#viapath

[mostlysignssomeportents]

Prison-tech company bribed jails to ban in-person visits

I'm on tour with my new, nationally bestselling novel The Bezzle! Catch me in BOSTON with Randall "XKCD" Munroe (Apr 11), then PROVIDENCE (Apr 12), and beyond!

Beware of geeks bearing gifts. When prison-tech companies started offering "free" tablets to America's vast army of prisoners, it set off alarm-bells for prison reform advocates – but not for the law-enforcement agencies that manage the great American carceral enterprise.

The pitch from these prison-tech companies was that they could cut the costs of locking people up while making jails and prisons safer. Hell, they'd even make life better for prisoners. And they'd do it for free!

These prison tablets would give every prisoner their own phone and their own video-conferencing terminal. They'd supply email, of course, and all the world's books, music, movies and games. Prisoners could maintain connections with the outside world, from family to continuing education. Sounds too good to be true, huh?

Here's the catch: all of these services are blisteringly expensive. Prisoners are accustomed to being gouged on phone calls – for years, prisons have done deals with private telcos that charge a fortune for prisoners' calls and split the take with prison administrators – but even by those standards, the calls you make on a tablet are still a ripoff.

Sure, there are some prisoners for whom money is no object – wealthy people who screwed up so bad they can't get bail and are stewing in a county lockup, along with the odd rich murderer or scammer serving a long bid. But most prisoners are poor. They start poor – the cops are more likely to arrest poor people than rich people, even for the same crime, and the poorer you are, the more likely you are to get convicted or be suckered into a plea bargain with a long sentence. State legislatures are easy to whip up into a froth about minimum sentences for shoplifters who steal $7 deodorant sticks, but they are wildly indifferent to the store owner's rampant wage-theft. Wage theft is by far the most costly form of property crime in America and it is almost entirely ignored:

https://www.theguardian.com/us-news/2023/jun/15/wage-theft-us-workers-employees

So America's prisons are heaving with its poorest citizens, and they're certainly not getting any richer while they're inside. While many prisoners hold jobs – prisoners produce $2b/year in goods and $9b/year in services – the average prison wage is $0.52/hour:

https://www.dollarsandsense.org/archives/2024/0324bowman.html

(In six states, prisoners get nothing; North Carolina law bans paying prisoners more than $1/day, the 13th Amendment to the US Constitution explicitly permits slavery – forced labor without pay – for prisoners.)

Likewise, prisoners' families are poor. They start poor – being poor is a strong correlate of being an American prisoner – and then one of their breadwinners is put behind bars, taking their income with them. The family savings go to paying a lawyer.

Prison-tech is a bet that these poor people, locked up and paid $1/day or less; or their families, deprived of an earner and in debt to a lawyer; will somehow come up with cash to pay $13 for a 20-minute phone call, $3 for an MP3, or double the Kindle price for an ebook.

How do you convince a prisoner earning $0.52/hour to spend $13 on a phone-call?

Well, for Securus and Viapath (AKA Global Tellink) – a pair of private equity backed prison monopolists who have swallowed nearly all their competitors – the answer was simple: they bribed prison officials to get rid of the prison phones.

Not just the phones, either: a pair of Michigan suits brought by the Civil Rights Corps accuse sheriffs and the state Department of Corrections of ending in-person visits in exchange for kickbacks from the money that prisoners' families would pay once the only way to reach their loved ones was over the "free" tablets:

https://arstechnica.com/tech-policy/2024/03/jails-banned-family-visits-to-make-more-money-on-video-calls-lawsuits-claim/

These two cases are just the tip of the iceberg; Civil Rights Corps says there are hundreds of jails and prisons where Securus and Viapath have struck similar corrupt bargains:

https://civilrightscorps.org/case/port-huron-michigan-right2hug/

And it's not just visits and calls. Prison-tech companies have convinced jails and prisons to eliminate mail and parcels. Letters to prisoners are scanned and delivered their tablets, at a price. Prisoners – and their loved ones – have to buy virtual "postage stamps" and pay one stamp per "page" of email. Scanned letters (say, hand-drawn birthday cards from your kids) cost several stamps:

https://pluralistic.net/2024/02/14/minnesota-nice/#shitty-technology-adoption-curve

Prisons and jails have also been convinced to eliminate their libraries and continuing education programs, and to get rid of TVs and recreational equipment. That way, prisoners will pay vastly inflated prices for streaming videos and DRM-locked music.

The icing on the cake? If the prison changes providers, all that data is wiped out – a prisoner serving decades of time will lose their music library, their kids' letters, the books they love. They can get some of that back – by working for $1/day – but the personal stuff? It's just gone.

Readers of my novels know all this. A prison-tech scam just like the one described in the Civil Rights Corps suits is at the center of my latest novel The Bezzle:

https://us.macmillan.com/books/9781250865878/thebezzle

Prison-tech has haunted me for years. At first, it was just the normal horror anyone with a shred of empathy would feel for prisoners and their families, captive customers for sadistic "businesses" that have figured out how to get the poorest, most desperate people in the country to make them billions. In the novel, I call prison-tech "a machine":

a million-­armed robot whose every limb was tipped with a needle that sank itself into a different place on prisoners and their families and drew out a few more cc’s of blood.

But over time, that furious empathy gave way to dread. Prisoners are at the bottom of the shitty technology adoption curve. They endure the technological torments that haven't yet been sanded down on their bodies, normalized enough to impose them on people with a little more privilege and agency. I'm a long way up the curve from prisoners, but while the shitty technology curve may grind slow, it grinds fine:

https://pluralistic.net/2021/02/24/gwb-rumsfeld-monsters/#bossware

The future isn't here, it's just not evenly distributed. Prisoners are the ultimate early adopters of the technology that the richest, most powerful, most sadistic people in the country's corporate board-rooms would like to force us all to use.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/04/02/captive-customers/#guillotine-watch

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CC BY 3.0 https://creativecommons.org/licenses/by/3.0/deed.en

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[thoughtportal]

Last week, the nation’s largest prison and jail telecom corporation, Securus, effectively defaulted on more than a billion dollars of debt. After decades of preying on incarcerated people and their loved ones with exploitative call rates and other predatory practices that have driven millions of families into debt, Securus is being crushed under the weight of its own. In March, the company’s creditors gave the corporation an eight-month extension to pay up, urging its sale to a new owner to stave off an otherwise imminent bankruptcy. 

Securus is one of two corporations that dominate roughly 80 percent of the U.S. prison telecom industry, forming an effective duopoly that thrives on the captive markets found inside the nation’s lockups. Both companies are owned by private-equity firms: Securus, by Platinum Equity, and ViaPath (previously Global Tel Link), by American Securities.

The slow death of the largest player in this space is not accidental. It follows six years of intense advocacy to expose the vulnerability of the prison telecom industry’s business model on both ethical and economic grounds. Organizers have waged a strategic war against Securus, educating investors and the public about the company’s predatory practices while successfully advocating for legislation and regulation to rein them in.

With Platinum now on the hook to pay $1.3 billion of Securus debt this year following a series of failed attempts to refinance, bankruptcy seems inevitable. The company’s failure would represent a remarkable victory for advocates—and a potential beginning of the end for the prison telecom industry as we know it.

[janetushar1]

Clinical Laboratory Services Market to Hit $207.39 Billion by 2032

The global Clinical Laboratory Services Market was valued at USD 142.53 Billion in 2024 and it is estimated to garner USD 207.39 Billion by 2032 with a registered CAGR of 4.8% during the forecast period 2024 to 2032.

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[azspot]

We are not here to debate the moral squalor that defines the life of the hedge fund billionaire and chair of the seminary’s trustee board, Michael Fisch. We are not here to denounce him for the personal fortune, reportedly worth at least $10 billion, a fortune he built preying on the poorest among us, those families that went into debt to pay his prison telecommunications company’s exorbitant fees which charge up to $15 for 15-minute calls, fees that see families across the U.S. pay $1.4 billion each year to speak to incarcerated loved ones. We are not here to decry the pain he and his corporation ViaPath, formerly Global Tel Link, caused to hundreds of thousands of children, desperate to speak to an incarcerated mother or father, to tell them about school, or that they miss them, that they need to hear their voice to know everything will be okay, that they are loved. We are not here to contrast the lives of these children, bewildered at the cruelty of this world, living in dilapidated apartments in inner city projects, with the feudal opulence of Michael Fisch’s life, his three mansions worth $100 million lined up on the same ritzy street in East Hampton, his art collection worth over $500 million, his Fifth Avenue apartment worth $21 million and his four-story Upper East Side townhouse. So many luxury dwellings that sit empty much of the time, no doubt, while over half a million Americans are homeless. Greed is not rational. It devours because it can. It knows only one word — more.

Chris Hedges

[beardedmrbean]

Norman Vasquez often has to choose between buying soap or calling his family while serving time at Colorado’s Arkansas Valley Correctional Facility.

He’s struggled to maintain relationships with his children while serving a 35-year sentence. Losing those connections has been the most difficult part of his incarceration, he said.

“I never thought I would lose the most important relationships in my life due to the fact that I cannot afford to call my children every day,” he said.

Vasquez, whose statement was read aloud by an advocate, was one of 15 people who urged Colorado lawmakers last week to pass a bill that would make phone calls free to people incarcerated in state prisons and their families.

The approximately 17,000 people incarcerated in the Colorado Department of Corrections pay 8 cents a minute for phone calls — or $4.80 for an hour, according to data collected by the state. Last year, people in the Department of Corrections and their families paid $7.7 million to talk on the phone, state data shows.

Requiring incarcerated people to pay for phone calls breaks their connection with their families — the exact connection that studies say helps people succeed after they leave prison, proponents of the bill said. The lack of free calls places a financial burden on imprisoned peoples’ families — many of which are living in poverty — and keeps incarcerated people from connecting to resources outside of the prison walls that can help them re-enter society, they said.

“Their kids and their spouses will be more connected to them — they’ll be more likely to succeed when they leave,” said Rep. Judy Amabile, a Boulder Democrat sponsoring the bill, HB23-1133. “That means we have healthier communities, more public safety and less people in prison.”

The bill is part of a wave of legislation across the country to provide free phone calls to incarcerated people and regulate the private companies that dominate the prison communications industry. The sponsors of the Colorado bill pitched it as a small step to reduce recidivism and save taxpayer money in the long term.

People who maintain family relationships are more likely to succeed after release and avoid a new criminal charge. The state saves money when it imprisons fewer people, Amabile said.

Vasquez knows he will need his family when he is released.

“Who do I turn to when it’s time to go home?” he asked.

$4 million investment

Eight cents a minute may not seem like a lot, but it adds up over years of incarceration, said Rep. Mandy Lindsay, one of the bill sponsors. A daily 15-minute phone call adds up to $438 a year. Other types of communication like video calls and emails cost money, too. Incarcerated people have no ability to make a living wage and their loved ones are often strapped for cash.

Lindsay, an Arapahoe County Democrat, has experienced this firsthand — her brother-in-law is incarcerated.

“It became very quickly apparent how cumbersome, how expensive, how burdensome it becomes,” she said.

The bill would require the Department of Corrections to take on the costs of phone calls and allows the state to pay for video chats and emails as well. The change would cost the state approximately $4 million a year, which includes also paying for video calls and emails, according to the fiscal note.

The fiscal note assumes the Department of Corrections will finalize a new contract with a lower per-minute fee of 2 cents a minute and estimates that, on average, incarcerated people spend about 20 minutes a day on the phone.

Virginia-based ViaPath — previously known as Global Tel Link or GTL — provides phone and video call services to people in the Department of Corrections at no cost to the state and instead pays the state to operate in the prisons. Under the current contract, ViaPath keeps all the revenue from inmate calls and pays $800,000 a year to the state in a “cost recovery fee” to cover the salaries of staff members who work on the phone systems, according to the contract.

The bill would ban the Department of Corrections from receiving money from phone service providers for the right to operate in the system.

The phone technology provided by ViaPath allows the department to monitor and record calls and manage whom incarcerated people talk to. The company also provides software that scans recorded phone calls for keywords.

“The added security features are what the vendors provide and are the reason we have these contracts. It would be contrary to public safety to simply plug in phones and open them up for use,” Department of Corrections spokeswoman Annie Skinner said in an email.

The Department of Corrections does not oppose the bill, Amabile said.

Having to pay for phone calls also can keep people who are eligible for parole from leaving prison, said Jamie Ray with Second Chance Center, an Aurora nonprofit that helps people leaving prison. People need a place to live before they can be released on parole and need to make phone calls to set up that living situation.

Phone calls with his family reminded George Davis of who he was while he served his years in the Department of Corrections. The phone calls gave him hope, sanity and a desire to do better. They saved his life, he told lawmakters at a House Judiciary Committee hearing on the bill.

“A ‘we miss you’ can increase your sense of self-worth,” he said. “Hearing the words ‘I love you’ can invoke a will beyond our knowing to keep striving. It is through those connections that lives are changed.”

Glaring market failure

The Colorado bill is part of a nationwide effort to regulate or eliminate costs for phone calls for incarcerated people.

California and Connecticut already have made phone calls free for people in prisons and a dozen other states are considering similar changes, said Bianca Tylek of Worth Rises, a nonprofit advocacy organization that advocates for free phone calls nationwide.

Several jurisdictions are switching to a cheaper method of paying per phone line instead of paying per minute, she said.

“In 2023, we shouldn’t be talking about a per-minute rate for phone calls — that’s absurd,” she said.

Even under the per-minute model, other states are paying cheaper rates than Colorado. Illinois negotiated a contract where each minute costs nine-tenths of a cent.

Federal government agencies have looked at the issue as well. After years of litigation, the Federal Communications Commission in 2022 set a 21-cent-per-minute cap on interstate phone calls and set maximums on fees. A former FCC commissioner in 2017 called the prison phone industry “the clearest, most glaring type of market failure I’ve ever seen as a regulator.”

Nobody testified against the Colorado bill during hearing last week in the House Judiciary Committee, but Amabile knows convincing lawmakers to spend millions on phone calls for incarcerated people could be a hard sell.

But the state must do something to reduce the Colorado Department of Corrections’ 40% recidivism rate and downsize the department’s ever-expanding budget, she said.

Under Gov. Jared Polis’ proposed 2023-24 budget, the state Department of Corrections’ budget for the first time would exceed $1 billion — a 28% increase from the 2015 budget.

“We are just paying and paying and paying because we are not doing everything in our power to make sure that when they leave that they don’t come back”

More work to do

The bill will not affect phone calls from jail. People in the state’s 50 county jail facilities paid $7.9 million last year to make calls. More than $3.4 million of that went back to the jails in the form of commissions.

[don-lichterman]

ViaPath Technologies Expands Access to eLearning Content Through Partnership with CypherWorx

ViaPath Technologies Expands Access to eLearning Content Through Partnership with CypherWorx

ViaPath Technologies Partners with CypherWorx to Expands Access to eLearning Content on ViaPath Tablets Current & formerly incarcerated individuals can access eLearning platform, pursue education credentials, earn business certifications, learn life skills, & more Our holistic approach to rehabilitation ensures that individuals who start education and training during their sentences can continue…

[tennissurfacingspecifications]

Guidance: Viapath: cervical screening programme

Quality assurance (QA) aims to maintain national standards and promote continuous improvement in diabetic eye screening. This is to ensure that all eligible people have access to a consistent high quality service wherever they live.

QA visits are carried out by the Public Health England screening quality assurance service (SQAS).

The evidence for this report comes from:

routine monitoring data collected by the NHS screening programmes

evidence submitted by the provider and commissioner

information shared with the London regional SQAS as part of the visit process

from Public Health England - Activity on GOV.UK https://www.gov.uk/government/publications/viapath-cervical-screening-programme via IFTTT

[mostlysignssomeportents]

How to shatter the class solidarity of the ruling class

I'm touring my new, nationally bestselling novel The Bezzle! Catch me WEDNESDAY (Apr 11) at UCLA, then Chicago (Apr 17), Torino (Apr 21) Marin County (Apr 27), Winnipeg (May 2), Calgary (May 3), Vancouver (May 4), and beyond!

Audre Lorde counsels us that "The Master's Tools Will Never Dismantle the Master's House," while MLK said "the law cannot make a man love me, but it can restrain him from lynching me." Somewhere between replacing the system and using the system lies a pragmatic – if easily derailed – course.

Lorde is telling us that a rotten system can't be redeemed by using its own chosen reform mechanisms. King's telling us that unless we live, we can't fight – so anything within the system that makes it easier for your comrades to fight on can hasten the end of the system.

Take the problems of journalism. One old model of journalism funding involved wealthy newspaper families profiting handsomely by selling local appliance store owners the right to reach the townspeople who wanted to read sports-scores. These families expressed their patrician love of their town by peeling off some of those profits to pay reporters to sit through municipal council meetings or even travel overseas and get shot at.

In retrospect, this wasn't ever going to be a stable arrangement. It relied on both the inconstant generosity of newspaper barons and the absence of a superior way to show washing-machine ads to people who might want to buy washing machines. Neither of these were good long-term bets. Not only were newspaper barons easily distracted from their sense of patrician duty (especially when their own power was called into question), but there were lots of better ways to connect buyers and sellers lurking in potentia.

All of this was grossly exacerbated by tech monopolies. Tech barons aren't smarter or more evil than newspaper barons, but they have better tools, and so now they take 51 cents out of every ad dollar and 30 cents out of ever subscriber dollar and they refuse to deliver the news to users who explicitly requested it, unless the news company pays them a bribe to "boost" their posts:

https://www.eff.org/deeplinks/2023/04/saving-news-big-tech

The news is important, and people sign up to make, digest, and discuss the news for many non-economic reasons, which means that the news continues to struggle along, despite all the economic impediments and the vulture capitalists and tech monopolists who fight one another for which one will get to take the biggest bite out of the press. We've got outstanding nonprofit news outlets like Propublica, journalist-owned outlets like 404 Media, and crowdfunded reporters like Molly White (and winner-take-all outlets like the New York Times).

But as Hamilton Nolan points out, "that pot of money…is only large enough to produce a small fraction of the journalism that was being produced in past generations":

https://www.hamiltonnolan.com/p/what-will-replace-advertising-revenue

For Nolan, "public funding of journalism is the only way to fix this…If we accept that journalism is not just a business or a form of entertainment but a public good, then funding it with public money makes perfect sense":

https://www.hamiltonnolan.com/p/public-funding-of-journalism-is-the

Having grown up in Canada – under the CBC – and then lived for a quarter of my life in the UK – under the BBC – I am very enthusiastic about Nolan's solution. There are obvious problems with publicly funded journalism, like the politicization of news coverage:

https://www.theguardian.com/media/2023/jan/24/panel-approving-richard-sharp-as-bbc-chair-included-tory-party-donor

And the transformation of the funding into a cheap political football:

https://www.cbc.ca/news/politics/poilievre-defund-cbc-change-law-1.6810434

But the worst version of those problems is still better than the best version of the private-equity-funded model of news production.

But Nolan notes the emergence of a new form of hedge fund news, one that is awfully promising, and also terribly fraught: Hunterbrook Media, an investigative news outlet owned by short-sellers who pay journalists to research and publish damning reports on companies they hold a short position on:

https://hntrbrk.com/

For those of you who are blissfully distant from the machinations of the financial markets, "short selling" is a wager that a company's stock price will go down. A gambler who takes a short position on a company's stock can make a lot of money if the company stumbles or fails altogether (but if the company does well, the short can suffer literally unlimited losses).

Shorts have historically paid analysts to dig into companies and uncover the sins hidden on their balance-sheets, but as Matt Levine points out, journalists work for a fraction of the price of analysts and are at least as good at uncovering dirt as MBAs are:

https://www.bloomberg.com/opinion/articles/2024-04-02/a-hedge-fund-that-s-also-a-newspaper

What's more, shorts who discover dirt on a company still need to convince journalists to publicize their findings and trigger the sell-off that makes their short position pay off. Shorts who own a muckraking journalistic operation can skip this step: they are the journalists.

There's a way in which this is sheer genius. Well-funded shorts who don't care about the news per se can still be motivated into funding freely available, high-quality investigative journalism about corporate malfeasance (notoriously, one of the least attractive forms of journalism for advertisers). They can pay journalists top dollar – even bid against each other for the most talented journalists – and supply them with all the tools they need to ply their trade. A short won't ever try the kind of bullshit the owners of Vice pulled, paying themselves millions while their journalists lose access to Lexisnexis or the PACER database:

https://pluralistic.net/2024/02/24/anti-posse/#when-you-absolutely-positively-dont-give-a-solitary-single-fuck

The shorts whose journalists are best equipped stand to make the most money. What's not to like?

Well, the issue here is whether the ruling class's sense of solidarity is stronger than its greed. The wealthy have historically oscillated between real solidarity (think of the ultrawealthy lobbying to support bipartisan votes for tax cuts and bailouts) and "war of all against all" (as when wealthy colonizers dragged their countries into WWI after the supply of countries to steal ran out).

After all, the reason companies engage in the scams that shorts reveal is that they are profitable. "Behind every great fortune is a great crime," and that's just great. You don't win the game when you get into heaven, you win it when you get into the Forbes Rich List.

Take monopolies: investors like the upside of backing an upstart company that gobbles up some staid industry's margins – Amazon vs publishing, say, or Uber vs taxis. But while there's a lot of upside in that move, there's also a lot of risk: most companies that set out to "disrupt" an industry sink, taking their investors' capital down with them.

Contrast that with monopolies: backing a company that merges with its rivals and buys every small company that might someday grow large is a sure thing. Shriven of "wasteful competition," a company can lower quality, raise prices, capture its regulators, screw its workers and suppliers and laugh all the way to Davos. A big enough company can ignore the complaints of those workers, customers and regulators. They're not just too big to fail. They're not just too big to jail. They're too big to care:

https://pluralistic.net/2024/04/04/teach-me-how-to-shruggie/#kagi

Would-be monopolists are stuck in a high-stakes Prisoner's Dilemma. If they cooperate, they can screw over everyone else and get unimaginably rich. But if one party defects, they can raid the monopolist's margins, short its stock, and snitch to its regulators.

It's true that there's a clear incentive for hedge-fund managers to fund investigative journalism into other hedge-fund managers' portfolio companies. But it would be even more profitable for both of those hedgies to join forces and collude to screw the rest of us over. So long as they mistrust each other, we might see some benefit from that adversarial relationship. But the point of the 0.1% is that there aren't very many of them. The Aspen Institute can rent a hall that will hold an appreciable fraction of that crowd. They buy their private jets and bespoke suits and powdered rhino horn from the same exclusive sellers. Their kids go to the same elite schools. They know each other, and they have every opportunity to get drunk together at a charity ball or a society wedding and cook up a plan to join forces.

This is the problem at the core of "mechanism design" grounded in "rational self-interest." If you try to create a system where people do the right thing because they're selfish assholes, you normalize being a selfish asshole. Eventually, the selfish assholes form a cozy little League of Selfish Assholes and turn on the rest of us.

Appeals to morality don't work on unethical people, but appeals to immorality crowds out ethics. Take the ancient split between "free software" (software that is designed to maximize the freedom of the people who use it) and "open source software" (identical to free software, but promoted as a better way to make robust code through transparency and peer review).

Over the years, open source – an appeal to your own selfish need for better code – triumphed over free software, and its appeal to the ethics of a world of "software freedom." But it turns out that while the difference between "open" and "free" was once mere semantics, it's fully possible to decouple the two. Today, we have lots of "open source": you can see the code that Google, Microsoft, Apple and Facebook uses, and even contribute your labor to it for free. But you can't actually decide how the software you write works, because it all takes a loop through Google, Microsoft, Apple or Facebook's servers, and only those trillion-dollar tech monopolists have the software freedom to determine how those servers work:

https://pluralistic.net/2020/05/04/which-side-are-you-on/#tivoization-and-beyond

That's ruling class solidarity. The Big Tech firms have hidden a myriad of sins beneath their bafflegab and balance-sheets. These (as yet) undiscovered scams constitute a "bezzle," which JK Galbraith defined as "the magic interval when a confidence trickster knows he has the money he has appropriated but the victim does not yet understand that he has lost it."

The purpose of Hunterbrook is to discover and destroy bezzles, hastening the moment of realization that the wealth we all feel in a world of seemingly orderly technology is really an illusion. Hunterbrook certainly has its pick of bezzles to choose from, because we are living in a Golden Age of the Bezzle.

Which is why I titled my new novel The Bezzle. It's a tale of high-tech finance scams, starring my two-fisted forensic accountant Marty Hench, and in this volume, Hench is called upon to unwind a predatory prison-tech scam that victimizes the most vulnerable people in America – our army of prisoners – and their families:

https://us.macmillan.com/books/9781250865878/thebezzle

The scheme I fictionalize in The Bezzle is very real. Prison-tech monopolists like Securus and Viapath bribe prison officials to abolish calls, in-person visits, mail and parcels, then they supply prisoners with "free" tablets where they pay hugely inflated rates to receive mail, speak to their families, and access ebooks, distance education and other electronic media:

https://pluralistic.net/2024/04/02/captive-customers/#guillotine-watch

But a group of activists have cornered these high-tech predators, run them to ground and driven them to the brink of extinction, and they've done it using "the master's tools" – with appeals to regulators and the finance sector itself.

Writing for The Appeal, Dana Floberg and Morgan Duckett describe the campaign they waged with Worth Rises to bankrupt the prison-tech sector:

https://theappeal.org/securus-bankruptcy-prison-telecom-industry/

Here's the headline figure: Securus is $1.8 billion in debt, and it has eight months to find a financier or it will go bust. What's more, all the creditors it might reasonably approach have rejected its overtures, and its bonds have been downrated to junk status. It's a dead duck.

Even better is how this happened. Securus's debt problems started with its acquisition, a leveraged buyout by Platinum Equity, who borrowed heavily against the firm and then looted it with bogus "management fees" that meant that the debt continued to grow, despite Securus's $700m in annual revenue from America's prisoners. Platinum was just the last in a long line of PE companies that loaded up Securus with debt and merged it with its competitors, who were also mortgaged to make profits for other private equity funds.

For years, Securus and Platinum were able to service their debt and roll it over when it came due. But after Worth Rises got NYC to pass a law making jail calls free, creditors started to back away from Securus. It's one thing for Securus to charge $18 for a local call from a prison when it's splitting the money with the city jail system. But when that $18 needs to be paid by the city, they're going to demand much lower prices. To make things worse for Securus, prison reformers got similar laws passed in San Francisco and in Connecticut.

Securus tried to outrun its problems by gobbling up one of its major rivals, Icsolutions, but Worth Rises and its coalition convinced regulators at the FCC to block the merger. Securus abandoned the deal:

https://worthrises.org/blogpost/securusmerger

Then, Worth Rises targeted Platinum Equity, going after the pension funds and other investors whose capital Platinum used to keep Securus going. The massive negative press campaign led to eight-figure disinvestments:

https://www.latimes.com/business/story/2019-09-05/la-fi-tom-gores-securus-prison-phone-mass-incarceration

Now, Securus's debt became "distressed," trading at $0.47 on the dollar. A brief, covid-fueled reprieve gave Securus a temporary lifeline, as prisoners' families were barred from in-person visits and had to pay Securus's rates to talk to their incarcerated loved ones. But after lockdown, Securus's troubles picked up right where they left off.

They targeted Platinum's founder, Tom Gores, who papered over his bloody fortune by styling himself as a philanthropist and sports-team owner. After a campaign by Worth Rises and Color of Change, Gores was kicked off the Los Angeles County Museum of Art board. When Gores tried to flip Securus to a SPAC – the same scam Trump pulled with Truth Social – the negative publicity about Securus's unsound morals and financials killed the deal:

https://twitter.com/WorthRises/status/1578034977828384769

Meanwhile, more states and cities are making prisoners' communications free, further worsening Securus's finances:

https://pluralistic.net/2024/02/14/minnesota-nice/#shitty-technology-adoption-curve

Congress passed the Martha Wright-Reed Just and Reasonable Communications Act, giving the FCC the power to regulate the price of federal prisoners' communications. Securus's debt prices tumbled further:

https://www.govtrack.us/congress/bills/117/s1541

Securus's debts were coming due: it owes $1.3b in 2024, and hundreds of millions more in 2025. Platinum has promised a $400m cash infusion, but that didn't sway S&P Global, a bond-rating agency that re-rated Securus's bonds as "CCC" (compare with "AAA"). Moody's concurred. Now, Securus is stuck selling junk-bonds:

https://www.govtrack.us/congress/bills/117/s1541

The company's creditors have given Securus an eight-month runway to find a new lender before they force it into bankruptcy. The company's debt is trading at $0.08 on the dollar.

Securus's major competitor is Viapath (prison tech is a duopoly). Viapath is also debt-burdened and desperate, thanks to a parallel campaign by Worth Rises, and has tried all of Securus's tricks, and failed:

https://pestakeholder.org/news/american-securities-fails-to-sell-prison-telecom-company-viapath/

Viapath's debts are due next year, and if Securus tanks, no one in their right mind will give Viapath a dime. They're the walking dead.

Worth Rise's brilliant guerrilla warfare against prison-tech and its private equity backers are a master class in using the master's tools to dismantle the master's house. The finance sector isn't a friend of justice or working people, but sometimes it can be used tactically against financialization itself. To paraphrase MLK, "finance can't make a corporation love you, but it can stop a corporation from destroying you."

Yes, the ruling class finds solidarity at the most unexpected moments, and yes, it's easy for appeals to greed to institutionalize greediness. But whether it's funding unbezzling journalism through short selling, or freeing prisons by brandishing their cooked balance-sheets in the faces of bond-rating agencies, there's a lot of good we can do on the way to dismantling the system.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/04/08/money-talks/#bullshit-walks

Image: KMJ (modified) https://commons.wikimedia.org/wiki/File:Boerse_01_KMJ.jpg

CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0/deed.en

[mostlysignssomeportents]

Prison-tech is a scam - and a harbinger of your future

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/02/14/minnesota-nice/#shitty-technology-adoption-curve

Here's how the shitty technology adoption curve works: when you want to roll out a new, abusive technology, look for a group of vulnerable people whose complaints are roundly ignored and subject them to your bad idea. Sand the rough edges off on their bodies and lives. Normalize the technological abuse you seek to inflict.

Next: work your way up the privilege gradient. Maybe you start with prisoners, then work your way up to asylum seekers, parolees and mental patients. Then try it on kids and gig workers. Now, college students and blue collar workers. Climb that curve, bit by bit, until you've reached its apex and everyone is living with your shitty technology:

https://pluralistic.net/2021/02/24/gwb-rumsfeld-monsters/#bossware

Prisoners, asylum seekers, drug addicts and other marginalized people are the involuntary early adopters of every form of disciplinary technology. They are the leading indicators of the ways that technology will be ruining your life in the future. They are the harbingers of all our technological doom.

Which brings me to Minnesota.

Minnesota is one of the first states make prison phone-calls free. This is a big deal, because prison phone-calls are a big business. Prisoners are literally a captive audience, and the telecommunications sector is populated by sociopaths, bred and trained to spot and exploit abusive monopoly opportunities. As states across America locked up more and more people for longer and longer terms, the cost of operating prisons skyrocketed, even as states slashed taxes on the rich and turned a blind eye to tax evasion.

This presented telco predators with an unbeatable opportunity: they approached state prison operators and offered them a bargain: "Let us take over the telephone service to your carceral facility and we will levy eye-watering per-minute charges on the most desperate people in the world. Their families – struggling with one breadwinner behind bars – will find the money to pay this ransom, and we'll split the profits with you, the cash-strapped, incarceration-happy state government."

This was the opening salvo, and it turned into a fantastic little money-spinner. Prison telco companies and state prison operators were the public-private partnership from hell. Prison-tech companies openly funneled money to state coffers in the form of kickbacks, even as they secretly bribed prison officials to let them gouge their inmates and inmates' families:

https://www.motherjones.com/politics/2019/02/mississippi-corrections-corruption-bribery-private-prison-hustle/

As digital technology got cheaper and prison-tech companies got greedier, the low end of the shitty tech adoption curve got a lot more crowded. Prison-tech companies started handing out "free" cheap Android tablets to prisoners, laying the groundwork for the next phase of the scam. Once prisoners had tablets, prisons could get rid of phones altogether and charge prisoners – and their families – even higher rates to place calls right to the prisoner's cell.

Then, prisons could end in-person visits and replace them with sub-skype, postage-stamp-sized videoconferencing, at rates even higher than the voice-call rates. Combine that with a ban on mailing letters to and from prisoners – replaced with a service that charged even higher rates to scan mail sent to prisoners, and then charged prisoners to download the scans – and prison-tech companies could claim to be at the vanguard of prison safety, ending the smuggling of dope-impregnated letters and other contraband into the prison system.

Prison-tech invented some wild shit, like the "digital stamp," a mainstay of industry giant Jpay, which requires prisoners to pay for "stamps" to send or receive a "page" of email. If you're keeping score, you've realized that this is a system where prisoners and their families have to pay for calls, "in-person" visits, handwritten letters, and email.

It goes on: prisons shuttered their libraries and replaced them with ebook stores that charged 2-4 times the prices you'd pay for books on the outside. Prisoners were sold digital music at 200-300% markups relative to, say, iTunes.

Remember, these are prisoners: locked up for years or decades, decades during which their families scraped by with a breadwinner behind bars. Prisoners can earn money, sure – as much as $0.89/hour, doing forced labor for companies that contract with prisons for their workforce:

https://www.prisonpolicy.org/blog/2017/04/10/wages/

Of course, there's the odd chance for prisoners to make really big bucks – $2-5/day. All they have to do is "volunteer" to fight raging wildfires:

https://www.hcn.org/articles/climate-desk-wildfire-california-incarcerated-firefighters-face-dangerous-work-low-pay-and-covid19/

So those $3 digital music tracks are being bought by people earning as little as $0.10/hour. Which makes it especially galling when prisons change prison-tech suppliers, whereupon all that digital music is deleted, wiping prisoners' media collection out – forever (literally, for prisoners serving life terms):

https://www.eff.org/deeplinks/2018/08/captive-audience-how-floridas-prisons-and-drm-made-113m-worth-prisoners-music

Let's recap: America goes on a prison rampage, locking up ever-larger numbers of people for ever-longer sentences. Once inside, prisoners had their access to friends and family rationed, along with access to books, music, education and communities outside. This is very bad for prisoners – strong ties to people outside is closely tied to successful reentry – but it's great for state budgets, and for wardens, thanks to kickbacks:

https://www.prisonpolicy.org/blog/2021/12/21/family_contact/

Back to Minnesota: when Minnesota became the fourth state in the USA where the state, not prisoners, would pay for prison calls, it seemed like they were finally breaking the vicious cycle in which every dollar ripped off of prisoners' family paid 40 cents to the state treasury:

https://www.kaaltv.com/news/no-cost-phone-calls-for-those-incarcerated-in-minnesota/

But – as Katya Schwenk writes for The Lever – what happened next is "a case study in how prison communication companies and their private equity owners have managed to preserve their symbiotic relationship with state corrections agencies despite reforms — at the major expense of incarcerated people and their families":

https://www.levernews.com/wall-streets-new-prison-scam/

Immediately after the state ended the ransoming of prisoners' phone calls, the private-equity backed prison-tech companies that had dug their mouth-parts into the state's prison jacked up the price of all their other digital services. For example, the price of a digital song in a Minnesota prison just jumped from $1.99 to $2.36 (for prisoners earning as little as $0.25/hour).

As Paul Wright from the Human Rights Defense Center told Schwenk, "The ideal world for the private equity owners of these companies is every prisoner has one of their tablets, and every one of those tablets is hooked up to the bank account of someone outside of prison that they can just drain."

The state's new prison-tech supplier promises to double the amount of kickbacks it pays the state each year, thanks to an aggressive expansion into games, money transfers, and other "services." The perverse incentive isn't hard to spot: the more these prison-tech companies charge, the more kickbacks they pay to the prisons.

The primary prison-tech company for Minnesota's prisons is Viapath (nee Global Tel Link), which pioneered price-gouging on in-prison phone calls. Viapath has spent the past two decades being bought and sold by different private equity firms: Goldman Sachs, Veritas Capital, and now the $46b/year American Securities.

Viapath competes with another private equity-backed prison-tech giant: Aventiv (Securus, Jpay), owned by Platinum Equity. Together, Viapath and Aventiv control 90% of the prison-tech market. These companies have a rap-sheet as long as your arm: bribing wardens, stealing from prisoners and their families, and recording prisoner-attorney calls. But these are the kinds of crimes the state punishes with fines and settlements – not by terminating its contracts with these predators.

These companies continue to flout the law. Minnesota's new free-calls system bans prison-tech companies from paying kickbacks to prisons and prison-officials for telcoms services, so the prison-tech companies have rebranded ebooks, music, and money-transfers as non-communications products, and the kickbacks are bigger than ever.

This is the bottom end of the shitty technology adoption curve. Long before Ubisoft started deleting games that you'd bought a "perpetual license" for, prisoners were having their media ganked by an uncaring corporation that knew it was untouchable:

https://www.youtube.com/watch?v=VIqyvquTEVU

Revoking your media, charging by the byte for messaging, confiscating things in the name of security and then selling them back to you – these are all tactics that were developed in the prison system, refined, normalized, and then worked up the privilege gradient. Prisoners are living in your technology future. It's just not evenly distributed – yet.

As it happens, prison-tech is at the heart of my next novel, The Bezzle, which comes out on Feb 20. This is a followup to last year's bestselling Red Team Blues, which introduced the world to Marty Hench, a two-fisted, hard-bitten, high-tech forensic accountant who's spent 40 years busting Silicon Valley finance scams:

https://us.macmillan.com/books/9781250865878/thebezzle

In The Bezzle, we travel with Marty back to the mid 2000s (Hench is a kind of tech-scam Zelig and every book is a standalone tale of high-tech ripoffs from a different time and place). Marty's trying to help his old pal Scott Warms, a once-high-flying founder who's fallen prey to California's three-strikes law and is now facing decades in a state pen. As bad as things are, they get worse when the prison starts handing out "free" tablet and closing down the visitation room, the library, and the payphones.

This is an entry to the thing I love most about the Hench novels: the opportunity to turn all this dry, financial skullduggery into high-intensity, high-stakes technothriller plot. For me, Marty Hench is a tool for flensing the scam economy of all its layers of respectability bullshit and exposing the rot at the core.

It's not a coincidence that I've got a book coming out in a week that's about something that's in the news right now. I didn't "predict" this current turn – I observed it. The world comes at you fast and technology news flutters past before you can register it. Luckily, I have a method for capturing this stuff as it happens:

https://pluralistic.net/2021/05/09/the-memex-method/

Writing about tech issues that are long-simmering but still in the periphery is a technique I call "predicting the present." It's the technique I used when I wrote Little Brother, about out-of-control state surveillance of the internet. When Snowden revealed the extent of NSA spying in 2013, people acted as though I'd "predicted" the Snowden revelations:

https://www.wired.com/story/his-writing-radicalized-young-hackers-now-he-wants-to-redeem-them/

But Little Brother and Snowden's own heroic decision have a common origin: the brave whistleblower Mark Klein, who walked into EFF's offices in 2006 and revealed that he'd been ordered by his boss at AT&T to install a beam-splitter into the main fiber trunk so that the NSA could illegally wiretap the entire internet:

https://www.eff.org/document/public-unredacted-klein-declaration

Mark Klein inspired me to write Little Brother – but despite national press attention, the Klein revelations didn't put a stop to NSA spying. The NSA was still conducting its lawless surveillance campaign in 2013, when Snowden, disgusted with NSA leadership for lying to Congress under oath, decided to blow the whistle again:

https://apnews.com/article/business-33a88feb083ea35515de3c73e3d854ad

The assumption that let the NSA get away with mass surveillance was that it would only be weaponized against the people at the bottom of the shitty technology adoption curve: brown people, mostly in other countries. The Snowden revelations made it clear that these were just the beginning, and sure enough, more than a decade later, we have data-brokers sucking up billions in cop kickbacks to enable warrantless surveillance, while virtually following people to abortion clinics, churches, and protests. Mass surveillance is chugging its way up the shitty tech adoption curve with no sign of stopping.

Like Little Brother, The Bezzle is intended as a kind of virtual flythrough of what life is like further down on that curve – a way for readers who have too much agency to be in the crosshairs of a company like Viapath or Avently right now to wake up before that kind of technology comes for them, and to inspire them to take up the cause of the people further down the curve who are mired in it.

The Bezzle is an intense book, but it's also a very fun story – just like Little Brother. It's a book that lays bare the internal technical workings of so many scams, from multi-level marketing to real-estate investment trusts, from music royalty theft to prison-tech, in the course of an ice-cold revenge plot that keeps twisting to the very last page.

It'll drop in six days. I hope you'll check it out:

https://us.macmillan.com/books/9781250865878/thebezzle

[mostlysignssomeportents]

FCC strikes a blow against prison profiteering

TOMORROW NIGHT (July 20), I'm appearing in CHICAGO at Exile in Bookville.

Here's a tip for policymakers hoping to improve the lives of the most Americans with the least effort: help prisoners.

After all, America is the most prolific imprisoner of its own people of any country in world history. We lock up more people than Stalin, than Mao, more than Botha, de Klerk or any other Apartheid-era South African president. And it's not just America's vast army of the incarcerated who are afflicted by our passion for imprisonment: their families and friends suffer, too.

That familial suffering isn't merely the constant pain of life without a loved one, either. America's prison profiteers treat prisoners' families as ATMs who can be made to pay and pay and pay.

This may seem like a losing strategy. After all, prison sentences are strongly correlated with poverty, and even if your family wasn't desperate before the state kidnapped one of its number and locked them behind bars, that loved one's legal defense and the loss of their income is a reliable predictor of downward social mobility.

Decent people don't view poor people as a source of riches. But for a certain kind of depraved sadist, the poor are an irresistible target. Sure, poor people don't have much money, but what they lack even more is protection under the law ("conservativism consists of the principle that there is an in-group whom the law protects but does not bind, and an out-group whom the law binds but does not protect" -Wilhoit). You can enjoy total impunity as you torment poor people, make them so miserable and afraid for their lives and safety that they will find some money, somewhere, and give it to you.

Mexican cartels understand this. They do a brisk trade in kidnapping asylum seekers whom the US has illegally forced to wait in Mexico to have their claims processed. The families of refugees – either in their home countries or in the USA – are typically badly off but they understand that Mexico will not lift a finger to protect a kidnapped refugee, and so when the kidnappers threaten the most grisly tortures as a means of extracting ransom, those desperate family members do whatever it takes to scrape up the blood-money.

What's more, the families of asylum seekers are not much better off than their kidnapped loved ones when it comes to seeking official protection. Family members who stayed behind in human rights hellholes like Bukele's El Salvador can't get their government to lodge official complaints with the Mexican ambassador, and family members who made it to the USA are in no position to get their Congressjerk to intercede with ICE or the Mexican consulate. This gives Mexico's crime syndicates total latitude to kidnap, torture, and grow rich by targeting the poorest, most desperate people in the world.

The private contractors that supply services to America's prisons are basically Mexican refugee-kidnappers with pretensions and shares listed on the NYSE. After decades of consolidation, the prison contracting sector has shrunk to two gigantic companies: Securus and Viapath (formerly Global Tellink). These private-equity backed behemoths dominate their sector, and have diversified, providing all kinds of services, from prison cafeteria meals to commissary, the prison stores where prisoners can buy food and other items.

If you're following closely, this is one of those places where the hair on the back of your neck starts to rise. These companies make money when prisoners buy food from the commissary, and they're also in charge of the quality of the food in the mess hall. If the food in the mess hall is adequate and nutritious, there's no reason to buy food from the commissary.

This is what economists call a "moral hazard." You can think of it as the reason that prison ramen costs 300% more than ramen in the free world:

https://pluralistic.net/2024/04/20/captive-market/#locked-in

(Not just ramen: in America's sweltering prisons, an 8" fan costs $40, and the price of water went up in Texas prisons by 50% during last summer's heatwave.)

It's actually worse than that: if you get sick from eating bad prison food, the same company that poisoned you gets paid to operate the infirmary where you're treated:

https://theappeal.org/massachusetts-prisons-wellpath-dentures-teeth/

Now, the scam of abusing prisoners to extract desperate pennies from their families is hardly new. There's written records of this stretching back to the middle ages. Nor is this pattern a unique one: making an unavoidable situation as miserable as possible and then upcharging people who have the ability to pay to get free of the torture is basically how the airlines work. Making coach as miserable as possible isn't merely about shaving pennies by shaving inches off your legroom: it's a way to "incentivize" anyone who can afford it to pay for an upgrade to business-class. The worse coach is, the more people you can convince to dip into their savings or fight with their boss to move classes. The torments visited upon everyone else in coach are economically valuable to the airlines: their groans and miseries translate directly into windfall profits, by convincing better-off passengers to pay not to have the same thing done to them.

Of course, with rare exceptions (flying to get an organ transplant, say) plane tickets are typically discretionary. Housing, on the other hand, is a human right and a prerequisite for human thriving. The worse things are for tenants, the more debt and privation people will endure to become home-owners, so it follows that making renters worse off makes homeowners richer:

https://pluralistic.net/2021/06/06/the-rents-too-damned-high/

For Securus and Viapath, the path to profitability is to lobby for mandatory, long prison sentences and then make things inside the prison as miserable as possible. Any prisoner whose family can find the funds can escape the worst of it, and all the prisoners who can't afford it serve the economically important function of showing the prisoners whose families can afford it how bad things will be if they don't pay.

If you're thinking that prisoners might pay Securus, Viapath and their competitors out of their own prison earnings, forget it. These companies have decided that the can make more by pocketing the difference between the vast sums paid by third parties for prisoners' labor and the pennies the prisoners get from their work. Remember, the 13th Amendment specifically allows for the enslavement of incarcerated people! Six states ban paying prisoners at all. North Carolina caps prisoners' wages at one dollar per day. The national average prison wage is $0.52/hour. Prisoners' labor produces $11b/year in goods and services:

https://www.dollarsandsense.org/archives/2024/0324bowman.html

Forced labor and extortion are a long and dishonorable tradition in incarceration, but this century saw the introduction of a novel, exciting way of extracting wealth from prisoners and their families. It started when private telcos took over prison telephones and raised the price of a prison phone call. These phone companies found willing collaborators in local jail and prison systems: all they had to do was offer to split the take with the jailers.

With the advent of the internet, things got far worse. Digitalization meant that prisons could replace the library, adult educations, commissary accounts, letter-mail, parcels, in-person visits and phone calls with a single tablet. These cheaply made tablets were offered for free to prisoners, who lost access to everything from their kids' handmade birthday cards to in-person visits with those kids.

In their place, prisoners' families had to pay huge premiums to have their letters scanned so that prisoners could pay (again) to view those scans on their tablets. Instead of in-person visits, prisoners families had to pay $3-10/minute for a janky, postage-stamp sized video. Perversely, jails and prisons replaced their in-person visitation rooms with rooms filled with shitty tablets where family members could sit and videoconference with their incarcerated loved ones who were just a few feet away:

https://pluralistic.net/2024/02/14/minnesota-nice/#shitty-technology-adoption-curve

Capitalists hate capitalism. The capital classes are on a relentless search for markets with captive customers and no competitors. The prison-tech industry was catnip for private equity funds, who bought and "rolled" up prison contractors, concentrating the sector into a duopoly of debt-laden companies whose ability to pay off their leveraged buyouts was contingent on their ability to terrorize prisoners' families into paying for their overpriced, low-quality products and services.

One particularly awful consequence of these rollups was the way that prisoners could lose access to their data when their prison's service-provider was merged with a rival. When that happened, the IT systems would be consolidated, with the frequent outcome that all prisoners' data was lost. Imagine working for two weeks to pay for a song or a book, or a scan of your child's handmade Father's Day card, only to have the file deleted in an IT merger. Now imagine that you're stuck inside for another 20 years.

This is a subject I've followed off and on for years. It's such a perfect bit of end-stage capitalist cruelty, combining mass incarceration with monopolies. Even if you're not imprisoned, this story is haunting, because on the one hand, America keeps thinking of new reasons to put more people behind bars, and on the other hand, every technological nightmare we dream up for prisoners eventually works its way out to the rest of us in a process I call the "shitty technology adoption curve." As William Gibson says, "The future is here, it's just not evenly distributed" – but the future sure pools up thick and dystopian around America's prisoners:

https://pluralistic.net/2021/02/24/gwb-rumsfeld-monsters/#bossware

My background interest in the subject got sharper a few years ago when I started working on The Bezzle, my 2023 high-tech crime thriller about prison-tech grifters:

https://us.macmillan.com/books/9781250865878/thebezzle

One of the things that was on my mind when I got to work on that book was the 2017 court-case that killed the FCC's rules limit interstate prison-call gouging. The FCC could have won that case, but Trump's FCC chairman, Ajit Pai, dropped it:

https://arstechnica.com/tech-policy/2017/06/prisoners-lose-again-as-court-wipes-out-inmate-calling-price-caps/

With that bad precedent on the books, the only hope prisoners had for relief from the FCC was for Congress to enact legislation specifically granting the agency the power to regulate prison telephony. Incredibly, Congress did just that, with Biden signing the "Martha Wright-Reed Just and Reasonable Communications Act" in early 2023:

https://www.congress.gov/bill/117th-congress/senate-bill/1541/text

With the new law in place, it fell to the FCC use those newfound powers. Compared to agencies like the FTC and the NLRB, Biden's FCC has been relatively weak, thanks in large part to the Biden administration's refusal to defend its FCC nomination for Gigi Sohn, a brilliant and accomplished telecoms expert. You can tell that Sohn would have been a brilliant FCC commissioner because of the way that America's telco monopolists and their allies in the senate (mostly Republicans, but some Democrats, too) went on an all-out offensive against her, using the fact that she is gay to smear her and ultimately defeat her nomination:

https://pluralistic.net/2023/03/19/culture-war-bullshit-stole-your-broadband/

But even without Sohn, the FCC has managed to do something genuinely great for America's army of the imprisoned. This week, the FCC voted in price-caps on prison calls, so that call rates will drop from $11.35 for 15 minutes to just $0.90. Both interstate and intrastate calls will be capped at $0.06-0.12/minute, with a phased rollout starting in January:

https://arstechnica.com/tech-policy/2024/07/fcc-closes-final-loopholes-that-keep-prison-phone-prices-exorbitantly-high/

It's hard to imagine a policy that will get more bang for a regulator's buck than this one. Not only does this represent a huge savings for prisoners and their families, those savings are even larger in proportion to their desperate, meager finances.

It shows you how important a competent, qualified regulator is. When it comes to political differences between Republicans and Democrats, regulatory competence is a grossly underrated trait. Trump's FCC Chair Ajit Pai handed out tens of billions of dollars in public money to monopoly carriers to improve telephone networks in underserved areas, but did so without first making accurate maps to tell him where the carriers should invest. As a result, that money was devoured by executive bonuses and publicly financed dividends and millions of Americans entered the pandemic lockdowns with broadband that couldn't support work-from-home or Zoom school. When Biden's FCC chair Jessica Rosenworcel took over, one of her first official acts was to commission a national study and survey of broadband quality. Republicans howled in outrage:

https://pluralistic.net/2023/11/10/digital-redlining/#stop-confusing-the-issue-with-relevant-facts

The telecoms sector has been a rent-seeking, monopolizing monster since the days of Samuel Morse:

https://pluralistic.net/2024/07/18/the-bell-system/#were-the-phone-company-we-dont-have-to-care

Combine telecoms and prisons, and you get a kind of supermonster, the meth-gator of American neofeudalism:

https://www.nbcnews.com/news/us-news/tennessee-police-warn-locals-not-flush-drugs-fear-meth-gators-n1030291

The sector is dirty beyond words, and it corrupts everything it touches – bribing prison officials to throw out all the books in the prison library and replace them with DRM-locked, high-priced ebooks that prisoners must toil for weeks to afford, and that vanish from their devices whenever a prison-tech company merges with a rival:

https://pluralistic.net/2024/04/02/captive-customers/#guillotine-watch

The Biden presidency has been fatally marred by the president's avid support of genocide, and nothing will change that. But for millions of Americans, the Biden administration's policies on telecoms, monopoly, and corporate crime have been a source of profound, lasting improvements.

It's not just presidents who can make this difference. Millions of America's prisoners are rotting in state and county jails, and as California has shown, state governments have broad latitude to kick out prison profiteers:

https://pluralistic.net/2023/05/08/captive-audience/#good-at-their-jobs

Support me this summer on the Clarion Write-A-Thon and help raise money for the Clarion Science Fiction and Fantasy Writers' Workshop!

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/07/19/martha-wright-reed/#capitalists-hate-capitalism

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[mostlysignssomeportents]

California to smash prison e-profiteers

On Weds (May 10), I’m in Vancouver for a keynote at the Open Source Summit and a book event for Red Team Blues at Heritage Hall and Thu (May 11), I’m in Calgary for Wordfest.

It’s a double-whammy that defines 21st century American life: a corporation gets caught doing something terrible, exploitative or even murderous, and a government agency steps in — only to discover that there’s nothing it can do, because Reagan/Trump/Clinton/Bush I/Bush II deregulated that industry and stripped the agency of enforcement powers.

If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/05/08/captive-audience/#good-at-their-jobs

Man, that feels awful. The idea that extremists gutted our democratically accountable institutions so that there’s nothing they can do, no matter how egregious a corporation’s conduct is so demoralizing. Makes me feel like giving up.

But the law is a complex and mysterious thing. Regulators aren’t actually helpless. There are authorities, powers and systems that the corporate wreckers passed over, failed to notice, or failed to neuter. Take Section 5 of the FTC Act, which gives the Commission broad powers to prevent “unfair and deceptive” practices. Since the 1970s, the FTC just acted like this didn’t exist, even though it was right there all along, between Section 4 and Section 6.

Then, under the directorship of FTC chair Lina Khan, Section 5 was rediscovered and mobilized, first to end the practice of noncompete “agreements” for workers nationwide:

https://mattstoller.substack.com/p/antitrust-enforcers-to-ban-indentured

A new breed of supremely competent, progressive regulators are dusting off those old lawbooks and figuring out what powers they have, and they’re using those powers to Get Stuff Done. It’s like that old joke:

Office manager: $75 to kick the photocopier?

Repair person: No, it’s $5 to kick the photocopier, $70 to know where to kick it.

There’s a whole generation of expert photocopier-kickers in public life, and they’ve got their boots on:

https://pluralistic.net/2022/10/18/administrative-competence/#i-know-stuff

This is the upside of technocracy — where you have people who are appointed to do good things, and who want to do good things, and who figure out how to do good things. There are dormant powers everywhere in law. Remember when Southwest Air stranded a million passengers over Christmas week and Transport Secretary Pete Buttigieg responded by talking sternly about doing better, but without opening any enforcement actions against SWA?

At the time, Buttigieg’s defenders said that was all he could do: “Pete isn’t the boss of Southwest’s IT department, you know!” He’s not — but he is in possession of identical powers to the FTC to regulate “unfair and deceptive” practices, thanks to USC40 Section 41712(a), which copy-pastes the language from Article 5 of the FTC Act into the DOT’s legislative basis:

https://pluralistic.net/2023/01/10/the-courage-to-govern/#whos-in-charge

The failures of SWA were a long time coming, and were driven by the company’s shifting of costs from shareholders to employees and fliers. SWA schedules many flights for which they have no aircraft or crew, and when the time to fly those jets comes, the company simply cancels the emptiest flights. This is great for SWA’s shareholders, who don’t have to pay for fuel and crew for half-empty planes — but it’s terrible for crew and fliers.

What’s more, selling tickets for planes that don’t exist is plainly unfair and deceptive. A good photocopier-kicker in charge of the DOT would have arrived with a “first 100 days” plan that included opening hearings into this practice, as a prelude to directly regulating this conduct out of existence, averting the worst aviation scheduling crisis in US history. That’s what Buttigieg’s critics wanted from him: a competent assessment of his powers, followed by the vigorous use of those powers to protect the American people.

One domain that’s been in sore need of a photocopier-kicker for years is prison tech. America (“the land of the free”) incarcerates more people than any nation in the history of the world — more than the USSR, more than China, more than Apartheid-era South Africa.

For corporate prison profiteers, those prisoners are a literal captive audience, easy pickings for gouging on telephone calls, books, music, and food. For years, companies like Securus have been behind an incredibly imaginative array of sadistic tactics that strip prisoners of the contact, education and nutrition that governments normally provide to incarcerated people, and then sells those prisoners and their families poor substitutes for those necessities at markups that cost many multiples of the equivalent services in the free world.

Think of prisons that reduce the amount of food served to sub-starvation levels, then sell food at high markups in the prison commissary. For prisoners whose families can afford commissary fees, this is merely extortion. But for prisoners who don’t have anyone to top up their commissary accounts, it’s literal starvation.

This is the shape of every prison profiteer’s grift: take something vital away and then sell it back at a massive markup, dooming the prisoners who can’t afford it. The most obvious way to gouge prisoners is by charging huge markups for phone calls. Prisoners who can afford to pay many dollars per minute can stay in touch with their families, while the rest rot in isolation.

In 2015, the FCC tried to halt this practice, passing an order capping the price of calls, but in 2017, the DC District Court struck down the order, ruling that the FCC couldn’t regulate in-state call tariffs, which are the majority of prison calls:

https://www.cadc.uscourts.gov/internet/opinions.nsf/0/C62A026B396DD4C78525813E004F3BC5/%24file/15-1461-1679364.pdf

This was a bonanza for prison profiteers. Companies like Jpay (now a division of Securus) cranked up the price of prisoners’ calls. At the same time, dark-money lobbying campaigns urged prisons to get rid of their in-person visitation programs in the name of “safety”:

https://www.mic.com/articles/142779/the-end-of-prison-visitation

Not just visitation: prisons shuttered their libraries and banned shipments of letters, cards and books — again, in the same of “safety.” Jpay an its competitors stepped in with “free tablets” — cheap, badly made Chinese tablets. Instead of checking out books from the prison library or having them mailed to you by a friend or family member, prisoners had to buy DRM-locked ebooks at many multiples of the outside world price (these same prices were slapped on public domain books ganked from Project Gutenberg):

https://www.prisonpolicy.org/blog/2018/07/24/no-cost-contract/

Instead of getting letters and cards from your family members and friends, you had to pay to look at scans of them, buying “virtual stamps” that had to accompany every page (they even charged by the “page” for text messages):

https://www.wired.com/story/jpay-securus-prison-email-charging-millions/

Enshittification is my name for service-decay, where companies that have some kind of lock-in make things worse and worse for their customers, secure in the knowledge that they’ll keep paying because the lock-in keeps them from leaving. When your customers are literally locked in (that is, behind bars), the enshittification comes fast and furious.

Securus/Jpay and its competitors found all kinds of ways to make their services worse, like harvesting recordings of their calls to produce biometric voice-prints that could be used to track prisoners after they were released:

https://theintercept.com/2019/01/30/prison-voice-prints-databases-securus/

Of course, once the prison phone-carriers started harvesting prisoners’ phone calls, it was inevitable that they would leak those calls, including intimate calls with family members and privileged calls with lawyers:

https://www.aaronswartzday.org/securedrop-prisoner-data/

Prison-tech companies know they can extract huge fortunes from their captive audience, so they are shameless about offering bribes (ahem, “profit-sharing”) to prison authorities and sheriffs’ offices to switch vendors. When that happens, prisoners inevitably suffer, as happened in 2018, when Florida state prisons changed tech providers and wiped out $11.8m worth of prisoners purchased media — every song prisoners had paid for:

https://www.eff.org/deeplinks/2018/08/captive-audience-how-floridas-prisons-and-drm-made-113m-worth-prisoners-music

As bad as these deals are for prisoners, they’re great for jailers, who are personally and institutionally enriched by prison-tech giants. This is textbook corruption, in which small groups of individuals are enriched while vast, diffuse costs are extracted from large groups of people. Naturally, the deals themselves are swathed in secrecy, and public records requests for their details are met with blank, illegal refusals:

https://www.muckrock.com/news/archives/2018/may/25/laramie-county-prison-phones/

The “shitty technology adoption curve” predicts that technological harms that are first visited upon prisoners and other low-privilege people will gradually work its way up the privilege gradient:

https://pluralistic.net/2021/07/29/impunity-corrodes/#arise-ye-prisoners

Securus powered up the Shitty Tech Adoption Curve. They don’t just spy on and exploit prisoners — they leveraged that surveillance empire into a line of product lines that touch us all. Securus transformed their prisoner telephone tracking business into an off-the-books, warrantless tracking tool that cops everywhere use to illegally track people:

https://www.nytimes.com/2018/05/10/technology/cellphone-tracking-law-enforcement.html

In other words, our jails and prisons are incubators that breed digital pathogens that infect all of us eventually. It’s past time we got in the exterminators and flushed out those nests.

That’s where California’s new photocopier-kickers come in. Like many states, California has a Public Utility Commission (PUC), which regulates private companies that provide utilities, like telecoms. That means that the state of California can reach into every jail and prison in the state and grab the prison profiteers by the throats and toss ’em out the window.

Writing in The American Prospect, Kalena Thomhave does an excellent job on the technical ins-and-outs of calling on PUCs to regulate prison-tech, both in California and in other states where PUCs haven’t yet been neutered or eliminated by deregulation-crazed Republicans:

https://prospect.org/justice/2023-05-08-california-prison-phone-calls-free/

Thomhave describes how California’s county sheriffs have waxed fat on kickbacks from the prison-tech sector: “for example, the Yuba County Sheriff’s Office receives 25 percent of GTL/ViaPath’s gross revenue on video calls made from tablets.” Small wonder that sheriffs offices lobby against free calls from jail, claiming that prisoners’ phone tariffs are needed to fund their operations.

It’s true that the majority of this kickback money (51%) goes into “inmate welfare funds,” but these funds don’t have to go to inmates — they can and are diverted to “maintenance, salaries, travel, and equipment like security cameras.”

But limiting contact between prisoners and their families in order to pay for operating expenses is a foolish bargain. Isolation from friends and family is closely linked to recidivism. If we want prisoners to live productive lives after their serve their time, we should maximize their contact with the outside, not link it to their families’ ability to spend 50 times more per minute than anyone making a normal call.

The covid lockdowns were a boon to prison-tech profiteers, whose video-calling products were used to replace in-person visits. But when pandemic restrictions lifted, the in-person visits didn’t come back. Instead, jails continued to ban in-person visits and replace them with expensive video calls.

Even with new power, the FCC can’t directly regulate this activity, especially not in county jails. But PUCs can. Not every state has a PUC: ALEC, the right-wing legislation factory, has pushed laws that gut or eliminate PUCs across the country:

https://alec.org/model-policy/telecommunications-deregulation-policy-statement/

But California has a PUC, and it is gathering information now in advance of an order that could rein in these extractive businesses and halt the shitty tech adoption curve in its tracks:

https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M478/K075/478075894.PDF

That’s some top-notch photocopier-kicking, right there.

Catch me on tour with Red Team Blues in Vancouver, Calgary, Toronto, DC, Gaithersburg, Oxford, Hay, Manchester, Nottingham, London, and Berlin!

[Image ID: A prison cell. Behind the bars is the bear from the California state flag. There is an old-fashioned telephone headset near his ear, such that he appears to be making a call.]