Big Tech’s "Vast Surveillance" Exposed: FTC Report Calls for Urgent Action
The U.S. Federal Trade Commission (FTC) has delivered a scathing indictment of the data practices of nine major social media and video streaming platforms, accusing them of engaging in "vast surveillance" of users, failing to adequately protect children, and operating with a "dangerously opaque" lack of transparency. The report, released on September 11, 2024, caps off a years-long investigation into data collection practices by Amazon, Facebook, YouTube, X (formerly Twitter), Snap, ByteDance (TikTok), Discord, Reddit, and WhatsApp.
The FTC report paints a stark picture of a data-driven landscape where surveillance is rampant. From tracking online activity to mining data from third-party sources, these companies compile an "enormous" and "staggering" amount of information about users, both online and offline.
"They track what we do on and off their platforms, often combining their own information with enormous data sets purchased through the largely unregulated consumer data market. And large firms are increasingly relying on hidden pixels and similar technologies—embedded on other websites—to track our behavior down to each click," the report states.
The report notes that the companies themselves often struggled to identify all the data they collect or all the third parties with whom they share such data, highlighting the scale and complexity of their data operations.
"In fact, the Companies collected so much data that in response to the Commission’s questions, they often could not even identify all the data points they collected or all of the third parties they shared that data with," the report reveals.
A Growing Threat: AI’s Role in Data Collection
The report further accentuates the growing role of artificial intelligence (AI) in exacerbating this data landscape. Companies are feeding vast datasets into their AI training models, often with little to no oversight or consistent testing standards. The FTC warns that the lack of transparency and oversight in AI development could further escalate data collection practices, potentially leading to unforeseen consequences.
Calling for Action: Policy Reform and Industry Change
The FTC’s report doesn’t stop at simply exposing questionable data practices; it offers concrete steps to address these issues, emphasizing that "self-regulation is not the answer." The report calls on policymakers and companies to undertake a comprehensive overhaul of data collection practices, prioritizing user privacy and protection.
(1) Policymaker Recommendations)
- Passage of Comprehensive Federal Privacy Legislation: The FTC advocates for strong federal privacy legislation that limits surveillance and gives consumers greater control over their personal data. The report also highlights the need to fill gaps in existing privacy protections, particularly for children and teens, by strengthening the Children’s Online Privacy Protection Act (COPPA).
- Increased Oversight of Data Brokers: Addressing the unregulated market of third-party data brokers is crucial, according to the FTC. The report calls for measures to increase transparency and oversight within this sector, which allows tech companies to access vast amounts of data about individuals without their knowledge or consent.
(2) Industry-Specific Recommendations)
- Data Minimization and Retention Policies: The FTC urges social media companies to implement specific and enforceable policies to limit data collection, storage, and retention. These policies should be designed to only collect and retain data that is absolutely necessary for the operation of the platform and to delete consumer data promptly when it is no longer needed.
- Restricting Data Sharing with Third Parties: The report calls for companies to limit data sharing with third parties, particularly sensitive information such as health data, financial data, and location data. Transparency and accountability are paramount, with clear disclosure to users about the data being shared and the purpose of such sharing.
- Protecting Teens Online: The report expresses particular concern over companies’ failure to adequately protect teens online. The FTC calls for measures such as stricter age verification procedures, enhanced privacy settings for minors, and robust safeguards against data breaches to specifically protect children and adolescents from exploitation and potential harm.
- Eliminating Privacy-Invasive Ad Tracking Technologies: The FTC strongly criticizes the use of pixel trackers and similar technologies for targeted advertising. These technologies, hidden within websites, allow for extensive data collection without user consent, constituting a severe breach of privacy. The report calls for their elimination and urges companies to adopt alternative advertising practices that respect user privacy.
Industry Response: Divided and Defiant
The FTC report has triggered immediate reactions from the companies named in the report, prompting a mixed response. While some companies offered limited statements acknowledging concerns related to specific points in the report, others chose to remain silent or declined to comment.
Discord stands out among the companies, highlighting that its business model differs significantly from the other platforms listed in the report. Google, on the other hand, offered a brief statement, focusing primarily on its commitment to strong privacy policies and its opposition to selling personal data. However, Google’s response appears limited and avoids addressing key concerns raised by the FTC, such as the lack of transparency in AI development and the company’s use of data for targeted advertising.
Facing Increased Calls for Removal:
The FTC’s report is likely to further intensify existing calls for the removal of FTC Chair Lina Khan, who has been a vocal critic of Big Tech’s data practices. The business community has been increasingly vocal in its criticism of Khan’s leadership, and the latest report is likely to fuel those criticisms.
Khan, however, remains undeterred. In a statement accompanying the report, she emphasized the urgency of addressing Big Tech’s data collection practices, warning about the potential dangers to individual privacy and freedom.
“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,” said Khan. “While lucrative for the companies, these surveillance practices can endanger people’s privacy, threaten their freedoms, and expose them to a host of harms, from identify theft to stalking. Several firms’ failure to adequately protect kids and teens online is especially troubling. The Report’s findings are timely, particularly as state and federal policymakers consider legislation to protect people from abusive data practices.”
The FTC’s report stands as a powerful testament to the urgent need for comprehensive reform in the digital landscape. It lays bare the pervasiveness of data collection by major tech companies, exposing the hidden costs of a data-driven world. The report is a critical first step in a long necessary journey towards reclaiming user privacy and protecting individuals from the potential harms of unchecked surveillance.
