The FTC issued orders under Section 6(b) of the FTC Act to nine social media and video streaming companies requiring them to provide data on their data collection, use, advertising practices, and effects on children and teens. The companies must respond within 45 days.
The companies are required to submit data on their practices within 45 days of receiving the order.
In-house legal teams should review vendor agreements, customer terms of service, and data processing agreements for clauses related to data collection, use, and sharing, especially those involving children and teens. Specific clauses to examine include consent mechanisms for minors, advertising and content delivery algorithms, data retention and deletion policies, and privacy policy incorporations. Changes may be needed to enhance parental consent processes, limit data collection from youth, improve transparency in ad targeting, and ensure compliance with children's privacy standards.
Entity
Amazon.com, Inc., ByteDance Ltd., Discord Inc., Facebook, Inc., Reddit, Inc., Snap Inc., Twitter, Inc., WhatsApp Inc., YouTube LLC
Also known as: Amazon, ByteDance, Discord, Meta, Reddit, Snap, Twitter, WhatsApp, YouTube
Industry
Social MediaOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2020/12/ftc-issues-orders-nine-social-media-video-streaming-services-seeking-data-about-how-they-collect-use
6b orders file special reports social media service provider
https://www.ftc.gov/reports/6b-orders-file-special-reports-social-media-service-providers
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"The orders are being sent to Amazon.com, Inc., ByteDance Ltd., which operates the short video service TikTok, Discord Inc., Facebook, Inc., Reddit, Inc., Snap Inc., Twitter, Inc., WhatsApp Inc., and YouTube LLC."
"under Section 6(b) of the FTC Act"
"The FTC is seeking information specifically related to how social media and video streaming services collect, use, track, estimate, or derive personal and demographic information"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.