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Sarah Falson

Local Spam Slow In US Shadow

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Australia and New Zealand are relatively clean when compared with the 12 top spam-relaying countries for the third quarter of 2007, according to research put together by IT security company, Sophos.

The United States was responsible for the more spam than any other country (28.4 per cent) with South Korea (5.2 per cent) and China/Hong Kong (4.9 per cent) following, according to the results which were collated from spam messages caught in the company’s own ‘spam traps’.

“Yet again the US relayed more spam than any other nation, accounting for a massive 28.4 percent – meaning that almost one in three of all the world’s spam emails is being sent through a compromised US computer,” said Sophos.

Australia and New Zealand sit in 37th (0.4 per cent) and 79th (0.1 per cent) place respectively, contributing to less than one per cent of the world’s spam.

“It seems as though a major American spammer is arrested every other week at the moment, but despite these high-profile lawbreakers being put away, the US continues to relay far more spam than any other nation on the planet,” said Sophos senior security consultant, Carole Theriault.

“This level of activity can’t be attributed solely to the slick operations of a few cash-hungry criminals. The problem is there are thousands of spammers using many thousands of compromised zombie computers in the US.

 

“The only way we’re going to reduce the problem is if US authorities invest a lot more in educating computer users of the dangers, while ensuring ISPs step up their monitoring efforts to identify these compromised machines as early as possible.”

The top twelve spam-relaying countries are:

1 United States    28.4%
2 South Korea    5.2%
3 China (inc.Hong Kong)    4.9%
4 Russia    4.4%
5 Brazil    3.7%
6 France    3.6%
7 Germany    3.4%
8 Turkey    3.2%
9 Poland    2.7%
10 United Kingdom    2.4%
11 Romania    2.3%
12 Mexico    1.9%

Others 33.9%

During August 2007 Sophos identified a series of large-scale malware attacks made via spam email, with weblinks inserted into spam messages that directed recipients to malicious websites designed to infect their PCs.

Green Marketing Not So Clean

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The Australian Competition and Consumer Commission (ACCC) will be cracking down on so-called ‘green’ products and services, following a new marketing trend which has seen a major burst of apparently environmentally-friendly products in response to a growing demand from consumers and businesses for companies to lessen their footprint on our ailing planet.According to the ACCC commissioner, John Martin, the commission has received a “steadily increasing” number of complaints about and enquiries into green marketing, with many questioning the legitimacy of the marketers’ claims.

However, Martin reminds companies that the usual trade rules still apply.

“This trend is consistent with the growing trend for business to green market their goods and services. Whether a business is promoting their ‘green’ motor vehicles, ‘green’ flights, or ‘green’ toilet paper the Trade Practices Act 1974 consumer protection provisions apply,” he said.

“In light of the growing number of complaints, the ACCC is taking a closer look at a number of the green claims that are being made at the moment, and all businesses need to ensure they are not misleading their customers with such claims.”

Martin says some companies aren’t misleading customers maliciously, but rather they simply don’t understand the rules.

 


“Many companies incorrectly believe green marketing refers solely to the promotion or advertising of products with environmental characteristics. Terms like phosphate free, recyclable, eco-friendly, ozone friendly and environmentally friendly are terms consumers have in the past associated with green marketing,” he said.

“Green marketing claims, in the broader concept are now being applied to consumer goods, industrial goods, services, corporate activities, government activities, and so on. If there is a green-edge to be found, it will be exploited. Consumers across the spectrum are becoming more concerned and aware about the natural environment and hence businesses marketing goods with environmental characteristics will have a competitive advantage over businesses that do not.”

Other marketers exploit the green edge to their products because they see the benefits of taking part in this trend.

“Businesses have long since recognised there is a competitive advantage to be had by appealing to the new green awareness of customers, and the latest and trendiest green marketing claims are the ‘carbon neutral’, ‘carbon offset’ and ‘carbon footprint’ claims,” said Martin.
 


“To meet the demand of this current wave of green marketing claims a largely unregulated carbon-cutting business has sprung up selling ‘offsets’ which pay for projects elsewhere that neutralise an equal amount of emissions – planting trees or fertilising oceans. This trade is currently estimated around $US100 million and growing. Consumers can carbon neutralise their car, their flight and most recently their household but are these claims too good to be true and do they truly deliver what consumers expect them to?

“The ACCC intends to ramp-up its green compliance activities with a combination of business and consumer educative initiatives and targeted enforcement action.”

Engin Primed To Shine In 2008

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The past 12 months have seen a “significant transformation” for Australian telecommunications provider, Engin, with the company moving from providing straight VoIP services to announcing in the new year it will cover three large communications areas – VoIP, ADSL2+ and TiVO – according to the results of its annual general meeting, released today.

Investors Today Vote On Coles Buyout

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Investors in Coles Group Limited will today vote on a proposal by chairman, Rick Allert, to enable Wesfarmers to acquire the Group under a Scheme of Arrangement which will see Coles Group shareholders receive cash for their shares, along with shares in the newly-converged Wesfarmers.

“Under the Scheme of Arrangement being put to you today, you will be entitled to receive as consideration for each Coles Group share: $4.00 cash; 0.14215 Wesfarmers’ Ordinary Shares; and 0.14215 Wesfarmers’ Partially Protected Shares,” said Allert.

Shareholders will also be entitled to receive the Coles Group fully franked final dividend of $0.25 per share.

According to Allert, an independent expert, Grant Samuel, concluded that the Wesfarmers’ proposal was in the best interests of Coles Group shareholders in the absence of a superior proposal.

Samuel pointed out that shareholders will have a 44 per cent economic interest in the Wesfarmers merged group; the Wesfarmers’ proposal was the outcome of an extensive worldwide sale process and was the only firm offer for all of Coles Group; and that continued ownership uncertainty was likely to be damaging for Coles Group, particularly its supermarkets.

 

The Coles Board is therefore today unanimously recommending that shareholders vote in favour of the Scheme of Arrangement for the following reasons:
 
– the Independent Expert has concluded that the Scheme is in the best interests of shareholders in the absence of a superior proposal
– the Scheme allows shareholders to retain exposure to potential operational upside in the Coles Group businesses, with Coles’ shareholders owning approximately 44 per cent of the combined Wesfarmers and Coles Group
– as a holder of Wesfarmers Partially Protected Shares shareholders will receive a level of downside protection on your shareholding in Wesfarmers
– shareholders will become a shareholder in Wesfarmers, a company that has a track record of strong financial and operational performance
– as a new Wesfarmers’ shareholder, investors should receive a significant dividend uplift
– many shareholders will be eligible to receive Capital Gains Tax roll-over relief on the share consideration component of the offer
– if the scheme does not proceed, the Coles Group share price is likely to fall

“We believe the process has secured for you, our shareholders, an acceptable and respectable outcome despite a number of complex challenges,” said Allert today.

 

“If the Scheme is approved by shareholders today, the Company will seek the final approval of the Supreme Court on Friday November 9, which, if granted, will also be the last day of trading of Coles Group shares.”

Allert’s speech follows a year of turmoil for the supermarket retailer which saw its Bi-Lo outlets rebranded to Coles in a “poorly executed Bi-Lo conversion program,” according to Allert.

“Regrettably, while great care was taken in preparing the financial forecasts we had given to the market, on 23 February, 2007 – to the justifiable disappointment of you, our shareholders – we were required to revise our earnings guidance for FY08 to take account of the anticipated impact on Group earnings of a lower sales base in Supermarkets.

“Our revised earnings guidance was for 2008 earnings to grow by approximately 20 percent, rather than the 30 percent we had forecast in September 2006.”

Mac OS X Leopard Already Breaking Records

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Apple has trumped its own sales record, with over two million copies of the Mac OS X Leopard operating system sold since its launch on Friday – outstripping the previous record set by Apple’s OS X Tiger, which has been pipped out of its spot as the most successful OS release in the electronics giant’s history.

Sales of Leopard, which is the sixth major release of Mac OS X and boasts more than 300 new features, included copies sold at Apple’s own retail stores, third-party retail stores stocking Apple products, the online Apple Store, under maintenance agreements and bundled with new Mac computers.

“Early indications are that Leopard will be a huge hit with customers,” said Apple CEO, Steve Jobs.

“Leopard’s innovative features are getting great reviews and making more people than ever think about switching to the Mac.”

New features on Leopard include Time Machine, “an effortless way to automatically back up everything on a Mac”, along with a redesigned Finder that lets users “quickly browse and share files between multiple Macs”, according to Apple.

Facebook Fetishes Causing Problems At Work

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One in seven Facebook addictees bring their fetish to work which impacts on their productivity in the workplace, according to research commissioned by IT security and control company, Sophos.Businesses that allow their employees to access Facebook during business hours are more vulnerable to distracted workers, says the research.

Out of 500 Facebook users polled about their usage of the popular networking website, 14.8 per cent confessed to being logged onto Facebook almost permanently throughout their work day, which Sophos says is “astonishing”.

A further 37.2 per cent said they visited the site once or twice a day, while eight per cent admitted to using it upwards of ten times a day.

 


According to Sophos senior technology consultant, Graham Cluley, 14.8 per cent of these people have a Facebook problem.

“The results show that more than one fifth of these Facebook users are actually Facebook abusers. They’re seriously struggling to tear themselves away from the website when they should be concentrating on their jobs – disturbing news for all organisations that are still allowing employees uncontrolled access,” said Cluley.

“Several trade unions have spoken out in the site’s defence, suggesting that employers should put more trust in their workforce, and clearly the majority of people are using the site in moderation. The problem is that a 20 per cent addiction rate equates to an awful lot of loafing, while there’s also the likelihood that the abusers could ruin it for the other rule-abiding users.”

Still, 40 per cent or the majority of users said they keep their Facebook usage behind closed doors, accessing the website only at home.

Online Marketing Tool For Retail Industry

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Companies in the franchise, manufacturing, fast-moving consumer goods, distribution and finance sectors can now use a new internet-based computer service by MapData Sciences to plan the location of new stores, manage sales territories and develop targeted media strategies.

An updated version of Tactician Online Australia, the new Tactician online marketing and advertising system includes data on Australian roads and Census data on internet use, including day- and night-time population statistics.

Launched in Australia last year, vendors such as Shopsmart – a national customer rewards program being developed by Adelaide-based company, Galaxy Rewards Pty Ltd – have already adopted the software.

“Tactician allows us to easily map all of Australia into 20 territories and smaller postcode or Census district sales areas for a comprehensive demographic picture of each area. As the rollout of our program proceeds we can easily perform numerous ‘what if’ scenarios,” said Shopsmart general manager, David Floyd.

“Tactician’s Power Reports are a key tool in marketing our CRM and rewards program. The combination of printed maps and comprehensive business and Census data makes it easy to present to prospective investors, operators and sales people alike.”

 

According to Floyd, Shopsmart recouped its investment in Tactician Online after the first month of use. He also said the software is intuitive and user-friendly, and will play a significant ongoing role for the company by providing site-specific business and marketing data to member merchants.

According to MapData, the annual fee for the hosted service puts it within reach of small organisations along with larger ones.

The service can be accessed via the internet, with the required software and data hosted on secure servers at MapData Sciences, meaning users don’t need to license the software or acquire new or special hardware to run the application, according to the company.

MapData Sciences says the program can be accessed within “a matter of minutes”, with marketing and planning applications available in this short time, opposed to “the typically long learning curve and high costs associated with competitive solutions.”

ACCC Nabs Dodgy SMS Service Ads

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Premium mobile phone SMS service provider, B33hive Pty Ltd, has been forced to alter certain of its radio advertisements after the Australian Competition and Consumer Commission (ACCC) raised concerns about the adequacy of the information provided to listeners.

B33hive runs Lowball, which is a reverse auction SMS competition advertised across regional Queensland and New South Wales. According to a notice on the ACCC website, the government agency was concerned that the radio advertisements failed to refer consumer to the terms and conditions of the competition, which are available on the internet.

Moreover, it is reported that B33hive didn’t make it clear to consumers that by entering the competition they were accepting an ongoing SMS subscription for which they would be charged high rates. Typically, premium SMS services attract a fee of $5 to sign up, with a further $5 charged for every SMS send to the consumer from the service provider.
 
Since being caught by the ACCC, B33hive has “actively worked towards addressing the ACCC’s concerns,” said the agency.

 

“Specifically, B33hive have amended its radio advertising and internet pages so that the conditions of entering the reverse auction are clear to consumers from the outset.”

Consumer watchdogs have received an increasing number of complaints regarding similar dubious conduct in the premium SMS industry, says the ACCC.

“The premium SMS industry is largely regulated by ACMA under the Telecommunications Service Provider (Mobile Premium Services) Determination 2005 (No.1),” ACCC chairman, Graeme Samuel, said yesterday.

“However, providers need to recognise that they still have obligations under the Trade Practices Act.

 

“Traders in the premium SMS industry, as in every industry, need to be aware of their obligations under the Act and risk ACCC action if they breach its provisions. They must fully inform consumers of any conditions or additional charges for unsolicited goods or services which are part of a promotion.

“If consumers have been caught out by similar conduct, they should contact their mobile telephone service provider in the first instance.”

Harveys To Anchor New Bulky Goods Site

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Harvey Norman will part of a 50 per cent stake along with Charter Hill in the development of a 60,000-square metre bulky goods centre at Gepps Cross, 10kms north of the Adelaide CBD, for $25 million, while Axiom will purchase the other 50 per cent currently owned by Pivot Group.

Harveys’ will become the anchor tenant at the centre with a 12,000 square metre store.

In addition, a second bulky goods retail project is being developed in Mentone, Melbourne, between the three players – Pivot, Harvey Norman and Charter Hill – as an extension of the “successful relationship” at the Mentone site, said the companies.

The three developers have agreed to buy the 16-hectare site on Main North Road from Axiom’s major shareholder, Peter Laurance’s Pivot Group. Earthworks have reportedly commenced and construction is expected to start early next year, for a March 2009 opening.

 

Axiom managing director, Ben Laurance, said that bulky goods retailers had pointed out the shortage of quality, large-scale homemaker centres in Adelaide, and it was therefore no surprise that expressions of interest had been received for most of the proposed tenancies.

“This will be one of the biggest bulky goods centres in Australia, so it will be truly a one-stop comparison shopping destination on one of the most high profile sites in Adelaide,” he said in a notice to shareholders.

“The fact that Harvey Norman is taking their biggest format store gives the stamp of approval to the site and is a strong endorsement of the quality of the development.

“Significant interest from most of the high quality National retailers with proven trading records has been received for the major part of the rest of the centre.

 

“The zoning sensibly permits more than a dozen small food and beverage tenancies, so the whole centre will be a family-friendly shopping environment.”

The Main North Road centre is being leased by John Savva of CBRE Adelaide, and Jeff Klopper, CBRE’s national leasing director. HOME HQ Gepps Cross, as the centre will be known, is expected to have an end value of $150 million.

Will Today’s Interest Rate Rise Impact Retailers?

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Today’s interest rates rise of 0.25 per cent to an 11-year high of 6.75 per cent won’t affect the retail economy too much as consumers have become immune to the phenomenon, say Australian electrical retailers despite analyst reports to the contrary.

Australians have been confronted with 10 rate rises in the last five years, with two in the last four months, but rates still aren’t high enough to alarm consumers, says JB Hi-Fi managing director, Richard Uechtritz.

“Today’s rate rise might take some money out of the economy, but it will be a relatively small amount. There has been a lot of commentary saying it will affect expenditure big time, but the last five interest rate rises haven’t affected consumer spend at all,” Uechtritz told SmartHouse News.

In fact, all major Australian electrical and appliance retailers, including JB Hi-Fi, Retravision and Harvey Norman, have recently posted their strongest earnings in years, with JB Hi-Fi’s revenue increasing 36 per cent to $1.3 billion for the 2007 financial year, and Harvey Norman’s expected to rise up to 28 per cent for the 2008 financial year.

“We’ve just experienced our strongest sales in years. Will another 0.25 per cent make a difference? I don’t think so. Rates are still relatively low – they might be higher than a decade ago, but they’re still low,” said Uechtritz.

 

According to the retailer, the electrical industry won’t be hit hard mainly because of the sorts of products it sells – products that market commentary has previously stated are ‘leisure items’.

“Rate rises don’t affect companies in our sector, because we have goods that people want. They won’t give up buying their plasma TV or their iPod just because rates have risen,” Uechtritz said.

Kay Spencer, the managing director of electrical and appliance buying group, Narta, which serves retailers such as Bing Lee, Clive Peeters and Bi-Rite, agrees that the industry won’t be negatively affected in the lead-up to Christmas.

“I think the impact will hit harder in the New Year. It may also depend on change of government,” she told SmartHouse News.

Uechtritz however is confident that the forthcoming election won’t impact consumer spending in his sector, even due to fear of change of government.

 

“Last time Labour was in power they were quite conservative – they have to be middle-of-the-road to attract voters. There isn’t too much of a concern for electrical retailers, as people quite comfortable, and if the government changes, people will remain comfortable – their policies aren’t too dissimilar so there isn’t any consumer fear,” he said.

Representatives in the financial sector however are forecasting a different outcome, saying that six interest rate rises since 2004, including two in the past four months, is enough to make the average consumer uncomfortable, as far as borrowing money for home loans is concerned.

“This is the second rate rises in quick succession and people are thinking there might be more, so I think this rate rises may have a breaking impact on people’s willingness to borrow,” a Citigroup economist, Paul Brennan, told News.com.au

“I think it may shock people a little bit because there is a general perception out there that interest rates don’t rise during an election year, but they have, just before a federal election (due on November 24).”