A brand new report published by the United States Federal Trade Commission (FTC) on September 19th on data collection policies of social media platforms, such as TikTok and X, as well as streaming devices like Disney, shows that social media platforms are unable to effectively regulate themselves.
It was discovered that social media platforms are constantly surveilling users and retaining outstanding amounts of user data. The fact is that these companies earn billions from data collection and its subsequent monetizing process, which has put profits over autoregulation. The report is clear and has shown that “self-regulation has been a failure” for these companies.
This premise has become evident according to the FTC’s report: “Predicting, shaping, and monetizing human behavior through commercial surveillance is extremely profitable. It’s made these companies some of the most valuable on the planet, and putting the industry in charge has had predictable results.”
The problem is not the companies themselves but the industry structure
The Federal Trade Commission’s report has determined that the issue at heart is not one or two companies. There is an industry-wide structure that rewards data harvesting, collecting, and subsequent monetization. This is the name of the game.
It is clear, however, how this is problematic. Despite these data practices being extremely lucrative for companies, they have continued to endanger users’ privacy, threatening their freedom and exposing them to unwanted harm.
One solution to the problem might be to identity theft and the way in which users’ data might be stolen and utilized for unwanted purposes by third parties. The FTC has also made clear that some of these platforms’ inability to conceal data from kids and teens who are active online is especially troubling.
What is the FTC’s report on social media platforms based upon?
The report is based on a questionnaire that the FTC itself sent to corporations in 2020. The questions were sent to Amazon as well as to Twitch, Facebook, Youtube, X (formerly known as Twitter), Snapchat, and TikTok. Communication apps such as Discord and WhatsApp were also sent the questionnaire, as was Reddit.
The crucial aspect of the questionnaire was that all of these firms were asked about their data collection and retention practices. There were also inquiries as to how they affect both children and teenagers.
Findings in the 129-page report have raised serious red flags for the FTC. One of the most troubling findings made by the report is that data was being gathered from people who weren’t even users of the platforms.
In fact, it was discovered that these firms acquired user data from various sources, such as from advertisers, data brokers, data analytics, and other sophisticated algorithms.
The report concluded by recommending Congress pass comprehensive privacy legislation that will limit user surveillance, mainly based on these troubling discoveries. The FTC also suggested companies change their own data collection policies and increase protections for teenagers online.