The New York Times reports: Like dozens of other brick-and-mortar retailers, Nordstrom wanted to learn more about its customers — how many came through the doors, how many were repeat visitors — the kind of information that e-commerce sites like Amazon have in spades. So last fall the company started testing new technology that allowed it to track customers’ movements by following the Wi-Fi signals from their smartphones.

But when Nordstrom posted a sign telling customers it was tracking them, shoppers were unnerved.

“We did hear some complaints,” said Tara Darrow, a spokeswoman for the store. Nordstrom ended the experiment in May, she said, in part because of the comments.

Nordstrom’s experiment is part of a movement by retailers to gather data about in-store shoppers’ behavior and moods, using video surveillance and signals from their cellphones and apps to learn information as varied as their sex, how many minutes they spend in the candy aisle and how long they look at merchandise before buying it.

All sorts of retailers — including national chains, like Family Dollar, Cabela’s and Mothercare, a British company, and specialty stores like Benetton and Warby Parker — are testing these technologies and using them to decide on matters like changing store layouts and offering customized coupons.

But while consumers seem to have no problem with cookies, profiles and other online tools that let e-commerce sites know who they are and how they shop, some bristle at the physical version, at a time when government surveillance — of telephone calls, Internet activity and Postal Service deliveries — is front and center because of the leaks by Edward J. Snowden. [Continue reading…]

Bloomberg News reports: GlaxoSmithKline Plc’s sales in China jumped 20 percent to about 1 billion pounds ($1.5 billion) last year, almost quadruple the pace of growth across its emerging markets. Police say bribes and sexual favors spurred the gain.

The drugmaker now faces allegations of economic crimes involving 3 billion yuan ($489 million) of spurious travel and meeting expenses, and trade in sexual favors, the Public Security Ministry said yesterday. The allegations are “shameful” and would be a breach of the company’s systems and values, Glaxo said in a statement.

Prior to a police probe that began last month, Glaxo embarked on a strategy that tripled its Chinese sales force to more than 4,000 people in three years as the U.K.’s largest drugmaker sought a bigger share of the market. As that expansion was ramping up, Chief Executive Officer Andrew Witty told analysts on a February 2010 conference call that controlling Glaxo’s operations in China was “not a trivial proposition.”

Bribes paid to hospitals, doctors and health officials contributed to the resulting gains in revenue, according to the ministry, which controls China’s police. If found guilty, Glaxo could be ordered to pay a penalty of $5 million to $10 million, according to estimates by Kepler Capital Markets based on fines paid in China for similar violations. [Continue reading…]

Ted Genoways writes: Shawn Lyons was dead to rights — and he knew it. More than a month had passed since People for the Ethical Treatment of Animals had released a video of savage mistreatment at the MowMar Farms hog confinement facility where he worked as an entry-level herdsman in the breeding room. The three enormous sow barns in rural Greene County, Iowa, were less than five years old and, until recently, had raised few concerns. They seemed well ventilated and well supplied with water from giant holding tanks. Their tightly tacked steel siding always gleamed white in the sun. But the PETA hidden-camera footage shot by two undercover activists over a period of months in the summer of 2008, following up on a tip from a former employee, showed a harsh reality concealed inside.

The recordings caught one senior worker beating a sow repeatedly on the back with a metal gate rod, a supervisor turning an electric prod on a sow too crippled to stand, another worker shoving a herding cane into a sow’s vagina. In one close-up, a distressed sow who’d been attacking her piglets was shown with her face royal blue from the Prima Tech marking dye sprayed into her nostrils “to get the animal high.” In perhaps the most disturbing sequence, a worker demonstrated the method for eutha­nizing underweight piglets: taking them by the hind legs and smashing their skulls against the concrete floor—a technique known as “thumping.” Their bloodied bodies were then tossed into a giant bin, where video showed them twitching and paddling until they died, sometimes long after. Though his actions were not nearly as vicious as those of some coworkers who’d been fired immediately, Lyons knew, as the video quickly became national news, that the consequences for him could be severe.

As we sat recently in the tiny, tumbledown house he grew up in and now shares with his wife and two kids, Lyons acknowledged — as he did to the sheriff’s deputy back then — that he had prodded sows with clothespins, hit them with broad, wooden herding boards, and pulled them by their ears, but only in an effort, he said, to get pregnant sows that had spent the last 114 days immobilized in gestation crates up and moving to the farrowing crates where they would give birth. Lyons said he never intended to hurt the hogs, that he was just “scared to death” of the angry sows “who had spent their lives in a little pen” — and this was how he had been trained to deal with them. Lyons had watery blue eyes that seemed always on the verge of tears and spoke in a skittish mutter that would sometimes disappear all the way into silence as he rubbed his thin beard. “You do feel sorry for them, because they don’t have much room to move around,” he said, but if they get spooked coming out of their crates, “you’re in for a fight.”

Lyons had been trained in these methods of hog-handling (many of them, including thumping, legal and widely practiced), but a spokeswoman for Hormel — one of the largest food processors in the country and the dominant buyer of MowMar’s hogs — had already called the video “appalling” and “completely unacceptable,” and MowMar’s owners had responded by vowing that any additional workers found guilty of abuse as authorities pored over the tape would be terminated. Still, it came as a surprise when his boss informed him that he had been formally charged and immediately fired. “We don’t want to do it,” the supervisor told him, “but we got to — because Hor­mel will quit taking the sows.” He told Lyons to turn himself in at the courthouse.

While Lyons filled out paperwork and had his mug shot taken, his wife’s cellphone buzzed again and again: Her husband’s name was already on the evening news. Lyons hired a lawyer — but he was on video and he’d confessed to the deputy sheriff. “They got you, dude,” Lyons said his attorney told him. He accepted a plea agreement — six months’ probation and a $625 fine plus court fees—and signed an admission of guilt. It may seem like a slap on the wrist, but Lyons was the first person ever convicted of criminal livestock neglect on a Midwestern farm — and only the seventh person convicted of animal abuse in the history of the American meat industry. He wasn’t alone for long: Five of Lyons’ coworkers soon signed similar agreements.

It was a major PR win for PETA — which often appeals to local authorities to make arrests but rarely gets the kind of cooperation they got from the Greene County Sheriff’s Office — but it was also a hollow victory. “Who in their right mind would want to work in a dusty, ammonia-ridden pig shed for nine bucks an hour but somebody who, literally, had no other options?” asked Dan Paden, the senior researcher at PETA who helped run the investigation. “And at the end of a long, frustrating day, when you are trying to move a pig who hasn’t been out of its crate in [months], that’s when these beatings occur — and people do stupid, cruel, illegal things.” PETA was urging prosecutors to go beyond plea agreements for farmworkers; they wanted charges against farm owners and their corporate backers, to hold them responsible for crimes committed by undertrained, overburdened employees. [Continue reading…]

Council on Foreign Relations: Dr. Margaret Chan, director-general of the World Health Organization, closed the annual World Health Assembly this week [May 27] sounding alarm about a new SARS-like virus circulating primarily in Saudi Arabia.

“My greatest concern right now is the novel coronavirus,” Chan warned the representatives of two hundred nations gathered in Geneva. “We do not know where the virus hides in nature. We do not know how people are getting infected. Until we answer these questions, we are empty-handed when it comes to prevention.”

But impeding an effective response is a dispute over rights to develop a treatment for the virus. The case brings to the fore a growing debate over International Health Regulations, interpretations of patent rights, and the free exchange of scientific samples and information. Meanwhile, the epidemic has already caused forty-nine cases in seven countries, killing twenty-seven of them.

At the center of the dispute is a Dutch laboratory that claims all rights to the genetic sequence of the Middle East Respiratory Syndrome coronavirus [MERS-CoV]. Saudi Arabia’s deputy health minister, Ziad Memish, told the WHO meeting that “someone”–a reference to Egyptian virologist Ali Zaki–mailed a sample of the new SARS-like virus out of his country without government consent in June 2012, giving it to Dutch virologist Ron Fouchier of Erasmus Medical Center in Rotterdam.

“The virus was sent out of the country and it was patented, contracts were signed with vaccine companies and anti-viral drug companies, and that’s why they have a MTA [Material Transfer Agreement] to be signed by anybody who can utilize that virus, and that should not happen,” Memish said.

Though Memish referred to a “patent,” the Dutch team has not patented the viral genetic sequence but has placed it under an MTA, which requires sample recipients to contractually agree not to develop products or share the sample without the permission of Erasmus and the Fouchier laboratory. Memish said that the Dutch MTA was preventing Saudi Arabia from stopping the MERS-CoV outbreak, which appears to have started eleven months ago in the Eastern part of his country. The Dutch team denies the MTA is slowing work on the outbreak, saying it has given virus samples to any lab that has requested it.

Courts in North America and Europe have ruled that it is possible to patent life forms or their genetic sequences, spurring the practice of claiming patent control on newly identified microoganisms. Such patents give owner rights over royalties on all products derived from the genetic sequence, including vaccines, diagnostics, and genetically targeted treatments. But they have spawned controversy outside of wealthy countries, since they are perceived as guaranteeing profits for Western pharmaceuticals at the expense of country-of-origin use and access. [Continue reading…]

The Observer reports: Every morning and every evening the fleet glides through the city, hundreds of white buses with tinted windows navigating San Francisco’s rush hour. From the pavement you can see your reflection in the windows, but you can’t see in. The buses have no markings or logos, no advertised destinations or stops.

It doesn’t matter. Everyone knows what they are. “Transport for a breed apart. For a community that is separate but not equal,” said Diamond Dave Whitaker, a self-professed beat poet and rabble-rouser.

The buses ferry workers to and from Apple, Facebook, Google and other companies in Silicon Valley, an hour’s drive south. They hum with air-conditioning and Wi-Fi. They are for the tech elite, and only the tech elite.

This month Whitaker, 75, and a few dozen other activists smashed a model Google bus piñata to pieces. They cheered each blow. The British and US governments may feel the same way, it emerged last week, when politicians in London and Washington accused Google’s Eric Schmidt and Apple’s Tim Cook of dodging corporate taxes.

The internet titans barely flinched. They denied wrongdoing and hit back at what they said were archaic tax codes unfit for the digital era. The defiance startled those unfamiliar with Silicon Valley’s power and confidence.

It did not come as news to San Francisco. The city knows better than anyone that technology companies like having things their way, whether it be taxes, transport or lifestyle. This dominance, critics say, has produced a cossetted caste which lords it over everyone else, a pattern established during the dotcom explosion a decade ago and now repeated amid a roaring boom. [Continue reading…]