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"
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
The FTC issued its annual report to Congress describing fraud trends affecting older adults and the agency’s enforcement, education, and outreach efforts. The report is not a specific privacy enforcement action and announces no penalty or remedy.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.