The US Federal Trade Commission (FTC) has raised significant concerns over the massive AI data collection efforts by social media companies, shedding light on the opaque nature of their practices. The report, emphasizes the vast amount of user information being collected, shared, and processed by social media giants such as Meta, ByteDance’s TikTok, and Amazon’s Twitch, with little transparency or control over its use, especially in systems incorporating artificial intelligence (AI).
Inadequate Data Management by Leading Platforms
The FTC’s report revealed that the data management policies of these companies are far from sufficient, describing them as “woefully inadequate.” Meta, TikTok, and Twitch were singled out, along with platforms like YouTube (owned by Google), Snap, Discord, Reddit, and X (formerly Twitter). Despite anonymizing specific practices in the report, the findings indicate serious deficiencies in how these platforms handle user data.
According to the FTC, companies engage in AI data collection through various methods, including tracking technologies used in online advertising and purchasing information from third-party data brokers. This data collection extends not just to their users but also to individuals who have never used their services, further intensifying privacy concerns.
FTC Chair Warns of Risks in AI Data Collection
FTC Chair Lina Khan expressed deep concern over the implications of these surveillance practices. She stated, “While lucrative for the companies, these surveillance practices can endanger people’s privacy, threaten their freedoms, and expose them to a host of harms, from identity theft to stalking.” With social media platforms increasingly relying on AI data collection to fuel their AI systems, the risks to user privacy are becoming more pronounced.
Data privacy has become a particularly pressing issue when it comes to children and teenagers. Legislative efforts are underway in the US House of Representatives to address the adverse effects of social media on younger users, including new measures passed by the Senate in July, 2024. In response, companies like Meta have begun rolling out teen accounts with enhanced parental controls to offer more privacy protection.
AI Data Collection Fuels Big Tech’s Expansion into AI
As the race for AI dominance intensifies, tech companies are increasingly scrambling to acquire massive amounts of data to train their emerging artificial intelligence systems. The FTC found that these data deals often occur behind closed doors, with little to no notification provided to users. Frequently, this involves content hidden behind paywalls or login screens, raising further ethical concerns about AI data collection.
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Moreover, the FTC discovered that many companies were unable to account for all the ways in which they collect and use user data. Most of these platforms gather not only behavioral data but also sensitive information such as age, gender, income, education, and even family status, using it to fuel their AI models and advertising strategies.
