FTC’s ‘Blanket Prohibition’ Would Prohibit Facebook From Profiting Off of Youth Data

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FTC’s ‘Blanket Prohibition’ Would Prohibit Facebook From Profiting Off of Youth Data

The Federal Trade Commission is proposing new protections that would prohibit Facebook from profiting off of youth data.

Facebook and Meta have come under growing criticism for the impact they have on young ones. Unfortunately, young people represent an important market, meaning that Facebook and other social media companies are strongly incentivized to profit from young people’s activities.

The FTC wants to put a stop to it, and is proposing new changes to the 2020 privacy order between the agency and Facebook.

“Facebook has repeatedly violated its privacy promises,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The company’s recklessness has put young users at risk, and Facebook needs to answer for its failures.”

The agency’s new proposals would prohibit Facebook from monetizing youth data in any way:

As part of the proposed changes, Meta, which changed its name from Facebook in October 2021, would be prohibited from profiting from data it collects, including through its virtual reality products, from users under the age of 18. It would also be subject to other expanded limitations, including in its use of facial recognition technology, and required to provide additional protections for users.

The FTC outlined five changes to the 2020 order, changes that would impact all of Facebook’s services:

• Blanket prohibition against monetizing data of children and teens under 18: Meta and all its related entities would be restricted in how they use the data they collect from children and teens. The company could only collect and use such data to provide the services or for security purposes, and would be prohibited from monetizing this data or otherwise using it for commercial gain even after those users turn 18.
• Pause on the launch of new products, services: The company would be prohibited from releasing new or modified products, services, or features without written confirmation from the assessor that its privacy program is in full compliance with the order’s requirements and presents no material gaps or weaknesses.
• Extension of compliance to merged companies: Meta would be required to ensure compliance with the FTC order for any companies it acquires or merges with, and to honor those companies’ prior privacy commitments.
• Limits on future uses of facial recognition technology: Meta would be required to disclose and obtain users’ affirmative consent for any future uses of facial recognition technology. The change would expand the limits on the use of facial recognition technology included in the 2020 order.
• Strengthening existing requirements: Some privacy program provisions in the 2020 order would be strengthened, such as those related to privacy review, third-party monitoring, data inventory and access controls, and employee training. Meta’s reporting obligations also would be expanded to include its own violations of its commitments.

Meta has 30 days to respond to the FTC’s proposals.

FTC’s ‘Blanket Prohibition’ Would Prohibit Facebook From Profiting Off of Youth Data
Matt Milano

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