FTC Highlights Lack of User Control Over Data Used by AI on Social Media

On September 19, the U.S. Federal Trade Commission (FTC) released a report criticizing social media companies for their opaque data collection and usage practices, especially concerning artificial intelligence. The report scrutinized data management policies of major platforms like Meta, TikTok, Amazon's Twitch, YouTube, X (formerly Twitter), Snap, Discord, and Reddit, finding them largely inadequate.

The FTC's analysis revealed that these companies often collect extensive user data with minimal transparency or user control. Discord argued that the report unfairly grouped diverse business models together, noting it did not offer advertising during the study period. An X spokesperson mentioned that the report's findings were based on outdated practices from 2020, which have since been improved.

The FTC emphasized that social media companies gather data through various means, including tracking technologies and data brokers. FTC Chair Lina Khan warned that these practices, while profitable, pose significant privacy risks and can lead to issues like identity theft and stalking. The report also highlighted the ongoing legislative efforts to address data privacy, particularly for younger users, and noted Meta's recent introduction of enhanced parental controls for teen accounts.

Big Tech companies are increasingly acquiring data to train AI technologies, often without user consent. The FTC found that most reviewed companies collected users' age, gender, income, education, and family status, sometimes even for non-users. The advertising industry criticized the FTC's report, arguing that consumers benefit from ad-supported services.