The U.S. Federal Trade Commission (FTC) has released a report highlighting significant shortcomings in how social media companies manage user data, particularly concerning its use in artificial intelligence systems.
The report critiques platforms like Meta, TikTok, Twitch, and others for their "woefully inadequate" data management and retention policies.
The FTC examined various social media platforms, including YouTube, X (formerly Twitter), Snap, Discord, and Reddit, noting a lack of transparency regarding data collection and sharing practices. It emphasized that users have little control over their data, which is frequently gathered through tracking technologies and purchased from data brokers.
FTC Chair Lina Khan expressed concerns that these surveillance practices not only threaten individual privacy but also expose users to risks such as identity theft and stalking.
The report underscores the ongoing debate over data privacy, especially regarding young users, as the U.S. House of Representatives considers new legislation aimed at regulating social media's impact on minors.
Some companies, like Discord, argued that the FTC's findings group together disparate business models and fail to account for improvements made since the data was collected. An X spokesperson stated that the report reflects practices from 2020 and emphasized their commitment to user data privacy.
Meanwhile, the demand for data to train artificial intelligence technologies is growing, with Big Tech companies increasingly acquiring data sources without adequate user notification. The FTC report indicates that many companies are also collecting data on non-users and may not fully understand their own data collection practices.
Advertising industry groups criticized the FTC's portrayal of digital advertising as "mass commercial surveillance," asserting that consumers value ad-supported services.