FTC Finds Social Media Platforms Cannot Be Trusted With User Data

The Federal Trade Commission (FTC) recently examined how social platforms as well as video streaming services collect and utilize data obtained from users. The FTC’s report, released on Sept. 19, revealed some startling findings.

Not unexpectedly, social media companies obtain substantial amounts of user, and even non-user, data, which they often store indefinitely. While the report generalized the findings as an industry-wide practice, it named nine companies specifically: Twitch (Amazon), Facebook (Meta Platforms), YouTube, Twitter (X Corp.), Snap Inc., TikTok (ByteDance Ltd.), Discord, Reddit, and WhatsApp.

“Predicting, shaping, and monetizing human behavior through commercial surveillance is extremely profitable — it’s made these companies some of the most valuable on the planet — and putting industry in charge has had predictable results,” the FTC wrote.

The report also called out the platforms’ inability to protect minors, as some platforms treated children exactly the same as adult accounts, with little or no restrictions. Other companies claimed no children were even using the platform. Despite these claims, a 2023 Harvard study found that social media companies collected $11 billion in ad revenue from minors.

“Several firms’ failure to adequately protect kids and teens online is especially troubling,” stated the FTC.

The most surprising part of the FTC’s report is that the social media platforms can also gain information about non-users. Reportedly, data can be gleaned from advertising trackers, data brokers, an algorithm the platform uses, and even artificial intelligence.

After data was collected, users had little or no control over how or why it was used. Supposedly, a few companies even ignored user requests to delete the data or only removed part of it. Some platforms didn’t even offer a way to opt-out of data collection by algorithms and AI software.

All in all, the FTC noted that social media companies simply cannot be trusted to regulate themselves, and privacy legislation should be expanded to put limits on the information collected. Recommended proposed rules would also include how much information could be shared with third parties as well as a requirement to delete user data upon request.

The agency’s findings are based on information received from social media companies. In 2020, the regulator asked social media companies to provide information regarding data collection and storage policies as well as user engagement practices.