Meta slams FTC’s proposed ban on Facebook from monetizing children’s data as ‘political stunt’ – Music Business Worldwide

Facebook parent Meta has accused the US Federal Trade Commission of aiming a “political stunt” at the company after the regulator proposed a blanket ban on Facebook against monetizing the data of underaged users on its platform.

The FTC last week (May 3) alleged that Meta violated a 2019 order — which took effect in 2020 — related to its handling of user data. 

The commission accused Facebook of misleading parents about their ability to control with whom their children communicated through the Messenger Kids app, and of misrepresenting the access it provided some app developers to private user data.

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said “Facebook has repeatedly violated its privacy promises.”

“The company’s recklessness has put young users at risk, and Facebook needs to answer for its failures.”

Samuel Levine, 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 FTC is now proposing to ban Meta “from profiting from data it collects, including through its virtual reality products, from users under the age of 18.”

The company will also be subject to other limitations including its use of facial recognition technology, and will be required to provide additional protections for users. 

In response to the FTC’s proposal, Meta argued in a statement that the commission lacks the authority to impose new obligations on the company without a basis in the original agreement or alleged violations. 

Meta said the FTC was relying on incidents that had occurred and been disclosed years ago, and that the company had since invested $5 billion in a privacy program that embeds privacy into its products from the start.

The social media giant argued that the FTC’s complaint was a “political stunt,” intended to single out an American company while allowing Chinese firms such as TikTok to operate without constraint on US soil.

“Let’s be clear about what the FTC is trying to do: usurp the authority of Congress to set industry-wide standards and instead single out one American company,.”

META

“Let’s be clear about what the FTC is trying to do: usurp the authority of Congress to set industry-wide standards and instead single out one American company,” Meta said.

Meta said the timing of the complaint was suspicious, given that the incidents in question occurred years ago and that it constantly updates the FTC. The complaint was lodged just before an independent assessor was scheduled to update the regulator on Meta’s compliance work and program enhancements made over the past two years.

The Facebook and Instagram parent said it was “focused on working productively with the agency to protect people’s privacy,” but argued that the FTC’s actions suggested an agency more focused on getting headlines than protecting Americans’ privacy.

Among the measures that Meta claimed to have carried out to enhance its privacy practices include reviewing an average of 1,200 products and features per month across the company and allocating over 800 engineers to rebuild portions of its infrastructure to improve data protection.

Meta further slammed  FTC Chair Lina Khan’s apparent willingness to use “any measure” to antagonize American business, adding that the regulator’s latest action ignored key facts about the company’s privacy program.

Apart from the blanket ban on monetizing the data of children and teens under 18, the FTC is also proposing a pause on the launch of new products and services by Meta without a written confirmation from the assessor that its privacy program is in full compliance with the order’s requirements.

Meta would also be required to ensure compliance with the FTC order for any companies it acquires or merges with, and would be required to disclose and obtain users’ affirmative consent for any future uses of facial recognition technology.

The social media company concluded that the FTC’s action “sends a chilling message to all American businesses about how to work with the FTC productively on these very important issues.”

“We have spent vast resources building and implementing an industry-leading privacy program under the terms of our FTC agreement and will continue to prioritize our work to improve it because privacy isn’t something that is ever “done” for us, it’s part of what we do,” said Meta.

The FTC’s action came a month after Italy’s competition watchdog said it is launching an investigation into Meta’s handling of licensing negotiations with the Italian Society of Authors and Publishers (SIAE).

That probe follows Meta’s failure to renew a deal with SIAE to license the use of the society’s repertoire on its platforms.

Music Business Worldwide