Ello Formally Promises To Remain Ad-Free, Raises $5.5M

Social media site Ello is presented as the anti-Facebook, promising an ad-free social network, and that they won't sell private data. Today, they've also announced that Ello has become a Public Benefit Corporation, and that the site's anti-advertising promise has been enshrined in a corporate charter. The BBC reports on the restrictions that Ello has therefore entered into, which mean the site cannot, for monetary gain,

1. Sell user-specific data to a third party
2. Enter into an agreement to display paid advertising on behalf of a third party; and
3. In the event of an acquisition or asset transfer, the Company shall require any acquiring entity to adopt these requirements with respect to the operation of Ello or its assets.

While that might turn off some potential revenue flows (the company says it will make money by selling optional features), as the linked article points out, it hasn't turned off investors; Ello has now raised $5.5 million from investors.

Comments

Re:Oooh ... formally promised ...

[Mr. Slippery]

It sounds good in principle, but is it really legally binding in any sense?

Yes. A corporation's charter is legally binding on it, and "benefit corporations" are a distinct type of legal entity.

Re:Open social network standard

[Anonymous Coward]

Tent is attempting to do this.