Archive for the ‘Regulation’ Category
Friday, August 27th, 2010
My talk at the International Food Blogger Conference in Seattle, “Recent Advances in Bullshit Reduction,” along with my panel session and discussion/debate with Robert Schroeder of the Federal Trade Commission and Foodista.com CEO Barnaby Dorfman about the new FTC guide to the disclosure of freebies and financial relationships in blog reviews, will be broadcast live on UStream at 3pm Pacific time. was scheduled for streaming video, but the video had technical problems and dropped out in the middle of my panel session, so for those who are interested, I’ve posted the PowerPoint presentation (with images downsampled) here. If you’re interested, you can also check out the original Osteria L’Intrepido post, my followup to Wine Spectator’s response, and a few other related entries on my blog.
Posted in Behavioral economics, Cognitive taste, Fearless Critic, Law, Regulation, Wine | 3 Comments »
Monday, August 2nd, 2010
If you’re registered in California, I encourage you to go out today and vote yes on Proposition 19, which will legalize, tax, and regulate cannabis—and take a major step toward treating drug use as a public health issue instead of a crime in America. It is time to end the failed policy of marijuana prohibition that has turned millions of otherwise law-abiding citizens into convicted criminals for smoking pot.
The U.S. has less t
han 5% of the world’s population, yet we have a quarter of the world’s prisoners. Since the declaration of the “War on Drugs” in the 1970s, the U.S. prison population has more than quadrupled. More than 1.5 million Americans are now arrested each year for nonviolent drug offenses, and more than 500,000 of them are imprisoned.
To date, the War on Drugs has killed more than 30,000 Mexicans, made our borders less safe, ruined the lives of millions of American families, wasted hundreds of billions of dollars of taxpayer money, and created the world’s largest prison population. The marijuana prohibition alone costs (by one estimate) more than $40 billion per year—yet it hasn’t achieved its stated goals of reducing marijuana use. Instead, it has created a black market that has turned the pot trade into a lucrative, tax-free industry dominated by organized crime (especially in Mexico, where half the trade is in marijuana) and plagued by the dangers of impure, unregulated drugs. And it stuffs our crowded, enormously expensive prisons with nonviolent pot offenders that don’t belong there. (more…)
Tags:black market, california, legalization, marijuana, pot, Prohibition, prop 19, taxation, war on drugs
Posted in Behavioral economics, Cognitive taste, Drugs, Law, Prohibition, Regulation | No Comments »
Wednesday, July 7th, 2010
Britain’s Sun recently reported that supermarket giant Tesco sold two bottles of counterfeit Louis Jadot Pouilly-Fuissé, distributed by Hatch Mansfield, to a customer named Danny McGowan of Clacton, Essex, who described the fake bottle as having a label that “looked photocopied.” Apparently, the bottle was on sale for £5, down from a usual £14.49. (As of this writing, the Pouilly-Fuissé was on the price list at the Tesco website for £12.99.)
The Sun article, which was sent my way by the illustrious wine-counterfeiting scholar/economist Günter Schamel (whose work I’ve previously discussed here), has the amusing title “You Plonkers” and an equally amusing photo of a nonplussed McGowan.
The most unusual thing about this story is that while has been much discussion of counterfeit wine in the high-end rare and fine wine market—Jefferson bottles and first-growth Bordeaux and such—there hasn’t been nearly as much talk about counterfeiting in the low-to-midrange wine market.
In that market, the trick might be a lot easier to get away with, for at least three reasons: first of all, (more…)
Tags:counterfeit, fake wine, hatch mansfield, law and economics, libel, liebfraumilch, louis jadot, pouilly-fuisse, tesco, Wine, wine law
Posted in Behavioral economics, Cognitive taste, Fearless Critic, Law, Regulation, The Wine Trials, Wine | 2 Comments »
Saturday, June 19th, 2010
In response to yesterday’s post about censorship on the FIFA.com “Have Your Say” discussion board after the USA’s third goal against Slovenia—which was controversially nullified by referee Koman Coulibaly for reasons that remain unclear—commenter bdr on my blog has observed that FIFA is also now widely suppressing video of the disallowed goal under the guise of copyright enforcement (although the video is still easy to find on youtube). Any readers with direct evidence of this copyright enforcement effort, please chime in. Commenter Sam, meanwhile, points out that the disallowed goal is not even included in FIFA’s own highlight reel of the match (and I have confirmed this): “their plan is to just act like it never happened.”
About five hours after the end of yesterday’s match, FIFA.com, perhaps in response to pressure online, began allowing a limited number of comments onto the “Have Your Say” discussion board that referenced the disallowed goal. The first such comment allowed was from Deutschnuk, on June 18 at 21:49. In the 24 hours or so since then, by my count, seven other comments, not including replies, have been posted that are critical of the call (by sp0rtsfan8, bknutz, T-Rixx, stinson87, LAUREN2010, MarcS420, and jacob163).
To counter these, FIFA.com has also posted (as of this writing) seven comments arguing that the call was justified, often by suggesting that the USA side was playing rough (from algeroid7, Stipe24, Brisaca, roedl22, j0000nz, and two from SVNFTW). One comment has also been posted that discusses the call but considers both sides. From reading the board, in other words, you’d assume that soccer fans were more or less split on the question of whether Coulibaly made a bad call.
The reason that this distribution seems utterly unrelated to the distribution of opinion amongst soccer fans, bloggers, and commentators across the rest of cyberspace is that there still seems to be massive comment suppression happening on the “Have Your Say” board.
The primary evidence for this suppression (more…)
Tags:Alexi Lalas, censorship, CNN, copyright, disallowed goal, ESPN, fifa, football, Guardian, Jeff Klein, koman coulibaly, Liverpool, New York Times, nullified goal, Peter King, SI, Slovenia, soccer, USA, World Cup
Posted in censorship, Fearless Critic, Regulation, Travel, World Cup | 3 Comments »
Friday, June 18th, 2010
As of this writing, of the 343 comments to have been approved by the moderators on FIFA.com’s “Have Your Say” discussion board about today’s controversial US-Slovenia 2-2 draw in World Cup competition, not one of them contains even a passing mention of the main topic of discussion of every article that has been written about the game: the fact that referee Koman Coulibaly disallowed the third US goal for reasons that weren’t (and still aren’t) clear to players, fans, or television announcers.
Other soccer discussion boards, like the Washington Post’s Soccer Insider, were flooded with debate and discussion about the questionable call, which began almost immediately after it happened at about 16:40 GMT (the time zone used by FIFA.com). So were Twitter feeds (although at some point Twitter crashed, as it frequently has during the World Cup). The discussion over the controversy really exploded around the internet after the game ended at 16:51, and before long, USA’s tie with Slovenia already had more Google News blog hits (850) than Serbia’s upset of Germany (701).
But on FIFA.com, the silence about USA-Slovenia has been deafening. The latest comment to appear on the discussion board has a timestamp of 20:04. In the 193-minute span between the game’s end and the latest comment’s time stamp, only 24 squeaky-clean comments have been approved. For instance: “great fightback by the USA”; “this is the right result on the balance of play”; “way to go USA”; “the match was really exciting!”; “slovenia is the best team”; “USA are becoming a real nice team!”; and “Slovenia had a great chance to qualify in the next round!! But in the second half we were too defensive.”
By comparison, in that same span of time—193 minutes—after the end of Germany-Serbia (which ended today at 14:20), there were already 175 comments posted. That’s more than seven times as many.
At one point, a user named Rossus, from South Africa, posted one comment that did, in the most polite possible way, at least hint at the idea that there might have been some controversy. Rather than suggesting any human fault, Rossus’s comment merely used the word “luck”: “I am not a USA supporter but the USA was very unlucky not to win.” But even that comment, after briefly appearing on the match overview page (which streams the latest comments), was later censored, and never made it to the discussion board page itself. The comment is no longer on the site, but I took a screen shot of it during the brief time that it appeared on the overview page, which appears here to the left.
Just to test my theory personally, I also tried posting the following comment: (more…)
Tags:censorship, fifa, fifa.com, goal nullified, koman coulibaly, online discussion, soccer, us vs slovenia, World Cup
Posted in Behavioral economics, Politics, Regulation, World Cup | 14 Comments »
Wednesday, May 26th, 2010
Is President Obama keeping the Sinaloa drug cartel in business?
Here’s the news from today, according to the New York Times: 1,200 members of the National Guard have been sent to the border to “combat drug smuggling.” More drug-related violence can only be dealt with through greater enforcement, goes the Bush-McCain-and-now-Obama story. We’ve got to fight the war on drugs; to fight the drug criminals; to save the people from violence.
There’s just one flaw in this story: it’s got the causality going in the wrong direction. US drug policy is the cause of the current epidemic of violence and lawlessness in northern Mexico and along the border, not the cure for it. The more resources we devote to enforcing our drug prohibition, the higher we drive prices, the bigger the incentives to smuggle drugs, the bigger the spoils for the gangs of lawless criminals to whom we redirect the unimaginable profits of several massive, centuries-old industries, and the more these gangs will be willing to fight to the death over pieces of that enormous black-market pie.
By legislating common drugs out of the legal marketplace, we are creating a black market out of thin air. It is not hyperbole to suggest that US law is not just providing a subsidy of billions to the Sinaloa cartel—our laws have actually legislated the cartel, and its rivals, into existence.
Who stands to lose the most if we legalize, tax, and regulate marijuana and cocaine, and open these industries to legitimate companies? The Sinaloa cartel. We devote $11 billion of military and law enforcement resources to eliminating their competition and maintaining their monopoly power—and thus their staggering profits. They are probably the foremost advocates of the current US drug policy. Their worst nightmare would be for the marijuana industry to turn into something like tobacco: low-margin, heavily regulated, taxed, nonviolent, unglamorous, highly competitive, unable to command a risk premium. When was the last time you heard about a tobacco gang shooting?
The effects of US drug policy have never been felt more tragically in northern Mexico, where turf wars between rival drug cartels are fought. Ciudad Juárez, where the murder of innocent civilians is as commonplace as a fender-bender, is now confronting the very real prospect of a lost generation of youth—a generation so scared to walk the streets of its own city that it grows up as if in a coma, with fear the only coherent thread of civic life. In Juárez, beheadings are barely newsworthy. Is it any wonder that some of the civilians caught in this warfare would risk their lives to cross the border into the US?
A rational humanitarian policy would contemplate welcoming residents of Ciudad Juárez into the United States as war refugees. Why don’t we do this? Maybe it’s because admitting there’s a war in Mexico might mean confronting the horrifying truth that this war is ours, our failed war on drugs, and the citizens of Juárez, these would-be refugees, are our collateral damage. Washington now seems comfortable with the idea that we own the violence in Baghdad, yet the idea that we own the violence in Juárez is still Washington taboo. We don’t even believe we’re involved.
(more…)
Tags:american medical association, border, border violence, calderon, ciudad juarez, cocaine, Drugs, immigration, marijuana, mexico, obama, security, tax cannabis 2010
Posted in Drugs, Law, Politics, Prohibition, Regulation, Travel | 5 Comments »
Tuesday, January 26th, 2010
The Times of London reports that Italian Minister of Agriculture Luca Zaia has dissolved the mozzarella di bufala campana consortium after a series of inspections revealed that “25 per cent of the cheese sold as buffalo mozzarella was fake because it contained 30 per cent cow milk.” Mozzarella di bufala, with its wonderfully funky water-buffalo-milk notes, is one of the main ingredients in some versions of margherita DOP pizza (although it’s not, as Alan Richman has wrongly stated, a required ingredient). It’s also frequently served raw as an appetizer, either on its own or with ham.
The Italian Ministry of Agriculture has a recent history of operating at the curious intersection of neofascism and culinary purism. Zaia’s “zero-tolerance policy” on food fraud became famous with his 2008 bust-up of cheating Brunello di Monalcino producers, which was hailed as a victory for consumers. But in a less-reported crackdown the following year, Zaia, a member of the extreme-right-wing Lega Nord—the political party that has advocated the seccession of Northern Italy—also instituted, with Berlusconi’s backing, a policy banning new “ethnic” restaurants from opening in certain northern Italian cities, including Lucca and Milan. It was a move that the left-wing newspaper La Stampa called “culinary ethnic cleansing.” Reporting on the policy, the Times of London quoted Lucca city spokesman Massimo Di Grazia as saying that “French restaurants would be allowed”; he was “unsure, though, about Sicilian cuisine. It is influenced by Arab cooking.” Continued the Times: “Asked if he had ever eaten a kebab, Mr Zaia said: ‘No—and I defy anyone to prove the contrary. I prefer the dishes of my native Veneto. I even refuse to eat pineapple.’” This, from the country’s Minister of Agriculture.
Sometime in 2001 or 2002, I recall meeting, and discussing pure-ingredient fervence with, Giorgio Alemanno, who was Italy’s Minister of Agriculture at the time (this was two Ministers ago). The man talked about wine with great passion. And like Zaia, he was also an absolute right-wing zealot. (more…)
Tags:brunello di montalcino, bufala, buffalo mozzarella, fascism, giorgio alemanno, italy, luca zaia, ministry of agriculture, mozzarella, mozzarella di bufala, mussolini, Pizza
Posted in Food, Pizza, Politics, Regulation, Restaurant guides, Travel | 7 Comments »
Wednesday, June 17th, 2009
Sweden has one of the world’s most controlled alcohol regimes, with steep taxation, a state-controlled retail monopoly, and a 20-year-old minimum age to buy alcohol at a store (and they really card, too). The only store at which a consumer can buy wine, beer, or liquor in Sweden is Systembolaget, the state-controlled retail monopoly.
Is this a good thing or a bad thing? My intuition (and that of the economists I’ve been speaking with here in Stockholm) is the latter—first and foremost, as in Quebec, it’s a major headache for wine producers, whose distribution chances hang on the (often arbitrary) whims of just one decisionmaker. Opening hours of stores are criminally short. Pricing is screwy, in part because per-unit (rather than per-krona) taxation results in cheap wine being overpriced and expensive wine underpriced. As ever, monopolies throw everybody’s incentives out of whack.



But here’s one definite consumer-oriented boon that results: in an of-the-people move, Systembolaget wine stores—that is, all wine stores in Sweden—are organized first by color, second by price. There’s the 69-kronor-(US$8.71)-and-under red wine section; there’s the 70-kronor-(US$8.84)-to-99-kronor (US$12.50) red wine section; and then there’s the 100-kronor (US$12.63)-and-up red wine section.
Although I’ve seen US wine stores with special $10-and-under sections and such, I’ve never seen an entire store organized this way. Intuitively, at least, it seems to be more aligned with consumers’ game plans as organization by region, grape, and so forth.
Why don’t non-monopoly stores organize this way?
My guess would be that profit-minded stores, for understandable reasons, don’t want to lose the chance to upsell—they want people to walk away with a wine more expensive than the one they came looking for.
Tags:monopoly, pricing, Sweden, Systembolaget, Wine
Posted in Behavioral economics, Cognitive taste, Fearless Critic, Regulation, Wine | 10 Comments »
Saturday, June 6th, 2009
Ethics scandals are politico porn. They’re also fertile ground for undeserved scapegoating. But there’s one category in which, across the board, there’s not nearly enough public stoning going on: the world of information intermediaries. On the government side, that means regulatory agencies; in the private sector, it’s the critics, the expert witnesses in capitalism’s de facto justice system.
Information intermediaries, we’re to understand, are society’s check against puffery. They make careers of trustworthiness and accountability. In society’s service, they apply rigor to the claims of corporations and analyze their standards. For this hard work, they’re rewarded by the marketplace and by the United States—sometimes handsomely, sometimes not.
Two bits of recent news bring about two otherwise disparate intermediaries, both preeminent in their niches—Robert Parker’s Wine Advocate, the publication whose critical appraisals are one of the central determinants of a wine’s success or failure on the marketplace, and the Federal Aviation Administration, the agency whose critical appraisals are the primary safety check against America’s airlines—systematically abusing that authority.

Jay Miller: Disfrutando?
Parker’s is one of the few wine publications that don’t accept advertising, for which he deserves praise. And it’s certainly acceptable to take free samples of wine from producers—that’s often the only way to taste new releases before they’ve gone to market. But the recent transgressions of Jay Miller, Robert Parker’s right-hand man, are spectacular indeed. In another classic case of the traditional print media jumping on the bandwagon of a topic that had been exposed quite a bit earlier by an incisive blogger—in this case, Tyler Colman, who goes by “Dr. Vino”—Miller’s series of all-expenses-paid vacation/junkets, financed by wine producers, have finally been reported by the mainstream media in a recent Wall Street Journal article.
Some of rumors about Miller’s behavior in Argentina go quite a bit further in scandalousness (more…)
Tags:buffalo crash, colgan air, corruption, critics, ethics, faa, federal aviation administration, information intermediaries, jay miller, robert parker, wine advocate, wine spectator
Posted in Aviation, Behavioral economics, Fearless Critic, Law, Politics, Regulation, The Wine Trials, Wine, Wine Spectator exposé | 4 Comments »