FTC probes data collection practices on video streaming and social media platforms
A recent staff report from the Federal Trade Commission (FTC) has examined the data collection and utilization practices of major social media and video streaming services. The report reveals that these companies engaged in extensive surveillance of consumers to monetize their personal information while failing to adequately protect users online, particularly children and teenagers.
The staff report is based on responses to orders issued in December 2020 to nine companies, including Amazon.com, Inc., Facebook, Inc., YouTube LLC, and others, requesting information about their data collection, tracking, and usage practices, especially concerning children and teens.
The report found that these companies collected significant amounts of data, including information from data brokers, and engaged in broad data sharing practices that raised concerns about their data handling controls. In addition, the report highlighted inadequate data collection, minimization, and retention practices, as well as privacy risks posed by their targeted advertising models.
Furthermore, the report identified privacy-invasive tracking technologies used by these companies to facilitate advertising and highlighted concerns about user data being fed into automated systems without sufficient user control or transparency.
The report also underscored the lack of adequate protection for children and teens on these platforms, citing negative mental health impacts and the need for improved privacy measures for young users.
In light of these findings, the staff report made recommendations for policymakers and companies, including the enactment of comprehensive federal privacy legislation, implementation of data minimization and retention policies, and greater protection for teens and children on online platforms.
