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"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.