FTC Plans to Ban Meta From Monetizing Children's Data

Privacy is a constant concern when it comes to social media platforms. With the accessibility to anyone's profile, there have been concerns with how these platforms handle the data of kids that sign up for accounts.

Facebook and Meta
(Photo : Dima Solomin/Unspash)

The Federal Trade Commission (FTC) announced their plans this Tuesday to ban Meta from making money from data of those under 18 years old. The said company has already previously failed to comply with a 2020 privacy order by misleading parents and misrepresenting the ways external app developers access data. 

Meta Violating Privacy Policies

FTC has proposed a blanket ban on the data collected from users aged under 18, whether they use Instagram, Whatsapp, Instagram, Facebook, or Quest virtual reality headsets.

Samuel Levine, director of FTC's Bureau of Consumer Protection, states, "Facebook has repeatedly violated its privacy promises." He adds, "The company's recklessness has put young users at risk, and Facebook needs to answer for its failures."

FTC explains that this is already the third time that they have taken action against Facebook and Meta over privacy concerns. The most significant is the incident that occurred in 2020 where FTC reached a $5 billion settlement with the company over the Cambridge Analytica scandal

According to FTC, "Along with failing to comply with the 2020 order, Meta has violated the Children's Online Privacy Protection Act (COPPA)." 

As a way to update the 2020 order, FTC proposed a series of actions, including:

  • A blanket prohibition against monetizing from data of children and teens under 18.
  • A pause on Meta's plans to launch new products and services.
  • Limiting future uses of facial recognition technology. Meta has to disclose and obtain the user's affirmative consent for the use of facial recognition technology.

For now, they are providing proposals, not orders, because FTC wants to give Meta the opportunity to respond before the agency reaches a final decision.  

Related Article: Meta Improves Privacy Terms and Conditions, Insists That No Selling of Information Happens 

Meta's Response to FTC's Proposal 

Today, Meta called out the FTC proposal by calling it a "political stunt" and vowed to fight against the ban. Andy Stone, Meta's spokesperson, states that Meta was being singled out while allowing Chinese companies to operate without constraint on American soil. 

Stone also accuses Lina Khan, a chairperson of FTC, of antagonizing the American business. "Despite three years of continual engagement with the FTC around our agreement, they provided no opportunity to discuss this new, totally unprecedented theory," Stone says. 

FTC argues that Meta immediately violated FTC's 2020 order when it went into effect. The FTC states that Meta lied to parents about the control they have over who could talk to their children on Facebook Messenger. 

Messenger often allowed children to talk to people who weren't part of the parent's approved contacts in group texts and calls. According to FTC, Meta also allowed third-party developers to access user data despite Meta pledging to revoke information access if users haven't accessed their apps within a 90-day period. 

Read Also: How to Protect Yourself Online: Use Browser Privacy Extensions 

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