Money Laundering Via Author Impersonation on Amazon?

22 February 2018

From Krebs on Security:

Patrick Reames had no idea why sent him a 1099 form saying he’d made almost $24,000 selling books via Createspace, the company’s on-demand publishing arm. That is, until he searched the site for his name and discovered someone has been using it to peddle a $555 book that’s full of nothing but gibberish.

. . . .

Reames is a credited author on Amazon by way of several commodity industry books, although none of them made anywhere near the amount Amazon is reporting to the Internal Revenue Service. Nor does he have a personal account with Createspace.

But that didn’t stop someone from publishing a “novel” under his name. That word is in quotations because the publication appears to be little more than computer-generated text, almost like the gibberish one might find in a spam email.

“Based on what I could see from the ‘sneak peak’ function, the book was nothing more than a computer generated ‘story’ with no structure, chapters or paragraphs — only lines of text with a carriage return after each sentence,” Reames said in an interview with KrebsOnSecurity.

. . . .

Reames said he suspects someone has been buying the book using stolen credit and/or debit cards, and pocketing the 60 percent that Amazon gives to authors. At $555 a pop, it would only take approximately 70 sales over three months to rack up the earnings that Amazon said he made.

“This book is very unlikely to ever sell on its own, much less sell enough copies in 12 weeks to generate that level of revenue,” Reames said. “As such, I assume it was used for money laundering, in addition to tax fraud/evasion by using my Social Security number. Amazon refuses to issue a corrected 1099 or provide me with any information I can use to determine where or how they were remitting the royalties.”

. . . .

“I have reviewed numerous Createspace titles and its clear to me that there may be hundreds if not thousands of similar fraudulent books on their site,” Reames said. “These books contain no real content, only dozens of pages of gibberish or computer generated text.”

Link to the rest at Krebs on Security and thanks to Randall for the tip.

Amazon Is Turning Iain M. Banks’ Iconic Culture Books Into a TV Series

22 February 2018

From i09:

Amazon’s been making some major genre plays in its original programming recently, but its latest grab is one of its grandest plans yet: An adaptation of Iain M. Banks’ iconic scifi saga, the Culture Series, starting off with Consider Phlebas.

Announced today by Amazon, the adaptation of Phlebas—the novel that introduced readers to the ginormous utopian future society known as the Culture, and their interactions with a galaxy that is at times hostile to their idealistic approach—will be written by Dennis Kelly and produced by Plan B Entertainment, with the late Banks’ estate acting as an executive producer.

. . . .

Consider Phlebas is set during a time of war for the Culture. It’s actually told from the perspective of an operative of the faction they’re warring against—the religious Idiran Empire—who are tasked with attempting to retrieve the superintelligent mind of a Culture warship, crash-landed on a planet considered off-limits to either side of the interstellar war.

Link to the rest at io9

Here’s a link to Consider Phlebas.

Amazon owns my Echo, I’m just feeding it

18 February 2018

From The Verge:

It’s no secret that voice assistants are a Trojan Horse. You “buy” a voice assistant like an Echo Dot or a Google Home, and you plug it in and give it your Wi-Fi password. But you don’t “own” it like you own a computer. The software is controlled entirely by Amazon or Google or some other company.

So, I bought a Trojan Horse in December as a little self-gift for Christmas: an Echo Dot.

. . . .

On the evening I set up my Echo Dot, the first thing I wanted to do was listen to an audiobook. Being an Audible junkie makes the Echo an easy fit into my life. Saying, “Alexa, play an audiobook” will simply resume whatever book I was last listening to on my phone.

I have a lot of books in my library that have only a chapter or two left in them. I like to leave books unfinished, it keeps them “alive” for me. It’s sad when a book ends. But new gadget, new me: I decided to let my new Echo Dot play the final minutes of this spy thriller.

It was an epic clash between the protagonist and the antagonist, on a roof. There was also a sword involved.

All of a sudden, an interruption:

“Your Echo Dot received an important update and must restart. It will be ready again shortly.

. . . .

I expressed my fear over the phone to a friend.

”Yeah, I feel like Alexa is a Trojan Horse.”

The Echo Dot perked up, with its all-sensing LED lights:

”I don’t answer everything about horses yet. For trivia, try saying ‘give me a horse fact.’”

I swore at Alexa and it said something smarmy about cuss words. I said, “Alexa, shut up,” and it finally did.

The first day I set Alexa as an alarm clock, I woke to the Echo Dot spewing something about Amazon services. I realized I’d left my TV on overnight, and my TV is right next to the Echo Dot at the foot of my bed, so maybe Alexa was just talking to the TV. I was too groggy to figure it out, but when I looked at the Alexa log on my phone, the only instructions recorded were alarm-related.

Link to the rest at The Verge and thanks to Jan for the tip.

Amazon’s Latest Ambition: To Be a Major Hospital Supplier

13 February 2018
Comments Off on Amazon’s Latest Ambition: To Be a Major Hospital Supplier

From The Wall Street Journal: Inc. is pushing to turn its nascent medical-supplies business into a major supplier to U.S. hospitals and outpatient clinics that could compete with incumbent distributors of items from gauze to hip implants.

Amazon has invited hospital executives to its Seattle headquarters on several occasions, most recently in late January, to solicit information about the sector and sound out ideas for expanding the company’s business-to-business marketplace, Amazon Business, into one where hospitals could shop to stock outpatient locations, operating suites and emergency rooms, according to hospital executives who attended the meetings.

Amazon Business already sells a limited selection of medical supplies—some sutures, for example, but not more specialized items like hip implants—as well as industrial and office supplies.

Amazon recently dispatched employees to a large Midwestern hospital system, where hospital officials are testing whether they can use Amazon Business to order health-care supplies for the hospital system’s roughly 150 outpatient facilities, according to a hospital official overseeing the efforts.

The pilot is customized for the hospital system’s catalog of supplies, the official said, allowing employees to compare prices the hospital negotiates with its distributors against those in the Amazon Business marketplace.

In response to questions about these efforts, Amazon said it is building technology to serve health-care customers, and seeking to sell hospitals on a “marketplace concept” that differs from typical hospital purchasing, which is conducted through contracts with distributors and manufacturers.

. . . .

Chris Holt, leader of global healthcare at Amazon Business, said Amazon won’t look to imitate established models already in the medical-distribution sector. “Our goal is to be something new,” he said. “We’ve been actively building out new capabilities and features,” to simplify purchasing, he said.

Echoing sentiments articulated by some in the industry, he said existing supply-chain options are dated and “not nearly as safe and secure” as needed. “We’re thinking about not how we can go mimic what’s already out there, but rather how we can rethink safety and security of anything clinical,” he said.

. . . .

Amazon’s comparison-shopping ethos could shake up the hospital- and clinic-supply business, where middlemen fees add costs and proprietary contracts obscure price differences. But Amazon also faces challenges.

So far, some hospitals have been reluctant to buy supplies from Amazon Business, for reasons including lack of options and lack of control over purchases and shipping, which hospitals closely safeguard to ensure prompt arrival of goods.

“We can’t be without supplies,” said Phyllis McCready, chief procurement officer for Northwell Health , one of the hospital executives who has attended the Seattle meetings with Amazon.

Hospitals typically contract for assurances that products will be available and delivered securely, she said. “It’s a little different than being out of a size 6 dress. I can’t be out of a six French catheter,” said Ms. McCready, who oversees the New Hyde Park, N.Y.-based hospital system’s $3 billion annual budget for supplies, contract services and pharmaceuticals.

Link to the rest at The Wall Street Journal

PG says even if he had no interest in Amazon as a bookseller and ebook innovator, it would still be a fascinating company to observe.

Amazon laying off corporate employees in rare cutback

12 February 2018

From The Seattle Times:

Amazon is laying off hundreds of corporate employees, a rare cutback for a company that has spent most of the last few years in a frantic growth spurt.

The layoffs, underway now, will fall on several hundred employees at the online retailer’s Seattle headquarters, along with hundreds more elsewhere in Amazon’s global operations, one person familiar with the cuts said. The layoffs are primarily focused on Amazon’s consumer retail businesses, according to two people familiar with the matter.

A few hundred layoffs are modest for  a company that is now the second-largest U.S.-based corporate employer, and pales in comparison to adjustments in recent years that saw Microsoft and Boeing eliminate thousands of jobs in a single cutting drive.

But at Amazon, a company with a wide range of growing businesses that prides itself on frugality and efficient allocation of resources, broad layoffs of any kind are rare.

. . . .

According to several employees, the rapid growth of the last two years left some units over budget and some teams with too much staff for their work. Amazon had implemented hiring freezes in recent months across several groups, a move that reduced the company’s open job listings in Seattle to their lowest level in years.

In a statement, Amazon acknowledged the cuts.

“As part of our annual planning process, we are making head count adjustments across the company — small reductions in a couple of places and aggressive hiring in many others,” a spokesman said. “For affected employees, we work to find roles in the areas where we are hiring.”

. . . .

Self-publishing unit Createspace is conducting its second round of layoffs in two years, cuts that eliminated 200 jobs from the South Carolina-based Amazon subsidiary.

. . . .

Counting only corporate roles outside of Amazon’s warehouses, the company had 12,500 open jobs on Monday.

. . . .

The company has also recently instituted a mandate that managers who oversee other supervisors must have at least four people reporting to them. The aim, the company says, is to reduce layers of redundant management and keep the company flexible and fast-moving.

“Amazon has a problem right now with overpopulation,” said one engineer at the company.

Link to the rest at The Seattle Times

Amazon Wants to Disrupt Health Care in America. In China, Tech Giants Already Have.

12 February 2018

From The New York Times:

Amazon and two other American titans are trying to shake up health care by experimenting with their own employees’ coverage. By Chinese standards, they’re behind the curve.

Technology companies like Alibaba and Tencent have made health care a priority for years, and are using China as their laboratory. After testing online medical advice and drug tracking systems, they are now focused on a more advanced tool: artificial intelligence.

Their aggressive push underscores the differences between the health care systems in China and the United States.

Chinese hospitals are overburdened, with just 1.5 doctors for every 1,000 people — barely half the figure in the United States. Along with a rapidly aging population, China also has the largest number of obese children in the world, as well as more diabetes patients than anywhere else.

. . . .

Alibaba and Tencent, which already dominate China’s e-commerce and mobile payments sectors, are at the forefront. Among their goals: building diagnostic tools that will make doctors more efficient.

. . . .

“It’s fair to say that across the board, the Chinese tech companies have all embraced being involved in and being active in the health care space, unlike the U.S., where some of them have and some have not,” said Laura Nelson Carney, an Asia-Pacific health care analyst at Bernstein Research.

. . . .

Last year, Alibaba’s health unit introduced A.I. software that can help interpret CT scans and an A.I. medical lab to help doctors make diagnoses. About a month later, Tencent unveiled Miying, a medical imaging program that helps doctors detect early signs of cancer, in the southwestern region of Guangxi. It is now used in nearly 100 hospitals across China.

. . . .

There are just 20 eye doctors for every million people here, a third of the proportion in the United States. In April, Beijing announced an ambitious plan for the country’s 110 million diabetics to undergo eye tests.

“It’s impossible for one person to read that many images,” said Dr. Yu.

Link to the rest at The New York Times and thanks to Jan for the tip.

Amazon to Launch Delivery Service That Would Vie With FedEx, UPS

9 February 2018

From The Wall Street Journal: Inc.  is preparing to launch a delivery service for businesses, positioning it to directly compete with United Parcel Service Inc. and FedEx Corp.

Dubbed “Shipping with Amazon,” or SWA, the new service will entail the tech giant picking up packages from businesses and shipping them to consumers, according to people familiar with the matter.

Amazon expects to roll out the new delivery service in Los Angeles in coming weeks with third-party merchants that sell goods via its website, according to the people. Amazon then aims to expand the service to more cities as soon as this year, some of the people say.

While the program is being piloted with the company’s third-party sellers, it is envisioned to eventually be opened to other businesses too, according to some of the people. Amazon is planning to undercut UPS and FedEx on pricing, although the exact rate structure is still unclear, these people said.

. . . .

It is the latest move by Amazon to create its own freight and parcel delivery network. In the last couple of years, Amazon has expanded into ocean freight, built a network of its own drivers who can now deliver inside homes and leased up to 40 aircraft while establishing an air cargo hub.

Amazon already delivers some of its own orders in at least 37 U.S. cities. With the new “Shipping with Amazon” option, Amazon plans to send drivers to pick up shipments from warehouses and businesses itself and deliver the packages when it is able, the people said. For shipments outside Amazon’s delivery reach, the U.S. Postal Service and other carriers will take care of the so-called last mile to customers’ doorsteps.

. . . .

Amazon started building out its logistics network in earnest after it missed deliveries during the all-important holiday season in December 2013, according to people familiar with Amazon’s thinking. As more shoppers bought products online, Amazon executives concluded that the rate of parcel growth was too large for existing carriers to handle. Amazon also wanted to offer two-day deliveries, seven days a week.

Link to the rest at The Wall Street Journal

Amazon launches a WordPress plugin that turns blog posts into audio, including podcasts

8 February 2018

From Tech Crunch:

Amazon today is launching a new Amazon Polly WordPress plugin that gives your blog a voice by creating audio versions of your posts. The resulting audio can be played from within the blog post itself, or accessed in podcast form using a feature called Amazon Pollycast, the company says.

The plugin itself was jointly designed by Amazon’s AWS team and managed WordPress platform provider WP Engine, and takes advantage of Amazon’s text-to-speech service, Polly.

First introduced at Amazon’s re:Invent developer event back in November 2016, Polly uses machine learning technologies under the hood to deliver more life-like speech. For example, Polly understands that the word “live” would be pronounced differently based on its usage. In the phrases “I live in Seattle” and “Live from New York,” the word is spelled the same but is not spoken in the same way. That means the voices sound more natural than some other, more basic voice-to-text engines.

. . . .

The technology’s capabilities have also evolved, with added support for things like whispering, speech marks, a timbre effect, and dynamic range compression. These sorts of voice technology advancements are also things that make Alexa sound more natural, too.

. . . .

In addition to simply reading posts aloud, Polly’s flexibility means you could configure different voices for different bylines, or use different voices for quoted text – if you’re technically-minded – these options aren’t available in the plugin itself. Polly could also offer translation capabilities so your blog could be read by those who speak other languages.

Link to the rest at Tech Crunch

Readers, Listen Up: Amazon Is Shaking up the Audiobook Market

5 February 2018

From The Wall Street Journal:

When Olympic snowboarder Shaun White’s memoir lands later this year, readers will have to wait. That is because his book will be released as an audiobook a month before the hardcover and e-book editions.

The force behind this unorthodox rollout is Audible, Inc.’s audiobook subscription service. Audible paid for the lion’s share of the memoir to gain rights to the audio version, which will be published by its in-house studio. Audible said it would be the first time one of its audiobooks precedes a print book in coordination with another publisher.

With the help of its deep-pocketed owner, Audible is trying to extend its dominance in a fast-growing corner of the book business. It already accounts for about 41% of U.S. audiobook unit sales, according to researcher Codex Group LLC. Audible said Mr. White’s book is a blueprint for the sorts of deals it will pursue.

As a publisher of audiobooks rather than simply a retailer, Audible can develop exclusive audio content that differs from the print version, helping to lure subscribers and fend off rivals. In working directly with authors, Audible controls the content instead of traditional publishers, which normally own all rights to books and distribute audio versions through firms like Audible and Apple Inc.’s iTunes.

Audible is pitching literary agents on the benefits of using its services, saying authors will get a competitive bidding process that could mean more money in their pockets, and will get more attention and marketing for their audiobooks.

. . . .

In the first eight months of 2017, publishers’ revenue from audiobooks grew 20% from the same period a year earlier, while print books only rose 1.5% and e-books slipped 5.4%, according to the Association of American Publishers, which collects data reported by 1,200 publishers.

. . . .

Several major publishers, including Penguin Random House and HarperCollins Publishers, say they generally won’t buy a new book without audiobook rights, which may deter authors from signing deals with Audible.

“Authors are best served if they are published as a whole and marketed as a whole and in lockstep with our digital sales team and our print team,” said Ana Maria Allessi, publisher of HarperAudio, a unit of HarperCollins Publishers. HarperCollins, like The Wall Street Journal, is owned by News Corp .

With Audible, the publisher typically gets a set fee for each audiobook download, part of which is passed on to the author. When Audible owns the audiobook rights, print publishers no longer get a cut. Typically, this means more money is passed on to the author.

“As e-book sales decline and hardcover sales flatten, publishers need audiobook rights to boost their bottom line,” said Robert Gottlieb, chairman of Trident Media Group LLC, a New York literary agency. “What’s different is that Audible is trying to get agents to sell them the audiobook rights before they go out with the other publishing rights.”

. . . .

Audible Studios produced a special edition of Margaret Atwood’s “The Handmaid’s Tale” read by Claire Danes, with new material that extends beyond the end of the novel.

Link to the rest at The Wall Street Journal and thanks to Suzie for the tip.

What Amazon Does to Poor Cities

2 February 2018

From The Atlantic:

San Bernadino, California – This community was still reeling from the recession in 2012 when it got a piece of what seemed like good news. Amazon, the global internet retailer, was opening a massive 950,000-square-foot distribution center, one of its first in California, and hiring more than 1,000 people here.“This opportunity is a rare and wonderful thing,” San Bernardino Mayor Pat Morris told a local newspaper at the time.

In the months and years that followed, Amazon dramatically expanded its footprint in and around San Bernardino, a city 60 miles east of Los Angeles. The company now employs more than 15,000 full-time workers in eight fulfillment centers (where goods are stored and then packed for shipment) and one sortation center (where packages are organized by delivery area) in the Inland Empire, the desert region bordering Los Angeles that encompasses Riverside and San Bernardino counties. This expansion provided a lifeline to the struggling region, creating jobs and contributing tax revenue to an area sorely in need of both. In San Bernardino, the unemployment rate that was as high as 15 percent in 2012 is now 5 percent.

Yet in many ways, Amazon has not been a “rare and wonderful” opportunity for San Bernardino. Workers say the warehouse jobs are grueling and high-stress, and that few people are able to stay in them long enough to reap the offered benefits, many of which don’t become available until people have been with the company a year or more. Some of the jobs Amazon creates are seasonal or temporary, thrusting workers into a precarious situation in which they don’t know how many hours they’ll work a week or what their schedule will be. Though the company does pay more than the minimum wage, and offers benefits like tuition reimbursement, health care, and stock options, the nature of the work obviates many of those benefits, workers say. “It’s a step back from where we were,” said Pat Morris, the former mayor, about the jobs that Amazon offers. “But it’s a lot better than where we would otherwise be,” he said.

. . . .

But as the experience of San Bernardino shows, Amazon can exacerbate the economic problems that city leaders had hoped it would solve. The share of people living in poverty in San Bernardino was at 28.1 percent in 2016, the most recent year for which census data is available, compared to 23.4 in 2011, the year before Amazon arrived.  The median household income in 2016, at $38,456, is 4 percent lower than it was in 2011. This poverty near Amazon facilities is not just an inland California phenomenon—according to a report by the left-leaning group Policy Matters Ohio, one in 10 Amazon employees in Ohio are on food stamps.

. . . .

The arrival of Amazon has been bittersweet for people like Gabriel Alvarado, 35. He started working at Amazon’s San Bernardino distribution center in 2013, making $12 an hour, hoping that the job would help him support his new wife and two stepdaughters. Amazon proved a stressful place to work, with managers chewing out employees for not moving fast enough, he told me, which was tough to put up with for meager pay. (An Amazon spokeswoman, Nina Lindsey, told me that, like most companies, Amazon has performance expectations, but that it supports people not performing with dedicated coaches to help them improve.)

Meanwhile, Gabriel watched as his 39-year-old brother Jose worked across the street, doing the same type of job at a warehouse for the grocery chain Stater Brothers. The 1,000 workers there are unionized and get full medical benefits, pensions, and retiree medical benefits. Wages start at $26 an hour, but many workers make a lot more than that because Stater Brothers operates an incentive program in which people who grab orders—doing similar tasks to workers at Amazon—are rewarded if they go faster than the average speed. Jose Alvarado is able to support a wife and four children on his Stater Brothers salary. When his son was diagnosed with a rare form of anemia, his insurance covered everything.

Though Gabriel was doing the same type of work at Amazon, he had to shell out more money for health care, and made a lot less money. “I saw my brother doing the same type of work, but moneywise, he had better credit, he could afford more, while I was barely getting by,” Gabriel told me. He has tried to get a job with Stater Brothers to no avail, and says there are few other local options but at Amazon or at companies that work for Amazon. In 2016, he used Amazon’s tuition reimbursement to get his commercial driving license, attending school on the weekends while working during the week. But the best job he could find was working for a third-party contractor, driving a truck for Amazon. “It’s either Amazon or nothing,” he told me.

. . . .

Morris, the former mayor of San Bernardino, told me that in 2012, Amazon seemed like a lifesaver. San Bernardino’s unemployment rate was at 15 percent, home values had fallen 57 percent since 2007, and the city, facing a $45 million budget shortfall, would file for bankruptcy in August of that year. “At the point they came in, any job is a good job,” he said. But the jobs the company is offering are indicative of how the economy has changed in San Bernardino in the past few decades. “To a certain extent, based on the history, it’s a step down for families,” he said. The jobs that used to dominate San Bernardino were unionized ones with good benefits, at the Kaiser steel mill, the Santa Fe railroad maintenance yard, and the Norton Air Force Base. Now, jobs like the ones Amazon creates pay less and aren’t unionized, and require multiple members of a household to work, often more than one job.

Link to the rest at The Atlantic and thanks to Dave for the tip.

PG says there’s a template for these types of anti-Amazon stories.

  • A writer locates a city that has lots of economic problems where Amazon has a warehouse. – San Bernardino, population 216,239, filed for bankruptcy in 2012, the same year Amazon opened its warehouse. San Bernardino did not exit from bankruptcy until 2017. As you might expect, San Bernardino had serious economic problems for many years prior to filing bankruptcy. In July, 2010, San Bernardino had an unemployment rate of 14.7%. The city was an economic dead zone long before Amazon arrived.
  • Perhaps the writer gets a tip about which city to choose from Policy Matters Ohio (quoted in the OP), a non-profit with a lot of funding from large unions. PMO’s principal purpose appears to be generating bad publicity for Amazon. PG has written about them here.
  • According to the OP, Amazon employs more than 15,000 full-time workers in eight fulfillment centers and one sorting center in the region called the “Inland Empire” which includes San Bernardino, Riverside and a number of other cities. The population of the Inland Empire is more than 4 million. Amazon employs 15,000 workers out of 4 million people (and growing), yet somehow Amazon is to blame for the poor financial condition and unemployment in this region, in which about half the population is Latino. Apparently, if it weren’t for Amazon, San Bernardino would look a lot more like Beverly Hills.
  • Unions hate Amazon because, like a great many other tech companies, Amazon is not unionized. Whenever unions have attempted to organize Amazon employees, including warehouse workers, the unions have lost the unionization votes, usually by a large margin. So the unions encourage and support negative stories about Amazon warehouses because they think generating negative feelings about Amazon will help increase negative feelings among Amazon workers who will then want a union. Unions have unsuccessfully used this same strategy in their attempts to unionize Walmart for years.
  • Union membership has been declining for 35 years in the US. The number of employed union members has declined by 2.9 million since 1983. During the same time, the number of all wage and salary workers grew from 88.3 million to 133.7 million. Consequently, the union membership rate, 20.1% in 1983, and declined to 11.1% in 2015. Union membership rate in 2015 is about half the 1983 rate. In 2015, public-sector workers had a union membership rate of 35.2%, more than five times higher than that of private-sector workers (6.7%). While the unionization rate for the public sector has remained relatively steady over time, the rate for the private sector has declined from 16.8% in 1983 to 6.7% in 2015. Unions have been losing the support of workers in virtually every growing segment of the US economy. (US Bureau of Labor Statistics)
  • One reason that unions and tech companies don’t get along is that unions typically fight hard against technology changes. Unions oppose Lyft and Uber because people who use Lyft and Uber don’t use taxis driven by union drivers. Unions strongly oppose legislation that makes it easier for tech companies to hire high-skilled foreign technologists because such workers resist organizing campaigns. Economic studies frequently find an inverse relationship between innovation and unionization. Look at the efficiency of the highly-unionized parts of government.

PG apologizes to any who are bored by another one of his rants. He admits he does like Amazon and thinks it’s a great (but not perfect) company. Amazon regularly achieves high rankings in lists of the country’s most-admired companies, so PG isn’t alone in his opinions.

Of course, a great many regular visitors to TPV have substantially increased their incomes and standards of living because Amazon was willing to disrupt the petrified publishing industry. That industry tends to be negatively disposed towards Amazon because change. There are far fewer publications like The Atlantic than there used to be, so perhaps more than a bit of the credulous regurgitation of Big Labor’s talking points may be better understood in that light.

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