FTC calls for stronger regulation of social media data practices

The U.S. Federal Trade Commission (FTC) has called for stricter regulation of social media data collection, following a detailed investigation into major platforms, which revealed several concerning practices around user data harvesting.

The FTC report found that many social media platforms, including Facebook, TikTok, YouTube, X, and Snapchat, engage in extensive data surveillance to monetise personal information. The platforms were criticised for insufficiently protecting users, particularly children and teenagers.

The 129-page report emphasised that both users and non-users have limited ability to opt out of data collection, with platforms often employing automated systems for algorithmic purposes, including AI training. 

The findings could push the U.S. towards adopting more stringent, EU-style data regulations, similar to the Digital Services Act (DSA). This may include stricter consent requirements for data collection and use, particularly regarding younger users.

While the DSA has imposed new consent and tracking measures in the EU, it’s unclear whether these have reduced data usage. The FTC report suggests that many users still don’t fully consider the implications of consenting to data use, despite the additional protections.

A key focus of the FTC's report is the protection of younger users. The report’s findings may lead to stricter rules around the data collection practices of social apps for children and teens, mirroring the DSA’s focus on minors.

Social media platforms, particularly Meta, are likely to resist any regulatory changes. Meta has a significant presence in Washington, with lobbyists working to influence policy and potentially limit any further restrictions proposed by the FTC.

As platforms increasingly rely on user data for AI training and algorithm development, the call for tighter regulations presents a new challenge. The outcome of the FTC's report may significantly impact how these platforms operate going forward.