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Scoop
a day ago
- Business
- Scoop
Alongside China's, Which Social Credit Systems Are Developing?
By the late 2010s, China's 'social credit system' (SCS) was increasingly viewed as a notorious government effort to monitor personal behavior, shape public conduct, and control access to services. While the system traces back to the 2000s, it was officially expanded and formalized in 2014. For example, in 2019, mixed martial arts fighter Xu Xiaodong made headlines when his social credit score was lowered 'for insulting tai chi grandmaster Chen Xiaowang,' according to Quartz, which also led to him facing travel restrictions. In contrast, citizens in Rongcheng who earned the highest ratings of 'AAA' through acts of charity and civic duty enjoyed perks like discounted energy bills. Personal reputation and risk scoring tools have also spread globally, particularly in the private sector. These systems go well beyond customer loyalty programs or service prioritization. Their growing social, legal, and economic consequences make it urgent to understand how these systems work and how automation will make them faster, less transparent, and more consequential. In the U.S., tenant verification companies like RentGrow have mistakenly blacklisted renters for years, prompting a 2024 consumer protection lawsuit. Insurers are increasingly using non-financial data such as shopping habits and social media activity to build behavioral profiles and alter their services, pushing legal boundaries. Ensuring trust, accountability, and good behavior in citizens and consumers is not inherently harmful when done by governments and companies, respectively. But when this exercise is powered by vast datasets and opaque surveillance tools, often involving scoring, these real-time behavior monitoring systems are prone to misuse. China China's government-run SCS is the world's most advanced, though it is yet to be completely implemented. Instead of isolated blacklists or points systems, it aims to collect and analyze a wide range of data, including finances, social behavior, and government records, to score citizens and implore them to follow state-approved norms. The concept emerged in the late 1990s and early 2000s, with local pilot programs starting in 2009. Rongcheng became an early test case by 2013, giving around 700,000 residents a baseline score of 1,000. Scores improved through actions like donating blood or volunteering, unlocking advantages like free medical checkups. Meanwhile, deductions were made for offences like tax evasion, which could cut off government benefits (though for many, the impact was minimal). After Chinese authorities announced a national six-year development program in 2014, dozens of other 'demonstration cities' emerged. Local governments often used small companies to help build the infrastructure and tech giants to scale it. In Hebei province, Tencent and WeChat help promote the nickname 'Deadbeat Map' for an app that alerts users when someone with unpaid debt is nearby and encourages users to report them. Millions of other Chinese citizens have been blacklisted from flights and high-speed rail, or investing in real estate or other products due to low social credit scores, according to a 2019 Guardian article. While Chinese companies helped build the state-run SCS, some were entrusted to create their own. Giants like Alibaba and Tencent, whose apps are deeply woven into daily life through e-commerce, media, banking, insurance, transportation, and other services, use reputation profiles to expand their influence over users further. Alibaba's Zhima Credit, launched in 2015, scores users on financial history, education and career, social connections, and charitable acts. Higher scores offered deposit-free rental apartments and expedited visas, yet its role shrank after 2018 when the government declined to renew private credit licenses. Tencent started its own social credit feature within its WeChat app in 2018 but suspended it within a day after public backlash, before rolling out another version in 2019. Chinese public reaction to the individual SCS has been mixed. Criticism grew in several cities where programs penalized minor infractions, like missing dinner reservations. Central authorities called for the enforcement of penalties only through formal legal channels in 2019, and some cities switched to reward-only models. Despite its image as a centralized system, China's SCS remains incomplete. The government is wary of empowering private firms too much or provoking public retaliation, and a national rollout planned for 2020 was delayed by the pandemic and infrastructure gaps. Still, draft social credit laws were introduced in 2020 to unify standards, followed by another in 2022. In March 2025, new national guidelines called for fully integrating social credit into economic and social life, reflecting Beijing's long-term efforts to bring the system fully online. United States While China's government-run SCS is unique, American companies have quietly built a sprawling and mostly unregulated personal scoring counterpart. Less centralized than China's, it is in some ways more sophisticated, as profit-driven firms have experimented with minimal oversight. What began in the 1950s as a way to assess creditworthiness has grown into a massive industry tracking and scoring individual citizens' behavior. Companies collect data from online records and digital footprints to assign scores or create blacklists. Some keep these ratings secret, while others sell or share them. Together, they have created profiling systems that increasingly determine access to jobs, homes, services, and more. Insurance companies led the way in using non-financial data for risk scoring. Car insurers, for example, regularly purchase speed, braking, and location patterns from automakers to set premiums. Meanwhile, education platforms like EAB's Navigate generate student risk scores based on dropout likelihood, engagement, and future success, shaping their lives long before graduation. An investigation by nonprofit publication the Markup found 'that the software, Navigate… used by more than 500 schools across the country, was disproportionately labeling Black and other minority students 'high risk'—a practice experts said ends up pushing Black kids out of math and science into 'easier' majors.' In public settings, tools like Alessa alert casinos when a visitor's behavior triggers its proprietary 'risk score.' Patronscan, the largest ID scanning firm in the U.S. (and active in Canada, the UK, Australia, and New Zealand), allows a person to 'either be flagged at a particular venue for up to five years, or flagged across the company's entire network for up to one year,' according to a 2024 article in the Markup. The company faced a 2023 lawsuit for allegedly violating Illinois's biometric privacy laws, but denied wrongdoing and settled the case in 2024. It also flags high spenders as 'VIPs,' prompting venues to offer them preferential treatment. Data analytics company LexisNexis, meanwhile, builds extensive risk profiles for landlords, employers, and insurers using public records, court filings, and third-party data, with limited avenues for individuals to dispute errors. Trulioo offers global identity and fraud risk assessments, with especially deep coverage in the U.S. due to the expansive datasets and permissive privacy laws in the country. American citizens have been drawn into the scoring economy as both subjects and participants. Platforms like Uber and Airbnb rely on user ratings to determine who gets rides, accommodation, and work. Yelp and Google reviews offer public feedback, but can also be weaponized by review bombing, which has harmed innocent businesses and creators. While not as advanced as Chinese government efforts, U.S. government scoring systems include the Automated Targeting System (ATS), used by the Department of Homeland Security's Customs and Border Protection, to assign individual risk scores based on travel data, visa status, and airline records. Additionally, police departments in Chicago and Los Angeles began trialing threat scores for citizens in the early 2010s, incorporating social networks, past police interactions, and location. These scores influenced policing strategies, including the use of force and proactive interventions. Despite officially ending the use of this system in Chicago and Los Angeles in 2019, predictive policing returned under new names and methods in both cities, often with the aid of private companies. The Federal Bureau of Prisons' PATTERN Risk score, rolled out in 2022, meanwhile, assesses re-offense risk for prisoners. The U.S. public reaction has grown increasingly wary of more open scoring systems. Backlash to personal ESG (environmental, social, and governance) scores and corporate reputation metrics led to their diminished use. In 2023, Utah's House Business and Labor Committee approved HB281, a bill to prevent the state from creating or using systems that employ social credit scores to reward or punish citizens. Though the Equal Credit Opportunity Act (ECOA) of 1974 offers some federal protection for financial credit scoring, no comparable safeguards exist for behavioral scoring or digital blacklists. California Consumer Privacy Act (CCPA) grants basic data access and deletion rights to individuals, but opaque scoring systems have largely sidestepped it, and automated decisions do not need to be explained. The true number of such systems, both commercial and government-run, remains unknown, making them difficult to monitor or challenge. Other Global Practices Europe has attempted a more substantial regulatory approach to using personal data in scoring systems. The General Data Protection Regulation (GDPR), implemented in 2016, provides a comparatively stronger legal foundation, requiring companies to disclose why personal scores may change, for example. However, enforcement is uneven, and loopholes remain. Alongside private scoring tools, European governments have introduced their own social credit systems under more benign branding. In Italy, Rome and Bologna launched the smart citizen wallet in 2022, a pilot project rewarding citizens for eco-friendly behavior like recycling or using public transport. In the UK, 'loyalty points' schemes in supermarkets monitor spending habits (as well as physical activity) for use in pilot health programs, an initiative introduced during Boris Johnson's tenure as prime minister. Social credit systems are more widely accepted in parts of East and Southeast Asia, where stronger state capacity, centralized digital infrastructure, and cultural norms make behavioral tracking less contested. In South Korea, a state-led 'Green Credit,' encouraging sustainable living by rewarding eco-friendly actions, has been in place since 2011. Private initiatives have also emerged in Asia, notably through super apps that combine multiple services, building consumer profiles to control access and perks. Japan's all-in-one app Line, widely used for communications, payments, and other utilities, raised eyebrows in 2019 after announcing plans to implement an AI-driven social scoring system to reward and restrict users based on their online and offline behavior. Given Line's ubiquity, its experiment is a major step toward privately governed social credit structures. Though promoted as tools to encourage good behavior and deter bad conduct, these systems amplify social pressure and push societies toward a digital panopticon—a state of constant surveillance driven by government and commercial incentives. These models will continue to mature and become more dangerous in the U.S. and other countries that lack adequate data protection. Without strict limits on surveillance by both governments and corporations, fears of AI misuse, algorithmic bias, false correlations, and harmful feedback loops will only grow as these scoring systems govern more of everyday life. By John P. Ruehl Author Bio: John P. Ruehl is an Australian-American journalist living in Washington, D.C., and a world affairs correspondent for the Independent Media Institute. He is a contributor to several foreign affairs publications, and his book, Budget Superpower: How Russia Challenges the West With an Economy Smaller Than Texas', was published in December 2022.
Express Tribune
5 days ago
- Entertainment
- Express Tribune
SZA brings free Not Beauty pop-up to Phoenix before Grand National Tour show
SZA is bringing her exclusive Not Beauty pop-up to Phoenix on Tuesday, May 27, ahead of her Grand National Tour stop with Kendrick Lamar. The event will be held at WaterDance Plaza in the Westgate Entertainment District from 1 p.m. to 8 p.m., just before her concert at State Farm Stadium in Glendale, Arizona. The pop-up experience is free to attend, though standard event parking rates apply. While SZA is expected to appear at the event, the exact time of her visit has not been announced. The concert begins at 7:30 p.m., suggesting her appearance will occur prior to showtime. Not Beauty is SZA's new vegan, cruelty-free lip gloss line inspired by nature. The brand features three shades: In the Flesh, Strawberry Jelly, and Quartz, each priced at $23. These products are available exclusively at tour stop pop-ups, adding an element of exclusivity for fans. The pop-up not only offers fans a chance to purchase limited-edition beauty products but also provides an opportunity to potentially meet SZA in person. With Kendrick Lamar co-headlining the tour, the Grand National Tour has generated major buzz, making this pop-up an added highlight for Arizona fans. For attendees, arriving early is recommended due to expected crowds and traffic around the venue. The event merges music, culture, and beauty, creating a unique fan experience tied to one of 2025's most anticipated tours.
Yahoo
6 days ago
- Business
- Yahoo
American tourism faces a 'perfect storm'
A version of this article originally appeared in Quartz's members-only Weekend Brief newsletter. Quartz members get access to exclusive newsletters and more. Sign up here. On a recent Finnair flight from Helsinki to Los Angeles, something felt off. The economy cabin — typically packed with tourists eager to explore California's beaches and theme parks — was less than half full. A flight to Europe two months earlier had been packed to the gills, but this flight had entirely empty rows, a stark reminder that America's appeal as a travel destination has taken a beating this year. That half-empty plane tells a bigger story about American tourism in 2025, one that's playing out just as Memorial Day weekend — traditionally the unofficial start of the summer travel season — approaches with cautious optimism rather than the usual fanfare. The U.S. tourism industry is facing what experts are calling a 'perfect storm' of challenges. According to data from the World Travel & Tourism Council (WTTC), America is on track to lose $12.5 billion in travel revenue this year — making it the only country out of 184 analyzed that's projected to see tourism dollars decline in 2025. International visitor spending is expected to fall to less than $169 billion by year's end, a 7% drop from 2024 and a staggering 22% decline from tourism's pre-pandemic peak in 2019. The WTTC said it could take until 2030 for U.S. tourism to bounce back to pre-COVID numbers. The reasons are complex but interconnected. A strong dollar has made American vacations prohibitively expensive for many international visitors. Stories about strict border controls and immigration enforcement have created hesitation among potential travelers. And the Trump administration's 'America First' rhetoric, while popular domestically, has sent a chilling message to international markets, according to tourism industry leaders. 'Other countries are really rolling out the welcome mat, and it feels like the U.S. is putting up a 'we are closed' sign at their doorway,' Julia Simpson, WTTC's president and CEO, told Bloomberg. The pain is especially acute along the Canadian border, where 66% of businesses in New York's 'north country' have already experienced significant decreases in Canadian bookings for 2025. New York City, typically a magnet for international visitors, has revised its 2025 projections downward by 400,000 tourists and $4 billion in tourism spending. California, despite setting tourism records in 2024, forecasts about a 1% overall decline in visitation and a 9% drop in international visitors this year. Read more: America's airport meltdown is coming at the worst possible time The challenges aren't limited to international visitors. Americans themselves, rattled by economic uncertainty and concerns about potential tariffs, are pulling back on travel spending. This domestic retreat is hitting major travel companies hard. Expedia's stock dropped more than 7% earlier this monthafter reporting weaker-than-expected U.S. travel demand, with CEO Ariane Gorin telling investors that 'U.S. demand was soft, driven by declining consumer sentiment.' Two-thirds of Expedia's business comes from the U.S., making the company particularly vulnerable to domestic travel slowdowns. The picture isn't entirely grim. While Americans are cutting back on travel overall, many are simply shifting their plans rather than canceling them outright. Bank of America data reveals that domestic travel is up 3% as Americans, facing economic uncertainty, opt to explore closer to home rather than expensive overseas trips. And the recent rebound in some international markets offers hope. April saw an 8% increase in overseas visitors compared to the previous year, largely driven by a recovery in Western European travel after March's significant decline. The timing of Easter — which fell in April this year versus March in 2024 — contributed to the bump. Airlines are scrambling to adjust their operations as traveler sentiment deteriorates. The Conference Board's confidence survey found that Americans intending to fly in the next six months fell more than 12% from January. Major carriers are responding by slashing capacity — Delta is cutting its summer schedule after describing it as 'overbuilt,' while United is retiring 21 aircraft early and reducing flights in Canadian markets. The industry's challenges extend beyond shifting demand. Airlines are grappling with fresh operational disruptions that have shaken passenger confidence. Air traffic control failures at major hubs like Newark and Atlanta have caused widespread flight delays and cancellations, with outdated radar systems and severe staffing shortages plaguing the country's busiest airports. Newark has been in near-constant disruption since late April, forcing United Airlines to cancel dozens of flights daily. 'I've had more friends, colleagues and acquaintances say they don't want to fly right now than normal, not because they're scared of crashes, but because they don't want to deal with delays and cancellations,' William McGee, senior fellow for aviation and travel at the American Economic Liberties Project, told CNN. Industry experts such as Adam Sacks from Tourism Economics warn that the worst may be yet to come. 'We believe that pure leisure travel will be the most reactive and we're not quite in the peak window yet,' he told The New York Times. 'I expect as we get into May, June and July the effects will be more pronounced.' For now, that half-empty Helsinki-to-LAX flight serves as a quiet reminder that America's brand as the world's premier travel destination isn't guaranteed. While domestic travelers may be filling some of those empty seats this Memorial Day weekend, the international visitors who typically stay longer and spend more are increasingly choosing destinations like Mexico, the Caribbean, and other markets that offer easier entry and warmer receptions. For the latest news, Facebook, Twitter and Instagram.
Yahoo
21-05-2025
- Business
- Yahoo
Walmart follows Costco's lead on gas stations
Walmart (WMT) is taking a page out of Costco's (COST) playbook by ramping up its fuel station operations. The retail giant plans to open or remodel over 45 fuel and convenience stations across 34 U.S. states by the end of 2025. Costco, by comparison, operates more than 700 gas stations, according to its latest annual report. Walmart and Costco did not immediately respond to Quartz's request for comment. This move could be one way Walmart aims to compete with Costco's popular fuel program, which made up about 12% of total sales in 2024. While Costco keeps its gas stations exclusive to members, Walmart's stations are open to everyone, potentially providing a larger customer base and a profit boost. In addition, Walmart is offering a new perk for loyalty members: a 10-cent discount per gallon at Walmart stations, as well as at participating Exxon (XOM), Mobil, and Murphy (MUSA) stations. Meanwhile, Costco has been expanding its fuel business. Recently, the warehouse only retailer said it would extend hours at its stations to boost usage, as it tries to recover from a slight dip in gas station sales last year. With Walmart's aggressive push into the fuel space, the company is banking on convenience to help it compete with Costco. This expansion comes after Costco reportedly followed Walmart's lead on U.S. tariffs. Earlier this week, Costco asked its Chinese suppliers to absorb the cost of new tariffs – similar to Walmart's move. This has sparked pushback from suppliers, who claim the added burden could further squeeze already razor thin margins. Previously, Walmart has said it would pass tariff costs onto consumers, while Costco has stated it would phase out items in lieu of more popular items. On the other hand, Walmart and Costco diverge when it comes to Diversity, Equity, and Inclusion (DEI) initiatives. Costco is sticking firmly to its DEI plans, while Walmart has said it plans to scale back its efforts. Correction: An earlier version of this article misstated the number of fuel and convenience stations Walmart plans to open or remodel by the end of 2025. It is 45, not 450. For the latest news, Facebook, Twitter and Instagram.
Time of India
20-05-2025
- Business
- Time of India
Elon Musk's ex-girlfriend Grimes expresses skepticism about Mark Zuckerberg's ability to lead the metaverse; here are the reasons she cited
Grimes, the Canadian artist and ex-girlfriend of tech billionaire Elon Musk, has recently publicly voiced her doubts regarding Meta Platforms CEO Mark Zuckerberg's capability to effectively spearhead the metaverse, as per a report. Grimes Mocks Mark Zuckerberg's Avatar According to Benzinga, her comments were made on a 2022 X (formerly Twitter) post where Grimes, whose legal name is Claire Boucher, shared her doubts regarding Zuckerberg's vision for the virtual reality world. In her X post, she even mocked Zuckerberg's metaverse avatar, criticizing it as 'bad art,' reported Benzinga. Zuckerberg Sees Huge Opportunity in Metaverse Grimes' rant came after Zuckerberg made an appearance on a podcast with host Joe Rogan, where he went ahead and hyped the metaverse as a revolutionary idea that could reap "hundreds of billions of dollars." The Meta CEO is a strong proponent of the metaverse and has described it as a 'massive opportunity', according to Benzinga. ALSO READ: Will the Democrats pause tariffs if they win the next election and return to power? Here's what a Wharton professor says After Meta reported its first-quarter 2025 earnings, the CEO said, 'We're making good progress on AI glasses and Meta AI,' quoted Quartz. He also shared that, 'I think that we're all going to have an AI that we talk to throughout the day,' as quoted in the report. Zuckerberg added, 'Eventually, that'll be on glasses.' Live Events Zuckerberg also said that, 'Glasses are the ideal form factor for both AI and the metaverse. … More than a billion people worldwide wear glasses today, and it seems highly likely that these will become AI glasses over the next five to 10 years,' quoted Quartz. Billions Lost However, Meta's Reality Labs division, which oversees the firm's augmented and virtual reality initiatives, reported a first-quarter operating loss of $2.96 billion on $695 million in revenue, reported Quartz. ALSO READ: Japan, the U.S.'s biggest creditor, faces a Greece-like fiscal crisis as borrowing costs hit a 20-year high; here's how it ended up there FAQs What did Grimes say about Mark Zuckerberg? She expressed skepticism about his ability to lead it effectively and mocked his avatar, as per Benzinga's report. How has Zuckerberg defended the metaverse? He calls it a 'massive opportunity' with the potential to generate hundreds of billions of dollars, as per Benzinga. Economic Times WhatsApp channel )
