US Govt Exposes ‘Vast Surveillance’ by Social Media Giants

• The FTC’s investigation reveals major social media and video streaming companies’ “vast surveillance” and data monetization practices.
• FTC Chair Lina Khan expressed concern over the harvesting and monetization of Americans’ personal data by these companies.
• The Interactive Advertising Bureau defended the industry, arguing that users understand the value exchange for free services.
• The FTC report calls for comprehensive federal privacy legislation and stricter oversight of these companies to limit surveillance and protect user data.

In a groundbreaking revelation, the U.S. Federal Trade Commission (FTC) has unveiled the results of a comprehensive, multi-year investigation into the data collection practices of several major social media and video streaming companies. The FTC’s report, which is the culmination of an inquiry initiated nearly four years ago, paints a disturbing picture of vast surveillance and data monetization, raising serious concerns about user privacy and security.

The FTC’s investigation targeted nine major companies, revealing that these entities have been amassing vast amounts of data, sometimes through intermediaries known as data brokers. The report further disclosed that these companies have the capacity to retain the collected data indefinitely, affecting both users and non-users of their platforms.

FTC Chair Lina Khan, in a press release, expressed her concerns about the findings. The report lays out how social media and video streaming companies harvest an enormous amount of Americans’ personal data and monetize it to the tune of billions of dollars a year,” she said.

Industry Response and Defense

The Interactive Advertising Bureau (IAB), however, countered the FTC’s findings. The industry group argued that internet users understand that targeted ads pay for online services that they enjoy free of charge. The IAB also emphasized its vehement support for a comprehensive national data privacy law. IAB chief executive David Cohen expressed disappointment with the FTC’s characterization of the digital advertising industry as engaged in mass commercial surveillance. He argued that countless studies have shown that consumers understand the value exchange and welcome the opportunity to have access to free or highly subsidized content and services.

The FTC’s report is based on responses to orders sent in late 2020 to companies including Meta, YouTube, Snap, Twitch-owner Amazon, TikTok parent company ByteDance, and others. Google, for instance, defended its privacy policies. Google spokesperson Jose Castaneda told AFP, Google has the strictest privacy policies in our industry –- we never sell people’s personal information and we don’t use sensitive information to serve ads. He added that Google prohibits ad personalization for users younger than 18 years of age and does not personalize ads for those watching made for kids content on YouTube.

Despite these assurances, the FTC found data collection practices woefully inadequate. The report revealed that some companies did not delete all of the data users asked them to remove.

Implications and Recommendations

The sharing of data by companies also raised concerns about how well they were protecting people’s data. The FTC report also highlighted the potential harm to the mental health of young users by such platforms. It called for social media companies to rein in data collection practices and for the U.S. Congress to pass comprehensive federal privacy legislation to limit surveillance of those using such platforms.

This investigation by the FTC is reminiscent of past events where tech giants have been scrutinized for their data collection practices. For instance, in 2018, Facebook was embroiled in the Cambridge Analytica scandal, where the data of millions of Facebook users was harvested without consent for political advertising. This event sparked global discussions about data privacy and led to calls for stricter regulations.

In conclusion, the FTC’s report underscores the urgent need for comprehensive data privacy legislation and stricter oversight of social media and video streaming companies. As we continue to navigate the digital age, the protection of user data and privacy remains a paramount concern that requires immediate and decisive action. The findings of this report serve as a stark reminder of the potential risks associated with the unchecked collection and use of personal data, and the need for robust regulatory measures to safeguard the privacy and security of users.