RIP Blair's Project, but it died long ago

Ashdown's departure shows that the dream of party realignment is over

Knowing Paddy Ashdown a little, I have no doubt that the reasons he gave for the announcement of his resignation as Liberal Democrat leader in June are both straight and sincere. The timing of the announcement may have been a more contingent matter. He probably did not plan to scupper media coverage of Lords' reform by going public on that same afternoon of 20 January. Perhaps he did not expect to make quite such a splash; he has an understated view of his own importance.

He has caught the imagination of the people, though, as a man of courage, honesty and fundamental decency. The people, not parliament - he shares that preference with the Prime Minister, to whom he is close. And he also shared with Tony Blair "the project" which, without Ashdown and Peter Mandelson, now needs to be rethought.

The project is the realignment of the centre. The elusive dream is probably one of Blair's motive forces in politics. At any rate, much of what he does and says makes sense only if one assumes it is. It is simple really: 80 per cent of Labour (new Labour), plus 90 per cent of Lib Dems, plus 30 per cent of (one-nation) Tories equals an unbeatable new constellation. The subjects around which such a project could be built were evident: constitutional reform and Europe; or perhaps the other way round, Europe and constitutional reform.

Today, this must be said in the past tense. With Mandelson gone, Ashdown going, and Messrs Clarke, Heseltine and Patten fading, the driving forces of the project have become less visible and therefore less powerful. I think that the project collapsed much earlier, and that Ashdown's departure is an admission of defeat by a man who in most other terms had a spectacularly successful career as leader of his party.

The important date was that day in late October 1997 when Gordon Brown announced, with the consent of the Prime Minister, that the UK would not join EMU for the time being. I was certainly no advocate of EMU but it seemed to me on that fateful day that if Blair was to be a great prime minister he should have had the referendum then and there. He might have lost it, though he would probably have won; and in any case this was his chance to put his formula to work: to carry his own party, to rally the Lib Dems and fatally to split the Tories. After the referendum, he would also have been free to join euroland at a time of his choosing rather than make the momentous decision the subject of an uncertain popularity contest later.

Perhaps October 1997 was also the only time to get Ashdown into the cabinet. In any case, everything that has happened since by way of co-operation between the government and the Liberal Democrats is distinctly second best, and support for it is rapidly declining in both parties. In constitutional terms, Blair cannot give the one thing that most Lib Dems really want, which is proportional representation; and a referendum on Lord Jenkins's proposals is by no means a foregone conclusion. (Referenda now reveal one major weakness: governments cannot afford to lose. Referenda are therefore only partly about the issue and largely about the popularity of the government at a brief moment in time.) The recent widening of the remit of the joint cabinet committee has neither thrilled Blair's colleagues nor revealed any distinctive Liberal Democrat policy which could become a popular issue.

Which brings the argument to Ashdown and his party. Creating an apparently stable party with a set of agreed policies and a significant parliamentary base is one of the great successes of Ashdown's leadership. Forty-six Lib Dems - who would have thought it possible when jokes were made about the group fitting into a London taxi?

Yet it is a sign of Ashdown's stature that he realised the morning after the 1997 election that this was not due to a massive and sustainable change in electoral preferences, but rather the result of a unique constellation. He therefore asked himself one question: what could he do to make sure that as many as possible of these 46 were returned to parliament the next time round? His answer was coalition - or at any rate, an opposition sufficiently constructive to continue to make it possible for new Labour voters in many constituencies to vote tactically for Lib Dem candidates.

I think Ashdown was right, and his successor will pay a heavy price if he explicitly abandons this line. In practice, however, it has already been abandoned. One reason is that the Lib Dems are in an important sense not a national party. Menzies Campbell is one of very few Lib Dem spokespeople whose voice carries on national issues. The Lords' group apart, Lib Dems find it curiously difficult to accept the national stage. They know their way in local government, in some regions (especially the West Country, Scotland and Wales), and in Europe; but they have largely abandoned the country as a whole as a political space. In this regard Ashdown is the exception: he is actually interested in national power. Many of the rest will settle for national opposition, constructive or otherwise, in order to run local councils, share power in new assemblies and have a finger in the European pie.

So Blair will have to count out the Lib Dems in pursuing his project. He also has to accept that the grand old Tory names have less resonance in the country as time goes by. Thus his formula of new Labour plus Lib Dems plus one-nation Tories is reduced to new Labour plus very little.

This need not be disastrous for the project. Party mergers, even coalitions, are high-risk ventures. Extending the range and appeal of his own party may well be the more effective option. For Blair, it may also be a difficult option; there are times when one wonders if he likes his party enough to settle for it. However, for the Lib Dems as a national force, Ashdown's departure from Westminster highlights problems of a different order. Writing the script for his successor will be an unenviable task.

Lord Dahrendorf was Warden of St Antony's College, Oxford, 1987-97

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Are smart toys spying on children?

If you thought stepping on a Lego was bad, consider the new ways in which toys can hurt and harm families.

In January 1999, the president of Tiger Electronics, Roger Shiffman, was forced to issue a statement clearing the name of the company’s hottest new toy. “Furby is not a spy,” he announced to the waiting world.

Shiffman was speaking out after America’s National Security Agency (NSA) banned the toy from its premises. The ban was its response to a playground rumour that Furbies could be taught to speak, and therefore could record and repeat human speech. “The NSA did not do their homework,” said Shiffman at the time.

But if America’s security agencies are still in the habit of banning toys that can record, spy, and store private information, then the list of contraband items must be getting exceptionally long. Nearly 18 years after TE were forced to deny Furby’s secret agent credentials, EU and US consumer watchdogs are filing complaints about a number of WiFi and Bluetooth connected interactive toys, also known as smart toys, which have hit the shelves. Equipped with microphones and an internet connection, many have the power to invade both children’s and adults’ private lives.

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“We wanted a smart toy that could learn and grow with a child,” says JP Benini, the co-founder of the CogniToys “Dino”, an interactive WiFi-enabled plastic dinosaur that can hold conversations with children and answer their questions. Benini and his team won the 2014 Watson Mobile Developer Challenge, allowing them to use the question-answering software IBM Watson to develop the Dino. As such, unlike the “interactive” toys of the Nineties and Noughties, Dino doesn’t simply reiterate a host of pre-recorded stock phrases, but has real, organic conversations. “We grew it from something that was like a Siri for kids to something that was more conversational in nature.”

In order for this to work, Dino has a speaker in one nostril and a microphone in the other, and once a child presses the button on his belly, everything they say is processed by the internet-connected toy. The audio files are turned into statistical data and transcripts, which are then anonymised and encrypted. Most of this data is, in Benini’s words, “tossed out”, but his company, Elemental Path, which owns CogniToys, do store statistical data about a child, which they call “Play Data”. “We keep pieces from the interaction, not the full interaction itself,” he tells me.

“Play Data” are things like a child’s favourite colour or sport, which are used to make a profile of the child. This data is then available for the company to view, use, and pass on to third parties, and for parents to see on a “Parental Panel”. For example, if a child tells Dino their favourite colour is “red”, their mother or father will be able to see this on their app, and Elemental Path will be able to use this information to, Benini says, “make a better toy”.

Currently, the company has no plans to use the data with any external marketers, though it is becoming more and more common for smart toys to store and sell data about how they are played with. “This isn’t meant to be just another monitoring device that's using the information that it gathers to sell it back to its user,” says Benini.

Sometimes, however, Elemental Path does save, store, and use the raw audio files of what a child has said to the toy. “If the Dino is asked a question that it doesn’t know, we take that question and separate it from the actual child that’s asking it and it goes into this giant bucket of unresolved questions and we can analyse that over time,” says Benini. It is worth noting, however, that Amazon reviews of the toy claim it is frequently unable to answer questions, meaning there is potentially an abundance of audio saved, rather than it being an occasional occurrence.

CogniToys have a relatively transparent Privacy Policy on their website, and it is clear that Benini has considered privacy at length. He admits that the company has been back and forth about how much data to store, originally offering parents the opportunity to see full transcripts of what their child had been saying, until many fed back that they found this “creepy”. Dino is not the first smart toy to be criticised in this way.

Hello Barbie is the world’s first interactive Barbie doll, and when it was released by Mattel in 2015, it was met with scorn by parents’ rights groups and privacy campaigners. Like Dino, the doll holds conversations with children and stores data about them which it passes back to the parents, and articles expressing concerns about the toy featured on CNN, the Guardian, and the New York Times. Despite Dino’s similarities, however, Benini’s toy received almost no negative attention, while Hello Barbie won the Campaign for a Commercial-Free Childhood’s prize for worst toy of the year 2015.

“We were lucky with that one,” he says, “Like the whole story of the early bird gets the worm but the second worm doesn’t get eaten. Coming second on all of this allowed us to be prepared to address the privacy concerns in greater depth.”

Nonetheless, Dino is in many ways essentially the same as Hello Barbie. Both toys allow companies and parents to spy on children’s private playtimes, and while the former might seem more troubling, the latter is not without its problems. A feature on the Parental Panel of the Dino also allows parents to see the exact wording of questions children have asked about certain difficult topics, such as sex or bullying. In many ways, this is the modern equivalent of a parent reading their child's diary. 

“Giving parents the opportunity to side-step their basic responsibility of talking to, engaging with, encouraging and reassuring their child is a terrifying glimpse into a society where plastic dinosaurs rule and humans are little more than machines providing the babies for the reptile robots to nurture,” says Renate Samson, the chief executive of privacy campaign group Big Brother Watch. “We are used to technology providing convenience in our lives to the detriment of our privacy, but allowing your child to be taught, consoled and even told to meditate by a WiFi connected talking dinosaur really is a step in the wrong direction.”

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Toy companies and parents are one thing, however, and to many it might seem trivial for a child’s privacy to be comprised in this way. Yet many smart toys are also vulnerable to hackers, meaning security and privacy are under threat in a much more direct way. Ken Munro, of Pen Test Partners, is an ethical hacker who exposed security flaws in the interactive smart toy “My Friend Cayla” by making her say, among other things, “Calm down or I will kick the shit out of you.”

“We just thought ‘Wow’, the opportunity to get a talking doll to swear was too good,” he says. “It was the kid in me. But there were deeper concerns.”

Munro explains that any device could connect to the doll over Bluetooth, provided it was in range, as the set-up didn’t require a pin or password. He also found issues with the encryption processes used by the company. “You can say anything to a child through the doll because there's no security,” he says. “That means you've got a device that can potentially be used to groom a child and that's really creepy.”

Pen Test Partners tells companies about the flaws they find with their products in a process they call “responsible disclosure”. Most of the time, companies are grateful for the information, and work through ways to fix the problem. Munro feels that Vivid Toy Group, the company behind Cayla, did a “poor job” at fixing the issue. “All they did was put one more step in the process of getting it to swear for us.”

It is one thing for a hacker to speak to a child through a toy and another for them to hear them. Early this year, a hack on baby monitors ignited such concerns. But any toy with speech recognition that is connected to the internet is also vulnerable to being hacked. The data that is stored about how children play with smart toys is also under threat, as Fisher Price found out this year when a security company managed to obtain the names, ages, birthdays, and genders of children who had played with its smart toys. In 2015, VTech also admitted that five million of its customers had their data breached in a hack.

“The idea that your child shares their playtime with a device which could potentially be hacked, leaving your child’s inane or maybe intimate and revealing questions exposed is profoundly worrying,” says Samson. Today, the US Electronic Privacy Information Center (EPIC) said in a statement that smart toys “pose an imminent and immediate threat to the safety and security of children in the United States”. 

Munro says big brands are usually great at tackling these issues, but warns about smaller, cheaper brands who have less to lose than companies like Disney or Fisher Price. “I’m not saying they get it right but if someone does find a problem they’ve got a huge incentive to get it right subsequently,” he says of larger companies. Thankfully, Munro says that he found Dino to be secure. “I would be happy for my kids to play with it,” he says. “We did find a couple of bugs but we had a chat with them and they’re a good bunch. They aren’t perfect but I think they’ve done a hell of a lot of a better job than some other smart toy vendors.”

Benini appears alert to security and the credibility it gives his company. “We took the security very, very seriously,” he says. “We were still building our systems whilst these horror stories were coming about so I already set pipelines and parameters in place. With a lot of devices out there it seems that security takes a backseat to the idea, which is really unfortunate when you’re inviting these devices into your home.”

As well as being wary of smaller brands, Munro advises that parents should look out for Bluetooth toys without a secure pairing process (ie. any device can pair with the toy if near enough), and to think twice about which toys you connect to your WiFi. He also advises to use unique passwords for toys and their corresponding apps.

“You might think ‘It's just a toy, so I can use the same password I put in everything else’ – dog’s name, football club, whatever – but actually if that ever got hacked you’d end up getting all your accounts that use that same password hacked,” he says.

Despite his security advice, Munro describes himself as “on the fence” about internet-connected smart toys as a whole. “Most internet of things devices can be hacked in one way or another,” he says. “I would urge caution.”

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Is all of this legal? Companies might not be doing enough ethically to protect the privacy of children, but are they acting responsibly within the confines of the law?

Benini explains that Dino complies with the United States Children's Online Privacy Protection Act (COPPA) of which there is no real equivalent in the UK. COPPA says that companies must have parental permission to collect personal information over the internet about children under 13 years of age. “We’ve tried to go above and beyond the original layout of COPPA,” says Benini, when describing CogniToys transparent privacy documents. Parents give their consent for Elemental Path to collect their children’s data when they download the app that pairs with the toy.

Dino bears a striking similarity to Amazon Echo and Google Home, smart speakers that listen out for commands and questions in your home. Everything that is said to Amazon Echo is recorded and sent to the cloud, and an investigation by the Guardian earlier this year discovered that this does not comply with COPPA. We are therefore now in a strange position whereby many internet of things home devices are legally considered a threat to a child’s privacy, whereas toys with the same capabilities are not. This is an issue because many parents may not actually be aware that they are handing over their children’s data when installing a new toy.

As of today, EU consumer rights groups are also launching complaints against certain smart toys, claiming they breach the EU Unfair Contract Terms Directive and the EU Data Protection Directive, as well as potentially the Toy Safety Directive. Though smart toys may be better regulated in Europe, there are no signs that the problem is being tackled in the UK. 

At a time when the UK government are implementing unprecedented measures to survey its citizens on the internet and Jeremy Hunt wants companies to scour teens’ phones for sexts, it seems unlikely that any legislation will be enacted that protects children’s privacy from being violated by toy companies. Indeed, many internet of things companies – including Elemental Path – admit they will hand over your data to government and law enforcement officials when asked.

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As smart toys develop, the threat they pose to children only becomes greater. The inclusion of sensors and cameras means even more data can be collected about children, and their privacy can and will be compromised in worrying ways.

Companies, hackers, and even parents are denying children their individual right to privacy and private play. “Children need to feel that they can play in their own place,” says Samson. It is worrying to set a precedent where children get used to surveillance early on. All of this is to say nothing of the educational problems of owning a toy that will tell you (rather than teach you) how to spell “space” and figure out “5+8”.

In a 1999 episode of The Simpsons, “Grift of the Magi”, a toy company takes over Springfield Elementary and spies on children in order to create the perfect toy, Funzo. It is designed to destroy all other toys, just in time for Christmas. Many at the time criticised the plot for being absurd. Like the show's prediction of President Trump, however, it seems that we are living in a world where satire slowly becomes reality.

Amelia Tait is a technology and digital culture writer at the New Statesman.