Big tech is acting more like Big Brother.

That’s according to the latest report from the Federal Trade Commission (FTC). The Thursday release details how major social media and video streaming platforms have taken snooping to a whole new level.

"The report lays out how social media and video streaming companies harvest an enormous amount of Americans' personal data and monetize it to the tune of billions of dollars a year," said FTC Chair Lina Khan in a statement Thursday. "While lucrative for the companies, these surveillance practices can endanger people's privacy, threaten their freedoms, and expose them to a host of harms, from identify theft to stalking.”

The FTC mentions nine companies specifically:

• Amazon.com Inc‘s (NASDAQ:AMZN) Twitch
• Meta Platforms’ (NASDAQ:META) Facebook
• Alphabet Inc‘s (NASDAQ:GOOG)(NASDAQ:GOOGL) YouTube
• X.com, formerly Twitter
• ByteDance Ltd., which owns the video-sharing platform TikTok
• Discord Inc.
• Reddit, Inc. (NYSE:RDDT)
• WhatsApp Inc. (also owned by Meta)
• Snap Inc. (NYSE:SNAP)

Each company is monetizing the personal information of its users while failing to provide sufficient privacy protections, the FTC claims.

“Several firms' failure to adequately protect kids and teens online is especially troubling,” Khan added, calling the report's findings “timely,” particularly as policymakers consider legislation to protect people from “abusive data practices."

Unchecked Data Collection And Sharing

In 2020, the FTC issued orders to the nine social media and video streaming companies, requiring them to provide data on how they collect, use and present personal information.

What regulators found was that the platforms collected massive amounts of personal data, including from data brokers, not only from users but also from non-users. The data then fuels automated systems for targeted advertising and algorithmic content delivery.

The agency flagged these companies for a lack of transparency and making little effort to inform users or allow them to opt out of data collection. In some cases, the companies failed to delete user data even when requested, raising further concerns about data retention and privacy rights, the report continued.

The FTC found that companies employed privacy-invasive technologies, such as tracking pixels, to monitor users’ behavior and serve personalized ads. These advertising models are the backbone of their businesses, often in direct conflict with user privacy. Companies also shared collected data broadly with third parties, amplifying the risk of misuse.

See Also: New Instagram Study to Investigate Social Media’s Effects On Teen Mental Health

Impact On Children And Teens

The report reveals social media and streaming platforms failed to protect younger users.

Companies either claimed there were no children on their platforms or their services weren't designed for minors. The FTC slammed it as an attempt to bypass regulations like the Children's Online Privacy Protection Act (COPPA).

However, the report highlights many platforms treat teens similarly to adults, without implementing additional safety measures or privacy protections for these vulnerable users.

The report wasn’t without its critics, including those from within the FTC.

Commissioner Andrew Ferguson, for example, voted to approve the publication of the report but argues it “should have focused more on proposing legislative improvements to the online rights of parents and children rather than accusing companies of violating existing law under novel, dubious theories.”

Ferguson argued against the claim that consumers can suffer "extreme harm" by being shown a targeted advertisement. He called it “a gratuitous attack on the online economy made with the goal of justifying heavy-handed regulation.”

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