FTC Cracks Down on Meta's Facebook for Privacy Violations, Proposes Restrictions on Underage Data Collection

FTC facebook Meta Privacy underage users data collection

By E.Baloyo , Parent Herald May 04, 01:11 am

Photo: (Photo : Drew Angerer /Getty Images)

In an effort to hold Meta's Facebook accountable for the safety and protection of the data of underage users, the Federal Trade Commission (FTC) has accused the company of deceiving parents regarding their children's privacy.

As a solution, the FTC has proposed an updated privacy agreement that would include a ban on Meta profiting from the data collected from users who are under the age of 18. This new restriction aims to ensure that Meta, as the owner of Facebook, cannot benefit financially from underage users' data.

FTC Suggest Meta To Restrict Data Collection

The recent allegations by the FTC regarding Facebook's data privacy violations have led to proposed changes to the agency's 2020 privacy order with Facebook.

According to the New York Post, Samuel Levine, the director of the FTC's Bureau of Consumer Protection, has called for Facebook to be held accountable for its failures.

One of the proposed changes is a prohibition against monetizing any data collected on users under the age of 18. This move aims to protect minors from being exploited for profit by Meta's services, including Instagram, Facebook, WhatsApp, and Oculus.

CNET reported that the FTC also proposes a requirement that any companies Meta acquires or merges comply with the 2020 privacy order.

Additionally, the FTC proposes a requirement for disclosure of any future uses of facial recognition technology, and users' permission must be obtained in this area. This is an important step towards transparency in data usage, which would empower users to make informed decisions about how their information is collected and used.

The proposition entails enhancing Meta's privacy assessments, monitoring by third-party entities, maintaining a data inventory, implementing access controls, and providing privacy training to employees. This would help to ensure that data privacy is taken seriously within the company and that employees are trained to handle user data with care and respect.

Furthermore, the proposal suggests a pause on launching new products and services without written approval to ensure compliance with the 2020 privacy order.

This move would help to ensure that any new products or services launched by Meta do not contain any gaps or weaknesses in complying with the order.

Meta Fights Back Allegations

According to NBC, Meta, the parent company of Facebook, has dismissed the recent allegations by the FTC as a political stunt.

According to a Meta spokesperson, the company has not had the chance to address the accusations and is claiming that the FTC is unfairly targeting a US company while allowing Chinese companies like TikTok to operate without limitations in the country, accusing FTC Chair Lina Khan of using unfounded measures to antagonize American businesses.

The spokesperson further stated that Meta has dedicated considerable resources to establish a top-notch privacy program in compliance with its FTC agreement, and the company plans to strongly oppose the FTC's action, believing it will ultimately emerge victorious.

According to the FTC, it has taken action against Facebook for the third time for allegedly failing to protect users' privacy. The Commission initially filed a complaint against Facebook in 2011 and secured an order in 2012 prohibiting the company from misrepresenting its privacy practices.

However, the Commission subsequently filed a complaint alleging that Facebook violated the first order within months of it being finalized by engaging in misrepresentations that fueled the Cambridge Analytica scandal.

The FTC has asked Meta to respond within 30 days to the proposed findings from the agency's investigation. This action underscores the FTC's commitment to holding companies accountable for protecting users' privacy and ensuring that they comply with regulations and industry standards.