The Federal Trade Commission (FTC) has accused Facebook’s parent organisation Meta of collecting data of underage users for commercial purposes, proposing extended limitations to prevent the monetisation of young users’ personal information.
On Wednesday, the US regulator proposed changes to the 2020 privacy order with Meta, accusing the tech giant of failing to comply with the rules. The FTC proposed a “blanket prohibition” against the monetisation of personal data, along with a new set of protections for children and teens.
“Facebook has repeatedly violated its privacy promises,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. Meta’s recklessness has put young users at risk and the company has to answer for its failures, he remarked.
According to the FTC, Meta misled parents regarding their ability to oversee their children’s communication through the Messenger Kids app and misrepresented information about the access app developers were granted to confidential user data.
Under the FTC’s proposed changes, Meta would be prohibited from collecting data of users under the age of 18 for business objectives, primarily including targeted advertising. The company would be restricted in its use of facial recognition technology and required to provide added protection for young users. Meta would be allowed to collect minors’ data for the provision of services or security purposes, however.
Meta will also be required to obtain users’ clear consent for any future uses of facial recognition technology, and to strengthen privacy program provisions in the 2020 order. These provisions concern privacy review, third-party monitoring, data inventory, access controls, and employee training.
Meta's statement on the FTC's political stunt. pic.twitter.com/XEPHvriKFY
— Andy Stone (@andymstone) May 3, 2023
Terming FTC’s proposed ban a “political stunt”, Meta said the company has not violated the 2020 agreement and operates what it called “an industry-leading privacy program”.
“Privacy has been and remains our priority,” Meta said in an official statement. “We work with the FTC, not only in the interest of being extremely transparent with them but also to ensure that we’re engaging with them regularly as we work to protect peoples’ privacy and constantly improve our program.”
Meta will “vigorously” fight the FTC’s action, it declared.
In 2019, Meta agreed to a record-breaking $5 billion penalty to settle allegations with the FTC that the company misled users about the degree of control they had over their personal data and violated their consent. The settlement was finalised in 2020.
