Social Media Cos. Lack Adequate Privacy Controls, FTC Report Says

By Don Nico Forbes

The Federal Trade Commission said in a report that major social media companies and video streaming services engaged in vast consumer surveillance while failing to provide adequate privacy controls or safeguards for children.

The consumer-protection agency's report is based on responses to orders issued in December 2020 to companies including Amazon, Meta and X Corp., asking for information on how the firms collect and track personal information of customers.

The FTC found that the companies collected the data of both users and non-users of their respective platforms, while engaging in broad data sharing which lacked sufficient oversight. According to the report, the firms employed privacy-invasive tracking technologies to facilitate targeted advertising, and lacked adequate protections for children and teens on their sites.

"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."

The report recommended that Congress pass legislation to limit surveillance, address protections and grant data rights for consumers.

It added that companies should limit data collection and sharing with third parties and affiliates, while providing greater privacy protections for children and teens.

Amazon, Meta and X Corp. weren't immediately available for comment.

Write to Don Nico Forbes at don.forbes@wsj.com

(END) Dow Jones Newswires

September 19, 2024 10:41 ET (14:41 GMT)

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