Business, Finance & Tech
FTC says Meta should be barred from monetizing data from younger users
(CNN) — The Federal Trade Commission on Wednesday accused Facebook-parent Meta of violating its landmark $5 billion privacy settlement and called for toughening up restrictions on the company, after alleging Meta has improperly shared user data with third parties and failed to protect children as it has promised.
The proposal to update the binding 2020 settlement with Meta marks a new front in the FTC’s long-running battle with the social media company, which has included multiple lawsuits aimed at breaking up the tech giant or preventing it from growing larger.
The FTC said Meta should be banned from monetizing data it collects from younger users. It added that the company should be barred from releasing any new features or products until a third-party auditor determines the company’s privacy policies do enough to protect users. It also called for new limitations on how Meta can use facial recognition technology.
If approved, the sweeping proposal could threaten the future of Meta’s business, including its expansion into virtual reality.
In a statement on Wednesday, Meta spokesman Andy Stone called the FTC proposal “a political stunt” and vowed to contest the effort.
“Despite three years of continual engagement with the FTC around our agreement, they provided no opportunity to discuss this new, totally unprecedented theory,” Stone said. “FTC Chair Lina Khan’s insistence on using any measure — however baseless — to antagonize American business has reached a new low.”
The FTC proposal comes as policymakers at all levels of government have increasingly blamed social media for furthering a mental health crisis among young people, prompting calls for strict regulations on how tech platforms can use the personal information of users under 18, target them with automated recommendations or seek to boost their engagement in other ways. Many of those proposals have taken the form of broad-based legislation, but the FTC proposal would represent a novel approach by amending a past consent order in connection with a single company that influences more than a billion users.
As part of the FTC’s call for changes, the agency said Meta had misled the public about its compliance with the historic settlement that resolved allegations surrounding the Cambridge Analytica data fiasco, as well as prior agreements with the agency.
Meta had allowed personal information to leak to apps that users of the platform were no longer using, the FTC alleged. That data sharing, the FTC claimed, contrasted with Meta’s public statements about how it cuts off a third-party app’s access to Facebook users’ information if the users stop using the third-party app for 90 days.
The FTC also alleged that multiple coding errors in a messaging app marketed to children, Messenger Kids, allowed users to connect to “unapproved contacts” in group video calls, and that the flaws went unresolved for weeks.
Those flaws meant parents could not control who their kids were speaking to on the app, in contrast to claims by Meta that they could, according to the FTC.
In addition to being a breach of Meta’s prior settlements, the alleged violations surrounding Messenger Kids also ran afoul of a federal children’s privacy law known as COPPA, the FTC said, because parents were not provided an opportunity to give Meta their consent before the company collected information on their kids.
Meta will have 30 days to respond to the proposed findings and changes, the FTC said, before the commission votes to finalize them. The FTC can unilaterally approve updates to the settlement, but Meta would have the opportunity to appeal that move in federal court, according to an agency fact sheet.
The FTC voted 3-0 to issue the proposed findings and changes, but one commissioner, Alvaro Bedoya, questioned whether the agency has the authority to impose such sweeping restrictions on Meta in light of the alleged violations.
In a statement, Bedoya said he was skeptical whether there was enough of a connection between Meta’s alleged harms and the proposed remedies to legally sustain a complete ban on monetizing the data of young users.
“I look forward to hearing additional information and arguments and will consider these issues with an open mind,” Bedoya said.
The-CNN-Wire
™ & © 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
By: Ceci Partridge
May 3, 2023
Latest Instagram Posts
Nearly a year after wildfires tore through Mountain Center, the scars are still visible along the Palms to Pines Highway. Now, fire crews are working to repair those burn areas and reduce the risk of flooding, erosion and mudslides when heavy rain arrives. The work includes fire-line suppression repairs, water bars and other measures designed to slow rainwater and keep burned soil from washing away. CAL FIRE Riverside County Battalion Chief Ryan Lubin says the steep terrain, dry brush and limited access continue to create challenges for mountain communities. With El Niño conditions expected to bring periods of heavy rain, officials say preparing now could help protect homes and communities from the aftermath of wildfire. The message from firefighters: preparation can save lives. Read the full story at NBCPalmSprings.com. #MountainCenter #Highway74 #PalmsToPines #CALFIRE #Wildfire WildfireRecovery FireSafety CoachellaValley SanJacintoMountains
Gas prices in Riverside County are climbing toward $6 a gallon — and that’s more than $1 higher than this time last year. A 15-gallon fill-up now costs about $86, leaving many drivers wondering how much longer they can absorb the rising cost. On this week’s Roggin Report, Fred Roggin and the panel debate how expensive gas is changing the way people travel, work and live — and why prices are so much higher here. Watch the full conversation at NBCPalmSprings.com. #RogginReport #FredRoggin #GasPrices #RiversideCounty #CoachellaValley
As the Lindsay Clancy trial begins to close, discussions regarding postpartum mental health and postpartum care have began to draw attention to the level of care needed after childbirth. Maria Noble Valdez looked at this discussion locally with a mental health expert and mom here in Coachella Valley. #lindsayclancytrial #pospartum #mentalhealth #760 #nationalnews
EVEN PARKING HAS A VIP SECTION? A mall in Bakersfield is charging shoppers up to $10 a day for preferred parking spots closer to the entrance. So we had to ask: Would you pay for a better parking spot? And could paid parking eventually come to Valley malls? Fred Roggin and the panel weigh in on this week’s Roggin Report. Would you pay $10 for a prime parking spot? #RogginReport #FredRoggin #CoachellaValley #PalmSprings #Parking
📞 Call 760.466.0800 or visit DAPHealth.org to schedule your appointment today! Flu viruses change every year, and getting vaccinated is the best way to strengthen your immune system, lower the risk of severe illness or hospitalization, and protect your loved ones. Sponsored by: DAP Health
A wedding day they’ll never forget. 💍🌊 A couple in the Philippines refused to let monsoon flooding wash away their special day — exchanging vows while standing waist-deep in floodwaters. Talk about making a splash on your wedding day! #WeddingDay #Philippines #Flooding #Monsoon #Wedding #Love #NBCPalmSprings
Idyllwild’s Mayor Max III is turning four! Yes, you read that right — Idyllwild has a canine mayor, and Mayor Maximus Mighty-Dog Mueller III is celebrating his fourth birthday this week. Max is part of a tradition that began in 2012, when the mountain community first elected a dog as mayor. His “campaign donations”? Belly rubs and dog treats. Mayor Max’s birthday celebration is happening Saturday, September 5, at Mountain Paws in Idyllwild, and the community is invited. Come celebrate the mayor — and maybe bring a treat. #NBCPalmSprings #Idyllwild #MayorMax #MayorMaxIII #PalmSprings CoachellaValley DogsOfInstagram DogMayor CaliforniaNews
☕️ Social Time with Thalia & Jerry
More than 2,000 rescues — and the year isn’t over yet. Santa Clemente lifeguards are keeping a close eye on the Pacific as they prepare for potentially stronger surf and bigger waves this winter. From Tower Zero, lifeguards monitor the entire beach and use cameras to spot trouble in the water. One of their biggest concerns? Rip currents, which can pull swimmers far from shore. With more rescues already this year than all of last year, lifeguards say the key is simple: be ready before someone needs help. #SanClemente #Lifeguards #OceanSafety #RipCurrents #BeachSafety SurfSafety SouthernCalifornia PacificOcean NBCPalmSprings
The Salton Sea is at a crossroads. From a massive restoration project bringing habitat back to the shoreline, to a potential lithium boom, and the new Salton Sea Conservancy, its future is being shaped right now. We’re taking you behind the scenes to explore what comes next for the Salton Sea. In our newest 30-minute report, go behind-the-scenes with the state’s conservation team, learn about updated timlines from lithium executives, and hear how former political leaders paved the way. Restoring the Salton Sea: Progress, Promise and Pressure. Streaming this Sunday on NBC Palm Springs. #saltonsea #lithiumvalley #saltonseaconservancy #marybono