Random Thoughts – Randocity!

A history of the DIVX DVD

Posted in botch, business, movies by commorancy on April 29, 2018

In 1998 (almost 20 years ago), a new DVD rental format arrived named DIVX (aka Digital Video Express). It purported to be a DVD rental format that had no late fees and the media didn’t need to be returned… at least those were the benefits purported to the consumer. What they didn’t tell you was that you would need to buy a brand new expensive DVD player to play them. Let’s explore.

DIVX versus DivX

To get this confusion cleared up quickly, DIVX was a brand name assigned to a new DVD rental standard introduced by Circuit City and the entertainment law firm Ziffren, Brittenham, Branca and Fischer in 1998. However, it’s not entirely clear what problem Circuit City was trying to solve by introducing the DIVX rental format when DVD was already useful enough for rentals.

The DIVX brand name, introduced by Circuit City, bears no relationship to the DivX or Xvid video encoding standards. Even though there is no relationship by Circuit City to the DivX encoder, there is a slight reverse relationship from the DivX encoder to the DIVX brand. In fact, the original name of the DivX encoder was actually DivX ;-)

Yes, this encoder name included the winking smiley. This smiley was actually a nod (and sarcasm) towards Circuit City’s then soon-to-be-defunct DIVX rental standard. Here’s what the DivX Wikipedia article says of the early days of the video encoder named DivX ;-).

DivX ;-) (not DivX) 3.11 Alpha and later 3.xx versions refers to a hacked version of the Microsoft MPEG-4 Version 3 video codec (not to be confused with MPEG-4 Part 3) from Windows Media Tools 4 codecs. The video codec, which was actually not MPEG-4 compliant, was extracted around 1998 by French hacker Jerome Rota (also known as Gej) at Montpellier.

So then, what does DivX ;-) have to do with the DIVX DVD format? Not much other than DivX ;-) making a tongue-in-cheek poke at Circuit City’s DIVX rental format. Hopefully, this clears up any confusion around this convoluted naming.

DIVX as a rental standard

The primary impetus to build the new DIVX rental standard by Circuit City was probably brand recognition. At the time, Circuit City was considered the second largest electronics retailer behind Best Buy. The Circuit City management was obviously willing to do anything to become the number one electronics retailer, including dreaming up technology ideas that didn’t need to be built. Meaning that by 1998, Blockbuster had the rental market sewn up. However, Circuit City sought to disrupt that by trying to create a new standard that not only simultaneously upset Blockbuster’s cart, but introduced a new format that would bring more recognition to the Circuit City brand (and, of course, generate more hardware and rental sales). As a side note, Circuit City was also the second largest appliance retailer behind Sears at that time.

Here’s the Circuit City DIVX promo video (skip to 0:17 to begin an unrealistic family scenario, press 1 to skip the intro entirely or jump to 4:19 to begin use case demonstration). Don’t feel obligated to watch the whole thing.

Now, let’s watch this training video to better understand how then CEO Richard L. Sharp saw DIVX’s future within Circuit City. Pay close attention to his statements during the opening segments of this video. Again, don’t feel obligated to watch the whole thing.

Unfortunately, Circuit City’s management goals were way too ambitious and overconfident. They also dropped into a rabbit hole with this DIVX venture that took them away from their core retail business and caused them to spend millions to create and support a format that didn’t live up to the hype. In fact, it might even be considered that failure of the DIVX format ushered in the downward slide of Circuit City into oblivion. While Circuit City was a reasonable electronics retailer, they didn’t have any presence in the video rental market. When they introduced DIVX, the assumed strategy was to add $4-5 rentals and boost DVD player sales in the Circuit City and Good Guys stores. The management team thought that this rental business would somehow take them to the next level. If only they had adopted standard DVD rentals instead.

As shown in the demo, DIVX boasted a 48 hour rental period with no need to return the disc when the rental period ended. However, to use DIVX, you had to invest in a brand new type of DVD player that also supported the DIVX format. Tada! Here’s the catch. This is also where Circuit City comes into the picture. You’d have to run on over to your local Circuit City (or one of several other retailers owned by CC, like Good Guys) to buy one of these newfangled DIVX DVD player doodads. A doodad that might cost you $100-150 more than a DVD player without DIVX. At least, this is what the management at Circuit City hoped you would do.

This idea for introducing this new format was a huge misfire for Circuit City. In addition to the picture quality problems described just below, the DIVX player contained a modem that required the player to dial-up and register itself before you could play any DIVX discs. It also apparently dialed-up twice a day to register any new purchases and download advertisements. This modem required a physical telephone line plugged into the unit to dial home. This then authorized not only your player, but supplied the player with the necessary information to authorize playback of a rental disc you recently picked up. This concept all worked reasonably well, except for the fact that several privacy groups felt that this dial home feature meant that Circuit City (or whomever) could keep tabs on your viewing habits. Little did we know then exactly how much spying would become commonplace with sites like Google and Facebook. Anyway, that privacy concern didn’t help boost efforts to sell DIVX into main stream. Of course, it wasn’t the only problem.

Poor Movie Quality

The actual DIVX DVDs themselves failed to contain the more advanced features found on a standard DVD, such as 16:9 anamorphic widescreen needed to fill a large flat panel. DIVX movie discs also failed to contain alternate audio commentary and extra features commonly found on standard DVDs. Instead, these DIVX DVDs simply contained 4:3 cropped pan and scan versions of the film… a subpar version. This was a huge misfire for the format. When you can get a better looking film on standard DVD, why would you rent the crappier DIVX format for $5? Yet more consumer dilemma.

Consumer Misunderstanding

Because a DIVX DVD appears to be a standard DVD (it looks the same), some consumers didn’t understand that they needed to buy a new player to play the DIVX media. Instead, they bought the DIVX disc, took it home and inserted it into their regular DVD players only to find that it failed to work. They would then find that they couldn’t return the disc because it was open. The misunderstanding of this new format caused grief among would-be consumers and left a sour taste for this format. This problem only served to fracture the DVD market. Worse, who’s willing to buy a brand new and expensive DIVX player just to recover a $5 loss? Not many. This problem didn’t serve Circuit City well.

It seems that Circuit City’s commercials likely didn’t much help clear this misunderstanding. Let’s watch a Circuit City commercial from this era with that same guy from the Demo reel:

There were also a number of commercials released during 1998 and 1999 that failed to mention DIVX at all… like the following commercial from 1998. You’d think a company like Circuit City spending millions to try and force adoption of their new brainchild would advertise the DIVX format on every commercial, if even only a mention at the very end. Nope. You can’t sell something if you don’t market it.

Landfill Problems

One of the touted benefits to consumers would be throw-away discs. You’d spend $4-5 for each disc, but you didn’t need to return any discs after the 48 hour watching period was over. This also meant no late fees. You simply tossed the disc into the garbage can. This idea was to hit Blockbuster where it hurt. Blockbuster was the king of late fees at the time. A few months after introduction of this idea, Circuit City stores set up recycle containers to entice users to recycle used DIVX discs at Circuit City stores instead of throwing them into the trash. Not sure how well that worked. I don’t think this wasteful idea went over well with consumers, particularly after AOL’s constant barrage of wasted CDs ended up everywhere at the time.

Licensing Issues and Retailers

As a result of Circuit City’s involvement with DIVX (along with a legal team), for other retailers to sell DIVX compatible players required paying a licensing fee to Circuit City. As a result of the licensing fees, Best Buy and other retailers shunned the players choosing to avoid paying those fees. It’s no wonder, either. Why would you ever agree to pay another retailer money for the privilege of selling that retailer’s product in your store? You wouldn’t. This was a completely foreseeable miscalculation by the Circuit City management team.

This meant that Circuit City and other stores owned by Circuit City ended up the sole sellers of these players (and the DIVX format). Without wider support via other retailers, this format really had no hope of surviving. Circuit City should have dropped the idea for licensing fees quickly just to get better entrenchment for the format. It’s not like it wasn’t already costing Circuit City a mint to keep this format alive. Stupid is as stupid does.

Movie Studio Support

On the plus side for the format, because of what studios considered weak protection technologies associated with standard DVD (CSS), many studios jumped on board with the DIVX’s CSS + Triple DES protection standard. This boosted the initial ~20 titles when it arrived in summer of 1998 to well over 400 titles by early 1999. Some early studio adopters were 20th Century Fox, Disney and Dreamworks. Wikipedia says:

The initial trial of the DIVX format was run in the San Francisco and Richmond, California, areas starting on June 8, 1998. Initially only a single Zenith player was available, along with 19 titles. A nationwide rollout began three months later, on September 25, with players and 150 titles available in 190 stores. In total 87,000 players were sold during 1998, with 535,000 discs across 300 titles being sold.

The studios felt that the DIVX format offered a more solid encryption technique to protect their movie content. I’m sure they did. Due to the arcane structure needed to authorize the movie rental, it meant jumping through hoops just to get your movie to play. The movie studios love making consumers jump through hoops to play their content.

This quick studio adoption rate was a bone of contention because some studios began exclusively releasing their films onto the DIVX format instead of DVD. This issue caused further problems for the format and more consumer backlash erupted and threatened to fracture the industry into a new format war.

On the other hand, Sony and Warner Home Video, which at the time apparently comprised up to 40% of the movie rental market, refused to release their movies on DIVX. The primary reason for this refusal was that both of these companies had a stake in the success of standard DVD format. Supporting the DIVX standard would be a conflict of interest.

By spring of 1999, the number of titles had increased to over 410. Little did Circuit City or the consumers realize the end was near for DIVX. Due to mounting pressures and costs, Circuit City didn’t realize how much of an albatross that DIVX would become. There was just no way Circuit City could go this new format alone without wider industry investment and consumer acceptance.

Overconfidence

Circuit City’s biggest mistake was its heavily miscalculated financial ability to support this newly created format. After all, Circuit City is a retailer, not a tech innovator. Driving a new tech format through a retail company already has many hurdles and reputational issues to overcome. Circuit City was also too confident in its ability to entice other retailers to make this format succeed. Those retailers didn’t bite. Even in 1998 when this format came about, Internet RFCs were still a thing. Circuit City entirely avoided the RFC and Whitepaper approach that had become commonplace to announce new technologies. Instead, they launched this format without much fanfare hoping that the party train would show up. It didn’t.

Because of all of the above and including backlash from consumers and lack of retailer support, Circuit City way overestimated its ability to get this format adopted… and why would anyone want to adopt this format? With licensing fees, there was no incentive for non-affiliated retailers to adopt some other retailer’s idea as practical or realistic… especially when the standard DVD already provided a better rental and sales format.

Without the necessary support by consumers and other retailers alike, the format was doomed from the go. By the summer of 1999 (just 1 year after it launched), the format officially died on June 16th, 1999 (almost exactly year since it had launched). However, due to format commitments to existing consumers, it would limp this format along until 2001. Wikipedia writes of the DIVX demise:

The format was discontinued on June 16, 1999, because of the costs of introducing the format, as well as its very limited acceptance by the general public. It was shot down by Blockbuster Video stores not wanting to carry it. Also Circuit City announced a $114 million after-tax loss, and Variety estimated the total loss on the scheme was around $337 million. Over the next two years the DIVX system was phased out. Customers could still view all their DIVX discs and were given a $100 refund for every player that was purchased before June 16, 1999. All discs that were unsold at the end of the summer of 1999 were destroyed. The program officially cut off access to accounts on July 7, 2001.

Retail, DRM and Tech Innovation Don’t Mix

Due to the conflict of interest between the Circuit City chain, other retailers, licensing and this new format, there was ultimately no way this idea could survive. Circuit City made so many missteps along the way to adoption, the format was doomed from the outset. Even the management should have been able to foresee this event. If Circuit City had spun off the DIVX idea into a separate holding company that Circuit City had founded and enticed other retailers in (to avoid licensing requirements), the standard might have had a chance of surviving. While DRM was a relatively new thing in 1999, consumers could already begin to see how it could become a problem in the way they viewed content with DIVX (and other formats).

The Future of the Movies at Home

Even if DIVX had managed to make the slightest dent in the rental market (hint: it didn’t), the future of Internet streaming movies would have still seen to its demise. Even in 1997, a year before DIVX came to exist, Reed Hastings was in the process of setting up Netflix. By 2002, Redbox led the downfall of Blockbuster through it’s DVD rental kiosks. Some people blame Netflix on the death of Blockbuster, but it is firmly the self-service and low cost nature of the Redbox kiosk that ushered Blockbuster out the door. Yes, Netflix started Blockbuster’s problems, Redbox nailed Blockbuster’s doors shut. Blockbuster simply couldn’t compete with $1 DVD rentals at a time when Blockbuster was still charging sometimes $5 per disc. Netflix chose a per month plan fee with limits and was (and still is) charging well more than $1 per disc that Redbox adopted. In fact, Redbox is still the best deal going for both DVD and Blu-ray rentals, even though their prices have somewhat increased.

Getting back to DIVX, Netflix’s movie streaming, along side Redbox, Amazon, Hulu, Vudu, Crackle, YouTube, YouTube Red and others would have killed the DIVX DVD format anyway. Ultimately, DIVX didn’t have a place in the market or a problem to solve. It was already behind the times when it was introduced by a company that didn’t have the capital to invest in the longevity of such a format.

In short, Circuit City bit off well more than they could chew with DIVX. Today, these DIVX players are essentially worthless for playing DIVX format discs. Because the players could play standard DVD format discs also, this is their only redeeming point. There’s no way to authorize the players or discs as the service has been dismantled. If you have any DIVX discs in your collection, they can no longer be played as there’s no way to authorize the players or discs.

Even today, DVD is so way behind the times when compared with UltraHD 4K, even that would have killed DIVX in short order. Ultimately, even if DIVX had managed to survive longer than 1 year on the market, it would have eventually died because of movie streaming services. There was just no way for DIVX to compete with that. However, it died long before that happened simply because of Circuit City.

Final Death of DIVX

The DIVX format supported limited viewings as well as unlimited viewings (DIVX Silver). Limited viewings of a disc were based on your rental period. Unlimited viewings cost more and was known as DIVX Silver. Why this is important is that the players still needed to dial home to verify the viewing of each play of the movie. After June 30, 2001, the DIVX service was shuttered including the dial home feature. For those who had purchased into DIVX Silver for some of their films, they could request a refund before the service was shuttered. This meant that any further viewings of DIVX movies after June 30, 2001 were impossible, rendering the DIVX format and the DIVX portion of the players useless.

The LA Times wrote of DVIX’s failure on June 17, 1999:

But the venture never connected with consumers and represented a major miscalculation of both the market and the video industry by the nation’s second-largest consumer electronics retailer.

The failure of Divx is an embarrassment for Richard Sharp, chief executive of Circuit City Stores. Sharp fought an uphill battle to promote the venture, which became a significant drag on Circuit City’s bottom line.

Sharp declined to comment Wednesday, but the market cheered the decision to junk Divx. Circuit City’s stock closed at $90.38, up $8.38 on the New York Stock Exchange.

 

A Cautionary Tale

This whole DIVX situation serves as a cautionary tale for early adopters of technology when produced by a company that’s never been in that business. This is particularly a problem considering the DIVX players required so much constant hand-holding with home base. If that home base connection was unavailable (i.e., Circuit City closed the service), the movies would stop working, which is exactly what happened in the end. Why would you, as a consumer, want to buy into a media format that’s so heavily dependent on a third party’s continued success? The other problem is that the players chose to use a phone line instead of phoning home over the Internet. Of course, had the format lived, it would have been relatively trivial to introduce new players that supported Internet always-on capabilities.

The real cautionary tale here is that consumers should never early adopt into entertainment content that relies on phoning home to authorize each viewing. One could argue that Netflix is a form of this, but I’d argue it isn’t. When you use Netflix, the movie is either there or it isn’t. There’s no pulling-the-rug-out-from-under tactics. Meaning, you leave your media sitting for a few months only to find that it will no longer play. Standard DVD movies have never required authorization per play. However, Blu-ray technology has instituted a somewhat similar phone home approach, but so far this hasn’t been an issue. However, should Sony die or the servers cease to exist that enables a specific Blu-ray to function, we could find that Blu-rays become coasters at some point in the future like the DIVX media.

If you happen to own a DIVX player and any DIVX media, know that it’s dead and it’s not coming back. There is really no way to revive it. The decryption keys and the authorization service that allowed each movie to work have long been dismantled. As far as I know, there has never been anyone willing to reverse engineer this phone home service to allow old DIVX media to play. Though, why bother? The movies were mostly of inferior quality. Other than as a novelty of showing a functional DIVX movie off on a YouTube electronics history channel or possibly for nostalgia, there’s no other legitimate reasons to want to watch DIVX movies today.

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Shadow Profiling: Should I be concerned?

Posted in botch, business, california by commorancy on April 25, 2018

Recently with Facebook’s fall from grace, another issue has surfaced at Facebook: Shadow Profiling. Yes, you should be concerned. Let’s explore.

Facebook and Cambridge Analytica

With Cambridge Analytica, Facebook got caught with its pants down. Facebook allowed Cambridge Analytica, a known data broker, to mine data from Facebook’s network at a time when Facebook was vulnerable to such attacks. Facebook has been, for years, skirting every privacy initiative. In fact, Facebook didn’t want to implement any privacy controls, truth be told. They wanted to keep everything as open and accessible as possible. On the one hand, I can understand this… because it makes it easier for people to find other people. On the other hand, people’s data is their own. These are two parallel lines that will never meet.

I won’t go into every single little problem that Facebook has run into along the way, but suffice it to say that Facebook has taken baby steps to implement privacy. In 2014 when Cambridge Analytica did its mining, Facebook hadn’t implemented many controls to prevent such data mining attacks via their APIs. In fact, one might even call Facebook egregiously wilful in not implementing such data protections. Sure, they had implemented some in their web UI for user-to-user control, but not on the backend where businesses operate.

After Cambridge Analytica performed its mining operation, Facebook claims to have plugged-that-hole the same year to prevent any further Cambridge-Analytica’s from doing the same thing. Likely, they saw what CA had done and realized they were gamed and closed the hole. Of course, too little, too late. And, they didn’t disclose this fact to the public. It wouldn’t be until 2018 (4 years later) when Facebook got caught.

I won’t get into just how close Cambridge Analytica was to Facebook between then and now (hint: they occupied the same office space in 2016), but suffice it to say that Facebook was well aware of Cambridge Analytica and what business line they are in. To feign ignorance about another business using your network is so disingenuous as to be a lie.

This is all the pretext that opened the door to further scrutiny for Facebook.

Government Hearings

As a result of Facebook’s conduct back in 2014, many governments have interviewed (and will continue) to interview Mark Zuckerberg over Facebook’s conduct at that time. In that process, many side things have been uncovered. One of those things coming to light is shadow profiling. What exactly is shadow profiling?

A shadow profile is data collected about you without your knowledge. It might be data from public records, it might be personally identifying information such as email address, phone number, birth date, home address, social security, public information you share on Facebook or Twitter or Amazon. In Facebook’s case, they are collecting data about you via photos of you (facial recognition), through text messaging through WhatsApp and via other messaging means. Even simply visiting a site where you do have a login and where Facebook hosts comments is enough to gather data about you. The list goes on and on.

Facebook and Profiling

Let’s understand that many companies have shadow profiles on you, not just Facebook. Facebook is obviously one in a long list of companies that perform shadow profiling, but don’t kid yourself, Facebook is not alone in this practice. Companies such as LexisNexis, insurance companies and credit bureaus collect this information. In fact, credit bureaus hold a mountain of personal data so important that even the tiniest leak could cause immediate irreparable damage to those affected. Damage such as identity theft. Theft that, in fact, could be so bad you’d need to have a new social security number issued (along with all of your credit card numbers, phone numbers and the list goes on). Equifax found this out the hard way… and, I don’t think we’re done with these credit bureau hacks yet. It’s only going to get worse.

I digress. There are many companies that collect data about you without your knowledge. Facebook just got caught at it after this information was unceremoniously disclosed. But, don’t kid yourself that Facebook is alone in this. Google does this also. In fact, Google probably has more data on you than even Facebook has… even if you’ve never ever had a Google account. Why? Because you’ve inevitably sent email to someone@gmail.com or to a domain hosted by Google.

Google has already said they scour emails for content that helps target advertising to the Google user. If they’re scouring emails, they’ve inevitably found your email address, your phone number, address, first and last name and on and on. Google doesn’t have to do anything with this data, but it is almost certain that they store it for use later. Why? Because if you ever do create an account, they’ll already have data on you and things you like. It will make targeting ads to you much easier.

Don’t kid yourself, Facebook isn’t the only company keeping shadow profile data on people who do and don’t use their networks.

Reviewing Shadow Data

Unfortunately, to review or delete any data that Facebook has collected on you, you must first create an account. As soon as you do that, they’ve roped you in. Once you create an account, you can then download the data and see what they’ve collected. Then, you can go through the request Facebook to delete that data and your newly created account.

However, that means you are firmly in their system. Even when you ask to have your data deleted, Facebook is under absolutely no obligation to delete any data from their systems. The only thing they need do is make it not visible through their APIs and Web UI, but that’s like hiding your iPad under your bed. You can’t see it, but it’s definitely still there.

Request Shadow Data Removal

So, you’ve decided to create an account so you can request deletion. Even if Facebook does delete some data, there’s no guarantee they’ll delete every copy of it. Companies today utilize many technologies to manage, mine, extrapolate and handle user data. These systems include short term storage (hard drives), long term storage systems, multiple copy offsite backup systems, local hard drives, AWS glacier, billing systems, text based log files, marketing and advertising systems and even analytics systems such as Splunk or Kibana.

In fact, companies today have so many systems storing bits and pieces of your personal data, it’s nearly impossible for a company to actually delete ALL of your data. There will be some amount of your data that will continue to exist in at least one system somewhere on their property. That’s a guarantee. Chances are, it will exist in a whole lot more places then one.

Continued Shadow Profiling

Even if you do request your data to be removed by Facebook, it’s an entirely fleeting effort. Why? Because as soon as you’ve logged in and requested deletion and they do so, Facebook will continue their data collections efforts right after. Your request for deletion is a single point-in-time request. That request isn’t perpetual going forward. It’s a one-shot-deal. Facebook will continue collecting data on you going forward from that point. It is then entirely pointless to request deletion because within 1 year, they will have collected it all again.

In fact, there is no way to permanently request Facebook to not shadow profile your data. It is left up to you to recreate your account and request deletion every year. You may not even be able to do this more than once. Once you’ve deleted a Facebook account, that placeholder may be held in a locked state preventing you or anyone else from opening it again. At this point, any data they may have collected after you’ve requested deletion is entirely locked out from you.

For this reason, I’d suggest not requesting data deletion at all. At least, not until some laws come into effect that require Facebook and similar companies to stop shadow profiling and permanently delete data from any shadow profiling efforts.

Note that if you have even one friend who continues to use Facebook and you interact with that friend on any Facebook property (text messages, email, etc), Facebook can continue to pull that data on you and create / add to your shadow profile. Don’t think you’re safe by logging in and requesting deletion. If you’re dissatisfied by this outcome, reach out to your state representatives and request them to introduce legislation to regulate this practice.

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Marketing, Facebook & Data Privacy

Posted in botch, business, california by commorancy on April 14, 2018

FacebookLockHow is marketing related to Facebook and data privacy? These all fall under the same umbrella. Should you be concerned? Yes, you should be. Let’s explore.

Email Marketing

Let’s start with email marketing first, the precursor to social marketing. I’ve worked in the email marketing industry for the last 17 years at an operational level. I’ve worked on general email systems for over 25+ years. So, I fully understand at all levels how email and email marketing works and what is required to make it continue to work in today’s world.

Email marketing became a “thing” in the mid-late 1990s in earnest. Before that, people dabbled in email marketing to the chagrin of many early internet users. It was around this time that the term ‘spam’ was coined to denote unwanted / unsolicited email.

Over the years, email marketing has evolved into a big business with firms now utilizing marketing automation systems. These systems help you marketers manage their email marketing campaign efforts.

In the beginning, as a marketer, you had a list of emails and you sent content to those addresses. The content was the same to each user. There was no thought to personalization, tailored content or privacy of any of this data. Emails were sent using cron jobs via command line tools using Sendmail. This was initially the most basic form of email marketing. This would have been in 90s.

Evolution of Email Marketing

By the 2005, email marketing had evolved from its simplistic roots into more sophisticated systems using dedicated email marketing software from companies like Port 25 and OmniTI. These email server solutions facilitated the trend of building sophisticated marketing automation UI systems on top of these robust, fast, scalable and customizable email delivery systems.

By 2018, these underlying email softwares now include the ability to send push notifications to apps and also offer sophisticated clustering systems to allow for highly scalable, highly available infrastructure offering incredibly fast delivery times.

On top of these infrastructures sit today’s marketing automation solutions. These systems offer such features as list management, drip marketing, recipient nurturing, automagic feedback reporting and detailed reporting of how each campaign is doing.

List Management

Back in the early days, list management was a chore. You had to deal with adding and removing new entries yourself manually. In reality, few marketers ever practiced real list hygiene. Most would add new entries, but never remove people who didn’t want to see that content. It was just too much of a hassle culling through thousands of email addresses. This is why email marketing got such a bad rap. Marketer didn’t take the time to remove users from their lists.

As of today, it is now legally required to remove recipients timely from lists in most countries. If you don’t remove addresses timely, your company (and possibly even you personally) may be held liable for failure to remove an address.

If you use a legitimate email marketing company today (one that upholds legal compliance), they will automatically handle opt-out requests for every email you send. No need to worry about if you’re compliant as email marketing firms automatically add links to handle all of this for you, as long as you use their database.

Recipient Likes and Preferences

Email marketing has a huge drawback (well, two actually). The first and biggest drawback, the inability to understand the user’s likes and wants. There’s just no real way to get that level of detail out of a particular recipient simply because email interactions are so few and far between. You can’t get what you need out of email marketing to effectively target each individual user in a way that makes sense for their likes, product preferences, location and personal information…. at least, not without using more advanced features like drip marketing and advanced real-time feedback. Email marketing is typically just too hands-off for this type of experience. Enter the second problem…

Evolution of Social Marketing

The second drawback is that while email marketing today is still a very valuable form of communication, it is becoming old and dated technologically. Email clients haven’t been updated in a very long time, technologically and interactively speaking. Basically, the features that were commonplace in email by the late 90s are still the standards that we’re rocking today. In other words, email clients don’t support updated technologies like video and audio content right in the email. You have to click to a web page to see this type of interactive content. The best an email can do is an animated GIF, and that’s of little consolation when you’re wanting to offer much, much more interactive content.

In comes social media. Sites like Twitter and Facebook and Snapchat and, to some degree, even YouTube offer better ways to find like-minded folks and advertise to them. Marketers also have a lot of the same tools at their disposal, like list upload to find their existing users on Facebook. Unlike email which is pretty much a one-way system, social media offers two way interaction. People share their family information, their favorite products, their favorite restaurants, their friend information and so on. All of this sharing means more ways for marketers to mine that information about a specific individual. This information is, in fact, a gold mine for advertisers. It means that instead of the mostly one-way interactions and guessing with email, advertisers can now utilize the two way interactions of social media and find out what a user likes very quickly.

Amazon follows this trend with its own systems by targeting users with product ads that third parties purchase. It’s a way to target users with products and services the user is most likely to be interested in.

Of course, these are not perfect systems. There’s still a certain amount of guessing involved. Social marketing are only offering seemingly relevant best guess suggestions based on other people’s social and purchasing habits. However, social guesses at least based on actual data of purchase history and other shared information, rather than a near completely blind guess that email marketing uses.

Facebook and Privacy

In order for these suggestion systems to work, they must have enough information about your buying habits, what you already own, how many people are in your family, their ages, if you have pets, what car you drive and so on. The more companies know about your personal habits, the more they can target products that make sense to you. It’s a catch-22 though. The more they know, the more dangerous it is for you. Sharing your personal information means someone could learn about you and your habits and then steal your identity.

Enter Facebook. Facebook collects all of this data and more about you. They then mine this data on behalf of their advertisers. Advertisers submit their product(s) to Facebook for advertisement on its platform. The system then finds folks, based on their shared content and interests and displays an ad for a product you might be interested in. If you talked about cancer in a wall post, an ad might pop up for oncology services.

This heavily personalized advertisement system is a far cry from the old cold guess email marketing. However, social marketing was born from the idea of email. Email has now been trying to catch up and compete with this more interactive and interest-based advertising system. Unfortunately, email is firmly entrenched in the past. It’s great for individual communication. For predictive communication, email sorely lacks. Worse, it’s not likely to ever catch up in this area. Though, it’s still a good medium when combined with social marketing. Meaning, if you can mine people’s interests out of social platforms, you can then target them with products and services via email.

Data Privacy

Here’s where Facebook has failed time and time again. When someone uses a social platform to share information, it is expected that that information will remain private and only be shared with those folks whom have been allowed to see it. Or, more specifically, shared with people licensed to see it based on the agreed terms and conditions.

However, Facebook only offers a very basic permissions system. Extensive permissions systems have been available on operating systems for years. Yet, Facebook’s platform didn’t start out that way and still isn’t anywhere close. Facebook started with no privacy at all. Your data was published for everyone to see. As time progressed and people complained, Facebook added more and more user controllable permissions.

For each step that Facebook took, it consisted of tiny baby steps. They’d add incremental protection of that data, just enough to satisfy a single complaint. But, they’d leave plenty of other data exposed. As they would take more baby steps, they would implement one more control, then another, then another and on and on to where we are today. Instead of designing a system that offered robust privacy from the beginning, Facebook opted to build it piece by piece as they went along… sometimes backtracking in certain areas,

While Facebook’s user privacy controls were fairly robust by 2014 (user to user), Facebook still didn’t have much in the way of privacy when using its application programming interface (API). Developers could sign up and extract data via this API with far fewer boundaries. It wouldn’t be until later when Facebook, yet again, took another baby step that they would limit what developers could extract. By then, it was too late for Facebook to do anything about Cambridge Analytica, a company whose data brokerage business model is all about selling collected data.

Abuse

Email marketing has long recognized abuse to be a big factor in the industry. Handling abuse is what distinguishes good actors from bad. Sites such as Spamhaus exist to watchdog and prevent such email abuse and enforce industry best practices. While email marketers have had to grow much more knowledgeable about email marketing best practices, Facebook is entirely new territory for marketers with no such outside policing as Spamhaus. Even new email tools such as DMARC, DKIM and SPF have grown to help protect and legitimize the email marketing industry. Nothing like these exist for social marketing.

While Spamhaus helps to protect and prevent unwanted spam from random third parties, there is no such watchdog to protect your data from unwanted prying eyes within companies like Facebook or Twitter. With email abuse, there are also organizations like MAAWG to also help manage that email abuse. Again, there’s nothing offered on Facebook, except whatever Facebook decides is necessary. You’re at the mercy of Facebook to give you those tools, and currently their solutions are limited and swayed entirely to Facebook’s best monetary interests.

On the one hand, most people are very protective of giving out their email address to random people. Yet, on the other these same folks are completely willing to log into Facebook, Instagram, Snapchat, Whatsapp and Twitter and give up their every day lives, their pet’s name, their employer, their spouse’s name, their location and sometimes even their phone number, email address or other personally identifying information (PII). Worse, Facebook now requires the use of what appears to be a valid First and Last name, though you can put any data you want into those fields and there’s no way for Facebook to verify this. Other social platforms don’t require this. This Facebook requirement ensures the lack of privacy and that users can be targeted by outside third parties. It also ensures that data can be e-pended by outside parties.

Abuse of email has real tangible penalties behind it. Abuse of social networks only has a single company behind it, like Twitter or Facebook. There are no industry standard watchdog groups out there helping guide marketing organizations towards best practices. In fact, such a watchdog group couldn’t really exist because, unlike email, there are no sanctions that could work to stop bad actors short of asking their ISPs to stop routing traffic for those companies. Such a move would likely be met with a huge legal backlash from the company. After all, the ISP did sign contracts to supply service to Facebook. If they cut off peering to them, Facebook would have them for legal lunch. Nope, there’s no sanction against a company like Facebook that could work. Not even a lawsuit could be all that effective.

Instead, these unstoppable organizations are in it to make money off of your data. For this reason, this is why companies like Cambridge Analytica can come to exist on Facebook and steal 87 million (or more) users’ data. This is why there’s nothing Congress can do to Facebook. No laws means nothing to enforce. The only thing Congress (or each state) can do is enact laws to protect each person’s data and force Facebook to become legally compliant with those laws. Of course, Facebook might face other laws they could have run afoul, but because the US has no real data privacy laws, there’s nothing here to enforce… even with companies like Cambridge Analytica.

Protecting Your Privacy

Only you can protect your privacy and your data. You can’t leave it to companies to do this for you… particularly if you live in the United States. If you want to share everything you do with the world, then you can’t easily protect your privacy. Note that even if you never put a single piece of personally identifying information online, you still may have shared enough other minimally identifying information that when put together, someone can eventually identify you.

For example, if you visit Starbucks every day to take a photo of your coffee cup each morning, someone could find that particular Starbucks and stalk your movement there. They could hear you give the cashier your name or other personal information. They might listen for your name to be called. They might bump into you intentionally to make you drop your stuff. They might watch you get into your car and take down your plate number. They might even follow you home. This is why sharing your everything you do online can be dangerous.

Even if you never give your real first name, last name, address, phone number or other information, you (or your friends) may have shared enough photos, locations and friend information to eventually identify you. This information isn’t considered personally identifying information alone, but when pieced together, it is. With enough data pieced together, someone might find out who you are, where you live, your address and possibly even your phone number… maybe even other data such as SS#, CC# or anything else were they to obtain some of your mail.

This is, of course, all made worse by companies like Facebook that don’t take data privacy seriously and only produce half-baked “security theater” mechanisms designed to look like they protect you, but that in reality they don’t. You’re continually putting your data into the hands of folks like Mark Zuckerberg who has, time and time again, shown that his platform cannot be trusted to store personal data.

Security Theater

While email marketing now has a robust set of industry checks and balances, technological measures, industry watchdogs, laws and best practices… social marketing offers very limited controls. The reason for this 1) it’s so young, 2) it doesn’t interact with third parties like email and 3) Systems like Facebook won’t offer such controls. Email must interact with many unrelated parties along the way to get your email to an inbox. Social marketing has a captive audience inside a single platform operated by a single company, whether inside of Twitter’s network or Facebook’s network or whomever.

This means that while email marketers must comply with laws, technical standards, best practices and other data collection and use controls, sites like Facebook face far fewer data handling laws. This means that your data is effectively open to the highest bidder. Yes, Facebook claims to have taken strides to help protect and safeguard your personal data, but you don’t know if that’s true or not. No one audits Facebook to make sure these claims are, in fact, true.

With email marketing, it’s crystal clear when a customer uses an inappropriately collected list. With Facebook, there is no way to know whether your data has been appropriately or inappropriately used because Facebook gets to make the rules. Rules that can change one day to the next.

I’ve worked for enough high tech companies to know that most companies create lot of security and data privacy theater in place of actual mechanisms. Meaning, they state in their policies that they do something, but the technological measures to back up those policies don’t always exist. This facade, otherwise known as “theater”, is what let’s companies get away with policy breaches unaware. It’s usually driven by a case of “Easier said than done”. Implementing technical measures to enforce a policy isn’t always easy, particularly if said data is terabytes in size. Instead, companies perform it on a case-by-case basis. It also might take them weeks to complete the task. The policy is may be written into the legal terms and conditions. However, when a customer actually wants to know if that policy is enforced, the company will then manually enforces that policy on that person’s data, assuming they even give you an honest response to your question.

You’d be surprised to find that this situation happens a lot more often than you might be aware. Even many legal teams are unaware of this situation in their own companies. They think that what’s in the policy is always carried out every time. In fact, that’s not true much of the time. This is simply because legal teams rarely carry out internal audits to ensure that written, published policies are being followed internally. Even then, some legal teams are both aware and complicit in allowing the technical teams to not follow the policies to the letter.

I would also be remiss by not mentioning that some legal teams write data policies without informing the necessary internal teams of the policy changes or additions. Without buy-in and support from the appropriate technical teams, the written word can’t always be translated into functional technical procedures. This means that the legal team is out of step with what is technically feasible. Legal teams should always propose and write policy in conjunction with the teams that must support those policies. As a lawyer on an in-house legal team, you can’t just write policy because it sounds good and then assume it can be implemented easily. That doesn’t always work. Hence, security theater.

Data Deletion and Right to be Forgotten Laws

Here’s the outcome of security and data privacy theater. If you request a company to delete your data, you won’t know if your data has been irrevocably deleted. Many companies hang onto long term backups for exceedingly long periods of time. This means that while your personal data may no longer exist on a live hard drive and may not longer be visible via a web interface, it could still exist on a long term data backup solution the company uses. It might even exist via an API system. Note that some data backup solutions exist on live disks, such as using the Cassandra or Elastic database system or even such reporting systems like Splunk or Elastic’s ELK. Some of these internal systems may never or rarely get purged. Even basic text log files, which may contain some or all of your personal data, may be retained for years due to Sarbanes Oxley and other data retention requirements.

Early in the life of email marketing, you might not expect to be unsubscribed. Today, laws require email marketers to remove your email address from their list within 10 days. The word remove is subjective. The actual term is unsubscribe. Even after unsubscribing, the company can continue to hold onto your email address in their database so long as they never email you. In fact, an opt-out request is simply to unsubscribe you from their mailings. It doesn’t ensure your email address will be deleted from their list. This is how your email address can accidentally be mailed again in the future despite a previous opt-out request.

Data deletion has no laws in effect in the US. US companies are not obligated to delete your data even if you so request it. They can leave it on systems within their organization. This, unfortunately, leaves your information vulnerable to data breaches by unauthorized persons. This is why you can request a company to delete your data and later find out your data was involved in a data breach years later. Or, you may find identity theft from a data breach where you had asked a company to delete your data. There are no laws that require companies to delete data when requested… at least, not in the United States. In the UK and EU, the right to be forgotten laws have been written and will apply to UK and EU citizens under the GDPR. Whether those laws continue to exist after Brexit in the UK, I’m unsure. Canada appears to be working towards (or has enacted) a similar data purge law for its citizens.

However, no such ‘right to erasure / right to be forgotten’ law has been enacted in the US. Companies in the US are still free to store and keep your personal data for as long as they see fit. Yes, even after your deletion request. This means that your data is still at risk of a data breach, even after you’ve requested Facebook, Snapchat, Whatsapp, Instagram, YouTube, Google or Twitter to delete your data. US companies are just not obligated to irretrievably delete your data. Even in the EU, the laws may not fully protect you from irrevocable deletion of your data. Meaning, it may be enough for a company to actively delete visibility of your data on their web site, but that doesn’t ensure irrevocable erasure from all media in that company’s possession. Worse, as long as that data never surfaces in the future, that company can hold onto it… even if they are considered ‘breaking laws’. The only way to make sure irrevocable deletion occurs is by adding incredibly stiff penalties when the laws are willfully broken.

Social Networks and Marketing

Facebook, Twitter, Instagram, Whatsapp and more bank on their ability to collect your data, store it and use it freely. As long as you digitally agree to their terms and conditions regarding their data collection and use, then you have little recourse against them when a situation like Cambridge Analytica occurs.

In email marketing, selling of lists has been taboo for years and has always been considered an email marketing dubious practice. In fact, list purchasing is considered one of the worst email marketing practices. In Social Marketing, no such rules have been laid down. Facebook has been hitting these walls one-by-one since at least 2008. Each time, they put up yet another road block to stop that particular practice (aka, baby steps). Facebook doesn’t want to stop these practices, they’re just forced to by public outcry, the media and the government each and every time.

They knee-jerk by enacting new policies each time, but only because of duress. Policies, I might add that email marketers have been adhering to for years. Policies that now have laws like the CAN-SPAM Act and individual state laws. Yet, here we are again, reliving this same abuse pattern over again in another form.

Marketing Today

Marketers have always wanted to do the least work possible and gain the most money from their efforts. That’s the whole reason email marketing exists. That’s the reason advertising exists. They want to create the most effective campaign and Facebook allows them to do this with their personalized marketing.

Cambridge Analytica took that one step further. They mined Facebook’s data and stored it in their own offsite database. A database that Facebook claims they thought had been deleted. They then combined that data with other data to create an even more comprehensive profile of each person. Yes, even more comprehensive than Facebook alone. If they had first and last name along with at least one piece of identifying information, they could have gone to LexisNexis and gotten even more identifying information. Who knows, they might have?

Marketers today are looking for the easiest way to target ads to the people they need. Hence, the reason Cambridge Analytica can even exist as an organization. There are many, many data brokerage services available to buy list and user data. Data that can be populated into databases and targeted with ads. Most of these outside brokerage services sell with the intent of using email marketing, but there may be more today that are using Facebook to present their ads. Cambridge Analytica is but one in many data brokerage services that exist on the Internet. You can bet many others also exist and may have taken advantage of Facebook’s situation, just the same as Cambridge Analytica.

That Facebook claimed to believed that a data brokerage service, whose sole business is in selling data, would ever delete data they had legitimately collected from Facebook is entirely naïve and disingenuous. Facebook had to have known the business Cambridge Analytica was in at the time they were extracting data from the platform. One only needs to visit Cambridge Analytica’s web site for a few minutes to understand their line of work. Even then, if you weren’t certain, you could certainly pick up the phone, call them and ask what it is they do. Companies are always eager to talk about their line of business, particularly if they think they’re about to make a sale.

Ad targeting is not going away and is only likely to grow as artificial intelligence systems grow. The data privacy issue will continue to be ever more important as time goes on. To protect yourself, you must ask yourself, what should I share and what should I not? For example, publishing a single cute puppy or kitty photo or video is probably fine. However, many cameras today also add EXIF data to store location data and possibly other information about where and when photo or video was created. Data that might be used to link you to that photo. However, taking a photo every day of your cup of coffee might reveal things about the location that you visit (names, people, location identifiers, etc). These are things when you need to be cautious before posting. Even if the photo appears innocuous, you might want to think twice because someone else might see something that you don’t see.

Social platforms, while fun, are big business for their owners. Don’t be fooled into thinking it’s all fun and games. Those games and fun have a price to pay. That price is what they get to do with your user data. As has been said, if the service is free, you are the product… or more specifically, your data.

Consumer Tips: How to navigate the Toys R Us liquidation

Posted in best practices, business by commorancy on April 1, 2018

[UPDATED: 12/17/2018] TRU officially closed all remaining US stores as of mid-summer. This article is here simply for legacy reasons. Buh-Bye TRU and thanks for all the fun. We’ll miss you this holiday season.

If you’re thinking of visiting Toys R Us to take advantage of the store closing liquidation sales, this is your safety guide. Don’t throw your money away at Toys R Us, make every dollar count. Let’s explore.

Giving Gifts

Toys R Us’s liquidation is All Sales Final. The first tip is pretty straightforward. If you’re looking to buy a gift for a child, you are trying to stock up for the holidays or for any other rainy day reason, keep in mind that you cannot return, exchange or refund anything you purchase at this time. For gifts, this can be critical, particularly with children. You should always make sure that the person who receives that gift can return or exchange it if they don’t like it. Purchasing from Toys R Us on liquidation, you forfeit the return option.

Even if the gift is to be given while Toys R Us is still open, there are no refunds or exchanges. So, be aware that whatever gift item you choose is theirs to keep forever. You might want to be prepared to perform an exchange with your own money. Note that this can become an uncomfortable situation.

If you know there’s a possibility that your gift might be returned, you should buy from Amazon, Target or Walmart instead which leaves that option open for the recipient.

No Returns, Refunds or Exchanges

This goes hand-in-hand with All Sales Final. If you purchase items from Toys R Us during liquidation, you may get a great deal, but at the cost of no refunds, returns or exchanges. Make absolutely certain that what you buy is absolutely something you intend to keep.

Whether or not you intend to give the item as a gift, you should open the item and check it thoroughly. Do it in the store if at all possible. If it has batteries, make sure to test the item for functionality. You may not be able to test a battery powered item in the store, however. They may not allow you to remove the item from its packaging in the store to perform this test. You may have to take it home and check it there. By that time, you’ve already purchased and it’s too late if it’s defective. If you’re in doubt, leave it at the store.

If you do find a dead or defective item, you will need to contact the toy manufacturer directly and work your exchange through the manufacturer. Keep your receipt. This exchange process could take a whole lot more time than if you bought at a store still accepting exchanges.

Consider your purchases during a liquidation carefully. Do not purchase Toys R Us gift cards… but this should go without saying.

Extended Warranties

If you decide to buy an expensive item that could break easily, you should ask of Toys R Us to offer you a SquareTrade warranty plan. This will ensure you can get a replacement after Toys R Us closes. In preparation for this article, I spoke with a representative at SquareTrade who confirmed that they will continue to honor all SquareTrade warranties purchased at Toys R Us. If you do decide to invest in an expensive item that is prone to defects or breakage, you should also consider purchasing a SquareTrade warranty during liquidation.

Video Games and Video Game Consoles

Purchased video game content is a reasonably safe investment during the Toys R Us liquidation. It’s rare that a disc or a cartridge is defective.

On the other hand, purchasing a video game console or other video game hardware is a bad idea. If you must purchase one, purchase a SquareTrade warranty at Toys R Us to go with it (assuming they are still selling these warranty plans). If it’s not SquareTrade, then you should call the plan service provider before you check out at the store to ensure that insurance plan will continue to cover your purchase after Toys R Us closes for good.

Without an extended service plan, you have no replacement policy if it’s defective or gets broken. Be very cautious of buying video game hardware from Toys R Us during liquidation without a warranty. Though, you can try to work through the manufacturer warranty, it’s sometimes only 90s days. During liquidation, this is the one time where you should consider the purchase of a third party warranty, at least for purchases like video game consoles… particularly the Nintendo Switch which is portable and prone to being dropped.

However, certain types of lesser expensive video game hardware, like controllers, wires, Amiibo, cases, pens and other similar $30-$50 items are safer to buy, particularly when they are marked down 50% or more. However, consoles themselves, like the Nintendo Switch, Xbox One X and PlayStation 4 are not considered good investments from a liquidation sale.

I’d also suggest to avoid buying these devices from eBay as well because many will flood eBay listings from sellers who went to Toys R Us just to cash in on these low prices. If you’re thinking of buying a console from eBay, ask where it was purchased. Be wary if it’s from Toys R Us.

Dolls, Action Figures and Non-Battery Toys

Toys that don’t require batteries and don’t have complex moving pieces are some of the safer items to buy. They offer less defects and are more likely to last the test of time than RC vehicles, video game consoles, battery powered electric child cars, electric skate boards and other custom battery items.

Consumer Safety and Toy Recalls

Toys R Us was very good at keeping up with safety recalls. Unfortunately, they are going out of business. This also means that any toys you purchase during the liquidation that later fall under a recall, you can no longer return to Toys R Us. Like the All Sales Final discussion above, consider that items like cribs, baby items and other possible dangerous infant and toddler toys won’t have any place to go if they are recalled, especially if your baby gets hurt. Though, the manufacturer might honor a return or exchange, you will not be able to do so at Toys R Us. You will also not be able to make any legal claims of injury to Toys R Us once they have closed.

Safe or Unsafe Investment?

Here is a list (not exhaustive) of items that I consider safe, somewhat safe and not safe for a liquidation purchase so long as you fully understand that you cannot return or exchange them at TRU.

Note, safe, somewhat safe and not safe represent what I consider as a “safe purchase” (i.e., getting value for your money vs. throwing your money away), these labels do not describe whether the toy or item itself is safe for use by a child. You will have to determine toy safety yourself.

Toy Type Liquidation Safe Purchase? Contains Battery? Reason
Dolls Safe No
Motorized Dolls Not Safe Yes Prone to defects and can be unsafe
No store warranty
Bicycles Somewhat Unsafe Depends If you’re buying for a gift, unsafe.
If you’re buying to use now, perhaps.
If it has a battery, unsafe.
TRU may or may not offer assembly.
Use your best judgement.
Motorized Electric Kid Cars Not Safe Yes Batteries can be defective
May not be able to find replacement battery
No store warranty
Action Figures Safe No
Plush Animals Somewhat Safe No Depending on what it’s made from,
it may be safe or unsafe. Choose carefully.
Vinyl Figures Safe No
Hot Wheels Safe No So long as the Hot Wheels contain no batteries
Lego Safe No So long as the Legos contain no batteries
Motorized Toys Not Safe Yes Avoid motorized or electronic toys
Video Games Safe No Games themselves are rarely defective
Video Game Consoles Not Safe Maybe Could be defective
No way to exchange
No store warranty
Choose 3rd party insurance plan if you must buy
Video Game Controllers Somewhat Safe Yes Typically okay along with certain accessories.
Barbie Safe Depends If the Barbie doesn’t contain a battery,
this should be safe. If it contains a battery,
make sure the doll is working before
leaving the store.
Baby Toys Depends Depends For safety reasons, I do not recommend buying
baby toys and items via liquidation sales.
Diapers Safe No
Cribs Not Safe No Cribs can be dangerous for infants.
Purchase at a store where you can return.
Car Seats Not Safe No Car Seats can be dangerous for infants.
Purchase at a store where you can return.
Skateboards Safe No
Electric Skateboards Not Safe Yes  Avoid because of custom battery (replacement)
RC Vehicles Not Safe Yes  Avoid because of custom battery (replacement)
Tablets Somewhat Safe Yes  If Apple, you can rely on Apple. If another brand, avoid.
Wrapping Paper / Party Safe No
DVDs and Blu-ray Safe No
Toys To Life (Amiibo) Safe No
Headphones Not Safe Depends  High chances for problems
Toys R Us Exclusives Somewhat Safe Depends Avoid with custom batteries
Wooden Toys Somewhat Safe Depends

Use Your Best Judgement

The above is not an exhaustive list, so always use your best judgement if it’s not listed here. If the toy contains no battery at all, it should be fine. If the toy contains or uses standard AA, AAA, C, D or button cell batteries, you’re fine. If the toy contains a lithium ion and/or custom battery, you should avoid purchase. Any toy that contains a custom battery may have been custom made for Toys R Us. This means you may find it difficult or impossible to find batteries later. House brand or Toys R Us exclusive toys requiring refill packs should be avoided. Toys and products for infants should be avoided for safety reasons. The only product I would suggest is safe for an infant is diapers and possibly formula as long as it’s a name brand, not a house brand.

Tablets and electronics should be avoided if not from Apple or another recognized brand. If it’s a house branded electronic item, avoid.

Toys R Us Exclusives

Toys R Us Exclusives are now considered rare. However, that doesn’t mean they’re a good investment. Pop figures are fine, exclusive Barbies are fine and exclusive Hot Wheels are fine (see the list above). However, any exclusives that require something that you can only get at Toys R Us (like batteries or refills), you should avoid purchase.

Toys R Us Geoffrey toys

These are likely to be some of the rarest toys available. If you want a piece of memorabilia to commemorate Toys R Us, you should head over fast and pickup whatever Geoffrey items you can find. If you’re looking for plush, you might have to ask at the service desk.

Happy Deals and good luck!

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