FTC accuses Meta of putting profits ahead of user privacy

A years-long study has uncovered that major social media and internet companies are involved in "mass surveillance" to capitalize on users' personal data, according to the U.S. Federal Trade Commission (FTC).

The FTC’s report, released after requests dating back four years, examined the practices of nine companies, revealing they collect vast amounts of user data—sometimes through third-party entities that gather and sell the information—and often retain it indefinitely.

FTC Chair Lina Khan emphasized in a press release that the study sheds light on how social media platforms and video streaming services collect enormous amounts of personal data and monetize it, generating billions of dollars annually. Khan also expressed "deep concern" over these companies' failure to adequately protect children and teenagers who use their services.

For many of these companies, the business model relies on targeted advertising, which incentivizes extensive data collection, prioritizing profit over privacy, the report states.

"While these practices are profitable for companies, they can jeopardize individuals' privacy, threaten personal freedoms, and expose people to harms ranging from identity theft to stalking," Khan warned.

Reacting to the study's release, David Cohen, head of the Interactive Advertising Bureau (IAB), expressed "disappointment" with the FTC's ongoing portrayal of the digital advertising industry as being involved in "mass surveillance for commercial purposes."

Cohen argued that internet users understand that targeted ads enable access to services that would otherwise not be free or affordable. The IAB also reaffirmed its strong support for a comprehensive national data privacy law.

The FTC study, initiated in late 2020, targeted companies such as Meta (Facebook, Instagram), YouTube (Google), Snap, Amazon (related to Twitch), ByteDance (TikTok), and Twitter (now rebranded as X).

Google spokesperson José Castañeda told Agence France-Presse that the company enforces "the strictest privacy policies in the industry" and reiterated that "we never sell personal data" nor "use sensitive personal data to serve ads."