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US Federal Trade Commission Exposes Social Media Data Practices
FTC report reveals inadequate data management practices among major social media companies. Companies collect vast amounts of user data, including age, gender, income, and education. Little transparency or user control over data use, particularly in AI systems.
The investigation, which included platforms like Meta, TikTok, Twitch, YouTube, X (formerly Twitter), Snap, Discord, and Reddit, reveals a concerning lack of user control over personal information and its use in artificial intelligence systems.
FTC Chair Lina Khan highlighted the gravity of the situation, stating, "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 identity theft to stalking." The report paints a picture of inadequate data management and retention policies across many of the companies investigated.
The FTC's findings show that social media giants employ various methods to gather user data, including tracking technologies used in online advertising and purchasing information from data brokers. This extensive data collection extends beyond active users, with companies also gathering information on individuals who do not use their services. Alarmingly, some companies were unable to identify all the ways they collected and used data.
The report indicates that most of the reviewed companies collected or inferred users' age and gender. Some went further, gathering information on users' income, education, and family status. This vast trove of personal data is then shared and processed, often with little transparency or user control, particularly concerning its use in AI systems.
The issue of data privacy, especially for younger users, has become a hot-button topic in recent years. The US House of Representatives is currently considering bills passed by the Senate in July, aimed at addressing social media's effects on younger users. In response to growing concerns, Meta has recently introduced teen accounts with enhanced parental controls.
Meanwhile, as the AI race heats up, Big Tech companies have been scrambling to acquire new data sources to train their emerging technologies. These data deals often involve private content behind paywalls and login screens, with little to no notice given to the users who originally posted the content.
The FTC's report has drawn criticism from advertising industry groups. David Cohen, chief executive of the Interactive Advertising Bureau, expressed disappointment with the FTC's characterisation of the digital advertising industry as engaged in "mass commercial surveillance". Cohen argued that consumers recognise the value of ad-supported services.
In response to the report, some companies have defended their practices. Discord stated that the report lumps very different business models into one category and noted that it did not offer advertising at the time of the study. X (formerly Twitter) claimed that the report is based on practices from 2020, which have since been improved. The company asserted that it takes user data privacy seriously and ensures users are aware of how their data is being used.
• FTC report reveals inadequate data management practices among major social media companies
• Companies collect vast amounts of user data, including age, gender, income, and education
• Little transparency or user control over data use, particularly in AI systems
Source: REUTERS