Social media companies conducted ‘vast surveillance’ on its users, FTC says

A new report from the Federal Trade Commission claims social media and video streaming services have conducted “vast surveillance” of consumers to monetize personal information.

The report is a cumulative analysis that began in 2020 when the FTC issued orders to nine companies including Amazon, Discord, WhatsApp, Meta, YouTube, Reddit, Twitter (now X) and the owners of TikTok and Snapchat seeking information about how their streaming services affect Americans who consume their content.

The FTC said many of the companies had the ability to collect and retain “troves” of data indefinitely from users and nonusers of their platforms. The personal information – gathered through voluntary submission as well as paid data brokers – included users’ household income, location and interests.

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Companies use algorithms, data analytics and artificial intelligence applications to gather users’ personal information, but have little control or transparency over the systems used, according to the report.

The personal information taken by these companies and their various systems was then used to sell advertising services on their platforms, the FTC said.

“Because the advertising ecosystem is complex and occurs beneath the surface, it is challenging for users to decipher how the information collected from and about them is used for ad targeting — in fact, many users may not be aware of this at all,” the report stated.

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One of the primary concerns outlined in the report is the lack of protection for teens and children using these social media and video streaming platforms. The report said almost all of the companies have no restrictions for teens and collect personal information just like they do from adults.

In conclusion, the FTC said companies should limit data collection and sharing, restrict targeted advertising and do more to protect minors on their platforms.

The commission also said in its report that Congress should pass federal privacy legislation that limits surveillance and grants consumers the rights to their data.