FTC report warns about the risks of “mass surveillance” due to social media

A new report from the Federal Trade Commission (FTC) has found that many social media platforms are engaging in “mass surveillance”, particularly with younger users. 

This FTC report stems from responses to 6(b) orders issued in December 2020 to nine leading social media and video streaming companies, including Amazon (Twitch), Meta (Facebook), YouTube, Twitter (now X), Snap (Snapchat), ByteDance (TikTok), Discord, Reddit, and WhatsApp. These companies were asked to provide details about their data collection and ad-targeting practices, particularly regarding the impact on younger users.

The report found that websites regularly collect and monetise personal information, turning it into billions of dollars in revenue.

FTC Chair Lina M. Khan said in a statement that while this data collection is highly profitable for the companies, it jeopardises users’ privacy and security, leading to potential risks such as identity theft, stalking, and threats to personal freedoms. 

The report goes on to point out that these platforms gather extensive data from their users and retain this information indefinitely. Worryingly, this also includes data sourced from brokers and information about non-users.

The FTC criticised the data management practices of these companies, describing them as “woefully inadequate.” Some platforms failed to delete all user data upon request, and many were found to engage in data sharing without sufficient oversight, raising concerns about how safely they handle user information.

Most of these companies rely on data collection for their business models, particularly to fuel targeted advertising, which is their main source of income. 

The report noted that invasive tracking technologies, such as pixels, were commonly used to gather user data based on preferences and interests. Additionally, users—and even non-users—had minimal options to opt out of these practices, with inconsistent and insufficient efforts to regulate the use of automated data systems.

The report offered several recommendations for both policymakers and companies. It called on companies to limit data collection, adopt stricter data retention policies, improve transparency about how data is used, and enhance privacy protections for children and teens.

It also urged Congress to address the lack of privacy safeguards for teens over 13, who currently fall outside the scope of the Children’s Online Privacy Protection Act (COPPA).