Major social media and video streaming platforms are engaged in mass data collection and surveillance, putting people’s privacy at risk to generate billions of dollars in profit, according to the Federal Trade Commission (FTC). In a 129-page report, the FTC stated that these platforms collect vast amounts of data from both users and non-users, including children and teenagers, without adequately protecting their privacy. The report was based on responses from nine companies: Amazon, facebook, youtube, Twitter (now X), Snap, ByteDance (TikTok’s parent company), Discord, Reddit, and WhatsApp. The orders sought information on how these companies collect and use personal data as well as determine which ads and content are shown to consumers.
FTC Chair Lina M. Khan emphasized that social media and video streaming companies monetize the personal data of Americans “to the tune of billions of dollars a year.” However lucrative for these companies, such surveillance practices can endanger people’s privacy and freedoms while exposing them to various harms such as identity theft or stalking.
The FTC found that the companies’ data collection practices were inadequate. Some failed to delete user-requested data while others relied heavily on targeted ads for revenue generation. These platforms collected user-inputted information as well as passively gathered or inferred data. Additionally, some obtained information from third-party brokers containing details about income levels, location information,and interests.
The report also highlighted how certain companies used invasive tracking technologies like pixel tracking to tailor advertisements based on users’ preferences without clear disclosure or user awareness.
Furthermore,the FTC discovered that most of these platforms did not offer users or non-users an option to opt out of having their data used in algorithms or artificial intelligence systems except for one exception.
Regarding children’s protection online,the majority of these platforms claimed they were not designed for children but evidence showed otherwise.The FTC urged comprehensive federal privacy legislation along with increased efforts by these companies themselves to protect consumer privacy rights by limiting excessive data collection.
In recent developments related to online safety concerns for teens using social media platforms,the owner of Instagram launched Instagram Teen Accounts aiming at addressing parents’ concerns about their teens’ online interactions.The Surgeon General has also called for warning labels on algorithm-driven social media platforms similar to those found on tobacco products.
