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How global companies turn us into a product.
The US Federal Trade Commission (FTC) has published a new report that examines the methods of data collection and use by major social networks and video services. According to the report, companies engage in large-scale surveillance of users in order to monetize their personal information, while not protecting users online, especially children and teenagers.
The study is based on requests sent to 9 major social media and video services in December 2020, including Amazon, Meta, YouTube, X, TikTok, Snap, Discord, Reddit and WhatsApp. In the requests, companies were required to provide information about how they collect and use personal data, as well as how their algorithms affect the choice of advertising and content for users.
According to the report, companies not only collected huge amounts of data, but they could also store it indefinitely. Some companies did not delete data at the request of users, which raised questions about the proper control over data processing.
We also identified cases where companies used the tracking pixel to serve targeted ads based on user preferences, which is the main source of revenue. Such actions compromise privacy.
The report also highlights that companies' automated systems, including algorithms and AI, make heavy use of personal data. At the same time, users, including those who are not registered on the platforms, have little to no control over the use of their data. Also, standards for monitoring and testing automated systems are often inconsistent and insufficient.
The report focuses on how social media and video services handle the data of children and adolescents. Many companies themselves claim that their platforms are not designed for children. However, the FTC believes that such statements are only an attempt to avoid liability under the Children's Online Privacy Protection Act (COPPA), as companies do not actually distinguish between teenagers and adults, without imposing restrictions on teenagers' accounts.
In addition, the report examines the competitive impact of data collection practices. Companies that accumulate large amounts of user information can gain a dominant position in the market, which can lead to abuses such as prioritizing data collection at the expense of user privacy. Limited competition between social media and video services reduces user choice and increases the need for regulation.
Based on its analysis, the FTC offers several recommendations for companies and lawmakers. In particular, Congress is proposed to pass a federal privacy law that would limit large-scale surveillance and give users the right to control their data. Companies are encouraged to reduce the amount of data they collect, establish clear rules for their retention and minimization, and give users more control over how data is used.
Companies must also recognize that children are present on their platforms and take additional safeguards to protect children that go beyond the minimum requirements set out in COPPA. In relation to teenagers, companies should provide increased confidentiality measures, since they are not adults and require a special approach.
The FTC's report was supported unanimously by all five members of the commission.
Source
The US Federal Trade Commission (FTC) has published a new report that examines the methods of data collection and use by major social networks and video services. According to the report, companies engage in large-scale surveillance of users in order to monetize their personal information, while not protecting users online, especially children and teenagers.
The study is based on requests sent to 9 major social media and video services in December 2020, including Amazon, Meta, YouTube, X, TikTok, Snap, Discord, Reddit and WhatsApp. In the requests, companies were required to provide information about how they collect and use personal data, as well as how their algorithms affect the choice of advertising and content for users.
According to the report, companies not only collected huge amounts of data, but they could also store it indefinitely. Some companies did not delete data at the request of users, which raised questions about the proper control over data processing.
We also identified cases where companies used the tracking pixel to serve targeted ads based on user preferences, which is the main source of revenue. Such actions compromise privacy.
The report also highlights that companies' automated systems, including algorithms and AI, make heavy use of personal data. At the same time, users, including those who are not registered on the platforms, have little to no control over the use of their data. Also, standards for monitoring and testing automated systems are often inconsistent and insufficient.
The report focuses on how social media and video services handle the data of children and adolescents. Many companies themselves claim that their platforms are not designed for children. However, the FTC believes that such statements are only an attempt to avoid liability under the Children's Online Privacy Protection Act (COPPA), as companies do not actually distinguish between teenagers and adults, without imposing restrictions on teenagers' accounts.
In addition, the report examines the competitive impact of data collection practices. Companies that accumulate large amounts of user information can gain a dominant position in the market, which can lead to abuses such as prioritizing data collection at the expense of user privacy. Limited competition between social media and video services reduces user choice and increases the need for regulation.
Based on its analysis, the FTC offers several recommendations for companies and lawmakers. In particular, Congress is proposed to pass a federal privacy law that would limit large-scale surveillance and give users the right to control their data. Companies are encouraged to reduce the amount of data they collect, establish clear rules for their retention and minimization, and give users more control over how data is used.
Companies must also recognize that children are present on their platforms and take additional safeguards to protect children that go beyond the minimum requirements set out in COPPA. In relation to teenagers, companies should provide increased confidentiality measures, since they are not adults and require a special approach.
The FTC's report was supported unanimously by all five members of the commission.
Source
