A recent report from the US Federal Trade Commission (FTC) reveals that major social media companies have engaged in “vast surveillance” of users to profit from their personal data. This report, based on an investigation launched nearly four years ago, found that these companies collected extensive amounts of information, often through data brokers, and could keep this data indefinitely, affecting both users and non-users.
Key Findings of the FTC Report
According to FTC Chair Lina Khan, the report highlights how social media and video streaming platforms harvest vast amounts of personal data from Americans, generating billions of dollars annually. The report particularly emphasizes concerns regarding the inadequate protection of children and teenagers online.
Khan noted, “These surveillance practices endanger people’s privacy and expose them to risks such as identity theft and stalking.” The report indicates that business models reliant on targeted advertising incentivize the mass collection of user data, prioritizing profit over privacy.
Industry Response
The Interactive Advertising Bureau (IAB) responded to the FTC’s findings, arguing that internet users generally understand the trade-off of targeted ads for free online services. IAB CEO David Cohen expressed disappointment over the FTC’s portrayal of the digital advertising industry, asserting that consumers value this exchange.
Data Collection Practices Under Scrutiny
The FTC’s findings stem from data requests sent in late 2020 to companies including Meta, YouTube, Snap, Amazon (which owns Twitch), TikTok’s parent company ByteDance, and X (formerly known as Twitter). The report criticized the data collection practices of these companies as “woefully inadequate” and noted that some firms failed to delete all the data users requested to be removed.
Additionally, the report raised concerns about the sharing of data and the effectiveness of companies in protecting personal information. It cited evidence suggesting that social media platforms could harm the mental health of young users, further complicating their responsibilities.
Recommendations for Future Action
The FTC report urges social media companies to reduce their data collection practices and calls on Congress to enact comprehensive federal privacy legislation to limit user surveillance on these platforms.
