The FTC said it began its study nearly four years ago to offer the first holistic look into the opaque business practices of some of the biggest online platforms that have created multibillion-dollar ad businesses using consumer data. The agency said the report showed the need for federal privacy legislation and restrictions on how companies collect and use data. The findings come from a study of how nine companies — including Meta, YouTube, and TikTok — collected and used consumer data. The sites, which mostly offer free services, profited off the data by feeding it into advertising that targets specific users by demographics, according to the report. The companies also failed to protect users, especially children and teens.
Subscribe to our newsletter. The FTC’s investigation found that these companies, including Meta, TikTok, and YouTube, were collecting data on users’ browsing history, search queries, and even their location. They were also sharing this data with third-party companies, often without users’ knowledge or consent.
The FTC’s report found that companies have been able to circumvent the rules they set for themselves, and that these rules have often been vague and unenforceable. The FTC’s report also found that companies have been able to exploit loopholes in the self-regulation system, leading to unfair competition and harm to consumers. This has resulted in a significant increase in the power of large tech companies, giving them an unfair advantage over smaller businesses.
The European Union’s competition watchdog, the European Commission, is investigating whether these companies have violated EU antitrust laws by engaging in anticompetitive behavior. The Commission launched its investigation in December 2020 and is expected to conclude its examination of the nine companies in the next few months. The investigation is focused on the companies’ online advertising practices.
This move is seen as a response to concerns about data privacy and the potential for misuse of personal information. The move by Meta comes after a series of high-profile data breaches and privacy scandals involving social media companies like Facebook, Instagram, and Twitter. These incidents have raised concerns about the security of user data and the potential for misuse by companies.
* Companies use data to create user profiles. * Companies merge data from different sources to create more detailed profiles. * Many sites claim to restrict access to users under 13, but many children remain on the platforms.
The FTC’s proposal included a number of key changes, such as requiring companies to obtain parental consent before collecting data from children under 13. The proposal also included a new rule that would require companies to provide clear and concise information about their data collection practices to children and their parents. The FTC’s proposal was met with mixed reactions.
