A report released on Thursday by the agency details these findings, based on orders issued to nine of the largest platforms — including Amazon, Facebook, YouTube, Twitter (now “X”), Snapchat, and TikTok. The orders were part of an investigation into longstanding concerns about the opaque operations of these companies. “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,” Khan added. “Several firms’ failure to adequately protect kids and teens online is especially troubling.” The investigation found that companies collect and may indefinitely retain vast amounts of data, including information from data brokers, about both users and non-users of their platforms. The report outlines three major points:The Federal Trade Commission (FTC) has accused major social media platforms and video streaming services of engaging in “vast surveillance of consumers” to monetize their personal information while failing to provide sufficient protections for minors online.
The report also highlights the risks of targeted advertising, which is powered by personal data collected from these platforms. Many users are unaware of how their data is used in ad targeting, particularly sensitive categories such as health and financial information. Additionally, algorithms used by these platforms can negatively affect mental health, particularly in children and teens, the report found. The FTC further stressed the anti-competitive environment created by these practices. The extensive data collection has helped companies construct “walled gardens,” limiting competition while leaving consumers with few alternatives. In response, the FTC issued several recommendations, including urging Congress to pass federal privacy legislation that limits surveillance and grants consumers greater control over their data. This legislation should include “default safeguards against over-collection, monetization, disclosure, or undue retention of personal data.” The agency also called for specific federal protections for minors online. Moreover, the FTC recommended that companies do more to protect consumers’ privacy, such as limiting data collection and restricting data sharing with affiliates and third parties. Finally, federal regulators suggested that social media and video streaming services develop stronger policies for managing accounts when minors are discovered using their platforms. They also recommended creating a straightforward process for parents and legal guardians to request access to, and deletion of, their child's personal information.
