The FTC proposed modifications to its 2020 privacy order with Meta, alleging violations including non-compliance with the order, misleading parents about Messenger Kids, and unauthorized data sharing. The proposed changes include banning monetization of youth data, pausing new product launches, and strengthening privacy requirements.
Meta would be prohibited from monetizing data from users under 18, required to obtain assessor confirmation before launching new products, extend compliance to acquired companies, limit facial recognition use with consent, and strengthen its privacy program and reporting obligations.
Entity
Meta
Industry
Social MediaOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/05/ftc-proposes-blanket-prohibition-preventing-facebook-monetizing-youth-data
C4365 Commission Order to Show Cause (Redacted Public)
https://www.ftc.gov/system/files/ftc_gov/pdf/C4365-Commission-Order-to-Show-Cause-%28Redacted-Public%29.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
Connecticut Attorney General William Tong, leading a coalition of 35 attorneys general, urged Meta to enforce its policies against misleading AI-generated weight loss ads on Instagram and Facebook. The ads promote non-FDA approved GLP-1 drugs without disclosing risks and use fake AI content. The coalition demands Meta restrict such ads, require clear risk disclosures, and label AI-generated content.
$1.4B
Meta captured facial recognition data from millions of Texans without consent, violating Texas biometric privacy laws. The company agreed to pay $1.4 billion over five years to settle the case. This is the largest privacy settlement obtained by a single state.
A coalition of 42 attorneys general filed a federal lawsuit against Meta, alleging that the company designed addictive features that harm youth mental health and violated COPPA by collecting children's data without parental consent. The lawsuit seeks injunctive relief, monetary penalties, and restitution.
$18.0M
Consumer fraud enforcement action where the FTC settled with Air AI for misleading entrepreneurs with false earnings and refund guarantees. The company will be banned from marketing business opportunities and pay a suspended $18 million judgment with $50,000 for consumer relief. Violations included failure to provide required disclosures and false claims under the Telemarketing Sales Rule and Business Opportunity Rule.
$17.0M
Consumer fraud enforcement action where the FTC settled with Xponential Fitness for violating the Franchise Rule by misrepresenting key information to franchisees, including time to open and costs. The settlement includes a $17 million monetary judgment for redress and prohibits future misrepresentations.
Consumer fraud and advertising enforcement action where the FTC sent warning letters to 97 auto dealership groups for deceptive pricing practices, such as advertising prices that exclude mandatory fees, misleading consumers about total costs. The letters stress the need for truthful and transparent pricing in the automotive industry.