A new Federal Trade Commission (FTC) report reveals that major social media and online video companies are extensively collecting and sharing personal data. The report, released on Thursday, examines the data practices of nine tech companies—Facebook, WhatsApp, YouTube, Discord, Reddit, Amazon, Snap, TikTok, and Twitter/X—covering the period from January 2019 to December 2020.
The FTC's findings highlight that these companies often track user interactions, gather personal information, and use it to target content and ads. The report criticizes these firms for their "extensive surveillance" of users and calls for new federal privacy regulations. FTC Chair Lina Khan stressed that the current business models of these companies do not encourage effective self-regulation or adequate protection of user data. She urged lawmakers to ensure that legal violations are not more profitable than compliance.
The report also criticizes companies for inadequate data control options. Users have limited ability to opt out of data collection or manage how their information is used by algorithms and AI. Many companies failed to provide a complete list of entities with whom they share user data. Moreover, despite the presence of minors on these platforms, none of the companies had special data practices for users aged 13 to 17.
The FTC found that some companies did not fully delete user data when requested and criticized the data minimization practices as insufficient. The Electronic Frontier Foundation’s Mario Trujillo emphasized the need for stronger enforcement of privacy laws.
In response, some companies, including Discord and Google, disputed the report's findings. Discord argued that its business model is different from others and does not involve traditional digital advertising. Google stated that it adheres to strict privacy policies and does not sell personal information or target ads to children.
The Electronic Privacy Information Center (EPIC) supports the FTC's conclusions, noting that self-regulation by companies has been ineffective. EPIC's Calli Schroeder emphasized the importance of evidence-backed claims and stronger consumer protections.
The report underscores the need for robust privacy regulations to address the growing concerns about data collection and sharing by tech giants.
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