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FTC Report Confirms: Commercial Surveillance is Out of Control
A new Federal Trade Commission (FTC) report confirms what EFF has been warning about for years: tech giants are widely harvesting and sharing your personal information to fuel their online behavioral advertising businesses. This four-year investigation into the data practices of nine social media and video platforms, including Facebook, YouTube, and X (formerly Twitter), demonstrates how commercial surveillance leaves consumers with little control over their privacy. While not every investigated company committed the same privacy violations, the conclusion is clear: companies prioritized profits over privacy.
While EFF has long warned about these practices, the FTC’s investigation offers detailed evidence of how widespread and invasive commercial surveillance has become. Here are key takeaways from the report:
Companies Collected Personal Data Well Beyond Consumer Expectations
The FTC report confirms that companies collect data in ways that far exceed user expectations. They’re not just tracking activity on their platforms, but also monitoring activity on other websites and apps, gathering data on non-users, and buying personal information from third-party data brokers. Some companies could not, or would not, disclose exactly where their user data came from.
The FTC found companies gathering detailed personal information, such as the websites you visit, your location data, your demographic information, and your interests, including sensitive interests like “divorce support” and “beer and spirits.” Some companies could only report high-level descriptions of the user attributes they tracked, while others produced spreadsheets with thousands of attributes.
There’s Unfettered Data Sharing With Third Parties
Once companies collect your personal information, they don’t always keep it to themselves. Most companies reported sharing your personal information with third parties. Some companies shared so widely that they claimed it was impossible to provide a list of all third-party entities they had shared personal information with. For the companies that could identify recipients, the lists included law enforcement and other companies, both inside and outside the United States.
Alarmingly, most companies had no vetting process for third parties before sharing your data, and none conducted ongoing checks to ensure compliance with data use restrictions. For example, when companies say they’re just sharing your personal information for something that seems unintrusive, like analytics, there's no guarantee your data is only used for the stated purpose. The lack of safeguards around data sharing exposes consumers to significant privacy risks.
Consumers Are Left in the Dark
The FTC report reveals a disturbing lack of transparency surrounding how personal data is collected, shared, and used by these companies. If companies can’t tell the FTC who they share data with, how can you expect them to be honest with you?
Data tracking and sharing happens behind the scenes, leaving users largely unaware of how much privacy they’re giving up on different platforms. These companies don't just collect data from their own platforms—they gather information about non-users and from users' activity across the web. This makes it nearly impossible for individuals to avoid having their personal data swept up into these vast digital surveillance networks. Even when companies offer privacy controls, the controls are often opaque or ineffective. The FTC also found that some companies were not actually deleting user data in response to deletion requests.
The scale and secrecy of commercial surveillance described by the FTC demonstrates why the burden of protecting privacy can’t fall solely on individual consumers.
Surveillance Advertising Business Models Are the Root Cause
The FTC report underscores a fundamental issue: these privacy violations are not just occasional missteps—they’re inherent to the business model of online behavioral advertising. Companies collect vast amounts of data to create detailed user profiles, primarily for targeted advertising. The profits generated from targeting ads based on personal information drive companies to develop increasingly invasive methods of data collection. The FTC found that the business models of most of the companies incentivized privacy violations.
FTC Report Underscores Urgent Need for Legislative Action
Without federal privacy legislation, companies have been able to collect and share billions of users’ personal data with few safeguards. The FTC report confirms that self-regulation has failed: companies’ internal data privacy policies are inconsistent and inadequate, allowing them to prioritize profits over privacy. In the FTC’s own words, “The report leaves no doubt that without significant action, the commercial surveillance ecosystem will only get worse.”
To address this, the EFF advocates for federal privacy legislation. It should have many components, but these are key:
- Data minimization and user rights: Companies should be prohibited from processing a person’s data beyond what’s necessary to provide them what they asked for. Users should have the right to access their data, port it, correct it, and delete it.
- Ban on Online Behavioral Advertising: We should tackle the root cause of commercial surveillance by banning behavioral advertising. Otherwise, businesses will always find ways to skirt around privacy laws to keep profiting from intrusive data collection.
- Strong Enforcement with Private Right of Action: To give privacy legislation bite, people should have a private right of action to sue companies that violate their privacy. Otherwise, we’ll continue to see widespread violation of privacy laws due to limited government enforcement resources.
Using online services shouldn't mean surrendering your personal information to countless companies to use as they see fit. When you sign up for an account on a website, you shouldn’t need to worry about random third-parties getting your information or every click being monitored to serve you ads. For now, our Privacy Badger extension can help you block some of the tracking technologies detailed in the FTC report. But the scale of commercial surveillance revealed in this investigation requires significant legislative action. Congress must act now and protect our data from corporate exploitation with a strong federal privacy law.
