WASHINGTON, D.C. — A new report from the Federal Trade Commission (FTC) staff examines the data practices of major social media and video streaming companies, focusing on how they collect and use personal information.
The report, which includes data from nine major companies—Amazon (Twitch), Facebook (Meta), YouTube, Twitter (X Corp.), Snap, ByteDance (TikTok), Discord, Reddit, and WhatsApp—details the extensive collection and retention of personal data. This data is often sourced from data brokers and shared broadly, with the report noting concerns about data handling controls and retention practices.
The business models of these companies involve significant data collection for targeted advertising, which raises privacy considerations. Some companies use tracking technologies to gather user data.
“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. Several firms’ failure to adequately protect kids and teens online is especially troubling. The Report’s findings are timely, particularly as state and federal policymakers consider legislation to protect people from abusive data practices.”
The report also discusses the use of automated systems, including algorithms and AI, for processing personal data, highlighting issues related to user control and transparency. The report finds that children and teens are not adequately protected on these platforms, with some platforms allowing teens with minimal restrictions and noting potential mental health impacts.
According to the data collected, the staff report indicated that many companies claim there are no children on their platforms, arguing that their services are not intended for children or do not permit children to create accounts. The report suggested that this stance appears to be an effort to avoid liability under the Children’s Online Privacy Protection Act Rule. It also found that social media and video streaming services frequently treat teens the same as adult users, with most companies allowing teens on their platforms without any account restrictions.
In response, the FTC staff recommends comprehensive federal privacy legislation, stricter data collection and retention policies, better protection for children and teens, and improved transparency and user control over data usage.