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Ford Says Consumer Privacy Is Impractical

May 22, 2012 By Arnold Tijerina

In a Yahoo! exclusive article published today, it was reported that Ford has initiated a lawsuit against 13 individual eBay sellers who they accuse of selling fake or counterfeit Ford parts. I’m not arguing the merits of Ford’s lawsuit as it is certainly within their rights to protect their trademarks and copyrights as well as take steps to protect dealer’s profits in the part business but rather to question the bigger issue encompassed by this: an individual’s right to privacy.

The subpoenas for the  lawsuits were granted by the court for Ford to obtain the seller’s identities and information. What is unusual about this is not that they requested it, but what they asked for after that request was granted.

As reported in the article, most ISPs and websites have policies in place that notify users when the company gives out their information for any reason except for that involving criminal activity and which is requested by law enforcement agencies.

In this case, Ford not only requested the user’s information but also asked for their bank account information (which was denied) then went a step further and asked for the court to prohibit eBay and Paypal (an eBay company) from notifying the targeted users that their information was requested and given out.

This move flies in the face of all privacy issues. With the public outcry against the recent legislation effectively designed to skirt privacy issues accompanied by Ford’s strong pro-consumer brand and social media presence, you’d think they would want to steer clear of any controversy in regards to consumer privacy.

“Much of the debate in recent months over online privacy has been spurred by bills in Congress, such as the Stop Online Piracy Act and a new bill, the Cyber Intelligence Sharing and Protection Act, which passed the U.S. House in April. CISPA would let companies and law enforcement agencies broadly share users’ personal information to fight potential threats — including accusations of copyright violations and counterfeit goods — without penalty, trumping any company policy.” writes Justin Hyde in the Yahoo! article.

The reason reported by Ford for this request was:

“Ford respectfully suggests this procedure is impractical and would serve to undermine the rationale for the subpoenas. The procedure would impose a substantial burden on [eBay and PayPal] to prepare, serve and enforce subpoenas and would serve to “tip-off” or warn the Doe defendants of Ford’s investigation. Under the procedure as written, the Does would have notice that Ford was seeking their identities and thus ample time to destroy evidence, the counterfeit and infringing goods, and flee to avoid service all before Ford would be entitled to receive their true identities.”

I understand why they asked the court to do this but just because it’s a good reason doesn’t mean it should outweigh the right to privacy that all citizens enjoy. This is a civil matter, not a criminal one.

Now that one court has issued what I feel is an invasion of privacy, what’s to stop other judges from following suit. I can think of plenty of GOOD reasons for a judge to do this but that doesn’t mean they SHOULD. Where does an ISP or website draw a “line in the sand”? Despite Facebook’s own internal privacy issues, they have, and are still, fighting other companies from requiring or being allowed to access their user’s information and accounts including employer’s requesting pre-employment access, schools requiring students to reveal their Facebook walls to administrators and more.

Being an eBay user for over 14 years and a Paypal user for about 12, I would hope that they would challenge and fight for their user’s right to privacy. It’ll be interesting to see how this plays out and whether any of the companies involved will take a stand for their users.

While Ford may feel that their lawsuit against 13 people succeeding is more important than our rights to privacy, I just find that.. well.. impractical.

Filed Under: Automotive, Editorial, Internet, Law, News Tagged With: Automotive, consumer, ebay, ford, law, Lawsuit, Legal, parts, Paypal, precedent, privacy

Tip: Why (and How) You Should Buy Facebook Stock

May 18, 2012 By Arnold Tijerina

[UPDATE 5/22/12: According to this article by AllFacebook.com, Facebook has reversed course and decided not to issue paper stock certificates so this whole article just became a fantasy.]

First, a disclaimer: I am not a financial advisor in any way, shape or form. What I AM is an entrepreneur so take this advice from that standpoint. There is never a guarantee of future value but this is why I think it’s a good investment.. if bought in a certain way.

Today, Facebook held its IPO to much media attention, speculation and became the largest IPO ever in the history of IPOs. There is a ton of advice saying that the opening cost is overpriced, to wait, etc. and that its a bad initial investment. I disagree but only from the perspective, and using the method, I describe below.

When a popular company has an IPO, they can choose whether or not to allow investors to obtain a physical stock certificate or not. Most companies do not and, if they do, its for a limited time. Facebook chose to allow investors to request and obtain physical stock certificates.

facebook-stock-cert.top

I’ve been selling things on eBay for over 14 years and I’m always on the lookout for things to sell and make a profit so I thought about this and did some research.

When Apple had its IPO in 1982, shares cost $22 each. They also offered the option to buy a physical certificate. Without any consideration for the current market value of that share, the actual certificate itself has a market value of almost $600 on eBay. Say you bought 100 shares and asked for individual certificates. The certificates ALONE would make your initial investment of $25/share ($2500 after adding a few dollars for the certificate) worth $60,000. If you actually retained ownership of the stock itself, without consideration for any stock splits or anything else, the shares themselves would be worth $53,259 (value as of May 18 at 12:00pm PST). You can retain ownership of a stock and sell the actual certificate so your initial investment with physical shares is suddenly ~$113,259. Yes, it took 30 years to make this but it’s still a VERY healthy return on your investment.

Let’s say you really don’t want to retain ownership of the shares as an investment. You buy the shares and order the physical certificates. Wait a couple months to receive the certificates, then sell the shares. Let’s say the shares have tanked and they are only worth $10 each at that point. You’ve recouped $1000 of your initial $2500 investment so you’ve lost $1500 BUT you still have 100 stock certificates which are, at this moment, worth $60,000. So your $1000 investment netted you $59,000. Best case, the share price is up and you can make a profit on the initial investment and, again, still have the actual certificates, in this case, for no investment.

People like collectibles and owning a piece of history. If you’re going to buy the stock anyways, pony up the extra couple of bucks a share (Make sure to get individual shares on each certificate rather than multiple shares on one certificate to maximize the potential future sale as people are buying the certificates themselves. There is no difference in value between a certificate that is for 1 share or 100 shares.) and have the extra potential return.

Other examples:

  • Pixar – IPO 1995 share price $47 – certificate value today $400 (certificate purchased in 2006 – 11 years after the IPO)
  • Harley-Davidson – IPO 1986 share price $11 – certificate today $210 (purchased in 1999 – 13 years after the IPO)

My guess is that a certificate purchased on (or near) the actual IPO date would be worth more to a collector in the future (as in the Apple stock certificate example). I also believe that the initial stock shares will be signed by Mark Zuckerberg based on similar past IPO certificates.

Of course there’s never any guarantee that the certificate will be worth anything in the future and this is certainly a long term investment whether you keep the shares AND the certificates or just the certificates. Whichever you decide to do, there’s more POTENTIAL in having the certificates then in not having them. In addition, due to the high demand for the stock itself, I don’t believe Facebook will be offering paper certificates for very long so you could have a narrow window to take advantage of this.

Most stock certificates won’t sell like this, of course. The examples I use are exceptions but I believe Facebook will fall into this category. If an old AOL floppy disc (that were everywhere “back in the day” and that they mailed to everyone once a week, it seemed) can sell for almost $10,000 on eBay… well, you get my point.

Either way, in my opinion, it’s kind of cool to own a piece of history.

Filed Under: Editorial, personal experience, Social Media Tagged With: apple, certificates, collectors, ebay, Facebook, harley davidson, history, investment, ipo, pixar, resale, shares, stock

NADA 2012: Day Three Recap

February 6, 2012 By Arnold Tijerina

Sunday saw a lot of meetings, and running into (and trying to connect with) people. The exhibit hall was in full swing and jumping. The day was destined to be short because the Super Bowl started at 3:30pm here and all the parties were starting at 2:30pm.

We went to what, in my opinion, was the best Super Bowl party ever! eBay Motors set up the classiest, most intimate Super Bowl party I’ve ever been to. It was so classy celebrities were asking to come just so they could have a place to watch out of the general public. Not only that but all of them were super nice. They rented out the whole Seville Row bar restaurant… hell, I don’t even know what it was. It was a private area that is part of the LAX nightclub. Max capacity was only 125 people. Every place to sit was a freaking couch VIP area. Lots of room. Great wait service with an open bar and lots of great food. We even had home-made cupcakes made, and hand-delivered, by Robyn and Taryn of The Food Network’s Cupcake Wars TV show.

I met Roy “Big Country” Nelson from the UFC as well as Greg Hendrick who is the Director of Event Operations for the UFC. I also met Coolio .. yeah.. that one. We were living in Gangsta’s paradise. Roy Nelson joined us at our table for a while as did the girls from Cupcake Wars. Lots of great conversation (and pictures). Oh, and Coolio gave me his cell phone number and the club manager gave me a UFC t-shirt and an autographed Roy Nelson action figure. Yeah, that’s how I roll. Talk about making connections, how is a partnership with the UFC for digital marketing and social media sound? Money, baby. That was only one of many connections that I, and people I know, made.

eBay Motors delivered a first-class Super Bowl experience. I couldn’t have improved it in any way. In my, and other people’s, opinions, they pulled off both the best party of NADA (Vanilla Ice) and the best SuperBowl party of NADA.

After that party, we headed to the DealerTrack party at the XS nightclub. We got there and, swear to God, the line looked like people were at Disneyland waiting to ride Space Mountain. Serious.

That party was OFF THE HOOK. HUGE place, great layout and tons of people. You could party inside or by the pool. Nice. Well played, DealerTrack.

After DealerTrack, it was off to a nice dinner then bed. Brilliant day at NADA.

It was so brilliant, this is what I felt like at the end of the day:

That’s right. The Honey Badger doesn’t care. He takes what he wants.

This year, I’m going to be the Honey Badger.

Stay tuned for more tomorrow! Thanks for reading!

Filed Under: Automotive, Editorial, Industry Events Tagged With: automobile, autotrader, cargigi, convention, coolio, Dealers, DealerTrack, ebay, ebay motors, Education, honey badger, las vegas, motors, Nada, roy nelson, super bowl, ufc

Tip: Selling Cars using eBay Motors Local Market

January 24, 2012 By Arnold Tijerina

In my experience, I’ve heard many dealers complain about eBay Motor’s Local Market service for dealers. For those who don’t know what it is, it’s NOT a typical auction-style listing service. It will post your entire inventory on eBay and offer shoppers two choices on your vehicle page on eBay – “Make an Offer” or “Contact Seller”.

One of the coolest things is that, different from a normal eBay message from an interested buyer, you actually get full contact info for the consumer as they have to be logged into eBay to complete the action and eBay passes along this information to you straight into your CRM. So if someone contacts you and asks you a question, you have the ability to follow up with them just like any other lead.

One of the biggest complaints I hear from dealers are that they continuously get ridiculous offers for vehicles – like an offer of $1,000 for a $10,000 vehicle – and they don’t want to waste their time. They believe there is little value in having their inventory on eBay because their perception is that all they get are stupid offers and little else.

What I ask dealers when they make this complaint is “If you had someone in your showroom making you an offer of $1,000 on a $10,000 car, what would you do? Would you tell them to hit the pavement?” The typical answer is “I’d sit down with them and work the deal starting off with explaining why that offer is not realistic.”

Keep in mind that, despite their unrealistic offer, these are people, first and foremost, shopping for cars. On top of that, out of the millions of cars listed on eBay, they happened to land on yours. Not only did they land on your vehicle, they took the time to contact you and/or make an offer on that vehicle – realistic or not.

Anyone offering you any amount of money for a vehicle is, in reality, starting negotiations. I’m sure you get unrealistic offers all the time from showroom customers in the box with your salesperson. You ask your salespeople to get a commitment when filling out the initial foursquare and, sometimes, those offers are unrealistic. These leads aren’t any different except for the fact that they aren’t in your showroom.

If you get an unrealistic offer on eBay, instead of looking at it like a waste of your time, realize that, chances are, this person is farther down the funnel than most of your internet leads. They may be higher maintenance and require more work than your typical internet lead but by making the effort instead of just declining their offer and dismissing them as a “jack”, you’ll find that you’ll be able to convert some of those ridiculous offers into sales.

Filed Under: Automotive, Best Practices, Internet, internet sales, Sales Tagged With: best practices, ebay, ebay motors, internet sales, tips

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