Facebook implicated of deceiving kids in grievance to FTC

Child supporters and other customer groups are prompting the Federal Trade Commission to examine whether Facebook breached federal law by apparently deceiving kids into investing their moms and dads’ cash on online video games. 

The grievance, which was sent out to the FTC on Thursday, originates from an examination by Reveal, a site run by the Center for Investigative Reporting. The not-for-profit wire service, mentioning 135 pages of unsealed court files from a 2012 class action suit, reported that the social media assisted in “friendly fraud” by motivating video game designers to let kids invest their moms and dads’ cash without permission. Facebook settled that suit in 2016.

Facebook stated it upgraded its policies in 2016 to attend to purchases made by minors.

“We have in place mechanisms to prevent fraud at the time of purchase and we offer people the option to dispute purchases and seek refunds,” a business spokesperson stated in a declaration. “As part of our long history of working with parents and experts to offer tools for families navigating Facebook and the web, Facebook also has safeguards in place regarding minors’ purchases.”

More than a lots advocacy groups, consisting of Common Sense Media and the Campaign for a Commercial Free Childhood, state the suit wasn’t adequate which the FTC need to examine to make sure Facebook does not make the most of kids and their households in the future.

“Facebook’s internal documents indicate a callous disregard for young people and a culture that prioritized profits over people,” according to a draft of the grievance seen by CNET. 

The FTC verified it got the grievance however stated it had no extra remark.

By apparently deceiving kids into investing their moms and dads’ cash, Facebook might have breached the FTC Act, a federal law that restricts “unfair or deceptive acts” from impacting commerce, the grievance states. The groups likewise argue that Facebook might have contravened of the Children’s Online Privacy Protection Act that safeguards kids under 13 years of ages.

“Documents demonstrate that Facebook knew that certain games were highly popular with young children, some as young as 5 years old,” the grievance mentioned. “This calls into question Facebook’s claims that its entire platform is for a ‘general audience,’ as these games appear targeted to youth.”

The groups likewise desire the FTC to check out the information Facebook gathered from kids and whether it erased this details. 

The FTC is currently examining Facebook over its personal privacy practices, and the social media might deal with a record-setting fine from the company. 

On Thursday, legislators advised the FTC to examine the grievance and revealed dissatisfaction in Facebook’s reaction to its concerns about the purchase of video games made by minors. In a letter to Sens. Edward J. Markey, D-Mass., and Richard Blumenthal, D-Conn., Facebook rejected claims it motivated “friendly fraud.”

Lawmakers, however, called Facebook’s responses to their concerns “inadequate.” 

“It shouldn’t take another settlement for Facebook to meet its ethical obligation to protect kids and families on its platform,” Markey and Blumenthal stated in a declaration. 

First released Feb. 21, 7: 20 a.m. PT.
Update, 8: 48 a.m. PT: Includes declaration from Facebook and FTC. Update, 3: 38 p.m. PT: Includes declaration from legislators.