The US Federal Trade Commission (FTC) found social media companies failed to adequately protect online users as they engaged in large-scale surveillance to monetise personal information.
In a report based on responses by Facebook; YouTube; X; Twitch; Snap; Discord; Reddit; WhatsApp; and TikTok, the FTC expressed serious concern over the companies’ data access and retention policies, including the fact some gather details of non-users.
The FTC issued orders for information to the platforms in December 2020, seeking details of how they collect, track and use personal and demographic information. The agency also explored how the businesses determine which advertisements and other content is shown to users.
It also asked whether the companies apply algorithms or data analytics to personal and demographic information, and how their practices impact children and teens.
The FTC found companies “collected and could indefinitely retain troves of data, including information from data brokers, and about both users and non-users of their platforms”.
Sharing of users’ information “raises serious concerns regarding the adequacy of the companies’ data handling controls and oversight”.
The FTC stated data is used by the companies for their algorithms, data analytics and AI.
It branded the companies’ data collection, minimisation and retention practices “woefully inadequate”, noting some companies did not delete information when users request it.
The FTC concluded the companies do not adequately protect children and teens, citing research showing social media and digital technology contribute to negative mental health in younger users.
“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.
Among its recommendations, the FTC called for US politicians to take action.
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