A new report by the Federal Trade Commission (FTC) has sharply criticized major social media platforms for lacking proper safeguards in handling user data. The FTC described the companies’ data collection and retention practices as “woefully inadequate,” raising concerns about user privacy, especially in an era of AI-driven platforms.
The Platforms Under Scrutiny
The investigation included Meta (Facebook and Instagram), TikTok (ByteDance), Twitch (Amazon), and other major players like YouTube, Snapchat, Discord, Reddit, and X (formerly Twitter). While the report did not identify specific failures by name, it concluded that many of these platforms:
- Collect vast amounts of data with minimal transparency.
- Use tracking technologies, third-party data brokers, and AI tools to process personal information.
- Often fail to disclose exactly how this data is stored, shared, or monetized.
The FTC noted that even people who never use these platforms may have their information swept up through indirect means.
Children and Teens Most at Risk
The FTC’s report raised particular alarm over how these practices impact young users. Lawmakers in the U.S. House of Representatives are currently reviewing Senate-backed legislation aimed at reducing social media’s influence on teens.
Meanwhile, Meta has introduced teen-specific accounts with improved parental controls, but critics argue these efforts fall short.
Hidden Data Deals and AI Concerns
According to the FTC, many platforms are now harvesting content—even behind paywalls or login screens—to train AI models. These data grabs often occur without user consent or awareness, a practice the FTC called “deeply troubling.”
The report also criticized companies for failing to clearly identify how data was collected, with some unable to list all data sources or uses.
Industry Pushback
The Interactive Advertising Bureau (IAB), which represents companies like Amazon, TikTok, and Snapchat, slammed the FTC report. CEO David Cohen responded:
“We’re disappointed the FTC continues to paint our industry as a vehicle for mass surveillance. Consumers appreciate free, ad-supported services.”
But FTC Chair Lina Khan countered that the cost of these “free” services is often user privacy. She warned that the unchecked collection of data could lead to serious harm—from identity theft to stalking.
The Bigger Picture
As tech companies race to dominate the next wave of AI development, they are collecting more user data than ever before. But the FTC’s findings suggest that the industry has outpaced regulation—and users may be the ones paying the price.
With public trust in social media already shaky, this report could be a tipping point for how governments—and consumers—demand accountability.