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FTC Report Critiques Surveillance and Privacy Practices of Major Social Media Firms

Major Social Media and Video Streaming Companies (Amazon, Meta, YouTube, X, Snap, TikTok, Discord, Reddit, WhatsApp)September 19, 2024Federal Trade Commission

Summary

The FTC staff report examined data practices of nine major social media and video streaming companies and found they engaged in vast surveillance of users with lax privacy controls and inadequate safeguards for children and teens. The report recommends limiting data collection, restricting targeted advertising, and strengthening protections for young users, and calls for comprehensive federal privacy legislation.

Contract Impact

In-house legal teams should review vendor agreements with major social media/video streaming platforms, customer agreements for services integrating these platforms' APIs or SDKs, and data processing addendums. Focus on clauses defining data collection scope, consent mechanisms (especially for minors under COPPA and teens), third-party data sharing permissions, data retention periods, and security safeguards. Recommended changes include: implementing data minimization principles; requiring verifiable parental consent for children's data and enhanced consent options for teens; adding explicit opt-out mechanisms for ad targeting; limiting retention to what is necessary; strengthening default privacy settings for younger users; and ensuring contractual obligations align with COPPA and emerging youth protection standards.

Contract Search Terms

data minimizationparental consentteen privacy settingsad targeting restrictionsdata retention limitsthird-party data sharingchildren's data safeguardsprivacy by designdefault privacy settingsdata processing purposes

Laws Cited

COPPA

Violation Types

Entity Details

Entity

Major Social Media and Video Streaming Companies (Amazon, Meta, YouTube, X, Snap, TikTok, Discord, Reddit, WhatsApp)

Also known as: Major Social Media and Video Streaming Companies

Industry

Social Media

Official Sources

Source Evidence

Entity Name
"nine companies including some of the largest social media and video streaming services: Amazon.com, Inc., which owns the gaming platform Twitch; Facebook, Inc. (now Meta Platforms, Inc.); YouTube LLC; Twitter, Inc. (now X Corp.); Snap Inc.; ByteDance Ltd., which owns the video-sharing platform TikTok; Discord Inc.; Reddit, Inc.; and WhatsApp Inc."
Laws Cited
"Children’s Online Privacy Protection Act Rule"
Violation Types
"engaged in vast surveillance of consumers in order to monetize their personal information while failing to adequately protect users online, especially children and teens."

Related Enforcement Actions

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FTC

Covered Platforms

The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.

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FTC

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The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.

FTC

Amazon, Alphabet, Apple, Automattic, Bumble, Discord, Match Group, Meta, Microsoft, Pinterest, Reddit, SmugMug, Snapchat, TikTok, X

Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.