A PYMNTS Company

FTC’s Latest Report Lays Groundwork for Stricter Data Regulations

By  |  September 24, 2024

According to TechCrunch, a newly released report by the Federal Trade Commission (FTC) reveals the extent to which social media and streaming platforms gather and monetize user data, although many of the findings are unlikely to surprise those familiar with the industry. The report serves as a foundational document, paving the way for potential future regulations aimed at improving transparency in data collection practices.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The origins of this report trace back to late 2020, when the FTC initiated a broad inquiry into nine major tech companies with substantial data collection capabilities. The agency sought detailed disclosures about their business models, specifically targeting how they collect, retain and utilize user data. Key questions posed included: What types of data are collected? How long is the data retained? Do companies comply when users request data deletion? And crucially, who are the data’s ultimate purchasers and how do they employ it? These inquiries were designed to preempt potential evasions or omissions in the companies’ responses.

    However, as noted by Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, the companies’ responses were predictably evasive. Per TechCrunch, Levine pointed out that many of the firms offered limited and self-serving replies that obscured their true data collection practices. He emphasized that their responses seemed meticulously crafted to withhold critical information. The report details a variety of dubious practices that reflect both malice and incompetence within the industry.

    Read more: Tech Giants Push for Leniency in EU AI Regulations

    Nearly four years have passed since the FTC first initiated this inquiry. During that time, many companies have made adjustments to their data practices, and some have faced fines or other penalties. Yet, despite the FTC’s shift in leadership to Chair Lina Khan, who has advocated for stricter regulation, there has been no substantial overhaul of rules governing the sale of sensitive user data, such as information related to health challenges.

    As the FTC continues to build its case for new regulations, the report illustrates the challenges ahead in curbing the rampant data collection practices of tech giants. According to TechCrunch, the agency’s findings could bolster future regulatory efforts.

    Source: TechCrunch