6i.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C4294%2C3214&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/germany-rostock-juni-13-2021-stack-1992003263">Elpisterra/Shutterstock</a></span></figcaption></figure><p>If you’re one of the <a href="https://www.businessinsider.com/amazon-shopping-prime-membership-us-stopped-growing-first-time-ever-2023-1?r=US&IR=T">more than 200 million</a> Prime members Amazon claims to have worldwide, you’ll be well aware of the benefits. Among other things, it gives you access to a video and audio streaming service and free, fast delivery on all Amazon-dispatched items – for <a href="https://www.amazon.co.uk/gp/help/customer/display.html?nodeId=G34EUPKVMYFW8N2U">less than £100 per year</a>. </p>
<p>One of the reasons so many consumers sign up for, <a href="http://germangutierrezg.com/Gutierrez2021_AMZ_welfare.pdf">and value</a>, this service is that Amazon offers a massive range of products that it’s difficult to buy cheaper elsewhere. But if Amazon’s offering is so great, why is the US competition regulator <a href="https://www.ftc.gov/news-events/news/press-releases/2023/09/ftc-sues-amazon-illegally-maintaining-monopoly-power">suing the online marketplace</a> to force it to change the very service that so many people seem to love? </p>
<p>According to the Federal Trade Commission (FTC), which ensures fair and competitive markets in the US, Amazon looks so good to consumers because it uses its dominant position to force its competitors to look even worse. Amazon makes more sales in the US <a href="https://www.ftc.gov/system/files/ftc_gov/pdf/1910129AmazoneCommerceComplaintPublic.pdf">than the next 15 largest online retail firms combined</a>, so any abuse of its market power could, as the lawsuit claims, “profitably worsen its service for customers”. </p>
<p>In other words, the FTC is accusing Amazon of using its significant market position to offer a less than stellar service because it’s more profitable for the company.</p>
<p>The FTC isn’t saying Amazon is too big. But <a href="https://www.ftc.gov/news-events/news/press-releases/2023/09/ftc-sues-amazon-illegally-maintaining-monopoly-power#:%7E:text=big%2C%20but%20because-,it%20engages%20in,-a%20course%20of">the regulator believes</a> its business model “prevents current competitors from growing and new competitors from emerging”. </p>
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<a href="https://theconversation.com/how-bezos-and-amazon-changed-the-world-154546">How Bezos and Amazon changed the world</a>
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<p>Amazon has called the suit “<a href="https://www.aboutamazon.com/news/company-news/amazon-ftc-antitrust-lawsuit-full-response">misguided</a>” and said that, if successful, it would “force Amazon to engage in practices that actually harm consumers and the many businesses that sell in our store”. Examples it gave included having to feature higher prices, offer slower or less reliable Prime shipping, and make subscriptions more expensive.</p>
<h2>Consumers pay too much</h2>
<p>The FTC’s main claim is that Amazon artificially increases the price of most products sold online – on its platform but also on competing services. And the FTC says Amazon makes a lot of money in this way by squeezing both small businesses and consumers.</p>
<p>Businesses pay advertising fees to have their product displayed on Amazon. They then pay <a href="https://sell.amazon.co.uk/pricing?ref_=sduk_soa_priov_n#selling-plans:%7E:text=Our-,selling%20plans,-give%20you%20the">seller</a> and <a href="https://sell.amazon.co.uk/pricing?ref_=sduk_soa_prirf_n#referral-fees:%7E:text=Amazon%20jargon%3A-,Referral%20fees,-For%20every%20item">referral</a> fees (a percentage of the total price including things like shipping and gift-wrapping) in exchange for using it – and also need to pay for the cost of Amazon’s <a href="https://sell.amazon.com/fulfillment-by-amazon">fulfillment service</a> if they want to be eligible for free delivery. This means businesses send their products to an Amazon warehouse from which they are packed and shipped, but the service can also include dealing with customers and returns processing.</p>
<p>Amazon takes nearly one out of every two dollars of sales from the retailers who pay all those fees, according to <a href="https://www.ftc.gov/system/files/ftc_gov/pdf/1910129AmazoneCommerceComplaintPublic.pdf">the lawsuit</a>. This means a business that wants to charge $1 for a product on its own website must charge almost $2 to make the same profit when selling through Amazon.</p>
<h2>Selling on Amazon</h2>
<p>It would seem more sensible for a seller to offer their product for cheaper on another platform that charges lower fees. But Amazon has made that almost impossible, according to the FTC. The regulator claims the company permanently screens product prices on competing websites. If a business tries to sell for cheaper elsewhere, it is immediately punished.</p>
<p>Forcing sellers to sign a contract that stops them from offering their product for cheaper on another website has been illegal since <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A62016CJ0230">2017 in the EU</a>, and Amazon <a href="https://competitionlawblog.kluwercompetitionlaw.com/2019/07/30/bundeskartellamt-ends-abuse-probe-after-amazon-agrees-to-changing-business-terms-for-dealers/">agreed in 2019</a> to also remove these price parity clauses in North America and Asia. A study of the hotel platform booking.com shows <a href="https://www.sciencedirect.com/science/article/pii/S0014292120302555">this ban benefits customers</a>. </p>
<p>But the regulator suspects that, instead of using a contract, Amazon simply hides the businesses that undercut it from its site’s search results. <a href="https://www.ftc.gov/system/files/ftc_gov/pdf/1910129AmazoneCommerceComplaintPublic.pdf">According to the suit</a>: “Using its vast surveillance network, Amazon systematically punishes sellers when Amazon detects a lower price on other online stores.”</p>
<p>So, to be able to include the Prime eligibility label – a guarantee of free delivery within one or two days to subscribers, which also improves visibility on the website – businesses must offer their products via Amazon fulfillment. This makes it much harder for them to sell from a competing platform – and if they did, their Amazon sales could suffer if they try to offer it at a lower price elsewhere. </p>
<p>As consumers, we see that Amazon offers the cheapest products and a wider range, so have no reason to shop somewhere else. We become lazy. If a shopping platform has a great range accompanied by helpful ratings and reviews from previous consumers, why would you even look somewhere else? Even more so if your site membership offers you free delivery. </p>
<p>But a well-functioning market relies on some consumers <a href="https://www.sciencedirect.com/science/article/pii/S0167718720300369">being savvy enough to look for the better deal</a>. If no one comparison shops, competition disappears and all consumers lose.</p>
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<img alt="A worker sorts Amazon packages on a conveyor belt in a warehouse." src="https://images.theconversation.com/files/552135/original/file-20231004-23-q9fyb7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/552135/original/file-20231004-23-q9fyb7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/552135/original/file-20231004-23-q9fyb7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/552135/original/file-20231004-23-q9fyb7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/552135/original/file-20231004-23-q9fyb7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/552135/original/file-20231004-23-q9fyb7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/552135/original/file-20231004-23-q9fyb7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">An Amazon fulfillment centre in Vélizy, France.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/france-sept-23th-2019-logistics-activity-1514808590">Frederic Legrand - Comeo/Shutterstock</a></span>
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<h2>What do consumers want?</h2>
<p>The FTC wants to end all these practices because it believes they hurt consumers. It doesn’t want sellers to have to rely on Amazon logistics, and is pushing to ban the anti-discounting practices that it says block potential competitors. It also wants to make it easier for customers to end their Prime subscriptions.</p>
<p>But is this really what consumers want? Amazon’s practices lead to higher prices than if it was offering a better deal to small businesses, according to the FTC. But, being so big and having those massive warehouses and sophisticated logistics also serves a purpose: Amazon can dispatch a huge variety of products quickly at a reasonable cost. </p>
<p>The FTC will have to win its case in court – and this has proven <a href="https://www.bloomberg.com/news/articles/2023-07-24/ftc-s-khan-defends-merger-record-after-microsoft-activision-loss">particularly difficult</a> in its other recent cases. Earlier this year, it <a href="https://www.reuters.com/markets/deals/us-ftc-withdraws-case-against-microsoft-activision-deal-before-internal-agency-2023-07-20/#:%7E:text=WASHINGTON%2C%20July%2020%20(Reuters),O">failed to block</a> Microsoft’s US$68 billion deal to buy game-maker Activision. </p>
<p>The main challenge for the FTC this time will be to prove that the practices it identifies as harming consumers are more important than the potential cost for us all of losing the comfort and scale of the services offered by Amazon. Whether or not western consumers are still doing most of their online shopping on a single platform in 10 years time will depend heavily on what the US court decides.</p><img src="https://counter.theconversation.com/content/214669/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Renaud Foucart does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>If the competition regulator gets its way, it could force significant changes to the online shopping giant.Renaud Foucart, Senior Lecturer in Economics, Lancaster University Management School, Lancaster UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2126472023-09-08T00:25:14Z2023-09-08T00:25:14ZExposing Australia’s online trade in pest plants – we’ve found thousands of illegal advertisements<figure><img src="https://images.theconversation.com/files/546310/original/file-20230905-25-ejpcy3.jpg?ixlib=rb-1.1.0&rect=107%2C83%2C7832%2C5214&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/new-plants-delivery-woman-opening-shipping-1836099568">Shutterstock</a></span></figcaption></figure><p>Do you buy plants online? You might be breaking the law without even knowing it.</p>
<p>We found hundreds of different invasive plants and prohibited weeds advertised on a popular online marketplace. </p>
<p>For the first time, <a href="https://neobiota.pensoft.net/article/104472/">our research</a> has exposed the frequent, high volume trade in pest plants across Australia. </p>
<p>State and territory governments are adopting our automated surveillance approach to help regulate the online trade in plants and <a href="https://theconversation.com/buying-bugs-and-beetles-or-shopping-for-scorpions-and-snails-australias-pet-trade-includes-hundreds-of-spineless-species-207932">other wildlife</a>. Biosecurity officers can receive automatic alerts for suspected illegal trade, rather than manually monitoring websites or relying on reports from the public. </p>
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<a href="https://images.theconversation.com/files/547090/original/file-20230907-23-fsbn22.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Photo of someone shopping for plants online, showing hands on the laptop keyboard and plants on screen." src="https://images.theconversation.com/files/547090/original/file-20230907-23-fsbn22.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/547090/original/file-20230907-23-fsbn22.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/547090/original/file-20230907-23-fsbn22.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/547090/original/file-20230907-23-fsbn22.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/547090/original/file-20230907-23-fsbn22.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/547090/original/file-20230907-23-fsbn22.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/547090/original/file-20230907-23-fsbn22.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Australians love online shopping and that passion extends to plants.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/hands-searching-plants-buy-online-shop-746765218">Rawpixel.com, Shutterstock</a></span>
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Read more:
<a href="https://theconversation.com/the-true-damage-of-invasive-alien-species-was-just-revealed-in-a-landmark-report-heres-how-we-must-act-211893">The true damage of invasive alien species was just revealed in a landmark report. Here's how we must act</a>
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<h2>What’s the problem and why all the fuss?</h2>
<p>Certain plants are prohibited in Australia because they are harmful to our unique natural environment and agricultural industries. These weeds can threaten native species, <a href="https://www.theguardian.com/australia-news/2023/mar/29/environmental-tragedy-as-fires-burn-through-one-fifth-of-northern-territory-national-park">fuel severe fires</a> and choke rivers. </p>
<p>Weeds are also a <a href="https://theconversation.com/the-buffel-kerfuffle-how-one-species-quietly-destroys-native-wildlife-and-cultural-sites-in-arid-australia-149456">social and cultural threat for First Nations people</a>, because they can compete with traditional food and medicine plants, causing them to decline.</p>
<p>Overall, invasive plants are estimated to have <a href="https://theconversation.com/pest-plants-and-animals-cost-australia-around-25-billion-a-year-and-it-will-get-worse-164969">cost Australia A$200 billion since 1960</a>. </p>
<p>Weeds that are controlled under state and territory laws are referred to as “noxious” or declared plants. Each state and territory has different laws prohibiting the sale and cultivation of these declared plants. </p>
<p>Compliance is generally high within the horticultural industry, save for the occasional <a href="https://www.abc.net.au/news/2016-09-22/bunnings-caught-selling-declared-weed-sagittaria-to-customers/7869226">high profile blunder</a>. The main problem for Australia is the widespread invasive plant trade on public online marketplaces.</p>
<p>Trade of ornamental plants, which are the kinds popularly grown in homes and gardens, is the <a href="https://besjournals.onlinelibrary.wiley.com/doi/full/10.1111/1365-2664.12953">major current pathway</a> enabling invasion and spread of weeds into new areas. They’re travelling long distances, to homes in new places. </p>
<p>Invasive cacti and ornamental pond plants are among the most frequently advertised plants, but many are banned from sale and distribution in Australia. </p>
<p>Internet trade has historically been tricky to monitor and regulate, which has led to a variety of invasive species being <a href="https://theconversation.com/new-expose-of-australias-exotic-pet-trade-shows-an-alarming-proliferation-of-alien-threatened-and-illegal-species-203354">widely traded</a>.</p>
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<a href="https://images.theconversation.com/files/547091/original/file-20230907-23-xlg0k9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Photo showing the invasive nature of water hyacinth, with purple flowers in a field of green." src="https://images.theconversation.com/files/547091/original/file-20230907-23-xlg0k9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/547091/original/file-20230907-23-xlg0k9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/547091/original/file-20230907-23-xlg0k9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/547091/original/file-20230907-23-xlg0k9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/547091/original/file-20230907-23-xlg0k9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/547091/original/file-20230907-23-xlg0k9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/547091/original/file-20230907-23-xlg0k9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Water hyacinth is considered the world’s worst water weed.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/flowers-water-hyacinth-purple-lined-according-583320415">KEEP GOING, Shutterstock</a></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/new-expose-of-australias-exotic-pet-trade-shows-an-alarming-proliferation-of-alien-threatened-and-illegal-species-203354">New exposé of Australia's exotic pet trade shows an alarming proliferation of alien, threatened and illegal species</a>
</strong>
</em>
</p>
<hr>
<h2>Scraping the web</h2>
<p>We used specialised software called “web scrapers” to monitor trade on a public classifieds website. These automated web tools can be used to rapidly harvest information from advertisements. This allowed us to detect thousands of advertisements for weeds over a 12-month period.</p>
<p>We found 155 declared plant species traded on one website, and we suspect there could be more. </p>
<p>Prickly pear cacti were among the most frequently traded declared plants. This is concerning given their history in Australia. In the 1920s, about 25 million hectares of land became unusable due to prickly pear invasion. </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/546312/original/file-20230905-27-quus11.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A black and white photo of a farmer standing in a field of prickly pear, it's more than double his height." src="https://images.theconversation.com/files/546312/original/file-20230905-27-quus11.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/546312/original/file-20230905-27-quus11.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=805&fit=crop&dpr=1 600w, https://images.theconversation.com/files/546312/original/file-20230905-27-quus11.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=805&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/546312/original/file-20230905-27-quus11.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=805&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/546312/original/file-20230905-27-quus11.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1012&fit=crop&dpr=1 754w, https://images.theconversation.com/files/546312/original/file-20230905-27-quus11.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1012&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/546312/original/file-20230905-27-quus11.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1012&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The invasion of prickly pear was so dense in areas of Queensland and New South Wales that farming became impossible.</span>
<span class="attribution"><a class="source" href="https://www.archivessearch.qld.gov.au/items/ITM1143347">Queensland Government</a></span>
</figcaption>
</figure>
<p>Aquatic weeds were another popular group. That includes water hyacinth, which is the world’s most widespread invasive alien species according to a recently published <a href="https://theconversation.com/the-true-damage-of-invasive-alien-species-was-just-revealed-in-a-landmark-report-heres-how-we-must-act-211893">global assessment</a>. </p>
<p>We found some sellers advertised uses for the declared plants they were trading, including for food and medicinal properties. </p>
<p>Aquatic weeds were often stated to have water-filtering properties and provide habitat for fish. Those traits make Amazon frogbit a popular choice for aquariums and ponds, but if the weed enters creeks and rivers it can have <a href="https://www.abc.net.au/news/2021-11-25/amazon-frogbit-statewide-declaration/100648506">devastating consequences</a>.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/buying-bugs-and-beetles-or-shopping-for-scorpions-and-snails-australias-pet-trade-includes-hundreds-of-spineless-species-207932">Buying bugs and beetles, or shopping for scorpions and snails? Australia's pet trade includes hundreds of spineless species</a>
</strong>
</em>
</p>
<hr>
<h2>Everyone can do their bit</h2>
<p>Better surveillance is not the only solution. Public awareness is key to reducing invasive plant trade. We can all make informed decisions about the plants we buy.</p>
<p>A significant hurdle is a phenomenon called “<a href="https://nph.onlinelibrary.wiley.com/doi/full/10.1002/ppp3.51">plant blindness</a>”. People tend to find plants harder to recognise than animals. We found many weeds sold using generic names such as lily, cactus or pond plant. Some people may not even know the true identity of a plant they are selling, let alone that it is a weed and illegal to trade.</p>
<p>Another complication is the fact that laws differ between states. Plants that might be legal for an interstate trader, might still be illegal for you to buy. This is why caution should be taken when sending or receiving plants by post. Always check your local regulations before buying or selling a plant online. You can find out what is declared on your state or territory’s biosecurity website or on <a href="https://weeds.org.au/">Weeds Australia</a>. </p>
<p>Online marketplaces must also cooperate with local policies. These platforms should be enforced to self-regulate trade and include measures to prevent illegal advertisements from being posted in the first place. Failure to act may result in significant penalties from governments. Last year the <a href="https://www.science.org/doi/10.1126/science.ade0843#:%7E:text=%E2%80%9CFacebook%20fined%20U%242%20million,animals%2Din%2Dbrazil%2F.">Brazilian government fined Meta</a> for failing to remove illegal wildlife trade from Facebook and WhatsApp. </p>
<p>For now, monitoring tools such as the web scrapers we have developed will help to prevent some weeds escaping backyards and into bushland. As plant lovers, it’s important to be mindful of the plants we choose to buy and keep. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/lickable-toads-and-magic-mushrooms-wildlife-traded-on-the-dark-web-is-the-kind-that-gets-you-high-201180">Lickable toads and magic mushrooms: wildlife traded on the dark web is the kind that gets you high</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/212647/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jacob Maher receives funding from the Centre for Invasive Species Solutions. </span></em></p><p class="fine-print"><em><span>Phill Cassey receives funding from the Centre for Invasive Species Solutions and the Australian Research Council. </span></em></p>Australians are trading pest plants online, potentially breaking the law without even realising it.Jacob Maher, PhD Candidate, University of AdelaidePhill Cassey, Australian Research Council Industry Laureate Fellow, University of AdelaideLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2124632023-09-05T20:06:24Z2023-09-05T20:06:24ZTemu: China’s answer to Amazon is already Australia’s most popular free app. What makes it so addictive?<figure><img src="https://images.theconversation.com/files/546308/original/file-20230905-15-1o8upa.jpg?ixlib=rb-1.1.0&rect=18%2C0%2C6081%2C4060&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>If you spend much time online you’ve probably seen one of Temu’s colourful ads – punctuated by its catchy tagline: “shopping like a billionaire”. </p>
<p>Temu specialises in selling various everyday items, including clothing, toys and household goods, for extremely low prices. Shanghai-based company PDD Holdings launched the online marketplace late last year (initially in the United States) to cater to overseas customers. </p>
<p>Since then, Temu’s reach has skyrocketed. The <a href="https://www.reuters.com/technology/chinese-owned-e-commerce-platform-temu-expands-europe-2023-04-25/">total value</a> of products sold went from US$3 million in September last year, to US$400 million <a href="https://www.statista.com/statistics/1399786/temu-monthly-gross-merchandise-value/">in April</a>. At the time of publishing this article, Temu was the most popular free iPhone app in the US, United Kingdom, Australia and Germany. </p>
<p>Why has Temu been such a massive success? It’s safe to say the platform has some winning strategies that keep consumers coming back. But beyond that, similar to other e-commerce platforms, using it isn’t entirely risk- or guilt-free. Here are some things to consider if you’re thinking of giving it a shot.</p>
<h2>What are Temu’s secrets to success?</h2>
<p><strong>1. Value</strong></p>
<p>Many Australians might associate “made in China” with cheap price tags and low quality. However, Temu’s consumers are beginning to view it as offering affordable products that <a href="https://www.abc.net.au/news/2023-08-29/temu-may-save-china-status-as-world-factory-amid-deflation/102724900">do not necessarily compromise on quality</a>. In some cases, 10–20 products will only set <a href="https://www.business2community.com/tech-news/spending-on-temu-continues-to-skyrocket-beating-out-shein-by-20-in-may-02707455">you back US$20–30</a>.</p>
<p>Temu claims it can offer these prices as a result of cutting out the middlemen in the supply chain. While the manufacturers provide the product details and the products themselves, Temu handles everything else – from customs processing to international shipping. This streamlining helps reduce unit costs.</p>
<p>Nonetheless, achieving such value doesn’t come without a cost. Concerns are rising that Temu and its suppliers may be <a href="https://www.wired.co.uk/article/temu-is-losing-millions-of-dollars-to-send-you-cheap-socks">operating at a loss</a>. However, it’s common for startups to experience negative cash flow <a href="https://www.researchgate.net/publication/309770487_Score_model_for_technology_appraisal_of_Bulgarian_start-ups">in their initial years</a> due to heavy marketing investments, including offers of competitive prices and marketing campaigns – all of which is done to build brand awareness and gain acceptance.</p>
<p>This is especially true in the fast-paced e-commerce sector, where success and failure happen swiftly. Temu and its suppliers, who are mainly from Temu’s sister <a href="https://www.prnewswire.com/news-releases/temu-taps-on-sister-e-commerce-platform-supply-chain-to-offer-irresistible-prices-301623014.html">e-commerce platform Pinduoduo</a>, are likely aware of this dynamic.</p>
<p><strong>2. An effective marketing strategy</strong></p>
<p>Unlike other e-commerce platforms that focus on functional benefits such as saving money, Temu caters to consumers’ emotional needs. It overlays the shopping experience with the idea of “shopping like a billionaire” – which also aligns with its value-based strategy.</p>
<p>Temu entered the market at a time when consumers were grappling with global inflation, leading them to seek “value”. In the first month after its launch in the US, Temu invested some US$200 million <a href="https://www.chinatalk.nl/temu-update-june-2023-part-1-from-0-to-400-million-monthly-gmv-in-8-months/">in advertising</a> and planned a US$2 billion budget <a href="https://medium.com/@keshi201109/what-did-temu-do-right-6b31d6e2372f">for the year</a>. </p>
<p>Given China’s leadership in live-streaming <a href="https://eprints.qut.edu.au/235249/">influencer marketing</a>, Temu is now <a href="https://talkleisure.com/how-to-become-a-temu-influencer/#Does_Temu_Use_Influencer_Marketing">recruiting social media influencers</a>, suggesting it might leverage its Chinese expertise to explore a social-commerce strategy. Social commerce harnesses a sense of “friendship” conveyed by influencers, making the online shopping experience more engaging and product recommendations more convincing. It also works especially well with sales promotions.</p>
<h2>Sales promotion tactics</h2>
<p>While Temu employs common sales tactics seen on other e-commerce platforms, it uses what is arguably the broadest array of these techniques. Here are just some examples:</p>
<ul>
<li><strong>Gamified experiences.</strong> Gamified advertising hinges on two core elements: challenge and reward. Interacting with Temu’s spinning wheel is a minor challenge, but the substantial discount offered is a major reward. Such “games” create the illusion of getting lucky, and therefore generate positive emotions <a href="https://eprints.qut.edu.au/242174/">in consumers</a> – while the reward gives them an incentive to engage more seriously with their browsing, increasing the likelihood of spending.</li>
</ul>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/546305/original/file-20230905-19-quus11.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/546305/original/file-20230905-19-quus11.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/546305/original/file-20230905-19-quus11.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=593&fit=crop&dpr=1 600w, https://images.theconversation.com/files/546305/original/file-20230905-19-quus11.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=593&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/546305/original/file-20230905-19-quus11.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=593&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/546305/original/file-20230905-19-quus11.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=746&fit=crop&dpr=1 754w, https://images.theconversation.com/files/546305/original/file-20230905-19-quus11.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=746&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/546305/original/file-20230905-19-quus11.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=746&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Temu’s spinning wheel promotion offers a ‘gamified’ shopping experience that creates an illusion of getting lucky.</span>
<span class="attribution"><span class="source">Shasha Wang</span></span>
</figcaption>
</figure>
<ul>
<li><strong>Lightning deals and limited-time offers.</strong> One commonly used promotion tactic involves creating the illusion of scarcity through supposedly “exclusive” offers that are time-sensitive and won’t come by again. This can trigger a fear of missing out in consumers.</li>
</ul>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/546307/original/file-20230905-27-33dilf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/546307/original/file-20230905-27-33dilf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/546307/original/file-20230905-27-33dilf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=603&fit=crop&dpr=1 600w, https://images.theconversation.com/files/546307/original/file-20230905-27-33dilf.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=603&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/546307/original/file-20230905-27-33dilf.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=603&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/546307/original/file-20230905-27-33dilf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=757&fit=crop&dpr=1 754w, https://images.theconversation.com/files/546307/original/file-20230905-27-33dilf.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=757&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/546307/original/file-20230905-27-33dilf.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=757&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Promotions that are timed create a sense of urgency; customers are more likely to pay up if they’re scared of missing out.</span>
<span class="attribution"><span class="source">Shasha Wang</span></span>
</figcaption>
</figure>
<ul>
<li><p><strong>Discounts and free shipping</strong> Offering simple price reductions and very affordable sales is a time-honoured way of securing a loyal customer base. In addition, Temu has the allure of offering free shipping on orders with a very low minimum spend.</p></li>
<li><p><strong>Loyalty program</strong>. Consumers can opt in to Temu’s marketing emails in exchange for receiving more promotional content, including email-only promotions. E-commerce companies often have access to your personal information (such as your name, address, age and phone number) and behavioural data (such as from your search history and online sessions). With this data, the company can build your user profile and target you with <a href="https://link.springer.com/article/10.1007/s11747-020-00719-1">personalised promotions and content</a> to encourage spending. </p></li>
<li><p><strong>Search engine marketing.</strong> Many consumers will see Temu ads at the top of their search results on Google (in the form of “sponsored” posts) when they search for a product. </p></li>
<li><p><strong>An AI-powered promotional strategy</strong>. Temu’s sister company operating in China, Pinduoduo, is renowned for its <a href="https://a16z.com/2023/01/18/what-is-temu/">AI-driven recommendation</a> system. It’s likely Temu uses similar AI algorithms, drawing on users’ browsing and purchase history to provide personalised recommendations (a practice <a href="https://fortune.com/2018/06/26/artificial-intelligence-video-ads-augmented-reality/">Amazon</a> also partakes in). </p></li>
</ul>
<h2>Defending against manipulation</h2>
<p>Temu’s greatest benefit to consumers lies in its offer of value. It may still have lower-quality items, but this is common among all e-commerce platforms. </p>
<p>Also, Temu’s business model is built around emphasising top-selling products, which helps filter out low-quality products. Its 90-day free return policy further acts as a buffer for unsatisfactory purchases.</p>
<p>Nonetheless, Temu’s value-oriented approach may not be a good thing for consumers on all fronts. Exposed to such a wide array of marketing tactics, users might become more prone to overconsumption – which leads to environmental waste and post-purchase regret.</p>
<p>It’s worth considering your actual needs before using an e-commerce platform such as Temu. You should also familiarise yourself with the sales promotion tactics being used. Research <a href="https://onlinelibrary.wiley.com/doi/abs/10.1002/mar.21266">suggests</a> understanding these tactics, as well as advertisers’ intentions, can even empower young children to be sceptical and form a cognitive defence against them. </p>
<p>Also, in light of Temu’s gamified advertising strategy, consumers ought to temper their enthusiasm for rewards. Moving forward, one useful approach may be for schools and governments to introduce educational programs or social marketing campaigns that teach advertising tactics, and recommend coping strategies.</p>
<p><em>Temu didn’t respond to The Conversation’s request for comment.</em></p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/blind-bags-how-toy-makers-are-making-a-fortune-with-child-gambling-127229">Blind bags: how toy makers are making a fortune with child gambling</a>
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</em>
</p>
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<img src="https://counter.theconversation.com/content/212463/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Xiaoling Guo receives funding from Australian Government Research Training Program (RTP) Scholarship. </span></em></p><p class="fine-print"><em><span>Shasha Wang does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>While Temu employs common sales promotion tactics seen on other e-commerce platforms, it uses what is arguably the broadest range of these techniques.Shasha Wang, Senior lecturer, Queensland University of TechnologyXiaoling Guo, The University of Western AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2033542023-04-25T23:35:57Z2023-04-25T23:35:57ZNew exposé of Australia’s exotic pet trade shows an alarming proliferation of alien, threatened and illegal species<figure><img src="https://images.theconversation.com/files/522449/original/file-20230424-14-vj5jul.jpg?ixlib=rb-1.1.0&rect=28%2C42%2C4716%2C2994&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A redtailed catfish.</span> <span class="attribution"><span class="source">Bk87/Shuttterstock</span></span></figcaption></figure><p>Australia has a global reputation for being tough on biosecurity. There are strict rules around the import and export of both native and exotic species. Security is tight, and advanced screening technology commonplace at ports of entry and <a href="https://www.frontiersin.org/articles/10.3389/fcosc.2022.757950/full">mail centres</a>.</p>
<p>But it’s a different story within the country, with plenty of movement of wildlife across state borders. </p>
<p>Our research published today <a href="https://doi.org/10.1016/j.biocon.2023.110040">in the journal Biological Conservation</a> uncovers the surprising scale and diversity of the domestic online pet trade in Australia. Threatened species, invasive pests, banned imports, and animals not yet known to science are all for sale.</p>
<p>Over a 14-week period, prior to the commencement of Australian COVID-19 restrictions, we detected the trade of more than 100,000 individual live animals. This included more than 60,000 separate advertisements and a total of 1,192 species, including 81 threatened species, 667 alien (non-native) species, and 279 species that are not allowed to be imported into Australia.</p>
<p>We hope our results, from the first systematic survey of exotic vertebrate pets (this includes non-domesticated reptiles, amphibians, fish and birds) traded in Australia, will help biosecurity agencies identify high-risk and potentially illegal species.</p>
<h2>What’s the problem with trading exotic pets?</h2>
<p>Unregulated wildlife trade poses serious threats to animal welfare, <a href="https://esajournals.onlinelibrary.wiley.com/doi/full/10.1002/fee.2059">conservation, human health and biosecurity</a>.</p>
<p>As well as the conservation threat of unsustainably harvesting <a href="https://conbio.onlinelibrary.wiley.com/doi/full/10.1111/cobi.13978?af=R">live animals from the wild</a>, wildlife trade is a source of novel invasive species and their diseases. When exotic species escape from captivity they can become pests. An infamous example is the <a href="https://www.usgs.gov/faqs/how-have-invasive-pythons-impacted-florida-ecosystems">Burmese pythons</a> of Everglades National Park in the United States, which continue to eat through the native wildlife at an unparalleled rate.</p>
<p>These issues are not lost on Australian biosecurity and conservation agencies. A recent crackdown on reptile smuggling, establishing additional international protection for <a href="https://www.theguardian.com/australia-news/2022/apr/04/australia-adds-127-reptiles-to-global-treaty-in-crackdown-on-cruel-and-abhorrent-smuggling">127 native species</a>, shows a recognition of the need for more stringent regulation and surveillance. Although low prosecution rates and weak penalties continue to be a <a href="https://www.abc.net.au/news/2023-03-02/animal-smuggler-fined-after-native-fauna-found-in-his-car/102040096">barrier to effective enforcement</a>. </p>
<p>Australia goes well beyond its international obligations and prohibits the commercial import of <a href="https://www.dcceew.gov.au/environment/wildlife-trade/live-import-list">most live animals</a>. Yet audits of alien <a href="https://www.sciencedirect.com/science/article/abs/pii/S0921800915303323">cagebird</a> and <a href="https://www.reabic.net/journals/mbi/2022/2/MBI_2022_Millington_etal.pdf">ornamental fish</a> trades show they are thriving within Australia.</p>
<h2>Booming online trade</h2>
<p>Traditionally, pets have been sold from brick and mortar stores or traded between informal networks of keepers and breeders. But now, thanks to online marketplaces, pet trade has largely shifted to the internet. </p>
<p>E-commerce trading sites reach more potential customers across a wider area than previously possible. They also offer a degree of anonymity, meaning that <a href="https://www.science.org/doi/full/10.1126/science.ade0843">blatantly illegal activity</a> can sometimes occur openly on websites and social media platforms.</p>
<p>To investigate if this was also happening in Australia, we identified 12 of the most prominent online platforms that sold exotic pets. We were able to rapidly monitor thousands of daily advertisements using an automated tool known as <a href="https://conbio.onlinelibrary.wiley.com/doi/abs/10.1111/cobi.13675">webscraping</a>.</p>
<p>To our surprise and alarm, 56% of the trade involved alien species (over 600 species in total). Many of these are illegal to import into Australia or are known to be invasive overseas.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/what-risks-could-pet-hamsters-and-gerbils-pose-in-australia-192718">What risks could pet hamsters and gerbils pose in Australia?</a>
</strong>
</em>
</p>
<hr>
<h2>Not everything is clearly illegal</h2>
<p>But these are not all clear-cut examples of illegal activity. The reality is more ambiguous: Australia’s import ban of most animals only came into effect in the early 1980s. So some exotic pets may have arrived in Australia before the ban and have been bred in captivity ever since. </p>
<p>This provides an element of plausible deniability. Traders can declare their animals to be captive-bred within Australia, even if some have been smuggled into the country at a later stage. We found this issue was especially prominent for ornamental fish, with 279 illegal-to-import species being traded in an unregulated manner.</p>
<p>What’s worse is some traders are specialising in animals that are not yet known to science, meaning they haven’t been formally classified, named or described. The presence of undescribed species in Australia, mostly freshwater catfish and African cichlids, can only be explained by illegal smuggling or the exploitation of trade loopholes. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/521801/original/file-20230419-14-38q2nq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Two brightly coloured flowerhorn cichlid fish face each other, against a green leafy background" src="https://images.theconversation.com/files/521801/original/file-20230419-14-38q2nq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/521801/original/file-20230419-14-38q2nq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/521801/original/file-20230419-14-38q2nq.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/521801/original/file-20230419-14-38q2nq.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/521801/original/file-20230419-14-38q2nq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/521801/original/file-20230419-14-38q2nq.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/521801/original/file-20230419-14-38q2nq.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The flowerhorn cichlid is a multi-species hybrid – an example of a pet fish that is difficult to classify. Traders use pseudo-taxonomic units.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/flowerhorn-cichlid-fish-508236964">Independent birds/Shutterstock</a></span>
</figcaption>
</figure>
<h2>Is greater oversight needed?</h2>
<p>It is clear Australia’s exotic pet trade is far more prevalent and less regulated than previously understood. Some researchers call for e-commerce platforms such as Facebook to take greater responsibility by <a href="https://www.counteringcrime.org/wildlife-sales-on-facebook">policing wildlife trade</a>. This would reduce opportunities for non-compliant activity occurring on their sites. Meta, the parent company of Facebook, was <a href="https://www.science.org/doi/full/10.1126/science.ade0843">recently fined</a> for failing to remove illegal trade.</p>
<p>Regardless of how future trade is managed, we are now left with the question of how to deal with thousands of live animals already present that should never have been brought to Australia.</p>
<p>The immediate prohibition of these pets is not feasible. The social licence to euthanise so many animals does not exist and there are no facilities large enough to house them all. Bans, when ineffectively communicated and enforced, can also <a href="https://journals.sagepub.com/doi/pdf/10.1177/194008291200500302">bolster illegal trade and organised crime</a>. </p>
<p>Permit systems are sometimes used to regulate native pets. A permit is harder to acquire if the species in question poses a greater threat. <a href="https://besjournals.onlinelibrary.wiley.com/doi/full/10.1111/1365-2664.14138">Recent evidence</a> shows that this can reduce the number of captive animals, and potentially fewer escapees.</p>
<p>Whether such systems can be introduced for these problematic alien species remains to be seen, but new approaches are urgently needed if Australia is to tackle its pet trade problem.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/big-tech-regulators-and-conservationists-must-unite-to-tackle-online-wildlife-trade-173431">Big tech, regulators and conservationists must unite to tackle online wildlife trade</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/203354/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Adam Toomes receives funding from The Australian Research Council, and previously from the Centre for Invasive Species Solutions.</span></em></p><p class="fine-print"><em><span>Phill Cassey receives funding from the Australian Research Council and the Centre for Invasive Species Solutions.</span></em></p>Trade in exotic pets online is far more prevalent and diverse than previously thought. Threatened species, invasive species and banned imports are all for sale.Adam Toomes, Ph.D. student at the Invasion Science & Wildlife Ecology Group, University of AdelaidePhill Cassey, Head, Department of Ecology & Evolutionary Biology, University of AdelaideLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1821342022-05-02T03:40:34Z2022-05-02T03:40:34ZACCC says consumers need more choices about what online marketplaces are doing with their data<figure><img src="https://images.theconversation.com/files/460704/original/file-20220502-15-3s0and.jpg?ixlib=rb-1.1.0&rect=0%2C8%2C2731%2C1524&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Consumers using online retail marketplaces such as eBay and Amazon “have little effective choice in the amount of data they share”, according to the <a href="https://www.accc.gov.au/publications/serial-publications/digital-platform-services-inquiry-2020-2025/digital-platform-services-inquiry-march-2022-interim-report">latest report</a> of the Australian Competition & Consumer Commission (ACCC) Digital Platform Services Inquiry. </p>
<p>Consumers may benefit from personalisation and recommendations in these marketplaces based on their data, but many are in the dark about how much personal information these companies collect and share for other purposes. </p>
<p><a href="https://www.accc.gov.au/media-release/concerning-issues-for-consumers-and-sellers-on-online-marketplaces">ACCC chair Gina Cass-Gottlieb</a> said:</p>
<blockquote>
<p>We believe consumers should be given more information about, and control over, how online marketplaces collect and use their data. </p>
</blockquote>
<p>The report reiterates the ACCC’s earlier calls for amendments to the Australian Consumer Law to address unfair data terms and practices. It also points out that the government is considering <a href="https://www.ag.gov.au/integrity/consultations/review-privacy-act-1988">proposals for major changes to privacy law</a>. </p>
<p>However, none of these proposals is likely to come into effect in the near future. In the meantime, we should also consider whether practices such as obtaining information about users from third-party data brokers are fully compliant with existing privacy law. </p>
<h2>Why did the ACCC examine online marketplaces?</h2>
<p>The ACCC examined competition and consumer issues associated with “general online retail marketplaces” as part of its <a href="https://www.accc.gov.au/focus-areas/inquiries-ongoing/digital-platform-services-inquiry-2020-2025">five-year Digital Platform Services Inquiry</a>. </p>
<p>These marketplaces facilitate transactions between third-party sellers and consumers on a common platform. They do not include retailers that don’t operate marketplaces, such as Kmart, or platforms such as Gumtree that carry classified ads but don’t allow transactions.</p>
<p>The ACCC report focuses on the four largest online marketplaces in Australia: Amazon Australia, Catch, eBay Australia and Kogan. In 2020–21, these four carried sales totalling $8.4 billion.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/460716/original/file-20220502-18-4pvx0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/460716/original/file-20220502-18-4pvx0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/460716/original/file-20220502-18-4pvx0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/460716/original/file-20220502-18-4pvx0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/460716/original/file-20220502-18-4pvx0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/460716/original/file-20220502-18-4pvx0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/460716/original/file-20220502-18-4pvx0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Online marketplaces such as Amazon, eBay, Catch and Kogan facilitate transactions between third-party buyers and sellers.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/new-york-usa-november-1-2018-1219079038">Shutterstock</a></span>
</figcaption>
</figure>
<p>According to the report, eBay has the largest sales of these companies. Amazon Australia is the second-largest and the fastest-growing, with an 87% increase in sales over the past two years.</p>
<p>The ACCC examined:</p>
<ul>
<li>the state of competition in the relevant markets</li>
<li>issues facing sellers who depend on selling their products through these marketplaces</li>
<li>consumer issues including concerns about personal information collection, use and sharing.</li>
</ul>
<h2>Consumers don’t want their data used for other purposes</h2>
<p>The ACCC expressed concern that in online marketplaces, “the extent of data collection, use and disclosure … often does not align with consumer preferences”. </p>
<p>The Commission pointed to surveys about <a href="https://www.accc.gov.au/system/files/Consumer%20Policy%20Research%20Centre%20%28CPRC%29%20%2818%20August%202021%29.pdf">Australian consumer attitudes to privacy</a> which indicate:</p>
<ul>
<li>94% did not feel comfortable with how digital platforms including online marketplaces collect their personal information</li>
<li>92% agreed that companies should only collect information they need for providing their product or service</li>
<li>60% considered it very or somewhat unacceptable for their online behaviour to be monitored for targeted ads and offers.</li>
</ul>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-one-simple-rule-change-could-curb-online-retailers-snooping-on-you-166174">How one simple rule change could curb online retailers' snooping on you</a>
</strong>
</em>
</p>
<hr>
<p>However, the four online marketplaces analysed: </p>
<ul>
<li>do not proactively present privacy terms to consumers “throughout the purchasing journey”</li>
<li>may allow advertisers or other third parties to place tracking cookies on users’ devices</li>
<li>do not clearly identify how consumers can opt out of cookies while still using the marketplace.</li>
</ul>
<p>Some of the marketplaces also obtain extra data about individuals from third-party data brokers or advertisers.</p>
<p>The <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3432769">harms from increased tracking and profiling</a> of consumers include decreased privacy; manipulation based on detailed profiling of traits and weaknesses; and discrimination or exclusion from opportunities. </p>
<h2>Limited choices: you can’t just ‘walk out of a store’</h2>
<p>Some might argue that consumers must not actually care that much about privacy if they keep using these companies, but the choice is not so simple. </p>
<p>The ACCC notes the relevant privacy terms are often spread across multiple web pages and offered on a “take it or leave it” basis. </p>
<p>The terms also use “bundled consents”. This means that agreeing to the company using your data to fill your order, for example, may be bundled together with agreeing for the company to use your data for its separate advertising business. </p>
<p>Further, as my research has shown, there is <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3905693">so little competition on privacy</a> between these marketplaces that consumers can’t just find a better offer. The ACCC agrees:</p>
<blockquote>
<p>While consumers in Australia can choose between a number of online marketplaces, the common approaches and practices of the major online marketplaces to data collection and use mean that consumers have little effective choice in the amount of data they share.</p>
</blockquote>
<p>Consumers also seem unable to require these companies to delete their data. The situation is quite different from conventional retail interactions where a consumer can select “unsubscribe” or walk out of a store. </p>
<h2>Does our privacy law currently permit all these practices?</h2>
<p>The ACCC has reiterated its earlier calls to amend the Australian Consumer Law to prohibit unfair practices and make unfair contract terms illegal. (At present unfair contract terms are just void, or unenforceable.)</p>
<p>The report also points out that the government is considering proposals for major changes to privacy law, but <a href="https://theconversation.com/a-new-proposed-privacy-code-promises-tough-rules-and-10-million-penalties-for-tech-giants-170711">these changes</a> are uncertain and may take more than a year to come into effect. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/a-new-proposed-privacy-code-promises-tough-rules-and-10-million-penalties-for-tech-giants-170711">A new proposed privacy code promises tough rules and $10 million penalties for tech giants</a>
</strong>
</em>
</p>
<hr>
<p>In the meantime, we should look more closely at the practices of these marketplaces under current privacy law. </p>
<p>For example, under the <a href="https://www.legislation.gov.au/Series/C2004A03712">federal Privacy Act</a> the four marketplaces</p>
<blockquote>
<p>must collect personal information about an individual only from the individual unless … it is unreasonable or impracticable to do so.</p>
</blockquote>
<p>However, <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3905693">some online marketplaces</a> say they collect information about individual consumers’ interests and demographics from “<a href="https://www.ebay.com.au/help/policies/member-behaviour-policies/user-privacy-notice-privacy-policy?id=4260&mkevt=1&mkcid=1&mkrid=705-53470-19255-0&campid=5338596835&customid=&toolid=10001#section4">data providers</a>” and <a href="https://www.amazon.com.au/gp/help/customer/display.html?nodeId=202075050&ref_=footer_iba">other third parties</a>. </p>
<p>We don’t know the full detail of what’s collected, but demographic information might include our age range, income, or family details. </p>
<p>How is it “unreasonable or impracticable” to obtain information about our demographics and interests directly from us? Consumers could ask online marketplaces this question, and complain to the <a href="https://www.oaic.gov.au/privacy/privacy-complaints">Office of the Australian Information Commissioner</a> if there is no reasonable answer.</p><img src="https://counter.theconversation.com/content/182134/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Katharine Kemp receives funding from The Allens Hub for Technology, Law and Innovation. She is a Member of the Advisory Board of the Future of Finance Initiative in India, and the Australian Privacy Foundation.</span></em></p>Consumers should have more control over how online marketplaces such as eBay and Amazon collect and use their data, according to a new ACCC report.Katharine Kemp, Senior Lecturer, Faculty of Law & Justice, UNSW, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1754342022-01-25T19:02:16Z2022-01-25T19:02:16ZWhy online groups are parents’ best friends in getting ready for the school year<figure><img src="https://images.theconversation.com/files/442169/original/file-20220124-25-66em69.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C4889%2C3249&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>If you’re a parent, chances are that, like me, you are frantically trying to get a head start on the new school year. In coping with the stress of COVID-19 lockdowns, restrictions, empty shelves in stores, working from home and minimal communications by schools over the holidays, we’ve turned to our virtual community of friends for help.</p>
<p>Let’s face it, most of us probably don’t have the time to or simply can’t pop in for a cuppa with one of the other parents to just have a chat. And there are pressing things to discuss, such as the school book list that has gone missing over the holidays, where to get the best deal on a headset with a microphone suitable for an eight-year-old, which brand of white sport shoes will last more than a week in the dusty schoolyard, or where to get the two boxes of facial tissues the teacher asked children to supply when there are none at the shops! </p>
<p>This is where our online friends can help.</p>
<h2>Our digital ‘tribes’</h2>
<p>People have formed tribes since the dawn of time. We are no different in this digital age. Members of a tribe typically share some similarities, which are like glue that holds the group together. Our online groups, or digital “tribes”, connect us based on a common interest, topic, location or school. They include:</p>
<ul>
<li><p>mum groups – for example, <a href="https://www.facebook.com/groups/australianschoolmums">Australian School Mums</a>, <a href="https://www.facebook.com/groups/761841587987059">School Mums Australia</a>, <a href="https://www.facebook.com/groups/2137302706589877">Organised Mums Australia</a></p></li>
<li><p>location-based groups – <a href="https://www.facebook.com/groups/525115141203861">6009 and 6010 Community Notice Board</a>, <a href="https://www.facebook.com/groups/community.mansfield/">Mansfield and District Community Noticeboard</a>, <a href="https://www.facebook.com/groups/brunswickheadscommunity/">Brunswick Heads Community</a></p></li>
<li><p>consumer groups – <a href="https://www.facebook.com/groups/158634060914178">Second Hand School Uniforms</a> and <a href="https://www.facebook.com/groups/sorschooluniforms">School Uniforms and Books Buy Swap and Sell</a></p></li>
<li><p>school-based groups.</p></li>
</ul>
<p>The pandemic has fuelled the rise in online tribes, as people have been restricted in their movement, locked down in their homes and limited in their access to family and friends. They now rely on their online connections for information, advice, help and friendship. </p>
<p>My team’s <a href="https://doi.org/10.1108/APJML-05-2020-0303">recent research</a> into online communities suggests these are rife with “prosumers”. Proactive consumers (“prosumers”) create and share online content, which makes them influential members of social networks. Our prosumer-friends are well informed, quick to respond and supportive when the school-work-life juggling act overwhelms us.</p>
<p>These are people like us. The digital tribe is much bigger than our real, physical community. We don’t have to know each member personally to be able to connect with them digitally. </p>
<p>And as our lives are so digitally integrated, we no longer differentiate between our real and virtual friends. Linda Thomas, who has two primary school-aged children, says:</p>
<blockquote>
<p>“As a full-time working mum, I’m often unable to keep in touch with my friends in person, which can be quite isolating, especially now during COVID. Facebook and WhatsApp groups have been so important to me in maintaining contact and community support by networking with parents similar to me.” </p>
</blockquote>
<figure class="align-center ">
<img alt="Mrs Linda Thomas" src="https://images.theconversation.com/files/442197/original/file-20220124-21-9zzmde.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/442197/original/file-20220124-21-9zzmde.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=650&fit=crop&dpr=1 600w, https://images.theconversation.com/files/442197/original/file-20220124-21-9zzmde.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=650&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/442197/original/file-20220124-21-9zzmde.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=650&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/442197/original/file-20220124-21-9zzmde.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=817&fit=crop&dpr=1 754w, https://images.theconversation.com/files/442197/original/file-20220124-21-9zzmde.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=817&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/442197/original/file-20220124-21-9zzmde.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=817&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Linda Thomas says online networking with other parents has been very important to her as a mother of two children in primary school.</span>
<span class="attribution"><span class="source">Linda Thomas</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<h2>Online marketplaces help with the budget</h2>
<p>With the rise in online groups comes a rise in online consumer marketplaces. Facebook groups, such as <a href="https://www.facebook.com/SustainableSchoolShop/">Sustainable School Shop</a> and <a href="https://www.facebook.com/groups/947637151958609/about/">Perth Buy and Sell</a>, can help parents manage the return-to-school budget. </p>
<p>Items that are no longer needed or unused, such as uniforms, books, electronics and stationery, are often given away, swapped or sold at a fraction of the original cost. An example is a Facebook local community group post by a mum giving away a spare laptop to someone who needs it for school.</p>
<p>In <a href="https://www.inderscience.com/info/ingeneral/forthcoming.php?jcode=ijasm">our research</a>, my colleagues and I found social media users’ exchanges have not been all negative during the pandemic – there has been a lot of positivity. The support, information and advice that social media users provide one another in these online groups have been invaluable for navigating purchasing at stores affected by supply disruptions.</p>
<p>Such positivity often reflects <a href="https://doi.org/10.1080/10696679.2017.1389246">online brand advocacy</a> (<a href="https://doi.org/https://doi.org/10.1108/JPBM-10-2018-2090">OBA</a>), with online group members recommending brands they have tried to others. This sort of advocacy is authentic as it is freely given and based on online group member’s actual experience with the brand. It is also influential as it is trusted more than brand-generated content, such as when a parent suggests trying Officeworks to find that headset for our eight-year-old.</p>
<p>Interestingly, targeted advertising is also rife online. When you interact with content on a school-related topic, be it <a href="https://www.facebook.com/ClarksAustralia">kids’ shoes</a>, <a href="https://www.facebook.com/BrightStarKids">school labels</a>, <a href="https://www.facebook.com/kumonanz/">tutoring</a> or kids sports, the platform’s algorithm will serve you ads that mirror your engagement. Such advertising is not necessarily a nuisance as it can help us in deciding what to buy.</p>
<p>As parents, we are in this “get our child ready for school” mission together. Online groups provide support, information and friendships beyond what we have access to in real life during these trying times. </p>
<p>So, if you haven’t already, join a digital tribe! It might make the start of the new school year that little bit easier.</p><img src="https://counter.theconversation.com/content/175434/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Violetta Wilk does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>People have formed tribes since the dawn of time and, in the digital age, online tribes are helping members deal with all the uncertainties and decisions involved in getting kids ready for school.Violetta Wilk, Lecturer & Researcher in Digital Marketing, Edith Cowan UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1110502019-03-25T21:21:40Z2019-03-25T21:21:40ZSellers’ reputations in e-retail markets: do they matter?<figure><img src="https://images.theconversation.com/files/264910/original/file-20190320-93057-1jipwdm.jpg?ixlib=rb-1.1.0&rect=0%2C1%2C1000%2C661&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Do online sellers' reputations matter? According to a March 2019 study, not particularly. </span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/download/confirm/287361545?size=medium_jpg">Shutterstock</a></span></figcaption></figure><p>The volume of online sales has skyrocketed over the last 10 years, taking up larger and larger shares of total retail sales. E-retail sales account now for <a href="https://www.statista.com/statistics/534123/e-commerce-share-of-retail-sales-worldwide/">10.2% of all retail sales worldwide</a> and they are expected to reach <a href="https://www.statista.com/statistics/379087/e-commerce-share-of-retail-sales-in-china/">33% of total sales in China this year</a>.</p>
<p>Sales on electronic platforms have the peculiarity that prospective buyers cannot directly check the features and intrinsic quality of items. Instead, they have to rely on the information disclosed by sellers who have therefore an informational advantage. Sellers could in principle trick buyers by passing off low-quality items as being high quality. Buyers might anticipate this by simply refusing to buy, or by offering a lower price for the same transactions. This action/reaction by sellers and buyers could lead to a situation in which e-retail markets do not work at their full potential, and only a limited number of transactions occur. Thus, establishing a relationship of trust between sellers and buyers is paramount.</p>
<h2>Rating the sellers’ ratings</h2>
<p>E-platforms have traditionally tackled this issue by setting up a system through which buyers can rate sellers. The idea is that sellers with strong reputations are those less likely to trick buyers by selling items whose features and/or quality do not correspond to the ones advertised. Having high feedback scores is nowadays perceived as paramount to become a successful seller. Similarly, the ability to gather as many sellers as possible with high reputation scores is regarded as crucial for the success of e-platforms. But what is the real value of reputation scores in e-trading? Is it possible that the role of sellers’ reputation is somehow over-emphasized?</p>
<p>In a <a href="https://www.sciencedirect.com/science/article/pii/S0167718717302151">March 2019 research article</a>, co-authored with Enzo Dia from the University of Milan Bicocca, we try to answer these questions by analysing eBay auctions of used but remanufactured electronic items. These auctions present the features of standard auctions: they all have a winning price, and often come with money-back guarantees and/or warranties for any malfunction of the items sold. However, auctions of refurbished items have one unique feature: the refurbishment can be carried out either by vendors with the sponsorship (the approval) from the original manufacturer or by vendors without such sponsorship.</p>
<p>Buyers usually take the presence of such sponsorship as a signal of a high-quality refurbishment, which ultimately stands on the reputation of the original manufacturer. Thus, when non-manufacturer-approved sellers carry out the refurbishment, the original manufacturer cannot guarantee the quality of the process. In this case, the sellers’ feedback scores capture two different types of reputation: the reliability in the disclosure of truthful features of the items on sale, and the ability to deliver refurbishment of high quality. On the contrary, when auctioned items undergo a refurbishment by manufacturer-approved vendors, the original manufacturers guarantee the quality of the process. In this last case, the information of feedback scores is limited to how reliable vendors are in the disclosure of items’ features that correspond to reality.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/264916/original/file-20190320-93032-1ntx0gp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/264916/original/file-20190320-93032-1ntx0gp.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=456&fit=crop&dpr=1 600w, https://images.theconversation.com/files/264916/original/file-20190320-93032-1ntx0gp.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=456&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/264916/original/file-20190320-93032-1ntx0gp.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=456&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/264916/original/file-20190320-93032-1ntx0gp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=572&fit=crop&dpr=1 754w, https://images.theconversation.com/files/264916/original/file-20190320-93032-1ntx0gp.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=572&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/264916/original/file-20190320-93032-1ntx0gp.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=572&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">You really want that guitar once used by Nine Inch Nails. Now might be the time – or not.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/shannonpatrick17/4151240528">Shannon Ramos/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<h2>Do guarantees help?</h2>
<p>To measure the importance of feedback scores, as well as the presence of money-back guarantees, we studied how these last impact on the winning prices of auctions. The rationale here is the following: auctions that feature high feedback scores and money-back guarantees offer greater protection against the possibility that sellers pass off items with characteristics and/or quality not corresponding to those advertised. If the presence of high feedback scores and money-back guarantees is perceived by buyers as something able to reduce the risk of buying unwanted items, then buyers should be willing to pay higher auction prices.</p>
<p>We investigate whether the above dynamics hold using a set of almost 1,000 eBay auctions of remanufactured electronic items. Our empirical results show that, quite surprisingly, the role of feedback scores is rather limited. We find that buyers perceive feedback scores as important, but only when the refurbishment is carried out by non-manufacturer-approved sellers. In this case, the lack of sponsorship by the original manufacturer makes the ability of sellers to deliver high-quality refurbishment of items uncertain.</p>
<p>As a result, the best buyers can do to make a guess on such ability is to resort to sellers’ feedback scores. When, instead, manufacturer-approved vendors carry out the refurbishment, buyers do not perceive the information conveyed by feedback scores as something valuable. This is the case where the ability of sellers to deliver high-quality refurbishment is certified by the original manufacturer so that the information content of feedback scores becomes limited to the sellers’ reliability in the disclosure of truthful features of the items on sale. It is this last type of information that buyers regard as valueless.</p>
<h2>Price matters</h2>
<p>The second important result is that buyers perceive feedback scores as important, but only for items of low value. More specifically, when we partition our sample of auctions according to the value of the transactions, we show that feedback scores command a premium on auction prices limitedly to items of low value. On the contrary, we find that buyers perceive money-back guarantees as important, but only for the cohort of more expensive goods. This last result is even more disappointing than the previous ones, as it suggests that when the value of the auctioned items increases, buyers tend to dismiss the information content of feedback scores to attach greater value to alternative – and more radical – methods to fix the information advantage of sellers such as money-back guarantees.</p>
<p>Overall, we find the importance of feedback scores greatly limited as they count only for low-value auctions that feature non-manufacturer-approved vendors. This is at odds with the widespread belief that the sellers’ reputation is a key element in e-retail markets. Of course, these results do not mean that the reputation of sellers is not important. On the contrary, they only suggest that feedback scores – as currently designed – might not be as relevant as previously thought. Reputation scores still have, in all likelihood, an important role in the functioning of e-platforms, but they have to be re-designed in such a way that they can convey more and better aspects of sellers’ past performances. For instance, the disaggregation of feedback scores from one single figure into multiple indicators – better able to account for specific aspects of e-retail transactions – seems to be a promising way forward to boost the importance of reputation scores.</p>
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<p><em>Casalin and Dia, <a href="https://www.sciencedirect.com/science/article/pii/S0167718717302151">“Information and reputation mechanisms in auctions of remanufactured goods”</a>, International Journal of Industrial Organization 63 (2019) 185–212.</em></p><img src="https://counter.theconversation.com/content/111050/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Fabrizio Casalin ne travaille pas, ne conseille pas, ne possède pas de parts, ne reçoit pas de fonds d'une organisation qui pourrait tirer profit de cet article, et n'a déclaré aucune autre affiliation que son organisme de recherche.</span></em></p>In the immaterial world of online sales, how important are sellers’ reputation? An analysis of 1,000 eBay auctions provides an unexpected answer: not very.Fabrizio Casalin, Associate Professor of Finance, IÉSEG School of ManagementLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/923392018-02-26T08:59:38Z2018-02-26T08:59:38ZWeekly Dose: phenibut – the Russian anti-anxiety drug linked to Gold Coast teens’ overdoses<figure><img src="https://images.theconversation.com/files/207811/original/file-20180226-140187-ddqpd0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Phenibut was included in medical kits for Russian cosmonauts for its anti-anxiety and tranquilising properties.</span> <span class="attribution"><a class="source" href="https://commons.wikimedia.org/wiki/File:Soyuz_TMA-18_Crew_in_front_of_the_capsule.jpg">Wikimedia Commons</a></span></figcaption></figure><p>Phenibut was initially developed in the 1960s in Russia as an anti-anxiety (anxiolytic) drug with <a href="https://www.ncbi.nlm.nih.gov/pubmed/11830761">cognitive enhancing properties</a>. It has since attracted a strong following of users in the “smart drug” market, with claims of boosting memory recall and exam performance. </p>
<p>Originally given to Soviet cosmonauts to combat anxiety and insomnia, the powdered drug is suspected to have played a role in the recent <a href="https://www.theguardian.com/australia-news/2018/feb/23/banned-anti-anxiety-drug-phenibut-may-have-caused-gold-coast-students-overdose">overdose of seven teenagers</a> at a Queensland private school.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/207780/original/file-20180226-140184-11po93t.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/207780/original/file-20180226-140184-11po93t.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/207780/original/file-20180226-140184-11po93t.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=870&fit=crop&dpr=1 600w, https://images.theconversation.com/files/207780/original/file-20180226-140184-11po93t.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=870&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/207780/original/file-20180226-140184-11po93t.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=870&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/207780/original/file-20180226-140184-11po93t.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1093&fit=crop&dpr=1 754w, https://images.theconversation.com/files/207780/original/file-20180226-140184-11po93t.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1093&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/207780/original/file-20180226-140184-11po93t.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1093&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<h2>How it works</h2>
<p>Phenibut – <a href="https://www.thetreatmentcenter.com/resources/drug-slang/">also known as</a> pbut, noofen, party powder (or its scientific name β-phenyl-γ-aminobutyric acid and brand name Bifren) – is a psychotropic drug, which means it affects the user’s mental state. </p>
<p>The drug is similar in structure to a type of neurotransmitter known as neurotransmitter γ-aminobutyric acid (GABA), which plays a role in reducing excitability and anxiety, as well as enhancing euphoria and cognitive function. Phenibut binds to a <a href="https://www.sciencedirect.com/science/article/pii/S1471489205001852">specific subtype of the GABA receptor</a>, activating a similar reaction as GABA. </p>
<p>Animal studies <a href="https://www.ncbi.nlm.nih.gov/pubmed/11830761">have shown</a> that phenibut is able to penetrate the blood brain barrier. The blood-brain barrier is is an important mechanism that stops harmful toxins and bugs travelling through the blood stream and entering the brain. </p>
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Read more:
<a href="https://theconversation.com/explainer-what-is-the-blood-brain-barrier-and-how-can-we-overcome-it-75454">Explainer: what is the blood-brain barrier and how can we overcome it?</a>
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<p>Once phenibut reaches the brain the result is reduced anxiety and social inhibition. Because it depresses the central nervous system (like GABA), it is also used as a <a href="https://www.ncbi.nlm.nih.gov/pubmed/11830761">mood elevator and tranquiliser</a>.</p>
<p>Phenibut is structurally similar to the widely prescribed drug <a href="https://www.drugs.com/baclofen.html">baclofen</a> (Lioresal), which is available in Australia. Baclofen is prescribed as a muscle relaxant for patients with conditions such as multiple sclerosis.</p>
<h2>What is it used for?</h2>
<p>Phenibut can be used to treat anxiety, post-traumatic stress disorder, alcohol withdrawal syndrome and vestibular (balance) disorders such as vertigo. It is also <a href="https://www.ncbi.nlm.nih.gov/pubmed/26693960">used recreationally</a> in many countries including the United States, United Kingdom and Australia to reduce social anxiety and induce feelings of euphoria.</p>
<p>Animal studies <a href="https://www.sciencedirect.com/science/article/pii/S1043661815301225">also show it has potential</a> to improve brain function after a stroke. </p>
<p>Phenibut is <a href="https://www.ncbi.nlm.nih.gov/pubmed/26693960">not licenced</a> for use in the European Union, Australia or the United States due to safety concerns. In Australia specifically, the drug regulator, the Therapeutic Goods Administration (TGA) has <a href="https://www.tga.gov.au/book-page/23-phenibut">rejected 11 public submissions</a> for registration and states that phenibut “represents a significant risk of harm, including overdose”.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/207812/original/file-20180226-140217-78pliq.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/207812/original/file-20180226-140217-78pliq.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/207812/original/file-20180226-140217-78pliq.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=277&fit=crop&dpr=1 600w, https://images.theconversation.com/files/207812/original/file-20180226-140217-78pliq.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=277&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/207812/original/file-20180226-140217-78pliq.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=277&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/207812/original/file-20180226-140217-78pliq.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=348&fit=crop&dpr=1 754w, https://images.theconversation.com/files/207812/original/file-20180226-140217-78pliq.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=348&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/207812/original/file-20180226-140217-78pliq.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=348&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">In Russia, Phenibut is sold commercially.</span>
<span class="attribution"><a class="source" href="http://www.apteka0303.com.ua/notes.php?lek=1000374">Screenshot</a></span>
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<p>Although phenibut is commercially available in few countries around the world, aside from Russia, a <a href="https://www.ncbi.nlm.nih.gov/pubmed/26693960">recent study</a> showed that 48 unrelated internet suppliers sold phenibut from the United Kingdom, United States, China, Australia and Canada. In Russia and the Ukraine, it is commercially available as БИФРЕН® (Bifren) and <a href="https://www.ncbi.nlm.nih.gov/pubmed/24713208">daily doses</a> range from 500 to 2000 mg.</p>
<p>Phenibut was available as a powder in amounts ranging from 5 g to 1,000 kg and as capsules containing 200–500 mg in packs of between six and 360. </p>
<h2>How was was it developed?</h2>
<p>Phenibut was first synthesised in Russia in the 1960s by Vsevolod Vasilievich Perekalin and his associates at the Department of Organic Chemistry of the Herzen Pedagogical Institute in St Petersburg, Russia. In <a href="https://www.ncbi.nlm.nih.gov/pubmed/11830761">initial publications</a>, phenibut was known as phenigamma. </p>
<p>The drug <a href="https://www.ncbi.nlm.nih.gov/pubmed/661205">used to be included</a> in medical kits for cosmonauts on Russian space flights due to the reports of enhanced cognition and high tranquilising properties.</p>
<h2>Side effects</h2>
<p>Side effects of phenibut are generally linked to its central nervous system depressant effects, such as sedation and problems with breathing. </p>
<p>There is currently limited information about phenibut. But because it has <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3604470/">similar pharmacological properties to baclofen</a> it’s likely to have similar side effects. </p>
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Read more:
<a href="https://theconversation.com/explainer-how-do-drugs-work-48665">Explainer: how do drugs work?</a>
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<p>These include gastrointesinal symptoms (nausea, vomiting, diarrhoea), central nervous system symptoms (insomnia, confusion, euphoria, depression, hallucinations), and visual disturbances and musculoskeletal symptoms (such as tremors).</p>
<p>Users of phenibut can also <a href="https://www.ncbi.nlm.nih.gov/pubmed/26693960">develop tolerance</a> within days, needing more of the drug to feel the same effects. This can increase the risk of adverse effects. Users may develop withdrawal effects, such as severe rebound anxiety and insomnia, when they stop taking the drug. </p>
<p>Despite phenibut not being registered or legally available in Australia, the TGA has received <a href="http://apps.tga.gov.au/PROD/DAEN/daen-report.aspx">three reports</a> of problems related to phenibut use in the past five years. These cases range from isolated symptoms of headaches, to a cluster of symptoms such as visual impairment, muscle spasms, palpitations and nausea/vomiting. </p>
<p><a href="https://sdtreatmentcenter.com/phenibut/">Signs of overdose</a> include: shallow irregular breathing; drowsiness and lethargy; increased sweating; decreasing blood pressure; nausea and vomiting; and lowering body temperature. </p>
<p>The reported adverse events of phenibut are just scratching surface of a largely unregulated online drug market with no standards of quality assurance. So for those students seeking the competitive edge, it looks like those extra marks are not worth it after all.</p><img src="https://counter.theconversation.com/content/92339/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Janet Cheung has received funding from the Fonds de recherche Nature et technologies (FRQNT), Quebec Canada</span></em></p><p class="fine-print"><em><span>Jonathan Penm does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Phenibut is a central nervous system depressant, and is currently being investigated for its possible role in seven overdoses at a Queensland school.Janet Cheung, Lecturer in Pharmacology, University of SydneyJonathan Penm, Lecturer (Pharmacy), University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/914782018-02-14T02:25:14Z2018-02-14T02:25:14ZAs selling pets online becomes normal, we need to regulate it<figure><img src="https://images.theconversation.com/files/205893/original/file-20180212-58312-3dm73g.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">nevermindtheend/Flickr</span>, <a class="license" href="http://creativecommons.org/licenses/by-nc-nd/4.0/">CC BY-NC-ND</a></span></figcaption></figure><p>The online sale of pets is increasing, with more than 31,000 dogs and 24,000 cats relinquished a year through online marketplace <a href="http://www.mdpi.com/2076-2615/8/2/25">Gumtree</a> alone. Our research shows this online market is worth an estimated A$14 million a year, just through this one platform. </p>
<p>Many other websites also allow people to sell their pets, so this number is likely only the tip of the iceberg. With this online trade becoming normalised, regulation is now needed to protect animals.</p>
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Read more:
<a href="https://theconversation.com/the-growing-demand-for-pet-friendly-workplaces-90428">The growing demand for pet-friendly workplaces</a>
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</em>
</p>
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<p>Trading pets online comes with many animal welfare risks. By relying on photos and seller descriptions of animals, potential buyers might be inadvertently supporting puppy farms or poor breeding practices. According to the <a href="http://www.rspcapuppyguide.com.au/">RSPCA’s Smart Puppy Buyers Guide</a>, if a seller is unwilling to allow you to visit their property, it’s a red flag. </p>
<p>With the rise of pet transportation companies, you can now buy a dog or cat online and get it delivered to your door without ever having left your home. However, this often means animals are transported long distances at young ages, with some breeds at greater risk of <a href="http://kb.rspca.org.au/What-do-I-need-to-consider-before-transporting-my-pet-by-air_522.html">conditions like heat stroke</a> than others.</p>
<p>The risks of buying a pet online extend beyond the animal’s welfare. The Western Australian Commissioner for Consumer Protection David Hillyard <a href="https://www.commerce.wa.gov.au/announcements/commissioners-blog-puppy-purchase-problems">recommends</a> you physically inspect a puppy and its parents before purchasing, to avoid being the victim of a scam or ending up with a sick or diseased animal.</p>
<p>Although purchasing a pet online is subject to the same consumer guarantees as other “<a href="https://www.commerce.wa.gov.au/publications/consumers-guide-buying-pet">products</a>”, the reality of exchanging or refunding a puppy you have fallen in love with is very different.</p>
<h2>Buying and selling animals on Gumtree</h2>
<p>We examined all the Gumtree ads for dogs and cats for February 2016. Far more cats were advertised as free (62%) versus dogs (23%). Dogs also commanded higher prices than cats, with some dogs advertised up to A$7,000 online. This compared with up to $2,500 for a cat. </p>
<p>The total value of the Gumtree ads we analysed was around A$1 million for dogs, but only A$155,000 for cats. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/205902/original/file-20180212-58315-19ilz41.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/205902/original/file-20180212-58315-19ilz41.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/205902/original/file-20180212-58315-19ilz41.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=454&fit=crop&dpr=1 600w, https://images.theconversation.com/files/205902/original/file-20180212-58315-19ilz41.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=454&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/205902/original/file-20180212-58315-19ilz41.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=454&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/205902/original/file-20180212-58315-19ilz41.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=570&fit=crop&dpr=1 754w, https://images.theconversation.com/files/205902/original/file-20180212-58315-19ilz41.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=570&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/205902/original/file-20180212-58315-19ilz41.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=570&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Puppies being sold on Gumtree for free or prices up to A$7,000.</span>
<span class="attribution"><span class="source">Screenshot</span></span>
</figcaption>
</figure>
<p>Young animals were traded more often on Gumtree, with most cats aged nine months and most dogs aged 1.4 years. More purebred animals were advertised on Gumtree, compared with PetRescue, a website that helps shelters and councils to rehome pets. </p>
<p>The top three breeds on both Gumtree and PetRescue were the Staffordshire Bull Terrier, Kelpie and American Staffordshire Terrier. The Ragdoll was the top cat breed listed, however most cats were probably Domestic Short Hairs (or “moggies”).</p>
<p>We also surveyed some of those who posted the ads online about why they decided to relinquish their pet that way. One person told us they wanted to interview new owners to make sure they found a good home for their pet. Another told us that the local shelter wouldn’t take their animal and they were afraid their pet would be put down in a shelter.</p>
<p>All of the people who responded to the survey indicated they genuinely cared for their pet - but it’s likely there are many others who just want to get rid of an unwanted animal. </p>
<h2>How to regulate the pet marketplace online</h2>
<p>Pet Advertising Advisory Groups have been established in Ireland and the UK for more than 15 years, and more recently in <a href="https://www.dogandcatwelfare.eu/news/belgium-launches-new-animal-welfare-initiative-tac/">Belgium</a>. These groups encourage websites to adopt minimum standards in animal advertising and report rogue or unethical ads. </p>
<p>Almost all sites that sell animals rely on users to notify them of breaches, which is even more difficult when websites lack clear animal advertising policies. </p>
<p>In Victoria, the state government has <a href="http://agriculture.vic.gov.au/pets/domestic-animal-businesses/breeding-and-rearing-businesses/microchip-numbers-needed-in-pet-sale-advertisements">made it mandatory</a> to list the microchip number at the point of sale, with both seller and website liable if a number isn’t listed. As a result, websites such as Gumtree now make it a requirement for dog and cat advertisements originating from Victoria.</p>
<p>But unfortunately this hasn’t been extended to other states where listing the microchip number is not yet mandatory. This is where voluntary guidelines would come into play.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/pets-and-our-health-why-we-should-take-them-more-seriously-47774">Pets and our health: why we should take them more seriously</a>
</strong>
</em>
</p>
<hr>
<p>Similarly, in South Australia from July 1, 2018 it will be compulsory to provide a breeder registration number at the point of sale for puppies and kittens. This will also be mandatory for online sites based in South Australia, but it won’t apply where advertising is occurring across Australia.</p>
<p>The UK government is currently <a href="http://www.independent.co.uk/news/uk/home-news/puppy-sales-banned-pet-shop-dog-rescue-rspca-michael-gove-government-defra-a8199951.html">considering legislation</a> to ban all third party sales of pets, meaning you couldn’t buy a new puppy or kitten without meeting the animal in person. </p>
<p>However, if Australia goes the same way as the European Union, the online sale of pets might become the <a href="https://s3-eu-west-1.amazonaws.com/assets.dogandcatwelfare.eu/live/media/publicationtemp/12195_-_EU_Pet_sales_report_spreads.pdf">most common way</a> to buy a pet in the future. Before this happens, we must develop adequate regulations to protect consumers and animals alike and help stem a growing animal welfare problem.</p><img src="https://counter.theconversation.com/content/91478/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Bronwyn Orr works for RSPCA Australia. She is affiliated with the Australian Veterinary Association. </span></em></p><p class="fine-print"><em><span>Susan Hazel receives funding from the Pet Welfare Foundation. She is affiliated with the Australian Veterinary Association.</span></em></p>As the online trade of pets becoming normalised, regulation is now needed to protect animals.Bronwyn Orr, Veterinarian and PhD candidate, University of SydneySusan Hazel, Senior Lecturer, School of Animal and Veterinary Science, University of AdelaideLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/764892017-05-24T02:24:25Z2017-05-24T02:24:25ZHow Trump and Tom Price can kill Obamacare without the Senate<figure><img src="https://images.theconversation.com/files/170614/original/file-20170523-5799-1ibzrw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Pres. Trump and HHS Secretary Tom Price in the Oval Office on March 24, 2017, the day the original version of the AHCA was pulled. </span> <span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Health-Overhaul-Insurance-Woes/06fc908af42245288532b7c0810ed925/54/0">Pablo Martinez Monsivais/AP</a></span></figcaption></figure><p>Senate leadership has indicated that passage of the American Health Care Act <a href="http://www.newsmax.com/Politics/AHCA-Senate-Mitch-McConnell-repeal-and-replace/2017/05/08/id/788850/">“will not be quick,”</a> but it may not matter. </p>
<p>Individual insurance markets already are shaky, in limbo by a lawsuit that challenges subsidies to help pay out-of-pocket costs for low-income people.</p>
<p>Even without congressional or judicial actions, the White House and Health and Human Services Secretary Tom Price have many tools at their disposal to significantly reshape the Affordable Care Act through <a href="https://www.cambridge.org/core/journals/american-political-science-review/article/influence-and-the-administrative-process-lobbying-the-us-presidents-office-of-management-and-budget/638F34BC73235AB4833C852B24C431AF">regulatory action</a>. </p>
<p>The ACA’s Essential Health Benefits provisions provide an illustrative example, and one that is not getting nearly the attention of the subsidies.</p>
<p>Having conducted research on <a href="https://www.cambridge.org/core/journals/american-political-science-review/article/influence-and-the-administrative-process-lobbying-the-us-presidents-office-of-management-and-budget/638F34BC73235AB4833C852B24C431AF">regulatory policymaking</a> and the <a href="http://jhppl.dukejournals.org/content/40/2/281.short">Affordable Care Act</a>, particularly the <a href="http://www.healthpolicyjrnl.com/article/S0168-8510(14)00260-7/fulltext?cc=y=">implementation of its Essential Health Benefits provisions</a>, I can show you how. </p>
<h2>Where we are with Essential Health Benefits</h2>
<p>The Essential Health Benefits have long been a bane for conservatives, who see them as <a href="https://theconversation.com/essential-health-benefits-suddenly-at-center-of-health-care-debate-but-what-are-they-75125">unnecessarily driving up premiums and denying consumer choice</a>. These provisions require health plans sold in the ACA insurance marketplaces to offer a set of <a href="http://www.sciencedirect.com/science/article/pii/S0168851014002607">10 basic benefits including hospitalization, prescription drugs and outpatient coverage</a>.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/170621/original/file-20170523-5749-1vkl0r0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/170621/original/file-20170523-5749-1vkl0r0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=359&fit=crop&dpr=1 600w, https://images.theconversation.com/files/170621/original/file-20170523-5749-1vkl0r0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=359&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/170621/original/file-20170523-5749-1vkl0r0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=359&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/170621/original/file-20170523-5749-1vkl0r0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=451&fit=crop&dpr=1 754w, https://images.theconversation.com/files/170621/original/file-20170523-5749-1vkl0r0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=451&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/170621/original/file-20170523-5749-1vkl0r0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=451&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Hospitalization has been considered one of 10 essential health benefits.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/download/confirm/479848288?src=R1P9l2D-alILjqnx4o7Hfg-1-8&size=huge_jpg">Press Master/Shutterstock</a></span>
</figcaption>
</figure>
<p><a href="http://www.sciencedirect.com/science/article/pii/S0168851014002607">Implementing the EHB provisions of the ACA</a>, like hundreds of its components, was delegated to the Department of Health and Human Services (HHS). At the time the ACA was passed, the secretary of that department was Kathleen Sebelius, a moderate Democrat from Kansas.</p>
<p>Now the secretary is Tom Price, a very conservative Republican and a doctor who has been one of the ACA’s <a href="https://www.nytimes.com/2016/11/28/us/politics/tom-price-secretary-health-and-human-services.html">most ardent critics</a>.</p>
<p>With the help of the Institute of Medicine (IOM), the Obama administration HHS developed a broad set of guidelines. Shying away from setting a national standard, states were left with significant leeway in implementing the EHB.</p>
<p>Not surprisingly, states took many <a href="http://www.sciencedirect.com/science/article/pii/S0168851014002607">approaches to developing their EHB based on the HHS guidelines</a>. While all states are required to cover the bare minimum services outlined by the ACA as defined by HHS, states differ significantly in what additional benefits were included. For example, <a href="http://www.sciencedirect.com/science/article/pii/S0168851014002607">19 states do not cover autism treatments and 28 do not cover any infertility treatments</a>.</p>
<p>Fast forward to 2017, with a Republican majority in Congress and a Republican in the White House. </p>
<p>Unable to obtain the necessary votes for the original version of the American Health Care Act, Speaker Paul Ryan (R-WI) initially sought to woo conservatives by offering the elimination of the ACA’s Essential Health Benefits provision. </p>
<p>The final version of the AHCA passed in the House did not eliminate the Essential Health Benefits outright. However, it allowed states to seek a waiver to come up with their definition to exclude any or all of the 10 basic benefits included in the Affordable Care Act.</p>
<h2>What’s Next for the EHB</h2>
<p>Even while the AHCA meanders through the congressional lawmaking process, major changes to the EHB are possible through regulatory action. </p>
<p>The hands-off approach taken by the Obama administration in developing the EHB was based on pragmatism and political expediency. Hoping to limit opposition, it sought expert counsel and provided states with significant discretion. </p>
<p>The White House and HHS Secretary Price could equally use the <a href="http://onlinelibrary.wiley.com/doi/10.1111/j.1541-0072.2012.00446.x/full">vast delegated powers of the ACA</a> to significantly reshape the signature accomplishment of President Obama. This particularly applies to the EHB.</p>
<h2>Option 1: New HHS regulations preempting state regulation</h2>
<p>One option is a wholesale reversal of the Obama administration’s approach with regard to the implementation of the EHB. The Obama administration relied on setting broad guidelines and a benefits floor while <a href="http://www.sciencedirect.com/science/article/pii/S0168851014002607">relying on states to select their preferred approach</a>. </p>
<p>Instead, HHS and Secretary Price could exclude states from the decision-making process on EHBs. Specifically, the federal government could issue a standard national package that would be applicable nationwide. </p>
<p>Given the history of opposition to the ACA and the EHB in particular <a href="http://files.kff.org/attachment/Proposals-to-Replace-the-Affordable-Care-Act-Rep-Tom-Price">by Secretary Price</a>, it seems likely that the federally defined EHB would be reduced to the absolute minimum package of benefits required by the ACA. This approach would constitute a dramatic shift from the Obama administration, <a href="http://journals.cambridge.org/article_S0898030615000330">but it would not be without historical precedent</a>. </p>
<h2>Option 2: New HHS regulation giving more leeway to states</h2>
<p>Of course, strong-arming states into accepting federal regulations clashes ideologically with traditional Republican concerns about the preservation of <a href="http://onlinelibrary.wiley.com/doi/10.1111/puar.12065/full">state sovereignty</a>. The more likely option follows the procedural precedent of the Obama administration. It preserves the current regulatory division of labor: The federal government continues to set broad standards and relies on states to develop state-specific benefit packages. </p>
<p>However, this approach would likely also involve the softening of current EHB standards. To do this, Secretary Price would first reduce the minimum benefit package required to make insurance plans ACA-compliant. The implementation of actual standards would continue to rest with the states.</p>
<p>The important question here is whether the Trump administration and Secretary Price would allow progressive states like California to maintain more comprehensive benefit packages. Most importantly, it remains to be seen whether states would be required to incur any additional financial burdens, or whether federal subsidies would fully apply to the more comprehensive benefits package. </p>
<h2>Moving forward</h2>
<p>Despite <a href="http://kff.org/interactive/kaiser-health-tracking-poll-the-publics-views-on-the-aca/">increasing support by a majority of Americans</a>, the future of the ACA remains far from certain. The same applies to the so-called Essential Health Benefits provisions and hundreds of other components of the Affordable Care Act. </p>
<p><a href="https://theconversation.com/essential-health-benefits-suddenly-at-center-of-health-care-debate-but-what-are-they-75125">As I have written previously</a>, the EHBs are a crucial component of the insurance market reforms enacted in the ACA. Others include the requirement for most Americans to obtain insurance coverage and the requirement for insurers to accept all comers regardless of preexisting conditions. However, while congressional efforts to alter the ACA receive significant media and public attention, regulatory approaches to undoing the ACA are <a href="http://journals.cambridge.org/article_S0003055415000246">much less transparent, more complex and attract much less scrutiny and public involvement</a>. </p>
<p>Ultimately, Republicans may prove much more successful in undoing the ACA through the regulatory pathway, while leaving many if not all of its statutory portions intact.</p><img src="https://counter.theconversation.com/content/76489/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Simon F. Haeder does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Pres. Trump has been saying for months that Obamacare will ‘explode’ on its own. He and HHS Secretary Tom Price have a lot of power to make it do so, thus making it appear that law was a failure.Simon F. Haeder, Assistant Professor of Political Science, West Virginia UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/764572017-04-21T01:25:23Z2017-04-21T01:25:23ZImposing GST on low-value imports doesn’t level the playing field<p>The government wants to extend GST to imported online goods under A$1000, effective from 1 July 2017, with <a href="http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22chamber%2Fhansardr%2F345ee0b5-7f9d-47ea-a37c-53d1b10edff0%2F0030%22">Treasurer Scott Morrison stating</a> it will “establish a level playing field for our domestic retailers”. But the proposed legislation doesn’t do this. Rather, it unfairly imposes GST on goods purchased from overseas sellers, that wouldn’t be subject to GST if purchased from an Australian seller.</p>
<p>The government also hasn’t cleared up how the collection will be adequately enforced. Without appropriate enforcement, collecting more revenue from this tax seems unlikely.</p>
<p>Currently, low-value imports (those with a customs value of A$1,000 or less) are exempt from GST. If the legislation is passed, overseas vendors who sell more than A$75,000 of low-value goods to Australian consumers would be required to register for GST, and collect and remit GST on low-value goods to the ATO. </p>
<p>Those imports will continue to be stopped at the border with any GST, customs duty, and associated fees paid to Australian Border Force by the importer before the goods are released. </p>
<p>For sellers of low-value goods it will mean that an overseas supplier of both low and high value goods will be subject to two separate tax regimes. The requirement to collect GST will apply only to low-value goods.</p>
<h2>Online marketplaces and mail forwarding services</h2>
<p>The new law will also apply to online marketplaces such as eBay and “redeliverers” - businesses that forward goods to Australia from overseas companies. For goods purchased through an online marketplace, the marketplace rather than the seller will be treated as the supplier. Similarly, if low-value goods are delivered to Australia by a redeliverer, they will be considered to be the supplier for GST purposes. </p>
<p>While extending the GST to these goods is meant to level the playing field between overseas and Australian vendors, treating the online marketplace or mail forwarder as the supplier of goods is inconsistent with the treatment of domestic transactions. </p>
<p>As eBay has stated in their <a href="http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/GSTLowValueGoods/Submissions">submission to the Senate Committee</a>: “eBay is not a seller. eBay is a third-party online marketplace that simply connects buyers and sellers”. </p>
<p>For Australian vendors who sell items on eBay, it’s the individual seller who is responsible for collecting and remitting GST on products they sell (if they are required to be registered). A seller who uses eBay, but isn’t carrying on an enterprise or does not meet the A$75,000 turnover threshold, isn’t required to be registered and would not be required to collect GST on their sales. </p>
<p>However, the proposed legislation does not treat overseas vendors in this way, by treating online marketplaces and mail forwarding services as the supplier of goods. <a href="http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22chamber%2Fhansardr%2F345ee0b5-7f9d-47ea-a37c-53d1b10edff0%2F0030%22">The Treasurer stated that</a>: </p>
<blockquote>
<p>Including online marketplaces ensures that only a limited number of entities need to collect the GST, rather than the multitude of small, individual vendors making supplies through these online marketplaces that compete with Australian retailers here in Australia. </p>
</blockquote>
<p>With all due respect to Scott Morrison, he seems to have missed the point that small, individual vendors should not (if their turnover of low-value goods into Australia is less than A$75,000) be required to collect GST merely because they use an online marketplace. </p>
<p>EBay has gone as far as stating in their submission that: “Regrettably, the Government’s legislation may force eBay to prevent Australians from buying from foreign sellers”. This is because they would not be able to comply with the requirements imposed under the new legislation. </p>
<h2>Compliance concerns</h2>
<p>Despite the legislation being intended to come into effect on 1 July of this year, it is still unclear <a href="https://theconversation.com/three-holes-in-hockeys-plan-to-levy-gst-on-overseas-purchases-46460">how the new system will be adequately enforced</a>. </p>
<p>At the moment, information displayed on international mail declarations doesn’t indicate whether the overseas supplier is registered (or required to be registered) for GST. It also doesnt say whether GST has been collected, and whether it is being correctly remitted to the ATO. Even if this information was readily available, it’s not clear how the ATO would deal with non-compliant entities. </p>
<p>If it was determined that GST had not been charged and collected by the overseas supplier of the low-value goods, there is nothing in the proposed legislation that would allow the GST to be collected from the importer (instead of the supplier) when the goods enter Australia. However, attempting to enforce an Australian tax debt against a non-compliant overseas vendor would be a complex, costly, and likely fruitless endeavour. </p>
<p>Consumer advocate group <a href="https://www.choice.com.au/shopping/online-shopping/buying-online/articles/gst-overseas-website-block">Choice has expressed concern</a> that the government would use powers under the Telecommunications Act to block the websites of non-compliant entities. However, <a href="http://www.news.com.au/finance/business/retail/government-mulls-online-shopping-lockouts-in-gst-crackdown/news-story/19e3cf3d3eb533dcc93293cfeac88db1">Scott Morrison has indicated</a> that the government has no intention of using this power. </p>
<p>Concerns regarding enforcement have been echoed in a number of submissions, including the <a href="http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/GSTLowValueGoods/Submissions">Taxation Institute of Australia and Amazon</a>. Both highlight the fact that lack of enforcement may simply encourage Australian consumers to purchase goods from non-compliant overseas entities that are not charging GST.</p>
<p>By treating online marketplaces and mail forwarding services as the supplier of goods, the proposed legislation does not treat overseas vendors in the same way as domestic vendors. The tax will only be effective if the system for collecting GST on imports can be adequately enforced. Without appropriate enforcement, high levels of compliance seems unlikely. A lack of compliance will continue to leave Australian retailers at a disadvantage, with only minimal increase in GST revenue.</p><img src="https://counter.theconversation.com/content/76457/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Kathrin Bain does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The governments move to include low-value online bought goods in the GST doesn’t treat overseas and local sellers in the same way.Kathrin Bain, Lecturer, School of Taxation & Business Law, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/742462017-03-09T04:20:10Z2017-03-09T04:20:10ZHouse plan to replace Obamacare ‘has Republican DNA,’ especially regarding mandate<figure><img src="https://images.theconversation.com/files/160070/original/image-20170308-24182-8dbqmn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">House Majority Whip Steve Scalise of Louisiana, left, joined by Rep. Phil Roe, R-Tenn., holds up a copy of the original Affordable Care Act bill during a news conference on Capitol Hill, Wed., March 8, 2017.
</span> <span class="attribution"><span class="source">J. Scott Applewhite/AP</span></span></figcaption></figure><p>Among Obamacare’s many provisions, none was more galling to Republicans than the individual mandate, which required Americans above a certain income to buy insurance. It was the subject of a lawsuit that went to the <a href="http://www.washingtonpost.com/wp-srv/politics/documents/supreme-court-health-care-decision-text.html">U.S. Supreme Court</a> – and survived. </p>
<p>Republican proposals to reform Obamacare have centered on repealing the mandate and thus the penalty on people who don’t buy comprehensive insurance coverage.</p>
<p>The House bill introduced by GOP leaders on March 6 <a href="http://www.cnn.com/2017/03/06/politics/republicans-public-obamacare-plan/">does just that</a>. The question now is whether the bill contains enough incentives to keep enough healthy people in the pool of people who desire coverage. ACA architects insisted that the mandate was necessary to bring healthy people into those pools.</p>
<p>The GOP plan would try to encourage people to maintain coverage by allowing insurers to impose a <a href="http://healthaffairs.org/blog/2017/03/07/examining-the-house-republican-aca-repeal-and-replace-legislation/">30 percent surcharge</a> for those who do not have continuous coverage. For example, an individual with continuous insurance coverage will pay a standard rate for her age and family size. However, if she had a lapse in coverage of more than 63 days due to a job change or perhaps financial difficulties, insurers could charge her up to 130 percent of the standard rate for her first year of coverage.</p>
<p>Ironically, Republicans argued the penalties for not having insurance were too low to induce the young and healthy to enroll in Obamacare, leading to higher premiums and destabilizing the market. Yet the proposed surcharge is significantly weaker than the current mandate.</p>
<p>For the average person, a one-year, 30 percent increase in premium is less than 2.5 percent of income under Obamacare. Further, the Obamacare penalty is per year without insurance, so a healthy person opting out of coverage for five years would pay a lot more in penalty under Obamacare. </p>
<p>Thus young, healthy people are more likely to forgo coverage until they get sick under the House proposal. In turn, I believe insurers are likely to increase premiums under the House plan as more people who are healthy opt to go without coverage. </p>
<p>There are additional components of the House proposal that could mitigate these concerns – while raising other issues. </p>
<p>Under Obamacare, insurers can charge an older person in the plan <a href="https://www.nytimes.com/interactive/2017/03/06/us/politics/republican-obamacare-replacement.html">only three times </a>as much as the youngest. The Republican plan would allow them to charge <a href="http://www.insurancejournal.com/news/national/2017/03/07/443796.htm">five times as much</a>, which should lower premiums for the young and healthy. </p>
<p>The House proposal also includes age-based tax credits that disproportionately favor the young, and would allow insurers to offer less generous policies that would appeal to healthier individuals. </p>
<p>Moving from a mandate to continuous coverage should exacerbate concerns of adverse selection (young and healthy opting out), all else constant. However, the other components of the plan that are advantageous to the young and healthy will offset this effect to some degree. </p>
<p>On the other hand, if insurers are allowed to sell bare-bones policies that have a minimal actuarial value, the market could segment high and low-risk individuals and destabilize quickly.</p>
<p>While important details remain to be worked out, including the size and distribution of tax credits for purchasing insurance, the House proposal has Republican DNA, emphasizing free markets and individual choice, and benefiting those who are higher income and healthy.</p><img src="https://counter.theconversation.com/content/74246/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Geoffrey Joyce does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Republicans opposed Obamacare’s mandate as much as they decried any part of the bill. How would their replacement idea, pegged to incentives, work?Geoffrey Joyce, Chair & Associate Professor, Department of Pharmaceutical & Health Economics, University of Southern CaliforniaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/544832016-03-06T19:05:43Z2016-03-06T19:05:43ZWhy startup investors love online marketplaces<figure><img src="https://images.theconversation.com/files/112787/original/image-20160224-32745-fr9i0p.jpg?ixlib=rb-1.1.0&rect=806%2C530%2C3475%2C1882&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A third generation of Online Marketplaces that combine workflow and networks are changing the underlying economics of many industries.</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/tiffany98101/23790127621/">tiffany98101/flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p>Online marketplaces, also known as platform companies, are sprouting up everywhere and redefining business in every industry. “The Uber of ….” has become shorthand for tech startups looking to redefine the way everything is delivered, from legal services (Sydney-based <a href="https://lawpath.com.au/">LawPath</a>) to Package deliveries (San Francisco-based <a href="https://www.doorman.co/">Doorman</a>), to Lottery services (Gibraltar-based <a href="https://www.lottoland.com/">Lottoland</a>). </p>
<p>Paris-based <a href="http://www.videdressing.us/">Videdressing</a> offers global aftermarket luxury branded fashion and Los Angeles-based <a href="https://dogvacay.com/">DogVacay</a> is an Airbnb-style online marketplace for dog vacations that has created a network of more than 20,000 pet sitters. It has raised more than US$45 million from investors. </p>
<p>Major online marketplaces are attracting the attention of leading technology investors. Last year Sydney-based <a href="https://expert360.com/">Expert360</a>, the global marketplace for consulting talent, attracted A$4 million; <a href="https://www.artsy.net/">Artsy</a> - the NY based global marketplace for artwork - closed US$25 million, and <a href="https://www.shyp.com/">Shyp</a> the San Franscisco based on-demand shipping services marketplace finalised another $US50 million in investment. </p>
<p>There are currently 5,723 early stage private online marketplace companies listed on <a href="https://angel.co/">AngelList</a> the leading online marketplace for investors in early stage technology startups. The average valuation is US$4.5 million - so that is about US$25 billion worth of early stage startups in this area. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/112061/original/image-20160219-1283-165q2j1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/112061/original/image-20160219-1283-165q2j1.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/112061/original/image-20160219-1283-165q2j1.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/112061/original/image-20160219-1283-165q2j1.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/112061/original/image-20160219-1283-165q2j1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/112061/original/image-20160219-1283-165q2j1.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/112061/original/image-20160219-1283-165q2j1.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Marketplaces are among the hottest startup sectors of 2016 according to many leading technology investors.</span>
<span class="attribution"><span class="source">TOMASZ TUNGUZ</span></span>
</figcaption>
</figure>
<p>The US Center for Global Enterprise this year <a href="http://thecge.net/category/research/the-emerging-platform-economy/">valued the global market</a> for online platform-based companies at US$4.3 trillion. Leading investors in the technology sector have also predicted online marketplaces and the related software-as-a-service (SAAS) companies will be the hottest areas to invest in 2016. </p>
<p>The reason digital marketplaces are so valuable and sought after by investors is they tend toward a <a href="https://theconversation.com/why-theres-no-pepsi-in-cyberspace-19902">winner takes most</a> equilibrium state. </p>
<h2>The evolution of marketplaces</h2>
<p>Great software used to be created by “hackers” or maverick programmers with a can-do spirit who toiled away in their bedrooms or university dorms to create revolutionary new applications, games and tools. Bill Gates, Steve Wozniak and Mark Zuckerberg are often cast in this role. This is not dissimilar to the modern idea of the architect — the solo iconoclast of Le Corbusier, Jørn Utzon or Frank Gehry who designed the last century’s most memorable buildings and then carefully directed others on every aspect of their construction. </p>
<p>But what if you could create a building more like a beehive — without a complete detailed design plan but instead agreement on principles and a set of rules of exchange, or in other words, using a market. </p>
<p>In his classic and influential essay and later book “<a href="http://www.catb.org/esr/writings/cathedral-bazaar/">The Cathedral and Bazaar</a>” Eric S. Raymond contrasts two methods of developing software — one the “Cathedral” method where a small elite group of developers work on the software, versus the “Babbling Bazaar” approach pioneered by Linus Torvalds who led the formation of Linux, the open source software system that today powers most of the web. </p>
<p>Torvalds demonstrated how great and complex products like a computer operating system could incorporate many people’s diverse ideas. This could be done by using the web as an organising force and a variety of tools to enable systematic incorporation of their labour. Wikipedia is a similar example of a “great cathedral” built with decentralised authority and a series of marketplace rules.</p>
<hr>
<h2>Person-to-person marketplaces</h2>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/112035/original/image-20160218-1283-d4w0fn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/112035/original/image-20160218-1283-d4w0fn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=391&fit=crop&dpr=1 600w, https://images.theconversation.com/files/112035/original/image-20160218-1283-d4w0fn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=391&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/112035/original/image-20160218-1283-d4w0fn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=391&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/112035/original/image-20160218-1283-d4w0fn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=491&fit=crop&dpr=1 754w, https://images.theconversation.com/files/112035/original/image-20160218-1283-d4w0fn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=491&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/112035/original/image-20160218-1283-d4w0fn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=491&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Person to person marketplaces from Online Gravity.</span>
<span class="attribution"><span class="source">Online Gravity by Paul X McCarthy, Simon & Schuster, 2015, Page 106</span></span>
</figcaption>
</figure>
<hr>
<h2>Where to next — Alchemy marketplaces</h2>
<p>After two generations of online services marketplaces, we’re now entering a third I call Alchemy marketplaces. </p>
<p>The first generation of online services provided Advice marketplaces (forums for review and recommendations such as restaurant review websites and investment discussion boards). A second generation of services enabled Access marketplaces to transact online (such as registering domain names, buying shares or applying for jobs online); and now we’re seeing a third generation of services i call Alchemy marketplaces that combine networks, workflows with real world people and things such as transport (Uber); accommodation (Airbnb) and work (Freelancer.com). </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/112067/original/image-20160219-1233-1nlrrzq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/112067/original/image-20160219-1233-1nlrrzq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=283&fit=crop&dpr=1 600w, https://images.theconversation.com/files/112067/original/image-20160219-1233-1nlrrzq.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=283&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/112067/original/image-20160219-1233-1nlrrzq.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=283&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/112067/original/image-20160219-1233-1nlrrzq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=355&fit=crop&dpr=1 754w, https://images.theconversation.com/files/112067/original/image-20160219-1233-1nlrrzq.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=355&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/112067/original/image-20160219-1233-1nlrrzq.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=355&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Three Generations of Online Services.</span>
<span class="attribution"><span class="source">Online Gravity by Paul X. McCarthy, Simon & Schuster, 2015, p129.</span></span>
</figcaption>
</figure>
<p><strong>Satellite formation</strong> </p>
<p>In these sophisticated and often global Third generation marketplaces, a number of new trends are beginning to emerge, including formation of satellite businesses, support for agents and matrix-like automation support for third parties. </p>
<p>Once online marketplaces are established and begin to mature, we are seeing aggregation within the marketplaces themselves. Markets that started by connecting individuals to each other are evolving. For example we are seeing Airbnb landlords who own multiple properties with a team of professional staff using the service to let their properties to tenants. </p>
<p><a href="https://www.flatbook.co/">Flatbook</a>, a company based in Canada, offers a booking service that works across hotels and Airbnb properties. It communicates with users from all stages, from taking bookings to explaining where the keys are, all via live chat often from the other side of the Atlantic.</p>
<p>New business models are emerging for companies servicing those in the marketplace itself. Uber started with individual drivers but now there are companies buying and leasing cars to drivers. </p>
<p>Indeed a whole network of smaller specialist companies are emerging around many of these marketplaces. eBay started connecting a bunch of individuals selling second-hand goods to one another whereas today it’s mainly used by small businesses.</p>
<p><strong>Agency support</strong></p>
<p>Many online marketplaces are providing support for agents - tools for small companies or freelancers to use their services to help their clients.</p>
<p>Some online services start out as consumer-facing and then switch to serving businesses. Sequoia Capital backed <a href="https://tokbox.com/">TokBox</a> started out providing real time video connections between individuals. It was a pioneer in being able to create internet based multi-person video chats before Skype and Google offered similar services. Then it changed its business model or “pivoted” to provide services to other companies that wanted to offer video services to their customers — it migrated effectively from being a retailer to becoming a wholesaler. </p>
<p>And many direct to consumer online marketplaces now also provide a facility for companies to create and on sell these services to their customers. Global online newsletter company <a href="https://www.campaignmonitor.com/">Campaign Monitor,</a> for example, provides “white label” services to enable small digital advertising agencies and graphic design firms to use their services and provide these to their clients. </p>
<p>Others are partnering with third-parties to enable a mix of online services with offline partners. The university student jobs marketplace <a href="https://ribit.net/ribit/">Ribit.net</a> partnered with Australian Fintech hub <a href="http://stoneandchalk.com.au/">Stone and Chalk</a> to help match university students with their resident startup companies.</p>
<p>And some are complementing their large automated self-service marketplaces with live and real helpers: the global online services giant <a href="https://www.freelancer.com/">Freelancer.com</a> recently introduced a new “recruitment service” that offers a human agent to help you find the perfect freelancer to match your needs. </p>
<p>Melbourne based <a href="http://marketplacer.com/">Marketplacer</a> is a leading company focused solely on making marketplaces. It has created a platform for creating other platforms. Marketplacer has now founded 7 marketplaces including <a href="https://www.bikeexchange.com/">BikeExchange,</a> which is the world’s biggest marketplace for everything bicycle-related. </p>
<p>And in a kind of a back-to-the-future development, one of the hottest new online marketplaces is not a marketplace for jobs but one for for finding human recruiters — <a href="http://recruitloop.com/">RecruitLoop</a>.</p>
<p><strong>Automation support for other people to build on</strong></p>
<p>Many online marketplaces now allow others to build new online systems that plug directly into theirs and build on top of them with what’s known as an Application Programming Interface or API. This is hugely powerful and will have serious implications for many industries and companies. </p>
<p>Many platform and marketplace companies refer to this as cultivation of their “ecosystem” - a dynamic mixture of business partners and developers that has long been part of the software industry but is now extending into all industries. </p>
<p>A good example is online accounting software company <a href="https://www.xero.com/">Xero</a> which has partnered with banks such as NAB to expedite loan approvals. It does this by sharing Xero customer accounting information online. There’s also a range of startup companies like <a href="https://muru-d.com/startups/profile/vistr/">Vistr</a> that offer cash flow forecasting services. Vistr is built on top of Xero so it means existing users can use it without re-keying any data. </p>
<p>Increasingly as online marketplaces evolve, we’ll see more of this behaviour. The complexity and quality of services that are able to be created on platforms will expand as more markets are built on top of other platforms and services.</p><img src="https://counter.theconversation.com/content/54483/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Paul X. McCarthy, Author of Online Gravity. Owns shares in some global marketplace companies including Zillow. </span></em></p>As online marketplaces mature, a raft of new service-based companies are popping up around them.Paul X. McCarthy, Adjunct Professor, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.