The US Federal Trade Commission (FTC) has released a report accusing major social media companies of engaging in “vast surveillance” to profit from users’ personal information. This analysis, conducted over several years, focused on nine prominent companies and revealed that they collect extensive amounts of data, often through data brokers, and retain this information indefinitely for both users and non-users of their platforms.
FTC Chair Lina Khan emphasized the report’s findings, stating, “Social media and video streaming companies harvest an enormous amount of Americans’ personal data and monetize it to the tune of billions of dollars a year.” She expressed particular concern about these firms’ inadequate protection of children and teenagers online, highlighting the potential risks to privacy and safety, including identity theft and stalking.
Business Models and Privacy Concerns
The report outlines how targeted advertising business models incentivize mass data collection, putting corporate profit above user privacy. Khan noted that while these practices are profitable for companies, they pose significant threats to individual privacy and freedoms.
In response to the FTC’s accusations, the Interactive Advertising Bureau (IAB) defended the digital advertising industry. IAB CEO David Cohen stated that internet users are generally aware that targeted ads support the free services they enjoy and criticized the FTC’s portrayal of digital advertising as “mass commercial surveillance.”
Data Collection Practices
The FTC’s findings were based on responses from major companies, including Meta, YouTube, Snap, Amazon (which owns Twitch), TikTok’s parent company ByteDance, and X (formerly Twitter), to orders sent in late 2020. The report found that data collection practices were “woefully inadequate” and pointed out that some companies failed to delete user data when requested. Concerns were also raised about how well these companies safeguard personal information.
Protecting Children and Mental Health
The report highlighted the lax approach of social media companies toward protecting children on their platforms, citing evidence that such platforms may negatively impact the mental health of young users.
To address these issues, the FTC called for social media companies to limit their data collection practices. Additionally, it urged Congress to enact comprehensive federal privacy legislation to reduce surveillance and enhance user protection across social media platforms
