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Hold-outs targeted in fresh batch of noyb GDPR cookie consent complaints

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Just over a year after launching a major project targeting thousands of sites blatantly flouting cookie tracking rules in Europe, local privacy campaign group noyb has fired off another batch of complaints targeting a hardcore of website operators that it says have ignored or not fully acted upon earlier warnings to bring their cookie consent banners into compliance with the EU’s legal standard for consent, such as the General Data Protection Regulation (GDPR).

Noyb says the latest batch of 226 complaints have been lodged with 18 data protection authorities (DPAs) around the bloc.

As with earlier actions by noyb, all the complaints relate to the most widely used cookie banner software, made by OneTrust. But it’s not the software itself that’s the issue — rather the complaints target deceptive settings it found being applied. Or even no choice at all being offered to site users to deny tracking in a clear breach of the law around consent.

Deceptive cookie pop-ups have had a corrosive impact not only on the privacy rights of web users in the region, systemically stripping people of their right to protect their information, but they have also been very damaging for the reputation of EU data protection rules like the GDPR — enabling critics to blame the regulation for spawning a tsunami of annoying cookie banners despite the fact the law clearly outlaws consent theft via cynical tactics like injecting one-way friction or offering users zero opt-out ‘choice’.

The vast scale of cookie consent violations has, nonetheless, posed a major enforcement challenge for the bloc’s network of under-resourced data protection authorities — hence noyb stepping in with a smart and strategic approach to help clean up the “cookie banner terror” scourge, as its campaign couches it.

Given noyb’s focus on impact, and the extremely widespread nature of cookie consent problems, the campaign group has sought to minimize how many formal complaints it’s filing with regulators — so its partially automated compliance campaign entails sending initial complaints to the offending sites in question, offering help to rectify whatever dark patterns (or other bogus consent issues) noyb has identified.

It’s only sites that have repeatedly ignored these nudges and step-by-step compliance guidance that are being targeted for formal complaints with the relevant oversight body now.

“We want to ensure compliance, ideally without filing cases. If a company however continues to violate the law, we are ready to enforce users’ rights,” said Max Schrems, chairman at noyb, in a statement.

“After one year, we got to the hopeless cases that hardly react to any invitation or guidance. These cases will now have to go to the relevant authorities,” he added.

Thus far, noyb credits its cookie consent campaign with generating what it couches as a “large spill-over effect” — with, not only directly targeted violating consent banners being amended but some non-targeted sites also adapting their settings after they heard about the complaints. “This shows that enforcement ensures compliance beyond the individual case,” argues Schrems. “I guess many users have realized that for example more and more ‘reject’ buttons gradually appeared on many websites in the last year.”

Discussing progress to date, a spokeswoman for noyb also told us: “We have seen an increasing compliance rate in our regular scans (where we scan several thousands websites in Europe using the CMP OneTrust) after our first round of warnings last May. This is probably due to an increased awareness due to our complaints, the ‘fear’ that this law might actually be enforced and because Onetrust proactively informed their customers about our complaints and adjusted their standard settings to be ‘noyb compliant’.

“Therefore we consider those websites that still violate the GDPR despite all warnings as ‘hopeless’ cases. All of them are new cases, so none of the companies targeted already last year are in that batch.”

The so-called “hopeless” cases include a mix of (smaller) media sites, popular retailers and local pages, per noyb’s spokeswoman.

Asked for examples of pages which still violate “almost everything” (i.e. where cookie consent rules are concerned) more than a year after the group’s compliance campaign kicked off, she pointed to media sites including https://www.elle.com/ and https://www.menshealth.com/; recipe site www.delish.com; online travel agency booking.com; and fashion retailer aboutyou (in various EU countries).

Other high profile sites that are being targeted for formal complaints now — and which have remedied “at least some violations” (though not others), in noyb’s assessment — include football site fifa.com; cosmetics retailers rituals.com and clinique.at/de; and streaming giant hbo.com.

While noyb says “most” of the sites it’s formally complaining about now don’t provide users with an option to withdraw their consent to tracking, its spokeswoman noted: “Others have implemented a reject button (30% of all warned websites) but are still ignoring other aspects like deceptive designs.”

Noyb’s cookie complaints have already led to some regulatory action, with the European Data Protection Board (EDPB) establishing a special taskforce last year to coordinate responses to what the group suggests could end up as as many as 10,000 cookie consent complaints being filed — although the first DPA decisions related to complaints it lodged last year are still pending.

“We hope for the coordinated approach by the EDPB taskforce,” said its spokeswoman, adding: “The Austrian DPA so far has been the most active one in processing the complaints followed by some of the German DPAs. We hope to receive the first decisions by the end of this year.”

Now that this final round of OneTrust complaints has been filed, the not-for-profit group says it will move onto sites using other so called consent management platforms (CMPs) — expanding the scope of its automated complaint-cum-compliance platform to cover rival CMPs, such as TrustArc, Cookiebot, Usercentrics and Quantcast.

So scores more sites which haven’t been caught up in noyb’s sweeps yet, despite operating blatantly bogus consent banners, will be on the receiving end of a pointed letter vis-a-vis their cookie compliance in the near future.

In parallel with firing off lots of these letters over the past year+, noyb has also been gathering data on the impact of the cookie complaint project — and plans to issue a report on what it’s learned later this year.

Separately, France’s DPA, the CNIL, has been pretty active on cookie consent enforcement — taking some tough action against a number of tech giants (Amazon, Facebook and Google), under the ePrivacy Directive, that has enabled it to issue some major fines over abusive cookie tracking practices — and which appears to have forced (some) reform.

The ePrivacy legal route has allowed the CNIL to circumvent the GDPR’s one-stop-shop mechanism, which critics blame for undermining enforcement of the bloc’s flagship data protection regulation, especially against Big Tech, by funnelling (and bottlenecking) complaints through a handful of so-called lead DPAs (Ireland being the biggest) on account of a handful of markets having large numbers of tech giants regionally located on their soil.

noyb’s approach of filing large batches of thematic GDPR complaints is another strategy to push back against enforcement delays by simultaneously looping in DPAs across the bloc to tackle an issue, encouraging coordination, joint working and (it hopes) a pipeline of decisions that defend European citizens’ rights.

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Tesla more than tripled its Austin gigafactory workforce in 2022

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Tesla’s 2,500-acre manufacturing hub in Austin, Texas tripled its workforce last year, according to the company’s annual compliance report filed with county officials. Bloomberg first reported on the news.

The report filed with Travis County’s Economic Development Program shows that Tesla increased its Austin workforce from just 3,523 contingent and permanent employees in 2021 to 12,277 by the end of 2022. Bloomberg reports that just over half of Tesla’s workers reside in the county, with the average full-time employee earning a salary of at least $47,147. Outside of Tesla’s factory, the average salary of an Austin worker is $68,060, according to data from ZipRecruiter.

TechCrunch was unable to acquire a copy of the report, so it’s not clear if those workers are all full-time. If they are, Tesla has hired a far cry more full-time employees than it is contracted to do. According to the agreement between Tesla and Travis County, the company is obligated to create 5,001 new full-time jobs over the next four years.

The contract also states that Tesla must invest about $1.1 billion in the county over the next five years. Tesla’s compliance report shows that the automaker last year invested $5.81 billion in Gigafactory Texas, which officially launched a year ago at a “Cyber Rodeo” event. In January, Tesla notified regulators that it plans to invest another $770 million into an expansion of the factory to include a battery cell testing site and cathode and drive unit manufacturing site. With that investment will come more jobs.

Tesla’s choice to move its headquarters to Texas and build a gigafactory there has helped the state lead the nation in job growth. The automaker builds its Model Y crossover there and plans to build its Cybertruck in Texas, as well. Giga Texas will also be a model for sustainable manufacturing, CEO Elon Musk has said. Last year, Tesla completed the first phase of what will become “the largest rooftop solar installation in the world,” according to the report, per Bloomberg. Tesla has begun on the second phase of installation, but already there are reports of being able to see the rooftop from space. The goal is to generate 27 megawatts of power.

Musk has also promised to turn the site into an “ecological paradise,” complete with a boardwalk and a hiking/biking trail that will open to the public. There haven’t been many updates on that front, and locals have been concerned that the site is actually more of an environmental nightmare that has led to noise and water pollution. The site, located at the intersection of State Highway 130 and Harold Green Road, east of Austin, is along the Colorado River and could create a climate catastrophe if the river overflows.

The site of Tesla’s gigafactory has also historically been the home of low-income households and has a large population of Spanish-speaking residents. It’s not clear if the jobs at the factory reflect the demographic population of the community in which it resides.

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Launch startup Stoke Space rolls out software tool for complex hardware development

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Stoke Space, a company that’s developing a fully reusable rocket, has unveiled a new tool to let hardware companies track the design, testing and integration of parts. The new tool, Fusion, is targeting an unsexy but essential aspect of the hardware workflow.

It’s a solution born out of “ubiquitous pain in the industry,” Stoke CEO Andy Lapsa said in a recent interview. The current parts tracking status quo is marked by cumbersome, balkanized solutions built on piles of paperwork and spreadsheets. Many of the existing tools are not optimized “for boots on the ground,” but for finance or procurement teams, or even the C-suite, Lapsa explained.

In contrast, Fusion is designed to optimize simple inventory transactions and parts organization, and it will continue to track parts through their lifespan: as they are built into larger assemblies and go through testing. In an extreme example, such as hardware failures, Fusion will help teams connect anomalous data to the exact serial numbers of the parts involved.

Image credit: Stoke Space

“If you think about aerospace in general, there’s a need and a desire to be able to understand the part pedigree of every single part number and serial number that’s in an assembly,” Lapsa said. “So not only do you understand the configuration, you understand the history of all of those parts dating back to forever.”

While Lapsa clarified that Fusion is the result of an organic in-house need for better parts management – designing a fully reusable rocket is complicated, after all – turning it into a sell-able product was a decision that the Stoke team made early on. It’s a notable example of a rocket startup generating pathways for revenue while their vehicle is still under development.

Fusion offers particular relevance to startups. Many existing tools are designed for production runs – not the fast-moving research and development environment that many hardware startups find themselves, Lapsa added. In these environments, speed and accuracy are paramount.

Brent Bradbury, Stoke’s head of software, echoed these comments.

“The parts are changing, the people are changing, the processes are changing,” he said. “This lets us capture all that as it happens without a whole lot of extra work.”

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Amid a boom in AI accelerators, a UC Berkeley-focused outfit, House Fund, swings open its doors

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Companies at the forefront of AI would naturally like to stay at the forefront, so it’s no surprise they want to stay close to smaller startups that are putting some of their newest advancements to work.

Last month, for example, Neo, a startup accelerator founded by Silicon Valley investor Ali Partovi, announced that OpenAI and Microsoft have offered to provide free software and advice to companies in a new track focused on artificial intelligence.

Now, another Bay Area outfit — House Fund, which invests in startups with ties to UC Berkeley — says it is launching an AI accelerator and that, similarly, OpenAI, Microsoft, Databricks, and Google’s Gradient Ventures are offering participating startups free and early access to tech from their companies, along with mentorship from top AI founders and executives at these companies.

We talked with House Fund founder Jeremy Fiance over the weekend to get a bit more color about the program, which will replace a broader-based accelerator program House Fund has run and whose alums include an additive manufacturing software company, Dyndrite, and the managed app development platform Chowbotics, whose most recent round in January brought the company’s total funding to more than $60 million.

For founders interested in learning more, the new AI accelerator program runs for two months, kicking off in early July and ending in early September. Six or so companies will be accepted, with the early application deadline coming up next week on April 13th. (The final application deadline is on June 1.) As for the time commitment involved across those two months, every startup could have a different experience, says Fiance. “We’re there when you need us, and we’re good at staying out of the way.”

There will be the requisite kickoff retreat to spark the program and founders to get to know one another. Candidates who are accepted will also have access to some of UC Berkeley’s renowned AI professors, including Michael Jordan, Ion Stoica, and Trevor Darrell. And they can opt into dinners and events in collaboration with these various constituents.

As for some of the financial dynamics, every startup that goes through the program will receive a $1 million investment on a $10 million post-money SAFE note. Importantly, too, as with the House Fund’s venture dollars, its AI accelerator is seeking startups that have at least one Berkeley-affiliated founder on the co-founding team. That includes alumni, faculty, PhDs, postdocs, staff, students, dropouts, and other affiliates.

There is no demo day. Instead, says Fiance, founders will receive “directed, personal introductions” to the VCs who best fit with their startups.

Given the buzz over AI, the new program could supercharge House Fund, the venture organization, which is already growing fast. Fiance launched it in 2016 with just $6 million and it now manages $300 million in assets, including on behalf of Berkeley Endowment Management Company and the University of California.

At the same time, the competition out there is fierce and growing more so by the day.

Though OpenAI has offered to partner with House Fund, for example, the San Francisco-based company announced its own accelerator back in November. Called Converge, the cohort was to be made up of 10 or so founders who received $1 million each and admission to five weeks of office hours, workshops and other events that ended and that received their funding from the OpenAI Startup Fund.

Y Combinator, the biggest accelerator in the world, is also oozing with AI startups right now, all of them part of a winter class that will be talking directly with investors this week via demo days that are taking place tomorrow, April 5th, and on Thursday.

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