Kleargear must pay $306,750 for trashing a complaining customer's credit


The notorious online retailer Kleargear (previously) has been ordered to pay $306,750 in damages (including punitive damages) as well as legal costs to Jennifer and John Palmer. The Palmers wrote an online complaint when they didn't get their Kleargear order, only to have Kleargear send them a bill for $3500 for violating a "nondisparagement clause" in the company's terms of service; when they didn't pay it, Kleargear damaged their credit rating, which ended up sabotaging a house-purchase for the couple. Kleargear claims to be based in France, and refused to participate in the case against them.

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How Newegg handed a patent troll its own ass on a plate


Ars Technica's got an amazing piece on the Newegg fight against a patent troll called Soverain Software, who had been extorting a 1% royalty on all transactions from ecommerce companies with a bogus shopping cart patent. Newegg refuses to settle in cases like this, even when it would be cheaper to settle than to fight. They beat the hell out of Soverain, killed their patent, and freed not just themselves, but all the firms that faced potential extortion from them -- and all of us, who will pay higher prices to keep these ticks nicely, comfortably bloated with their parasitic gains.

For Newegg's chief legal officer Lee Cheng, it's a huge validation of the strategy the company decided to pursue back in 2007: not to settle with patent trolls. Ever.

"We basically took a look at this situation and said, this is bullshit," said Cheng in an interview with Ars. "We saw that if we paid off this patent holder, we'd have to pay off every patent holder this same amount. This is the first case we took all the way to trial. And now, nobody has to pay Soverain jack squat for these patents."

...Newegg is unique in its willingness to take on patent troll cases and fight them through trial. The company won't hire law firms that take on patent troll cases, and its top lawyer, Lee Cheng, is vocal about his view that others should take the same approach. Cheng talked with Ars about Newegg's strategy, why they do it, and how it's going for them.

How Newegg crushed the “shopping cart” patent and saved online retail [Ars Technica/Joe Mullin]

(via Waxy)

Raspberry Pi launch so popular that retail partners collapse under load


Raspberry Pi, an innovative $35 GNU/Linux box in a tiny package, launched yesterday -- sort of. Demand was so hot that all the company's retail partners collapsed under load. From Ars Technica's Ryan Paul:

The product is a bare board with a 700MHz ARM11 CPU and 256MB of RAM. It's roughly the size of a deck of playing cards and has a powerful GPU that is reportedly competitive with that of modern smartphones. Developer prototypes of the product have been shown running impressive graphics demos and decoding high-definition video...

At the time of publication, the Farnell website is still spitting errors. The RS site has been partially restored and is intermittently available, but isn't currently allowing users to purchase the Raspberry Pi. Instead, it displays a screen where users can register to express their interest in the product. The Raspberry Pi foundation managed to withstand the traffic by temporarily replacing the contents of its official website with a static page

Alongside the launch, the Raspberry Pi foundation also announced that the cheaper $25 model, which will be launched at an undisclosed future date, got a spec bump and will have 256MB of RAM, just like the $35 model. The $25 board was originally expected to have only 128MB of RAM. The cheaper model will still lack several of the features found in the $35 model, such as the built-in ethernet controller.

Miserable working conditions in ecommerce packing facilities

Mother Jones's Mac McClelland goes underground at an unnamed ecommerce packing facility in a rural American town and reports on the terrible, back-breaking working conditions that are compounded by continuous verbal abuse, unsafe working conditions, mandatory overtime, and humiliating disciplinary procedures.

At lunch, the most common question, aside from "Which offensive dick-shaped product did you handle the most of today?" is "Why are you here?" like in prison. A guy in his mid-20s says he's from Chicago, came to this state for a full-time job in the city an hour away from here because "Chicago's going down." His other job doesn't pay especially well, so he's here—pulling 10.5-hour shifts and commuting two hours a day—anytime he's not there. One guy says he's a writer; he applies for grants in his time off from the warehouse. A middle-aged lady near me used to be a bookkeeper. She's a peak-season hire, worked here last year during Christmas, too. "What do you do the rest of the year?" I ask. "Collect unemployment!" she says, and laughs the sad laugh you laugh when you're saying something really unfunny. All around us in the break room, mothers frantically call home. "Hi, baby!" you can hear them say; coos to children echo around the walls the moment lunch begins. It's brave of these women to keep their phones in the break room, where theft is so high—they can't keep them in their cars if they want to use them during the day, because we aren't supposed to leave the premises without permission, and they can't take them onto the warehouse floor, because "nothing but the clothes on your backs" is allowed on the warehouse floor (anything on your person that Amalgamated sells can be confiscated—"And what does Amalgamated sell?" they asked us in training. "Everything!"). I suppose that if I were responsible for a child, I would have no choice but to risk leaving my phone in here, too. But the mothers make it quick. "How are you doing?" "Is everything okay?" "Did you eat something?" "I love you!" and then they're off the phone and eating as fast as the rest of us. Lunch is 29 minutes and 59 seconds—we've been reminded of this: "Lunch is not 30 minutes and 1 second"—that's a penalty-point-earning offense—and that includes the time to get through the metal detectors and use the disgustingly overcrowded bathroom—the suggestion board hosts several pleas that someone do something about that smell—and time to stand in line to clock out and back in. So we chew quickly, and are often still chewing as we run back to our stations.

The days blend into each other. But it's near the end of my third day that I get written up. I sent two of some product down the conveyor line when my scanner was only asking for one; the product was boxed in twos, so I should've opened the box and separated them, but I didn't notice because I was in a hurry. With an hour left in the day, I've already picked 800 items. Despite moving fast enough to get sloppy, my scanner tells me that means I'm fulfilling only 52 percent of my goal. A supervisor who is a genuinely nice person comes by with a clipboard listing my numbers. Like the rest of the supervisors, she tries to create a friendly work environment and doesn't want to enforce the policies that make this job so unpleasant. But her hands are tied. She needs this job, too, so she has no choice but to tell me something I have never been told in 19 years of school or at any of some dozen workplaces."You're doing really bad," she says.

I'll admit that I did start crying a little. Not at work, thankfully, since that's evidently frowned upon, but later, when I explained to someone over Skype that it hurts, oh, how my body hurts after failing to make my goals despite speed-walking or flat-out jogging and pausing every 20 or 30 seconds to reach on my tiptoes or bend or drop to the floor for 10.5 hours, and isn't it awful that they fired Brian because he had a baby, and, in fact, when I was hired I signed off on something acknowledging that anyone who leaves without at least a week's notice—whether because they're a journalist who will just walk off or because they miss a day for having a baby and are terminated—has their hours paid out not at their hired rate but at the legal minimum. Which in this state, like in lots of states, is about $7 an hour. Thank God that I (unlike Brian, probably) didn't need to pay for opting into Amalgamated's "limited" health insurance program. Because in my 10.5-hour day I'll make about $60 after taxes.

I Was a Warehouse Wage Slave (via MeFi)