Facebook has banned offer providers Gambit and Tatto Media from providing offers in games and apps on the social network.

The development is one of the results of the recent scandal around the quality of offers in social games and apps. Some of the offers have been tainted as scams because they don’t tell consumers about hidden obligations or fees. Earlier today, Offerpal said that it was issuing a set of standards for its advertisers to follow in order to meet the highest ethics standards.

Tatto Media has had a history of problems with alleged deceptive ads, but Gambit has reportedly been trying to play by the rules. Facebook outlined the actions it was taking on Nov. 5, but it did not name the banned companies at that time. The reason was repeat violations of Facebook’s guidelines for offers. A spokesman for Facebook confirmed that the companies mentioned in the post were indeed Tatto and Gambit.

Curiously, Gambit said today in response to Offerpal’s announcement, “We at Gambit are really glad to hear that Offerpal is taking these steps. For our part, Gambit’s AdControl suite of tools has been in effect since the earliest days of Gambit, so we see this as great news because it validates our product development choices. … Because of the recent limelight on our industry, we think we can look forward to lots more announcements like this as more and more payments and offers companies realize that ‘monitor’ and ‘filter’ are key components to ‘monetize.’”

Gambit has also addressed the scam issue in its own blog. Apparently, Gambit’s approach isn’t good enough for Facebook, which has begun cracking down on scam offers as a result of the controversy. Gambit hasn’t yet responded to our query about the Facebook ban.

The offer crackdown is serious, since Inside Social Games reported today that the offer business accounts for 30 percent of revenues in the $1 billion virtual goods business. And Inside Social Goods reported that as much of 20 percent of the offer business may be based on questionable promotions. Thus, the crackdown on Facebook and other social networks could have a significant slowing effect if all of the questionable offers are removed.

Offers are special ads that are used to monetize otherwise free social games on Facebook and other social networks. In an offer, a user will agree to sign up for a Netflix subscription or credit card offer. The business has been lucrative because the offers guaranteed some kind of direct benefit for the advertisers, who are willing to pay more. And these offers are appealing to gamers who didn’t want to pay for virtual goods with credit cards. Offer companies like Offerpal, Super Rewards, Gambit, Trialpay and others have been at the forefront of the industry.

But as with other online media, complaints arose that some offers were scams. The scandal ignited last month as Techcrunch editor Michael Arrington challenged former Offerpal CEO Anu Shukla over the legitimacy of most offers at the Virtual Goods Summit. Shukla said that less than 1 percent of the offers have generated complaints from users. But the ensuing debate led to changes in policy regarding offers at Zynga, RockYou, and other companies. Facebook renewed its crackdown on scams and actually stopped one of Zynga’s games, FishVille, from launching until Zynga removed controversial offers. Zynga has also stopped using offers until it could set up a system to properly vet them. Zynga is now in the process of restoring offers, using companies that include Offerpal.

Is an iPhone price war about to break out in the UK? After Vodafone and Orange bagged the iPhone – when O2’s two year monopoly expired in September – we learn today that Tesco, the UK supermarket leviathan, is to sell the iPhone on Tesco Mobile, its MVNO joint venture partnership with O2.

This news just sent the iPhone directly into the mainstream. UK iPhone app developers are looking at an even bigger gold rush than before.

Both iPhone 3G and iPhone 3GS handsets will be sold in Tesco Phone Shops and online through Tesco Direct in the UK, possibly before the Christmas holidays.

Tesco Mobile normally focuses on the low end of the market with voice and text, and we’re told the prices will be “competitive”. As an MVNO, Tesco has a fairly free hand regarding the the markets it goes after. O2 says it has sold over one million iPhones since September 2007, clearly to early adopters.

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Our own Marshall Kirkpatrick’s dreaded brain chip for controlling computers and mobile devices may be closer than even he suspected.

Intel researchers in Pittsburgh told journalists today that brain implants are harnessing human brain waves to surf the Internet, manipulate documents, and much more. And just as we told you two years ago, the lucky recipients of these implants will be willing volunteers, not government-controlled guinea pigs. Some of us are now researching cheap flights to Pittsburgh.

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Just think of how far we’ve come since the early days of portable tech. “If you told people 20 years ago that they would be carrying computers all the time,” said Intel research VP Andrew Chien, “they would have said, ‘I don’t want that. I don’t need that.’ Now you can’t get them to stop.”

Indeed, mobility, transparency, and accessibility are all the terms of the hour; and their advocates are popular laureates. The forefront of the user interface has revolved around concepts such as intuition, organics, and biology.

Gesture technology is removing one barrier that lies between human-to-machine communication; think about that the next time you twirl your iPhone around like an Etch-A-Sketch. Isn’t removing the need for physical contact the next rational step? Chien tells us that, although there are many challenges yet to solve, the day of brain-controlled computing isn’t so far off.

Dean Pomerleau works for Intel on matters of cognitive neuroscience, machine learning, computer vision, robotics, man-machine interfaces, brain processing of semantic information, and various brain-scanning technologies, such as fMRI, MEG, EEG and ECoG. He and his cohorts are solving the mechanisms of brain waves.

While there’s no doubt the use cases are fascinating, Pomerleau also brushes off user concerns about implants, saying, “Eventually people may be willing to be more committed… to brain implants. Imagine being able to surf the Web with the power of your thoughts.”

This is the precise line of thinking that Kirkpatrick debates so heatedly – perhaps as much now as he did in his editorial almost two years ago.

Have concerns around user privacy abated since then? Hardly, with Facebook and location-based-tech developers struggling to maintain balance for their users and constant struggles and inquisitions over corporate storage of user data. Has the issue of information overload lessened? If it had, would so many startups be staking their claim on the issue of firehose filtration? And is mobile tech obsolete enough to require even more portable access to the apps we love and – dare I say it? – need?

Are end users ready for brain implants? You tell us.

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Loopt — perhaps the largest location-based social network, a network that uses your location to recommend places to go and inform you of friends around you — announced the acquisition of GraffitiGEO this week. Several industry observers and researchers are raving about the potential of location-based social networks for businesses and advertising. “Context awareness is critical when you want to buy something, and advertisers get higher targeting based on our patterns and social contexts,” said Massachusetts Institute of Technology researcher Nadav Aharony in a recent BusinessWeek article.

Last week Apple surprised the iPhone’s developer community with the annoucement that it was finally allowing free apps to offer in-app purchases. The move will likely lead to a fundamental shift in the way developers conduct businesss on the App Store (we’ve already begun to see some changes). I sat down with SGN CEO Shervin Pishevar to talk about the annoucement’s effect on SGN’s upcoming games, as well as its impact on the market in general.

Pishevar says that he was estactic when he heard the news — he almost immediately recorded a video sharing his elation that he sent to all of SGN’s 100+ employees worldwide. He explains that this is really the announcement that he’s been waiting for, but that he had no expectation that Apple might do it so soon. Now the company is working at a brisk pace to take advantage of the change: it will soon be releasing a new free version of its smash hit game F.A.S.T., which has done over $1.8 million in sales before Apple’s cut. The new version of F.A.S.T. will feature an extensive array of virtual goods, which users will be able to purchase once they’ve downloaded the core game, which will be free. I also suspect that many (if not all) of SGN’s games will be released for free from here on out.

After discussing the impact on SGN’s apps, the conversation turned toward how this will impact developers in general. The App Store is going to see some major changes, and some of those won’t necessarily be for the better. For one, it will become even harder for premium applications to get noticed — before now they only had to compete against other ‘paid’ apps for a chance to appear on the Top Apps list. Now many of them will be migrating to the much more crowded ‘free’ section, which means they’ll be facing off with the vast array of ‘fun’ apps that are so enticing for impulse downloads. There’s also the possibility that the store will become flooded with applications that you can download for free, but really offer nothing of value until you start paying for features, despite what users may have been led to believe (a so-called ‘bait and switch’).

Pishevar agrees that the new market may pose a challenge to new developers, who may have trouble getting noticed and establishing trust with users. But he says that the development houses that can establish a relationship with users will be able to rise to the top, even more so than before. That scenario would obviously put SGN, which has millions of installs across all of its games, in a good position.

But Pishevar emphasized that SGN isn’t going to be content to simply rest on its laurels and exploit its large audience by rehashing games that have already been successful (he notes that the the highly derivative nature of many games on Facebook was one of the reasons SGN decided to shift over to the iPhone). Instead, he says he wants to push the limits of the iPhone, and eventually other mobile platforms. And to prove that wasn’t just marketing talk, he gave me a sneak peek at some of the projects that SGN has in the works. I’m sworn to secrecy on those for now, but suffice to say, SGN has some seriously cool things in the pipeline right now that really will take mobile gaming to the next level.

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Microsoft announced this week that it has made a deal to include public updates from Facebook in its search engine Bing. Some Facebook users expressed concern that their private activities might be exposed to search. The real story is a little more complex. To put it simply: Facebook is not ever going to knowingly expose private activities on the site to public search. We can say that with as much assurance as we can say almost anything about the internet.

None the less, Facebook has a clear agenda to convince you the user to willingly expose more information publicy by changing your privacy settings. Multiple Facebook execs have told us so when we asked point blank.

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Facebook believes that sharing is good for the world. It was founded on making sharing private and secure between friends – so you’d share more – but it hopes in time to make hundreds of millions of people more comfortable sharing publicly.

As is, searching public activity is good for search users (though many are skeptical), it’s good for search engines and it’s good for the social networks serving up the data.

But is it good for social network users that don’t want their messages showing up in search results? That’s the wrong question to ask because that’s not going to happen.

Your Facebook profile is private by default. Your messages and media can’t be seen by anyone but your friends. Some small number of users have chosen to change those settings, some even making everything they do on Facebook publicly visible to the whole world. Clearly some users would find programatic analysis of their activities anonymized and made available in builk to be a violation of privacy – but many more would not and are all ready wide-open.

That group is probably made up mostly of self-promoters, marketers, overcompensating lonely people and other exhibitionists. (My profile is public, I fall under the self-promoter category, unfortunately.)

Facebook would appreciate it if you would put yourself in this category, too. The company believes that sharing leads to understanding between people, empathy and progress towards world peace. Sharing also provides nice opportunities to advertise.

Facebook wants to display lots of your information publicly, but it won’t shoot itself in the foot by breaking its promise to respect your privacy settings – whatever they may be. Is it strange that Facebook, now more populous than all but three nations in the world, has such a clear agenda to change the world’s culture? It is certainly something to be aware of. But Facebook is not going to make your private messages public.

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Today, Comments Search moves into Test Tube, the place where our engineers and developers test out new features and gather data and feedback before pushing them out to a wider audience. This feature allows you to search the comments people are making on YouTube in real time. The full comment will appear on a continuously updated results page, and “trending topics” indicates the hottest topics of conversation on YouTube at that particular moment. Comments Search is a way you can find out what YouTube users are saying about everything from the news stories of the day (below, see results when we typed in “balloon boy”) to your individual channel or brand.

So try it out, enter your feedback here or comment below, and help us get this feature ready for the masses. We’re always working on new ways to enhance search across YouTube and give quick and easy access to the information people are looking for.

Jamie Davidson, Product Manager, recently watched “Strange Cloud Over Moscow Oct 2009.”

Here’s a quirky story: Israeli iPhone app dev house ApParty released an app back in December 2008 called iFog (iTunes link).

The premise being that the user selects a photo which then has a steam effect superimposed upon it. The steam can be wiped away by running a finger over the screen surface. Blowing on the iPhone microphone fogs the screen back up.

Cute. Simple. And lucrative—it was bought 200,000 times for $0.99 a pop.

As soon as it was released, iFog climbed the iPhone app charts, reaching the number one download spot in most European counties and even made it into the top 20 in the US version of the App Store. Since then—unsurprisingly—sales have flattened to a steady pace of about 250 per week. Until two weeks ago, where out of the blue iFog’s sales surged again and more than doubled.

The two developers behind the app had no clue what the reason for this revitalization could possibly be.

A couple of days ago, the mystery began to finally unravel. A friend of one of the developers who happens to live in Miami asked whether it was possible that she saw iFog on TV. Fat chance seeing as ‘Television Ads’ isn’t on any line in the company’s P&L. The friend was able to recall though that she saw the app in a new T-Mobile myTouch commercial (embedded below). Lo and behold, none other than Dana Carvey is seen with the same exact app, except it actually happens to be a knock-off made for Android.

The ApParty guys added two and two together and realized that there was a spillover effect from the commercial, where iPhone owners that saw it rushed over to the App Store and found iFog.

Go figure, huh?

The T-Mobile commercial featuring Dana Carvey:

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Mozilla Labs, Mozilla’s innovation group, has developed a new open-source, experimental email and communication platform called Raindrop. Mozilla says that Raindrop was built to be focused on highlighting and breaking out personal conversations, making it easier for you to see all of your conversations in one client. It is designed to “bubble up” the important conversations from your messages

According to the site, Raindrop “is an effort that starts by trying to understand today’s web of conversations, and aims to design an interface that helps people get a handle on their digital world.” Still in prototype form, the platform is very young but it aims categorize messages and then separate the personal messages from bulk messages, so you know what to respond to vs. just noting a communication. So Raindrop will import all of your email, but break out your personalized email from your mailing list emails and will portray the personal emails higher on the page. Raindrop will also separate direct messages and @replies from your stream, acting like a Twitter client And you’ll be able to Tweet from the platform and pull in RSS feeds.

I briefly spoke with one of Raindrop’s lead engineer’s and the CEO of Mozilla Messaging, David Ascher, who told me that in the future iterations the platform should include all types of messaging, including IM, Facebook, FriendFeed, YouTube and basically, any communication with an open API. And according to the site, content with in communications, such as links from YouTube or Flickr should be shown near or as part of the message, rather than in a separate tab. Ascher said that Raindrop doesn’t really aim to replace your Gmail account but add to it with an intelligent way to understand your communications. The application works on Firefox, Safari and Chrome.

Mozilla also wants to developers to build applications off of Raindrop and is releasing its API to help users customize their communications experiences. The back-end of the platform is a non-relational database (CouchDB) which was optimized for massive web interactions. The front-end, says Ascher, uses high-powered JavaScript libraries, modern CSS to give your best browser with the platform. Ascher told me that Raindrop is still very, very early stage but the platform will continue to evolve with time.

It takes page from social media messaging aggregation services like FriendFeed but with a strong focus in filtering. It will be interesting to see what two-way interactions the platform will feature and what content it eventually will bring in. Because its a modern communication system, it could compete with open communications platform Google Wave.

If you’re confused, take a look at the video. It explains the purpose of Raindrop pretty well.

Raindrop UX Design and Demo from Mozilla Messaging on Vimeo.

Full disclosure: My husband works for the Mozilla Corp.

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Following weeks of requests from open-source developers, HTC has released the Hero Android source code on their developer site.

In response to the mobile devs, HTC has previously stated it was waiting for its own developers to provide the source before releasing it publicly. As late as last week, HTC representatives had emailed developers saying, “At the moment we do not know when the kernel source for the Hero will be released,” and “We are still pushing our developers to provide us with the source code and for the links to be added.” Since the Android kernel is licensed under the GPL, this delay was creating both dissatisfaction and controversy in the community.

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However, just as a few developers were beginning to talk about enforcement actions, the company posted the code, and everyone lived happily ever after.

Or something along those lines. GPL non-compliance and hints of internal process and delivery issues don’t mode well for the mobile manufacturer. After unfavorable coverage of the company’s “foot-dragging” on Slashdot and long threads of modev complaints, we do hope that HTC’s future Android projects will be more swiftly opened.

The Hero, as a device, is significant in itself, hence the enhanced perception of cruelty in HTC’s not releasing its source code sooner. It’s created huge waves in geek circles, beating out the iPhone for Gadget of the Year at the prestigious T3 awards and generating enough gadget-geek slavering to power a small city.

So, will the gadget geeks and modevs have to push for open sourcing every time a cool, Android-powered device is released? Where was the major malfunction that led to these delays? Were the HTC engineers thrown under the bus to allow leadership to save face, or do the HTC powers that be simply need to get their engineering team under control? Let us know your thoughts in the comments.

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