The FTC issued orders under Section 6(b) of the FTC Act to nine social media and video streaming companies requiring them to provide data on their data collection, use, advertising practices, and effects on children and teens. The companies must respond within 45 days.
The companies are required to submit data on their practices within 45 days of receiving the order.
In-house legal teams should review vendor agreements, customer terms of service, and data processing agreements for clauses related to data collection, use, and sharing, especially those involving children and teens. Specific clauses to examine include consent mechanisms for minors, advertising and content delivery algorithms, data retention and deletion policies, and privacy policy incorporations. Changes may be needed to enhance parental consent processes, limit data collection from youth, improve transparency in ad targeting, and ensure compliance with children's privacy standards.
Entity
Amazon.com, Inc., ByteDance Ltd., Discord Inc., Facebook, Inc., Reddit, Inc., Snap Inc., Twitter, Inc., WhatsApp Inc., YouTube LLC
Also known as: Amazon, ByteDance, Discord, Meta, Reddit, Snap, Twitter, WhatsApp, YouTube
Industry
Social MediaOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2020/12/ftc-issues-orders-nine-social-media-video-streaming-services-seeking-data-about-how-they-collect-use
6b orders file special reports social media service provider
https://www.ftc.gov/reports/6b-orders-file-special-reports-social-media-service-providers
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"The orders are being sent to Amazon.com, Inc., ByteDance Ltd., which operates the short video service TikTok, Discord Inc., Facebook, Inc., Reddit, Inc., Snap Inc., Twitter, Inc., WhatsApp Inc., and YouTube LLC."
"under Section 6(b) of the FTC Act"
"The FTC is seeking information specifically related to how social media and video streaming services collect, use, track, estimate, or derive personal and demographic information"
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.
The FTC sent warning letters to 24 large healthcare services companies, cautioning that incomplete, inaccurate, or untimely pricing information for scheduled medical care may be unfair or deceptive. The letters urge recipients to review their price-disclosure practices and take corrective action; they announce no fine or formal order.
$1.9M
The FTC alleged that Premier Franchising Group LLC and Franchise Fastlane LLC made deceptive and unsubstantiated claims about the Premier Martial Arts franchise opportunity and violated the Franchise Rule. The proposed settlements require the companies to pay a combined $1.85 million to compensate franchisees, prohibit certain misrepresentations, and require Franchise Rule compliance; certain franchisees may also cancel their agreements without penalty.
The FTC, Utah, and Nevada sued Lens.com Inc., alleging that it advertised artificially low contact lens prices while hiding mandatory checkout charges and misleading consumers about its AutoRefill subscription. The complaint seeks to stop the alleged practices; the court has not yet decided the case, and no penalty or remedy has been imposed.