The information society as a neo-bartering society

We live in a neo-bartering society (www.swapace.co.uk).

On any sterling banknote, one can still read “I promise to pay the bearer on demand the sum of...”, but the fact is that Britain abandoned the gold standard in 1931, so you should not expect to receive any yellow stuff in exchange. The Euro, more seriously, promises nothing. It might be one of the reasons why we are so reluctant to adopt it in this country.

Since all currencies are free floating nowadays, money may well be just a pile of digits. Indeed, when Northern Rock collapsed, several banks in Second Life (SL) followed suit. Players rushed to close their accounts because SL is not Monopoly: the exchange (technically, redemption) rate is around 260 L$ (Linden Dollar) to 1 $ (secondlife.com/whatis/economy-market.php). This is interesting because it transforms providers of in-game currencies, like Linden Lab, into issuers of electronic money. And since the threshold between online and offline is constantly being eroded, one is left wondering when some kind of regulation will be extended to such companies as well. It seems unfair that no government went out of its way to support users who lost all their L$.

True, at the moment you cannot swap L$ for any hard stuff in first life. For this, you need a Nectar card (www.nectar.com). In this case, the neo-bartering nature of the information society is even more evident.

As with all loyalty cards, one earns points by spending. While the money spent might not be yours (suppose you drive a company car and your travelling expenses are reimbursed), the points are as good as cash: a DVD from Blockbuster costs only 500 points (note Sainsbury’s gives you a worse deal). Clearly, bartering and online swapping are based on fair rules, trust and honesty. But we live in a sad valley of cheaters, where the neologism swaplifting (swapping + shoplifting) is becoming popular.

The simplest scam is to agree to a swap and then disappear without honouring your side of the deal. There are, however, slightly less elementary ways of playing the system. Suppose you buy a product for £1000, register the 2000 points on your Nectar card, then return the object purchased and get a full refund. You just made the equivalent of 4 rented DVDs (approximately £16) at no risk, as it is unlikely that the points will be reclaimed. This is dishonest, for you are supposed to contact Nectar “if you believe points have been incorrectly awarded to your account”, but it’s probably not illegal.

Or consider those loyalty cards that offer a once-only, 10% discount when you register your first purchase (www.debenhams.com). Go to the local retailer looking affluent and well-dressed. Once you have accumulated say £300 of potential shopping, make sure that you are invited to register for the loyalty card. Agree, somewhat reluctantly, but provide some incorrect details regarding your credit card (your old address will do). After several attempts, the registration will fail. You will look perplexed. The manager will be embarrassed. Apologises will be exchanged and it is very likely that they will give you the discount anyway (otherwise, you can still walk out without buying anything). You just gained £30, as you can now get another 10% discount next time you register.

All this may seem applicable only to nerds, middle-managers and desperate housewives, but even high-flyers can barter. They just use frequent-flyer miles. According to The Economist, in January 2005 “the total stock of unredeemed miles was worth more than all the dollar bills in circulation”, and you can exchange them for almost anything (www.points.com). The temptation is to pocket the miles earned through someone else’s money.

Last February, for example, the Parliamentary Standards watchdog complained that the Commons Speaker, Michael Martin, had used air miles earned with public money for his family, the ultimate proof (Mr Martin, not the watchdog) that Britain is an advanced information society.

Of course, one day all barriers between points-systems will be lifted. People will then use only World Credits (www.fireflywiki.org/Firefly/FireflyMoney) to purchase anything in the whole universe, independently of ordinal numbers. I look forward to being able to swap my L$ for a socially responsible coffee (starbucks.co.uk/en-GB/_Card).