FTC Finds Social Media Companies Engaged In Vast Surveillance

A report published by the Federal Trade Commission on Thursday revealed that popular social media platforms and video streaming services present significant privacy risks, especially for children and teenagers.

“Can Endanger People’s Privacy”

The more than 100-page report outlines how these companies use data, advertising, and recommendation systems, relying on user information to sell ads. According to the report, Users also “lacked any meaningful control over how personal information was used for AI-fueled systems” on the companies’ platforms.

“While lucrative for the companies, these surveillance practices can endanger people’s privacy, threaten their freedoms, and expose them to a host of harms, from identify theft to stalking,” FTC Chair Lina Khan said in a statement, reported by NBC News.

The report features staff recommendations advocating for federal privacy legislation and urging companies to prioritize privacy in their data collection and recommendation systems. It also emphasizes that parents should have greater control over the information collected from children and teenagers.

“Protecting users – especially children and teens – requires clear baseline protections that apply across the board,” the FTC said in the report.

The report emerges amid growing bipartisan concerns over data collection, privacy, and AI-powered recommendation systems. Notable legislative efforts, including the Kids Online Safety Act (KOSA) and the Children and Teens’ Online Privacy Protection Act (COPPA) 2.0, have gained traction, passing the Senate and advancing in the House Committee on Energy and Commerce.

“COPPA should be the floor, not the ceiling,” the FTC said.

FTC Reveals Extensive Data Collection Practices by Platforms

In December 2020, the FTC ordered Amazon, Facebook and WhatsApp (now Meta), Twitter (now X), ByteDance, YouTube, Reddit, Snap, and Discord to provide data on how they collect and use personal information from users.

The report analyzed 13 platforms owned by these companies, including Twitch, Facebook, Messenger, Kids Messenger, Instagram, WhatsApp, X, TikTok, YouTube, YouTube Kids, Snapchat, Reddit, and Discord.

The report revealed that companies engaged in “vast surveillance” by collecting and retaining personal information about consumers, even if they were not users of the platforms. Some companies also purchased this data from brokers, according to the findings.

The FTC noted that companies tried to evade liability under COPPA, which governs data collection from children under 13, by claiming  “that there are no child users on their platforms because children cannot create accounts.”

The report revealed that most companies treated teen accounts the same as adult accounts, a practice that jeopardizes the privacy and mental health of teenagers.

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