Social network Ello has countered worries that it may be forced to use advertising or user data to monetize by becoming a ‘Public Benefit Corporation’ (PBC).
As a public Public Benefit Corporation, Ello now has a legally binding charter, which states that the company cannot:
1. Sell user-specific data to a third party;
2. Enter into an agreement to display paid advertising on behalf of a
third party; and
3. In the event of an acquisition or asset transfer, the Company shall
require any acquiring entity to adopt these requirements with respect
to the operation of Ello or its assets.
Ello says this move is to reassure users that it will always exist for its user’s benefit, not just that of its investors. It started as an antidote to the Facebook model of advertising and using data to monetize, with an eye catching manifesto that was, ironically widely shared on Facebook. It does plan to make money eventually, but it will be through selling premium services, which could be some kind of Ello app store for the network.
There are actually two wordings of the above charter – this signed one, and another in a press release, which has much stronger language. In that press release, the company says it ‘must never make money from selling user data’, or selling ads.
Aral Balkan, who speaks passionately about online privacy, pointed out on Twitter that it’s possible to change a PBC charter with a two thirds supermajority. Therefore, while the charter is legally binding, it would be possible to change it. This opens up the possibility for changes in Ello’s terms of service, just like we are used to with Facebook.
Currently Ello is still invite only – enter your email on the Ello homepage and click request invitation, or get an invite from a friend who has already joined. According to the company, it is getting around 45,000 requests per hour at peak times.
Source: Ello, PR Newswire, Aral Balkan
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