FTC issues 6(b) order to social media and video streaming services

One number can make a big difference. Will the proclaimer walk 501 miles? How effective is Love Potion #10? Did the Beatles ever ask, when I’m 65, will you still need me? Will you still feed me? With so much focus on Section 5 of the FTC Act, some may overlook another important provision of the statute: Section 6(b). The FTC has issued 6(b) orders to nine well-known social media and video streaming platforms, requesting information about their data collection, use, storage, disclosure and deletion; advertising; user engagement; and demographic information.

Under Section 6(b), the FTC may require companies to submit “written reports or responses to specific questions” about their business practices. The FTC just sent 6(b) orders to Amazon.com, Inc., ByteDance Ltd. (operator of TikTok), Discord Inc., Facebook, Inc., Reddit, Inc., Snap Inc., Twitter, Inc., WhatsApp Inc. and YouTube LLC.

The purpose of these orders is to help the FTC understand how these companies use consumer data. Specifically, the 6(b) order seeks additional information on:

• How the Company collects, uses, tracks, estimates or obtains personal and demographic information;
• how they determine which ads and other content to show consumers;
• whether they apply algorithms or data analysis to personal information;
• How they measure, promote and research user engagement; and
• How their practices affect children and young people.

Each company has 45 days to respond from the date of receipt of the order.