The FTC recently released the results of an extensive four-year investigation into social media sites. According to the organization, many social media sites and streaming services “intensively monitor consumers in order to monetize their personal information.” This mass surveillance not only affects adult users, but also children and teenagers.
This isn’t entirely surprising; after all, the old saying goes, “If you’re not paying for the product, you are the product.” Still, the study suggests a level of surveillance that would shock even the most cynical among us. According to the FTC, these organizations collect and “indefinitely retain” vast amounts of data. The companies also engage in “extensive data sharing” with “woefully inadequate” security measures.
The report also found that some companies did not delete all user data upon requests, which is unseemly, and that some companies were using privacy-invasive technologies, such as tracking pixels, to “display ads based on users’ preferences and interests.”
But that’s not all: The report found that users (and non-users) have little to no way to opt out of how their data is used by automated systems, including algorithms, data analytics, and AI. The FTC found that the companies “employed different, inconsistent, and inadequate approaches to monitoring and testing these automated systems.”
Finally, the report concluded that “social media and video streaming services are not adequately protecting children and young people on their sites.” It went on to suggest that social media, and digital technology in general, has a “negative impact on the mental health of young users.” While this is not new, some social media companies are introducing tools to protect children. Instagram has mandated that teen accounts include parental controls.
The FTC says all these issues come down to the revenue models of the big social media and streaming companies, which mandate “the extensive collection of user data, particularly for monetization through targeted advertising,” which is in “tension” with privacy concerns, because privacy doesn’t make money.
The study concluded that “self-regulation has failed.” As such, the FTC has made several recommendations to help address these issues. The FTC urges Congress to pass comprehensive privacy legislation that limits surveillance and provides “basic protections.” It also urges social media and streaming companies to limit data collection and sharing with third parties.
The FTC also encourages these companies to actually delete consumer data when it is no longer needed or upon request, and to stop using intrusive ad tracking technologies like pixels. It also urges these organizations to address the overall lack of transparency about their practices. When it comes to children and teenagers, the FTC says these organizations “should recognize that teenagers are not adults and provide stronger privacy protections.” Finally, the FTC calls on Congress to pass federal privacy legislation for teenagers over the age of 13.
Again, none of this information is new, but seeing it compiled like this is pretty shocking. You can read the full report here. Services involved in the investigation include X, TikTok, Reddit, Discord, Twitch, YouTube, and Instagram.
