This article was written with the assistance of ChatGPT.
The news: The Federal Trade Commission (FTC) has proposed to bar Meta from monetizing children's data after it allegedly violated a privacy order from 2020. The agency wants to keep the social giant from monetizing data of users under 18, meaning that information from minors could only be used for security reasons and not for profit once they turn 18.
What’s more: The FTC is accusing Meta of violating the Children's Online Privacy Protection Rule (COPPA) by misleading parents about parental controls on its Messenger Kids app.
Why it matters: The proposed changes could have massive financial implications.
Worth noting: In February removed the ability for advertisers to target minors on Facebook and Instagram by gender and other demographics; targeting options were already limited for audiences that included individuals under 18 in most countries, under 20 in Thailand, and under 21 in Indonesia.
Analyst insight: "The FTC’s order would have a substantial impact on Meta’s ability to innovate and launch new products," said principal analyst Debra Aho Williamson. "It would prohibit Meta from launching new or modified products unless it gets written confirmation from an assessor that it is in compliance with the order. If this portion of the proposed changes takes effect, the FTC will effectively be putting an enormous speed bump on Meta’s new-product roadmap.”
Our take: It would be premature to assume the FTC’s proposal is binding. Far from it. But its action does follow a growing trend among lawmakers in at least two dozen states, including Utah, to introduce bills that would limit young people's access to certain websites such as social platforms.