The US Federal Trade Commission (FTC) released a report recently criticising social media companies for their inadequate handling of user data, particularly regarding its use in artificial intelligence (AI) systems. The report highlights that significant platforms like Meta, TikTok, Twitch, YouTube, and others collect and manage vast amounts of user data with little transparency or control provided to users.
The report finds that social media companies’ data retention policies must be revised, as they pose user privacy and security risks. FTC Chair Lina Khan noted that these data collection practices, while profitable for companies, can endanger personal privacy, increase identity theft risks, and even lead to more severe dangers such as stalking and online harassment.
Social media platforms gather user data through various methods, including tracking technologies, purchasing data from brokers, and collecting information on how users engage with their services. The FTC report noted that many platforms gather information such as age, gender, income, education and behavioural data from users who may not even be registered on their platforms. Interestingly, the report also revealed that some companies need help fully explaining how they collect or use data, exposing potential regulatory gaps in data privacy practices.
The FTC report expressed concerns over the lack of user control over how AI-driven systems use their data. With Big Tech companies increasingly acquiring data for AI training, user data is often collected from private content, paywalled information, and other sources, sometimes without user consent. These opaque practices raise serious questions about privacy, especially as artificial intelligence technologies continue to grow.
Another critical point in the FTC’s findings revolves around the privacy of minors. The report comes as U.S. lawmakers, including the House of Representatives, are working on legislation addressing the impact of social media on children and teens. This focus on protecting younger users has prompted companies like Meta to introduce more parental controls and privacy measures for teen accounts. However, the FTC report suggests these measures are still insufficient. The report has not been without criticism. Industry groups like the Interactive Advertising Bureau (IAB) pushed back against the FTC’s claims, arguing that consumers understand the value of free, ad-supported services. IAB CEO David Cohen expressed disappointment, claiming the FTC unfairly characterised the digital advertising industry as participating in “mass commercial surveillance.” As debates around data privacy continue, the FTC’s report serves as a strong warning to the public and companies alike about the risks associated with social media data practices.
