FTC Staff Report Finds Large Social Media and Video Streaming Companies Have Engaged in Vast Surveillance

Report recommends limiting data retention and sharing, restricting targeted advertising, and strengthening protections for teens – “A new Federal Trade Commission staff report that examines the data collection and use practices of major social media and video streaming services shows they engaged in vast surveillance of consumers in order to monetize their personal information while failing to adequately protect users online, especially children and teens. The staff report is based on responses to 6(b) orders issued in December 2020 to nine companies including some of the largest social media and video streaming services: Amazon.com, Inc., which owns the gaming platform Twitch; Facebook, Inc. (now Meta Platforms, Inc.); YouTube LLC; Twitter, Inc. (now X Corp.); Snap Inc.; ByteDance Ltd., which owns the video-sharing platform TikTok; Discord Inc.; Reddit, Inc.; and WhatsApp Inc. The orders asked for information about how the companies collect, track and use personal and demographic information, how they determine which ads and other content are shown to consumers, whether and how they apply algorithms or data analytics to personal and demographic information, and how their practices impact children and teens.

The report lays out how 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,” said FTC Chair Lina M. Khan. “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. Several firms’ failure to adequately protect kids and teens online is especially troubling. The Report’s findings are timely, particularly as state and federal policymakers consider legislation to protect people from abusive data practices.”