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Ethics

Collins Debden pitches its diaries direct to consumers

It is challenging seeing a supplier you have supported for years go out with a direct to consumer pitch. I didn’t plan to write about Collins Debden today. An email from them this morning caught my attention.

This is a Collins Debden direct to consumer pitch.

They added me to their marketing database, without my permission. Their email includes a compelling offer:

They end with a offer of social media connection. If only they were this engaged with small business retailers of their products.

I am surprised that they are promoting direct to consumers when they are so far behind with shipping to retailers. Their fulfilment processes are strained and unable to get product to shops on time. Why would an individual feel they could fulfil a single order on time, unless Collins Debden is prioritising their direct to consumer orders. I have no idea whether that is the case tho.

I am tired of suppliers going direct after years and decades of support from retailers like us to drive brand awareness and engagement. They could not go direct as they have if we had not supported as we have.

A supplier going direct demonstrates disrespect for their retail partners. Them doing this while they are party to delays in supply to retailers is appalling. It is a failure of social responsibility on their part.

Thinking about this issue of a supplier going direct more generally …

There are ethical considerations to consider when a long-term supplier decides to go direct-to-consumer.

  • Fairness and Trust: The supplier’s decision may impact local retail businesses, potentially leading to lost sales or revenue. A good supplier will be on the front foot and engage in open communication on how to mitigate any negative effects. A bad supplier will make the move and not discuss it with retailers.
  • Customer Relationships: Customers may be confused or disappointed by the change. We need to be transparent and communicate clearly with them to maintain trust and loyalty to our business. We need to tell them what has been done to us.
  • Competition: The supplier is likely now a direct competitor, impacting your market position. Consider how you can differentiate your business and offer unique value to your customers. Look for alternative products that will serve your customers.

Ultimately, the ethical approach involves maintaining open communication, acting with integrity, and prioritising the needs of your customers.

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Diaries

Collins Debden 2025 diary supply challenges are hurting sales

We are missing out of revenue from the certain sale of Collins Debden diaries as a result of supply challenges within the Collins Debden business. I have heard from plenty of newsagents in the same situation.

Approaches to the company over the last two months have resulted in what I’d describe as spin. They have not resulted in any stock being delivered, which is frustrating since Amazon Australia appears unaffected by the supply challenges.

That Amazon has stock of what newsagents could be selling right now opens the question of whether the supply delay is part of a recalibration of the go-to-market strategy at Collins Debden. I this is a reasonable question to have when you see a major competitor of stock while yuou have no indication of when your stock will arrive.

While some newsagents have covered diary sales by accessing stock elsewhere, most cannot since the typical diary shopper is brand loyal. That brand loyalty will see them buy wherever they can find the Collins Debden diary they want. This is where Amazon having stock plays out negatively for newsagents. I first heard about Amazon being able to supply from a customer who was frustrated that we did not have stock.

With newsagents aware of cost to their business from the lack of supply by Collins Debden, I anticipate there will be claims against the company for lost sales as well as claims for financial support to move diaries when they do finally arrive. In my opinion, the company would do well to thoughtfully consider how it supports local small business retailers who have been without stock now for close to two months while a major competitor, Amazon, has had stock.

How Collins Debden handles the situation, outside of fixing the supply issues, will speak to the interest the company has in its local small business retailer network. I know plenty of retailers will be watching the situation. I wonder, too, whether there are any matters for regulators here. For example, if there is evidence of preferencing a big retailer (Amazon) over local small business retailers, could that be captured in regulations supporting small businesses.

Like all newsagents who regularly stock Collins Debden diaries, the best solution would have been on time supply and the second best solutions would have been diaries supplied a few weeks late. As of this morning, we are considerably beyond that, with the situation made worse by inadequate communication from the company.

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Diaries

What can you do if your marketing group contract auto-renews or you are bound by a long lock-out period?

Following my last post (Monday this week), Does your marketing group contract auto-renew? Does it include a lock-out period?, I outline below options you may consider if you find yourself in a marketing group contract you want to leave.

I am not a lawyer. This is not legal advice. In my opinion, a marketing group contract should be so simple straightforward and fair that it does hot need a lawyer to interpret or understand.

If your marketing group contract or agreement is complex and not easy to understand that’s a warning sign right there.

CONTRACT AUTO-RENEWAL.

If you have found your contract has auto-renewed, think about whether it was clear it would and whether the newsagency marketing group contracted you prior to the auto-renewal trigger advising you that auto-renewal was imminent. The ACCC is on record as saying that auto-renewal should be clear and that you should be contacted prior to auto-renewal with enough time for you to say no thanks.

Three newsagents in the last week have told me their newsagency marketing group contracts were auto-renewed without advance warning from the marketing group that it was going to happen. I think any independent party with authority considering this would say renewal action was unfair and that the newsagent could opt to leave the group now.

RESTRAINT OF TRADE – POST CONTRACT LOCK OUT PERIOD.

Some newsagency marketing agreements seek to deny the newsagent the right to join another marketing group for a period of time after the end of the agreement. I have heard marketing groups with such a restraining clause claim that it is to protect their intellectual property shared with the business while they were in the group. The question I have is what intellectual property?

In situations where I have seen newsagents threatened by the group they are leaving, or the lawyers for the group, I have not been able to discover any intellectual property worth protecting.

In a recent report, the ACCC highlighted that restraints which go beyond what is reasonably necessary to protect a franchisor’s legitimate interests are likely to be unfair. For the purposes of this discussion, a franchisor would be the newsagency marketing group.

NEW REGULATIONS.

In November 2023, reforms passed by parliament make unfair contract terms illegal, attracting substantial penalties under the Competition and Consumer Act 2010 and the ASIC Act 2001, with each unfair term forming a separate contravention.

I think it is possible that a newsagent with an agreement that auto-renews and / or with an end of contract lock-out restraint period barring them from joining any other group could challenge the validity of the contract.

While I am not a lawyer and this is not legal advice, if I found myself in this situation I would do several things, all at once:

  1. Write to the franchisor / marketing group explaining my opinion that the contract is unfair and seeking immediate termination of the contract without penalty and without any restraint period. And, if the letter I would request that all correspondence is in writing and only in writing.
  2. Contact my local state government level small business ombudsman seeking their help in resolving the matter.
  3. Seek assistance from Australian Small Business and Family Enterprise Ombudsman on the contract.
  4. Complain to the Australian Financial Complaints Authority (AFCA). They small businesses with a free and independent dispute resolution scheme to assist with resolving financial complaints.
  5. Engage with ASIC, lodge a report of misconduct online.
  6. Write to the ACCC complaining about what I consider to be an unfair contract.
  7. Contact my local small claims authority (VCAT, QCAT, NCAT, TASCAT, SAT etc) to see if they would accept a case seeking to declare the contract invalid and agreeing my my immediate exit from the group.

My point here is that there are options for you, actions you can take that do not require a lawyer, actions that could free you from a contract you no longer want for your business.

I have seen newsagents consider taking steps to get out of a contract only to give up, saying it is too hard. I have also seen newsagents take a couple of steps and be permitted to exit a group as long as they don’t tell anyone.

If you are in a marketing group for your newsagency and want to leave but have been told you cannot or been told that you have a lock-out restraint period, it is possible one or more of the steps listed above could help you out. Doing nothing achieves nothing for your business.

The difference between being in a group doing little for your business and a group doing plenty could be tens of thousands of dollars in net profit in a year.

A good newsagency marketing group is profitable for the newsagency. Belonging just to belong to something is not commercially astute.

I am not going to list marketing group contracts here that I consider to be unfair in part because I have seen some groups with different contracts for different people, which in itself is odd and somewhat concerning. One group has recently become more threatening against newsagents who want to leave, causing considerable distress for the newsagents impacted.

One final point: everything I have written here could relate to some card company contracts I have seen.

Before you sign any agreement, read it, be sure you understand it and ask someone you trust for their opinion.

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Ethics

Does your marketing group contract auto-renew? Does it include a lock-out period?

If you are in a newsagency marketing group, get out the contract you signed and read what it says about termination.

Be sure you understand the term of the contract, whether you have to give notice and if so what length of notice is required and whether there is a period after the end of the contract in which you are not permitted to join another group.

If you are not sure about these things, seek professional advice. Indeed, you should have sought advice prior to signing the contract. It is never too late to seek advice.

TERM.

Newsagency marketing group contracts vary from one year to six years from what I have seen. Personally, I think anything more than one year is too long. Aren’t you better off staying with a group because of the value gain from it rather than because they have legally bound you in a contract? Shouldn’t groups want you to stay because you want to stay.

If they really trust what they offer and the benefits they deliver for you, why lock you in?

Oh, and I do understand the need for an initial term when you first join, to learn from each other, to unlock value for each other.

NOTICE PERIOD.

Some contracts require you to give notice months ahead of the contract renewal period and your failure to do this locks you in for, sometimes, another long period. In my opinion, a notice period of two months is reasonable and anything more is unfair for the small business retailer.

AUTO RENEWAL.

I think auto renewals in a contract are a gotcha, especially if the auto renewal period is long, like a year or more as is the case for some newsagency marketing group contracts I have seen.

I suspect businesses put auto renewal and a long (like a year or more) lock in period in contracts because they know people will not realise they need to give notice to not renew. They are businesses. It’s all about their revenue.

LOCK OUT PERIOD.

Another thing I have seen in newsagency marketing group contracts is a post contract termination lock out period. I have seen them make this case to protect their intellectual property, which I think is a joke. What intellectual property? Okay in the first year maybe, but what after that time? None of the newsagency marketing groups has a system with training, regulation, branding requirements and more like you see in a McDonalds.

If you are happy with your newsagency marketing group contract, this post is not for you.

If you are unhappy, please dig out your contract and look at your options.

If you have been given a newsagency marketing group contract to sign, please read it carefully. Some have worse provisions than the few I have mentioned here, provisions that are very expensive – like demanding you access some products / services only from the supplier they dictate. I saw one newsagent recently pay thousands of dollars more for something than they would have paid had they not been in that group.

Buyer beware is the point here. Do your homework. be sure you fully understand the contract. Be sure you are happy with all terms prior to signing.

Not all newsagency marketing groups are the same.

I know of at least twenty newsagents currently in groups they want to leave but cannot. Some have received legal letters threatening against leaving and others have received less formal yet equally distressing communication. In most cases, that communication was the first time i a year their business received direct communication about their business from the group to which they belong. These newsagents would leave in a heartbeat if they did not feel trapped. None of them want a legal fight, and I suspect some in the marketing groups know this, and use it to their advantage, and the disadvantage of their members.

If you are in a newsagency marketing group, get out the contract you signed and read what it says about termination.

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Ethics

2025 Australian Firefighters Calendar demands unreasonable on retailers

The supplier of the 2025 Australian Firefighters Calendars has made this demand of retailers, via a major wholesaler, GNS:

To move forward, I will need written guarantees by the directors of your company that all GNS customers will not sell my calendars online. I will not supply GNS unless I have directors’ guarantees that GNS customers will not sell my calendars below my listed price until January 1st, 2025. I have attached a supplier form for you to sign.

To their credit, GNS responded well:

At GNS, we believe in upholding the law and ensuring our customers’ freedom to conduct business as they see fit. As such, we are not willing to impose any restrictions on how you go to market with your products. Unfortunately, this means we will not be receiving any stock of the Firemen calendars.

What makes the move about the 2025 Australian Firefighters Calendars interesting is that these calendars are widely available online. A quick search shows them as available online in Australia via Amazon, Calendar Club, eBay, Just Calendars, Mega Office Supplies and more. It is even listed on the catch.com.au website.

I can’t figure out why the supplier would demand the directors of GNS to agree that retailers they supply will not sell the calendars online.

Of course, the directors of GNS can’t impose such a restriction on their retailers. Their response is good.

The move makes the 2025 Australian Firefighters Calendars less appealing in my view. No matter, there are plenty more Australian designed and made calendars supporting worthy causes available for newsagents and calendar retailers to stock. That’s what we are doing: focussing on calendars we can sell in-store and online, calendars where the supplier does not place restrictive requirements on how we run our business.

The 2025 Silo Art Calendar is a good example of a calendar well worth stocking. It raises money for a good cause, shines a light on Australian towns and, best of all, features Australian art. This is a calendar we sell plenty of in-store as well as online. People love posting it as a gift to friends overseas. We have offered this calendar for years. It’s been a huge hit.

If you are looking for calendars to stock for 2025, look at Bartel, Browntrout. Waterlyn and other local companies that have terrific calendars available.

It would be good to know if sales of the 2025 Australian Firefighters Calendars are impacted by the restrictive conditions.

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Calendars

News Corp and Nine Media seem to care little about print newspaper customers

Every week I hear another story of problems with newspaper delivery to retailers: late deliveries, missed deliveries and more.

The most recent issue relates to a regional Victorian town where the local retail newsagent no longer receives newspapers in time for when they open at 7am. The delivery contractor delivers papers to another retailer two minutes away from the newsagent, then does home deliveries and, finally, to the local newsagent.

Often, deliveries to the newsagent are short, sometimes less than half what they can sell.

Contact from the retail newsagent to News Corp and Nine Media has achieved no resolution. It appears they have either no interest in resolution or no ability to direct the delivery contractor to deliver the papers when they deliver to the cafe two minutes away.

The situation is ridiculous, petty.

Most newspaper delivery contractors I know of do a terrific job and provide excellent service to retail newsagents. Not this one though. Some decisions seem targeted.

I wonder if the disinterest of the publishers has anything to do with the retail newsagent handing their run back a year or so ago. If that is the case, it’s petty. It that is not the case, the newspaper publishers have a broken system that they appear unwilling or unable to fix. Either way, they appear uninterested in the issue and its resolution.

In the meantime, local newspaper readers miss out. Maybe that is what the publishers want. Who knows?

This specific situation does seem to have an easy resolution, if the newspaper publishers want the resolution. The delivery contractor could be directed to deliver to the two sub agents – a cafe and the retail newsagent – at the same time, as they are two minutes from each other.

Years ago, newspaper publishers were demanding of newsagents in terms of delivery times and accuracy. Threats were made. newsagents complied rather than risk losing their business. Today, it’s different. The newspaper contractor in this story has demonstrated no interest in resolving the delivery time, quantity and contact issues – it’s not possible to contact them during the day to resolve issues.

Again, newspaper customers are those that miss out. Newsagency staff are impacted too as they are the front line dealing with customer complaints.

If only News Cop and Nine Media cared about the mental health of newsagency staff and cared about their newspaper reader customers.

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Ethics

OPINION: Newspower should research before it markets against other newsagency marketing groups

Helen Dowling, the General Manager of Newspower, sent out marketing on June 25, 2024 comparing their offer to newsagents with other groups. newsXpress is one of those other groups. I am the Managing Director of newsXpress Pty Ltd.

Newspower failed to reach out to newsXpress to check whether what they were about to claim was accurate. They should have.

I reached out to Helen Dowling and to Graeme Hand, the Chairman of Newspower. Helen responded:  It is not Newspower’s intention to provide misleading information. I would be interested in knowing from Newsxpress what you believe the misleading information is in the comparison document.

Here’s the response I sent to Helen:

Thank you for acknowledging that you did not undertake research prior to publishing your document.

  • newsXpress provides in-store visits from a business development manager.
  • newsXpress provides visual merchandising materials including posters and on-location call-outs for all major seasons.
  • newsXpress have access to a member only portal with a fully populated knowledge base and extensive business development resources.
  • newsXpress members have access to a digital collateral library and cloud based resources for easy store level customisation.
  • newsXpress members have access to a full video library of social media collateral and easy access to store level customisation.
  • newsXpress offers signage and graphic design services at no cost.
  • Rather than access to an Are Media account manager we provide a whole of magazine category problem resolution service. For free.
  • Rather than a free postage for Christmas cards offer we provide free exclusive high-quality cards for Christmas for captions not covered by card companies.
  • Each member has access to a dedicated and retail experienced business development manager.
  • newsXpress helps with Google Business, Bing, and various maps profile setup and maintenance.

These are the things we do that your marketing claims we do not do.

Your marketing fails to highlight many things we do that Newspower does not do.

Helen has not responded to my email. I am not aware of Newspower publishing a correction. If they have not done so, it is disappointing that they have allowed marketing that they know contains false and misleading information to remain out there under their name.

There are four groups serving the newsagency channel. Newspower, newsXpress, nextra and The Lucky Charm. The last two, from what I understand, operate under the franchise code of conduct. Please let me know if I’m wrong about that.

The four groups are very different from each other. Here’s what I think separates newsXpress apart:

  • It leverages the common ownership of Tower Systems (the most widely used software in the newsagency channel) and newsXpress for evidence based guidance to more profitable business decisions. Through this, it also offers half price websites.
  • It offers innovative pricing for EFTPOS, lower cost than least cost routing.
  • newsXpress offers bias-free data-based card performance analysis that typically results in an increase in card sales of 15% or more.
  • Member businesses benefit from an exclusive $1,000+ a year per store in-store marketing campaign – provided at no cost to the members.
  • newsXpress runs a national in person conference with free accommodation for 2 nights and all meals covered.
  • newsXpress helps newsagents with practical business advice, in-store support, awesome supplier deals and plenty of new traffic generating exclusive products.
  • newsXpress directly owns and runs shops as testing grounds for innovation, sharing results with members.
  • newsXpress direct imports good margin products.
  • newsXpress is the only group to have authorised account access to four different Mints for access to new coin releases.
  • newsXpress has suppliers who otherwise will not supply newsagents.

What you do in and for your business is 100% up to you.

If you could use support and want fresh ideas for attracting new shoppers, consider newsXpress. Call Michael on 0400 331 055 or email help@newsxpress.com.au to find out more.

If you join, the newsXpress team will do all they can to help you run a more profitable and enjoyable business. Email help@newsXpress.com.au or call Michael on 0400 331 055.

If you’re on LinkedIn, here’s me in case you want to research me a bit more: https://www.linkedin.com/in/mark-fletcher-tower/

Mark Fletcher
Managing Director
newsXpress Pty Ltd
www.newsxpress.com.au
ABN 61 007 009 752 3A Lynch Street Hawthorn VIC 3122
M | 0418 321 338 E | mark@newsxpress.com.au

31 likes
Ethics

News Corp continues to fail newspaper home delivery subscribers with road-block customer service

Complaints about News Corp management of newspaper home deliver subscriptions to newsagents who stopped home delivery months and years ago continue. regulars here would have seen the comments by many subscribers.

From my own experience when I signed up for a subscription to The Australian and then sought to cancel after the initial period, the News Corp process is clearly structured to frustrate to a point that people give up. That is how it felt to me.

Subscribers ought be able to go to a website and cancel their subscription with one click. News Corp does not offer this service.

You have to call them. The first response after wanting to know why you want to cancel is to offer a deal. I’ve heard of people being offered an even better deal. The call process is layered with road blocks.

This is appalling customer service from News Corp in my opinion, and in my experience. For a company so invested in shouting at Australians and trying to tell us what to think, they appear disinterested in providing a good customer experience.

It’s as if the call centre mandate is to keep a subscriber at all costs – financial and emotional.

My advice for News Corp newspaper subscribers experiencing difficulties in cancelling their subscription because of road blocks by News Corp is to complain to your local office of consumer affairs and to email the ACCC. If you are owed a refund or the company has charged more than they should have in your opinion, and if you have the time, consider a claim to a small claims tribunal, like VCAT in Victoria. The more state and federal government agencies are made aware of what is happening here the better.

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Ethics

What’s the situation with selling vape products in Australia?

This is a question I was asked yesterday when I was talking with a retailer who has vape products for sale. I directed them to the Therapeutic Goods Administration website. The TGA is the federal government agency with regulatory authority for therapeutic goods. Vaping products fall within their remit. Here’s some of what the TGA website covers on vaping products:

From 1 January 2024, the importation of disposable vapes will be prohibited, subject to very limited exceptions. The ban will apply to disposable vapes irrespective of nicotine content or therapeutic claims. It means that it will be unlawful to import disposable vapes on or after 1 January 2024, even if those vapes were ordered before 1 January 2024 and have not yet arrived in Australia.

The ban also applies to individuals who have ordered disposable vapes from overseas for therapeutic use under the personal importation scheme. A limited exception will apply to international travellers arriving in Australia to carry a small quantity of vapes for their treatment or the treatment of someone travelling with them under their care.

Disposable vapes that have been imported into Australia before 1 January 2024 may continue to be lawfully supplied in Australia subject to the following requirements:

  • disposable vapes containing nicotine that meet TGA requirements may continue to be lawfully supplied in Australia in pharmacy settings to a patient with a prescription in accordance with state and territory laws for prescription medicines,
  • disposable vapes that do not contain nicotine, or any other medicine, and do not make therapeutic claims, may be supplied by retailers generally, including vape stores, subject to state or territory law.

This will allow legitimate retailers of disposable vapes to run down their stocks prior to the Government introducing legislation in early 2024 to prevent the domestic manufacture, advertisement, supply and commercial possession of disposable vapes, to ensure comprehensive controls across all levels of the supply chain.

…

From 1 March 2024, the importation of all non-therapeutic vapes will be prohibited. This means that it will be unlawful to import non-therapeutic vapes on or after 1 March 2024 even if those vapes were ordered before 1 March 2024 and have not yet arrived in Australia.

In addition, the importation of all vapes under the personal importation scheme will end on 1 March 2024. From this date, patients will no longer be able to order vapes directly from overseas, even if they have a prescription.

A limited exception will allow international travellers arriving in Australia to carry a small quantity of vapes for their treatment or the treatment of someone travelling with them under their care.

Subject to state or territory law, non-therapeutic vapes imported before 1 March 2024 may still be lawfully sold by retailers generally, including vape stores, provided the vape does not contain nicotine or any other medicine, and does not make therapeutic claims.

This will allow legitimate retailers of non-therapeutic vapes not containing nicotine to run down their stocks prior to the Government introducing legislation later in 2024 to prevent the domestic manufacture, advertisement, supply and commercial possession of non-therapeutic vapes to ensure comprehensive controls on vapes across all levels of the supply chain.

The website for the Minister for health also comments on this, making the government’s position on vape products clear:

During 2024, product standards for therapeutic vapes will also be strengthened, including to limit flavours, reduce permissible nicotine concentrations and require pharmaceutical packaging. A transition period will be allowed for businesses to comply with the new requirements.

The Government will introduce legislation in 2024 to prevent domestic manufacture, advertisement, supply and commercial possession of non-therapeutic and disposable single use vapes to ensure comprehensive controls on vapes across all levels of the supply chain.

It’s clear that there is no future for vape products in retail outside of pharmacies selling therapeutic products.

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Ethics

More suppliers are going direct to consumers competing with retailers they supply, and it’s breaking long term relationships

Imagine the shock of seeing a supplier offer products they wholesale to you being offered to consumers for not much more than your wholesale price.

The shock turns to anger when it continues months later, with the supplier competing with you for Google ad positioning. They can spend more since they have more margin with which to play.

Their words of no we are not trying to take business from you and we only want to grow the marketplace don’t land as you see customers you have nurtured for years switch to them.

As I told one supplier representative, what they have done in copying our business and chasing our customers disgusts me.

All of us in business have to put our needs ahead of everyone else and that is what this supplier is doing. The thing is though, they get childishly upset when we reduce our commitment to them having found a more valuable relationship elsewhere.

Maybe it is just meh but it feels like, in these early months of 2024, that we have more suppliers going direct to consumers.

Some suppliers are getting it right. One I spoke with this week who was pitching for our business said up front that they sold direct but at a price that was 10% higher than the suggested retail price they had on their items. What I liked even more was that their products, at their suggested retail price, gave us a gross profit of 62%.

This supplier is smart to structure their retailer relationships and their own online pitch such that it’s a genuine win win for supplier and retailer.

Not enough suppliers think through how to approach selling direct.

Some don’t announce it, they sneak around thinking retailers will not notice.

Some use spin from marketing to make it sound like retailers will benefit.

Some lazily copy what they see their retailers are doing and refuse to acknowledge they have done this.

Where the move has been made poorly, ignorantly and / or selfishly, it is understandable relationships break down. Trust is challenged and retailers who do not trust a supplier will not want to do business with them.

Each of us in business has to make decisions that serve our business and those who directly rely on it first. We need to be honest in our decision-making and respectful of long term relationships – if our decision means a change, we need to be upfront rather than secretive.

In my own case, I am more invested in seeking out direct supply relationships, from manufacturer direct to us rather than through a wholesaler who control a brand in the country. I am also happier working with suppliers who have no commitment to go direct to consumers.

Disruption is here to stay. Our role as business owners is to navigate this to our advantage.

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Ethics

Byline Times in the UK is gaining traction, demonstrating the value of genuinely independent journalism

The trust matters and if you want to support the truth, buy a real paper.

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Ethics

Are we seeing AI generated news stories in Toowoomba, Gold Coast, Townsville, Rockhampton and Mackay?

Tobi Lotus of the ABC posted an excellent thread to Twitter (X) sharing compelling evidence:

Be sure to read the entire thread on Twitter. I think use of AI in news coverage is problematic.

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Ethics

Scandal at Sports Illustrated magazine over AI content and fake reporters

Futurism has this most incredible story. Here’s part of it:

Sports Illustrated Published Articles by Fake, AI-Generated Writers

We asked them about it — and they deleted everything.

There was nothing in Drew Ortiz’s author biography at Sports Illustrated to suggest that he was anything other than human.

“Drew has spent much of his life outdoors, and is excited to guide you through his never-ending list of the best products to keep you from falling to the perils of nature,” it read. “Nowadays, there is rarely a weekend that goes by where Drew isn’t out camping, hiking, or just back on his parents’ farm.”

The only problem? Outside of Sports Illustrated, Drew Ortiz doesn’t seem to exist. He has no social media presence and no publishing history. And even more strangely, his profile photo on Sports Illustrated is for sale on a website that sells AI-generated headshots, where he’s described as “neutral white young-adult male with short brown hair and blue eyes.”

Ortiz isn’t the only AI-generated author published by Sports Illustrated, according to a person involved with the creation of the content who asked to be kept anonymous to protect them from professional repercussions.

Read the rest of the article if you’re interested in magazines, AI, journalism and business ethics.

This is brazen stuff being reported from making up fake AI journalists / writers, claiming they are real and then deleting them when asked and offering no comment, editorial note, or other response.

All publishers should follow this story.

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Ethics

If you wonder about the relevance of the newsagency channel, consider taking a stand on the Voice referendum

As the number of newsagency businesses in Australia and the foot traffic into newsagency businesses declines we have to wonder about our relevance.

There was a time when we were at the centre of each town. While some newsagencies are, and plenty are thriving, the channel, nationally, is confronting a relevance crisis.

Not that it would happen but I wonder what the impact might be if we, as a channel, took a stand on the Voice referendum and actively promoted a Yes vote.

We are uniquely positioned because many of us sell News Corp newspapers that have been actively campaigning against a Yes vote. Whether we like it or not, our shops are being used to magnify the News Corp interference in the referendum, their interference in our democracy.

What if we as a channel put up signs in our windows promoting yes, and on our social media. What if we placed a poster like this one above News Corp titles:

I get that some customers might be unhappy, but I suspect they might be among the perennially unhappy group because they read content designed to make them unhappy.

Taking a stand says something about us, what we believe, what we support, and that we are unafraid to make that statement.

If we do nothing out of fear for what customers and would-be customers might think, we commit ourselves to being ignored, we show ourselves as being irrelevant.

What our channel has is location, across the country. If we leveraged that for a national, channel wide, statement of support, we run the risk of lifting the perception of our channel out of the 1980s  and into the mindset of 2023. It’s a scary thought. One we should want, well those of us who plan to be in the channel for the long term at least. This question of the relevance of the newsagency in the mind of an everyday Aussie should matter to us.

I’d love to see consideration given to this: the associations and various other groups coming together to take a stand nationally, in our front window and next to newspapers.

We could even be the local outlet for yard signs others could collect and put up in support of a yes vote. Talk about being relevant.

I reckon plenty of folks would be happy to see us do this.

We’d run the risk of feeling better about ourselves for doing this, and how great would that be!

And to customers who disagree, I’d say: isn’t it great that we live in a country where we can disagree and still offer a g’day and a smile every morning.

The poster is one being pitched by Dr Monique Ryan to Kooyong (VIC) voters.

Across at https://www.yes23.com.au/ there are plenty of resources including art for posters and other formats. Here is one example:

There are so many resources, some many opportunities for supporting Yes. I do think that if our channel engaged as I hope we would, that we would do so in a visually unifying way as that’s part of our key need.

My personal position is that I will vote Yes. It makes sense to me. There is nothing to fear. It’s long overdue.

26 likes
Ethics

It’s not smart to pitch local with products made overseas

I was drawn to the celebrating local souvenirs stand in the WH Smith store at Adelaide airport. What a terrific pitch I thought, until I checked out some of the products.

Pitching products made overseas on this display represents a fail in my view. But, hey, maybe enough shoppers either don’t check or don’t care. It’s up to the individual as to how they read this.

For plenty of the products on this stand, the celebrating local part is the local image or Adelaide printed on a product. It’s hardly a celebration of local in may opinion.

Back in my own shops I know most people who are keen to support local want to know where products are made. Some make the point they do not want to be caught buying something made overseas and presented as local.

7 likes
Ethics

Why do newsagents have to pay for electronic invoices for magazines?

My POS software company, Tower Systems, serves 3,000+ retailers in the jeweller, bike shop, gift shop, garden centre, firearms dealer, fishing bait and tackle shop, toy shop, music shop, produce business, sewing shop and health food shop retail channels, as well as newsagents.

It is only newsagents who have to pay their supplier for electronic invoice data, which is ironic because coupled with the electronic invoice data is returns data that saves the supplier a tremendous amount of money.

It’s time that EDI was provided to newsagents at no cost whatsoever.

The current arrangement is rooted in the practices of decades ago.

I wonder if our supermarket competitors have to pay for this.

30 likes
Ethics

Newsagency performance: comparing Jan – Mar 2023 vs 2021

Here’s a video I shot last week for newsXpress members in which I high-level compare the first quarter of this year at my Malvern (VIC) business with 2022.

I share this here as any newsagent using the Tower Systems newsagency software can produce the same report for their business. They can also select the category version for a deeper analysis. There are other options, too, for even deeper analysis.

Each of us is the most important competitor our business has.

Cross period revenue growth is important.

GP growth is even more important.

It is vital to transition from the 28% – 32% traditional Vally of GP for newsagents to 35% to 40% and more.

I think anyone pitching revenue / profitability growth opportunities to newsagents should support these with evidence. Our channel has had too many snake oil salespeople.

11 likes
Ethics

Is declining trust impacting newspaper sales?

While we all know that digital platforms are disrupting print newspapers, I wonder if declining trust is impacting print as well.

In the recent federal and Victorian elections we saw print newspapers that lobbied for a result failed to make an impact for their chosen candidates, demonstrating that once great mastheads that could decide an election outcome no longer have that clout.

Every piece of lobbying dressed as ‘news’ further challenges trust.

A few days ago, the Launceston Examiner newspaper was caught publishing a letter that was found to contain a made up claim on a serious matter.

Key points.

  • A letter published in a major Tasmanian newspaper claimed a man undressed in front of children in the female changerooms at Launceston aquatic centre — but the pool has denied this ever happened

  • The following day the newspaper published a clarification, saying “unfortunately we appear to have been misled”

  • The editor of the newspaper is a former adviser to former PM Malcolm Turnbull and failed Liberal candidate Katherine Deves

The letter claimed that a male entered female change rooms at a pool and started to undress, and ‘wrote’ to the newspaper over trans related concerns.

The council has quickly confirmed that the incident did not occur.

The newspaper editor claims to have spoken to the letter writer. I think she made it up, he has said.

If there is such a letter, and that is a big if, the editor has failed to appropriately check prior to publishing. This is where repetitional damage is done to the Examiner.

The Launceston Examiner is not alone. News Corp. outlets have a reputation in this area I think. And, it leads me to wonder if these games of political and public opinion interference diminish trust in the medium and whether that is a factor in declining print newspaper sales.

I mean, do people want to pay to be told what to think?

11 likes
Ethics

News Corp loses the Victorian election and brings into focus the role of its newspapers

The story bouncing around Twitter today via some commentators is the failure of News Corp, and in particular The Herald Sun to win the Victorian state election.

Jonathan Green shared this image of front pages:

Barry Cassidy made this point:

Then there is this from Emily Webb:

And this from a former respected Herald Sun journalist Rohan Connolly:

For those outside Victoria, these observations from journalist Neil McMahon may assist:

And in terms of what happened and why, this piece by Patricia Karvelas is well worth reading:

Given the election results, there would have to be people at News Corp.thinking about their business and what needs to change since their considerable investment in this election has failed. If the company does not change its output focus, I suspect product purchases will continue to decline.

No matter what your politics, any post election assessment needs to consider the extent of the failure of News Corp to cut through. A newspaper not cutting through is a newspaper with a problem.

One answer for News Corp is that they go back to journalism, and leave their political lobbying and their donation of free advertising to others – they should go into the vaults and check out pre-Murdoch copies of The Sun and The Herald and see what made those newspapers great, and trusted. They should go back to fact-based journalism.  And, they could cancel the contracts of all opinion writers.

But maybe there is money in what they do. If there is, they will stick to what they have done for years. It will be interesting to see how it plays out. I doubt there is money in their yelling at people, being a propaganda pamphlet rather than a news outlet.

The Victorian election result reflects damage on the News Corp brands in this state. I suspect it will cost some sales. It will be interesting to see if the damage is sufficient to negative impact ad revenue. negatively impacting ad revenue is something that would catch the attention of those making the decisions on the on what and how they cover politics here. And it is at this end, the commercial end, where the decisions of News Corp. play out for newsagents.

I do not expect to read any analysis in their pages about the considerable failure News Corp. as a company suffered yesterday in Victoria.

Footnote: What I have written here about News Corp and The Herald Sun I could also write about Neil Mitchell at 3AW. The few times I listened in it was biased commentary, not fact-based. The election result bust be seen as a Neil Mitchell failure, too.

14 likes
Ethics

News Corp. makes it so difficult to cancel a subscription to The Australian that some are bound to give up

A couple of weeks ago I signed up for a digital subscription to The Australian because there was a story I wanted to read and I figured $4.00 was okay since I could cancel.

Two days ago I decided to cancel, before the end of the initial $4 period offer. I figured I’d go to the New Corp. website for The Australian, login to my account, click cancel, and be done. No, not so easy. In fact, it was hard, messy and slow, close to impossible.

News Corp puts up a ton of barriers on The Australian website, demonstrating a clear disinterest in even basic customer service.

I went to my account on their website, clicked manage my subscription, clicked cancel and the website provided a phone number. I thought that’s odd, I must be able to cancel without speaking to anyone. Anyway, I clicked chat, and here’s how that went.

So, I called, navigated their phone system, and eventually got to speak with someone. They were courteous, but not keen for me to go. I had to repeat I want to cancel several times before they agreed to take that step for me – but not before they wanted to know why I wanted to cancel and not before they pitched an offer for me to stay, two weeks free I think.

That phone call took between 5 and 7 minutes, all for a subscription that is cents a day. I wondered how many people would stay with the company going through that. It must be enough for them to have this commercial business model of barriers in place making it so hard and time consuming and threatening almost to cancel.

My customer experience with News Corp was frustrating, time consuming, off-putting. While the person I spoke to was courteous, it should not take me asking multiple times to cancel. The experience was bad enough that I won’t sign up again, even if I am desperate to read an article. Cancelling took too long, their obsession with wanting to know why even though I said it was none of their business was rude, confronting.

I get that I am not a natural News Corp customer – I think they negatively impact our democracy given the political lobbying campaigns they run dressed up as news under their mastheads – but I was a customer for a brief while and the process of ending that was appalling, so much so that I want to tell others considering subscribing with News Corp – don’t as they make it way to hard to leave them … appalling customer service.

The thing about online is that people was a frictionless experience, smooth, enjoyable. The News Corp experience was anything but. For a company that shouts everyday at some politicians and everyday people – telling us what to think, how to behave, they could do well to focus inwards and yell at themselves. Their online house needs to be improved.

On a scale of 0 to 5 rating the News Corp online subscription cancellation experience where 0 is appalling and 5 is excellent, I’d give it a .5 – primarily because the website did not crash at least and their phone system did not auto hang up on me.

26 likes
Ethics

Fringe conspiracy theory packaged as news on today’s Herald Sun front page

Today’s Herald Sun front page story is a disgrace in my view. Here they are going oxygen to a fringe conspiracy theory about Dan Andrews and ignoring the extraordinary and explosive evidence at the Robodebt Royal Commission last week. The former is political interference and the latter is actual news.

It shames me to play a role is making this trash available.

12 likes
Ethics
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