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Ask HN: Why is Pave legal?

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Re: Ask HN: Why is Pave legal?

#131

I have never heard of Pave before, but this just sounds like yet another copy of Equifax's "The Work Number" [1]. Basically, HR at many companies gives your salary and employment history data to Equifax, who then sells access to the information to certain parties with supposed need to access it, including potential and current employers and creditors. This report is likely one of the most invasive consumer files out…

I downloaded a personal report from the work number website and found to my horror that my employer was reporting every. single. paystub. gross and net, to equifax. That felt like a huge breach of privacy. Given that equifax had already proven incompetent at keeping my data secure, I immediately sent HR a request to stop sending my supposedly 'confidential' pay info. They politely told me to kick rocks, so I went on…

Don't ever work in the public sector then. Your salary is public record, open to anyone who is curious enough to look.

Re: Ask HN: Why is Pave legal?

#132
As described, it is a fair ways away from what RealPage is doing. Specifically:

* RealPage sells raising rents, not just market info.

* RealPage pressures clients into taking their higher rents.

* RealPage also pressure clients to refuse to rent at lower rates for their own narrow economic interest - in other words, they actively seek to circumvent competitive pressure to keep rents high. (edit: to clarify, I mean they discourage lowering rent to attract a renter)

Pave does sound like it gives businesses a leg up over employees in wage negotiations, but until it e.g. starts promising clients that they will be able to pay lower salaries, the critical element of coordination won't be in the mix. Pave gives you the data, but you can still choose to pay above market to attract talent.

Re: Ask HN: Why is Pave legal?

#133
post #101

Uber and AirBnb are essentially illegal taxi and illegal hotel services. Remember taxi medallions? Remember zoning laws? Being illegal is not a showstopper for a startup because they are under a radar, being illegal is not a problem for a large business because they have enough power to not get prosecuted.

Eric Schmidt echoed similar sentiment in his recent interview. Basically do it, if startup fails then it doesn’t matter. If it succeeds then lawyers can sort it out.

Also in these "gig" type companies, the people who are actually breaking the laws are the workers, e.g. the drivers or the homeowners in the case of Uber and AirBnB. The startup is the enabler, yes, but they will try to throw their workers under the bus before they take responsibility themselves. They don't own the cars, they don't own the properties, and they are most likely in a far-away jurisdiction.

Re: Ask HN: Why is Pave legal?

#134
post #101

Uber and AirBnb are essentially illegal taxi and illegal hotel services. Remember taxi medallions? Remember zoning laws? Being illegal is not a showstopper for a startup because they are under a radar, being illegal is not a problem for a large business because they have enough power to not get prosecuted.

Eric Schmidt echoed similar sentiment in his recent interview. Basically do it, if startup fails then it doesn’t matter. If it succeeds then lawyers can sort it out.

[deleted]

Re: Ask HN: Why is Pave legal?

#135

Earlier quoted context omitted.

That is the entire basis for the RealPage lawsuit. The point is that if the effect on pricing is indistinguishable from price fixing, it doesn't matter if the act of colluding is abstracted into and laundered through a 3rd party with an algorithmic system responsible for setting prices.

Honestly, I think it does still matter. The basis for the RealPage lawsuit seems to be that people inside and outside the company glibly considered it price-fixing, and said it out loud to each other. The didn't really seem to make the case that it was "algorithmic price-fixing" (Disclaimer: not a lawyer). You can only argue in court about existing laws, so until algorithmic price-fixing is written in the law books (…

It seems you don't understand the lawsuit. Most of the claims are based on the actual mechanics of how algorithmic price fixing does violate existing laws.

Re: Ask HN: Why is Pave legal?

#136

Earlier quoted context omitted.

I downloaded a personal report from the work number website and found to my horror that my employer was reporting every. single. paystub. gross and net, to equifax. That felt like a huge breach of privacy. Given that equifax had already proven incompetent at keeping my data secure, I immediately sent HR a request to stop sending my supposedly 'confidential' pay info. They politely told me to kick rocks, so I went on…

Don't ever work in the public sector then. Your salary is public record, open to anyone who is curious enough to look.

I think that's widely understood and part of the job description of being a public servant. What's not widely understood is HR secretly selling your data while working at a private company.

Re: Ask HN: Why is Pave legal?

#137
I have to say I am pretty surprised to see the negative sentiments toward Pave and salary benchmarking data in general here. Why is the assumption that salaries would always be lower given this data? It seems just as likely to inform companies that what they had in mind is below market or that they are under-compensating someone in light of market changes.

Re: Ask HN: Why is Pave legal?

#139
post #127
post #104

Earlier quoted context omitted.

Ironically for a question about antitrust price fixing you just named two incumbent government-sanctioned cartels (zoning and taxi medallions) that restrict supply and keep prices high. They would be illegal if private companies made them.

Many things a government does would be illegal if private companies did them. For example, prison, the draft, and taxes. The government is allowed to do it because we (as a society) believe it's better for the government to do these things than private individuals or companies.

You have heard of the Prison Indistrial Complex right? Our Prisons have been For-Profit for a long time now. Totally legal, government sanctioned privatized penitentiaries.

Re: Ask HN: Why is Pave legal?

#140
post #104

Earlier quoted context omitted.

Ironically for a question about antitrust price fixing you just named two incumbent government-sanctioned cartels (zoning and taxi medallions) that restrict supply and keep prices high. They would be illegal if private companies made them.

> They would be illegal if private companies made them. Yes, that's kind of the main difference between government functions and private companies. Are you saying the very idea of zoning strikes you as a problem? Or are you trying to call out the bad implementations which strangle urban prosperity in the US?

> Yes, that's kind of the main difference between government functions and private companies

Perhaps that should change. Or at least it’s a reason to scrutinize and repeal laws that are used for price fixing.

> Are you saying the very idea of zoning strikes you as a problem? Or are you trying to call out the bad implementations which strangle urban prosperity in the US?

Zoning Rules! by William Fischel gives good a history of zoning. Zoning was originally for segregation within the city but to the question of prices, no it was not inherently problematic. It was not until the 1970s that zoning was used for growth control to make entire cities unaffordable.

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