The Federal Trade Commission (FTC) is proposing a ban on Meta, the parent company of Facebook, from monetizing data collected from users under 18 years old. This follows the regulator’s accusations that Meta had misled parents about the safety of its Messenger Kids messaging product. The FTC also claimed that Facebook had shared user data with third parties and had failed to protect children’s privacy. These proposals could threaten the company’s expansion, even into virtual reality.
The FTC previously settled with Facebook in 2019 over privacy concerns, with the social media giant paying a $5 billion penalty and agreeing to a privacy program with an independent assessor. However, the FTC found weaknesses in Facebook’s programs during a subsequent report by the assessor. Meta, the rebranded name of Facebook, has 30 days to respond to the latest findings by the FTC.
Meta has been accused of not providing enough security and privacy for its users, particularly children. Instagram, owned by Meta, had been working on a version for children under 13, but the project was abandoned. Last year, Meta was fined €400 million by the Irish data privacy regulator for mishandling children’s data on Instagram.
The FTC has proposed changes to the 2020 privacy order against Meta, which would affect Facebook, WhatsApp, Instagram, and Oculus. These changes include requiring parental or user consent for new products and preventing the monetization of under-18 users’ personal data. Mergers or acquisitions by Meta would also now be required to adhere to the 2020 privacy order.
Facebook launched Messenger Kids in 2017. The app was designed for children to chat with parents and friends that were approved by their parents. Although the app was not supposed to display ads or collect data for marketing purposes, it did collect data to run the service, raising concerns from child development experts.
In total, Meta has been subject to three FTC orders related to privacy and content control issues. The FTC wants to force the company to provide more transparency about how it uses and shares data. However, Meta accused the FTC of a “political stunt” that usurps the authority of Congress. The company promised to “vigorously fight” the FTC’s moves. Meta is still to respond to the proposals made by the FTC.
