California to smash prison e-profiteers
On Weds (May 10), Iâm in Vancouver for a keynote at the Open Source Summit and a book event for Red Team Blues at Heritage Hall and Thu (May 11), Iâm in Calgary for Wordfest.
Itâs a double-whammy that defines 21st century American life: a corporation gets caught doing something terrible, exploitative or even murderous, and a government agency steps inâââonly to discover that thereâs nothing it can do, because Reagan/Trump/Clinton/Bush I/Bush II deregulated that industry and stripped the agency of enforcement powers.
If youâd like an essay-formatted version of this post to read or share, hereâs a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2023/05/08/captive-audience/#good-at-their-jobs
Man, that feels awful. The idea that extremists gutted our democratically accountable institutions so that thereâs nothing they can do, no matter how egregious a corporationâs conduct is so demoralizing. Makes me feel like giving up.
But the law is a complex and mysterious thing. Regulators arenât actually helpless. There are authorities, powers and systems that the corporate wreckers passed over, failed to notice, or failed to neuter. Take Section 5 of the FTC Act, which gives the Commission broad powers to prevent âunfair and deceptiveâ practices. Since the 1970s, the FTC just acted like this didnât exist, even though it was right there all along, between Section 4 and Section 6.
Then, under the directorship of FTC chair Lina Khan, Section 5 was rediscovered and mobilized, first to end the practice of noncompete âagreementsâ for workers nationwide:
https://mattstoller.substack.com/p/antitrust-enforcers-to-ban-indentured
A new breed of supremely competent, progressive regulators are dusting off those old lawbooks and figuring out what powers they have, and theyâre using those powers to Get Stuff Done. Itâs like that old joke:
Office manager: $75 to kick the photocopier?
Repair person: No, itâs $5 to kick the photocopier, $70 to know where to kick it.
Thereâs a whole generation of expert photocopier-kickers in public life, and theyâve got their boots on:
https://pluralistic.net/2022/10/18/administrative-competence/#i-know-stuff
This is the upside of technocracyâââwhere you have people who are appointed to do good things, and who want to do good things, and who figure out how to do good things. There are dormant powers everywhere in law. Remember when Southwest Air stranded a million passengers over Christmas week and Transport Secretary Pete Buttigieg responded by talking sternly about doing better, but without opening any enforcement actions against SWA?
At the time, Buttigiegâs defenders said that was all he could do: âPete isnât the boss of Southwestâs IT department, you know!â Heâs notâââbut he is in possession of identical powers to the FTC to regulate âunfair and deceptiveâ practices, thanks to USC40 Section 41712(a), which copy-pastes the language from Article 5 of the FTC Act into the DOTâs legislative basis:
https://pluralistic.net/2023/01/10/the-courage-to-govern/#whos-in-charge
The failures of SWA were a long time coming, and were driven by the companyâs shifting of costs from shareholders to employees and fliers. SWA schedules many flights for which they have no aircraft or crew, and when the time to fly those jets comes, the company simply cancels the emptiest flights. This is great for SWAâs shareholders, who donât have to pay for fuel and crew for half-empty planesâââbut itâs terrible for crew and fliers.
Whatâs more, selling tickets for planes that donât exist is plainly unfair and deceptive. A good photocopier-kicker in charge of the DOT would have arrived with a âfirst 100 daysâ plan that included opening hearings into this practice, as a prelude to directly regulating this conduct out of existence, averting the worst aviation scheduling crisis in US history. Thatâs what Buttigiegâs critics wanted from him: a competent assessment of his powers, followed by the vigorous use of those powers to protect the American people.
One domain thatâs been in sore need of a photocopier-kicker for years is prison tech. America (âthe land of the freeâ) incarcerates more people than any nation in the history of the worldâââmore than the USSR, more than China, more than Apartheid-era South Africa.
For corporate prison profiteers, those prisoners are a literal captive audience, easy pickings for gouging on telephone calls, books, music, and food. For years, companies like Securus have been behind an incredibly imaginative array of sadistic tactics that strip prisoners of the contact, education and nutrition that governments normally provide to incarcerated people, and then sells those prisoners and their families poor substitutes for those necessities at markups that cost many multiples of the equivalent services in the free world.
Think of prisons that reduce the amount of food served to sub-starvation levels, then sell food at high markups in the prison commissary. For prisoners whose families can afford commissary fees, this is merely extortion. But for prisoners who donât have anyone to top up their commissary accounts, itâs literal starvation.
This is the shape of every prison profiteerâs grift: take something vital away and then sell it back at a massive markup, dooming the prisoners who canât afford it. The most obvious way to gouge prisoners is by charging huge markups for phone calls. Prisoners who can afford to pay many dollars per minute can stay in touch with their families, while the rest rot in isolation.
In 2015, the FCC tried to halt this practice, passing an order capping the price of calls, but in 2017, the DC District Court struck down the order, ruling that the FCC couldnât regulate in-state call tariffs, which are the majority of prison calls:
https://www.cadc.uscourts.gov/internet/opinions.nsf/0/C62A026B396DD4C78525813E004F3BC5/%24file/15-1461-1679364.pdf
This was a bonanza for prison profiteers. Companies like Jpay (now a division of Securus) cranked up the price of prisonersâ calls. At the same time, dark-money lobbying campaigns urged prisons to get rid of their in-person visitation programs in the name of âsafetyâ:
https://www.mic.com/articles/142779/the-end-of-prison-visitation
Not just visitation: prisons shuttered their libraries and banned shipments of letters, cards and booksâââagain, in the same of âsafety.â Jpay an its competitors stepped in with âfree tabletsââââcheap, badly made Chinese tablets. Instead of checking out books from the prison library or having them mailed to you by a friend or family member, prisoners had to buy DRM-locked ebooks at many multiples of the outside world price (these same prices were slapped on public domain books ganked from Project Gutenberg):
https://www.prisonpolicy.org/blog/2018/07/24/no-cost-contract/
Instead of getting letters and cards from your family members and friends, you had to pay to look at scans of them, buying âvirtual stampsâ that had to accompany every page (they even charged by the âpageâ for text messages):
https://www.wired.com/story/jpay-securus-prison-email-charging-millions/
Enshittification is my name for service-decay, where companies that have some kind of lock-in make things worse and worse for their customers, secure in the knowledge that theyâll keep paying because the lock-in keeps them from leaving. When your customers are literally locked in (that is, behind bars), the enshittification comes fast and furious.
Securus/Jpay and its competitors found all kinds of ways to make their services worse, like harvesting recordings of their calls to produce biometric voice-prints that could be used to track prisoners after they were released:
https://theintercept.com/2019/01/30/prison-voice-prints-databases-securus/
Of course, once the prison phone-carriers started harvesting prisonersâ phone calls, it was inevitable that they would leak those calls, including intimate calls with family members and privileged calls with lawyers:
https://www.aaronswartzday.org/securedrop-prisoner-data/
Prison-tech companies know they can extract huge fortunes from their captive audience, so they are shameless about offering bribes (ahem, âprofit-sharingâ) to prison authorities and sheriffsâ offices to switch vendors. When that happens, prisoners inevitably suffer, as happened in 2018, when Florida state prisons changed tech providers and wiped out $11.8m worth of prisoners purchased mediaâââevery song prisoners had paid for:
https://www.eff.org/deeplinks/2018/08/captive-audience-how-floridas-prisons-and-drm-made-113m-worth-prisoners-music
As bad as these deals are for prisoners, theyâre great for jailers, who are personally and institutionally enriched by prison-tech giants. This is textbook corruption, in which small groups of individuals are enriched while vast, diffuse costs are extracted from large groups of people. Naturally, the deals themselves are swathed in secrecy, and public records requests for their details are met with blank, illegal refusals:
https://www.muckrock.com/news/archives/2018/may/25/laramie-county-prison-phones/
The âshitty technology adoption curveâ predicts that technological harms that are first visited upon prisoners and other low-privilege people will gradually work its way up the privilege gradient:
https://pluralistic.net/2021/07/29/impunity-corrodes/#arise-ye-prisoners
Securus powered up the Shitty Tech Adoption Curve. They donât just spy on and exploit prisonersâââthey leveraged that surveillance empire into a line of product lines that touch us all. Securus transformed their prisoner telephone tracking business into an off-the-books, warrantless tracking tool that cops everywhere use to illegally track people:
https://www.nytimes.com/2018/05/10/technology/cellphone-tracking-law-enforcement.html
In other words, our jails and prisons are incubators that breed digital pathogens that infect all of us eventually. Itâs past time we got in the exterminators and flushed out those nests.
Thatâs where Californiaâs new photocopier-kickers come in. Like many states, California has a Public Utility Commission (PUC), which regulates private companies that provide utilities, like telecoms. That means that the state of California can reach into every jail and prison in the state and grab the prison profiteers by the throats and toss âem out the window.
Writing in The American Prospect, Kalena Thomhave does an excellent job on the technical ins-and-outs of calling on PUCs to regulate prison-tech, both in California and in other states where PUCs havenât yet been neutered or eliminated by deregulation-crazed Republicans:
https://prospect.org/justice/2023-05-08-california-prison-phone-calls-free/
Thomhave describes how Californiaâs county sheriffs have waxed fat on kickbacks from the prison-tech sector: âfor example, the Yuba County Sheriffâs Office receives 25 percent of GTL/ViaPathâs gross revenue on video calls made from tablets.â Small wonder that sheriffs offices lobby against free calls from jail, claiming that prisonersâ phone tariffs are needed to fund their operations.
Itâs true that the majority of this kickback money (51%) goes into âinmate welfare funds,â but these funds donât have to go to inmatesâââthey can and are diverted to âmaintenance, salaries, travel, and equipment like security cameras.â
But limiting contact between prisoners and their families in order to pay for operating expenses is a foolish bargain. Isolation from friends and family is closely linked to recidivism. If we want prisoners to live productive lives after their serve their time, we should maximize their contact with the outside, not link it to their familiesâ ability to spend 50 times more per minute than anyone making a normal call.
The covid lockdowns were a boon to prison-tech profiteers, whose video-calling products were used to replace in-person visits. But when pandemic restrictions lifted, the in-person visits didnât come back. Instead, jails continued to ban in-person visits and replace them with expensive video calls.
Even with new power, the FCC canât directly regulate this activity, especially not in county jails. But PUCs can. Not every state has a PUC: ALEC, the right-wing legislation factory, has pushed laws that gut or eliminate PUCs across the country:
https://alec.org/model-policy/telecommunications-deregulation-policy-statement/
But California has a PUC, and it is gathering information now in advance of an order that could rein in these extractive businesses and halt the shitty tech adoption curve in its tracks:
https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M478/K075/478075894.PDF
Thatâs some top-notch photocopier-kicking, right there.
Catch me on tour with Red Team Blues in Vancouver, Calgary, Toronto, DC, Gaithersburg, Oxford, Hay, Manchester, Nottingham, London, and Berlin!
[Image ID: A prison cell. Behind the bars is the bear from the California state flag. There is an old-fashioned telephone headset near his ear, such that he appears to be making a call.]















