U.S. Privacy and Data Protection | Insights | September 2024 (Federal Law)

Federal and state regulators are continuing to review business data collection and use practices, which is a signal to companies using large amounts of data to review their practices.

In fact, a recent Federal Trade Commission (FTC) staff report claimed that major social media and video streaming platforms, including Meta, TikTok, YouTube, and Twitch, are purportedly engaging in extensive data surveillance to monetize users' personal information. These companies are alleged to collect vast amounts of data—often indefinitely— of both users and non-users, implicating privacy concerns. The report highlights the claimed inadequate safeguards implemented for children and teenagers, and how their data is vulnerable to privacy-invasive tracking technologies intended for targeted advertising.

FTC Chair Lina Khan warned that while these practices are profitable for companies, they jeopardize user privacy and security, risking identity theft, stalking, and mental health issues for younger users.¹ Despite laws meant to protect kids, such as the Children’s Online Privacy Protection Act (COPPA), many platforms still fail to adequately address these privacy requirements, and treat children and teenagers as adults with little distinction or protection. The report also flagged potential monopolistic practices, as companies amass user data that could reduce competition, limiting choices for consumers and how their data may be handled. Although certain points are more relevant for large tech platforms, FTC comments, including about data on children, are relevant generally for companies collecting and using data.

For example, recommendations for businesses from the staff report include:

• Limit data collection, enforce clear data retention rules, minimize sharing, delete unused data, and adopt simple, user-friendly privacy policies.

• Avoid collecting sensitive information through invasive ad tracking.

• Review ad-targeting policies, especially for sensitive categories.

• Offer users more control and transparency over how their data is used

• Acknowledge children and teenagers as different users than adults by offering them stronger and clearer privacy protections by going beyond COPPA’s minimum safety standards

As pressure from the FTC will only continue to push businesses to be aware of their data and privacy practices, it is now more important than ever to stay up to date with the everchanging landscape. Kronenberger Rosenfeld, LLP regularly assists businesses with digital advertising and data privacy issues, including proactive compliance and experienced advice if legal issues arise. If you need assistance for your business, you can contact our firm with our online case submission form here.