• by Wendy Davis  @wendyndavis, October 7, 2024

A privacy watchdog on Monday urged federal and state officials to investigate streaming video companies' data collection and targeted advertising practices.

Connected television (CTV) “has become a major focal point for the commercial surveillance marketing system,” Jeffrey Chester, executive director of the Center for Digital Democracy, says in a letter sent to the Federal Trade Commission.

“Our CTV data flows into an array of state-of-the-art advertising technology systems operated by many of the leading digital media, TV manufacturer and entertainment companies,” Chester writes. “Through elaborate partnerships with data brokers, consumer 'identity' specialists, ad agencies, retailers, supermarkets, data 'clean rooms,' and platforms, CTV data is further enhanced to deliver personalized targeting to individuals and families across online and offline environments.”

The group is urging the FTC to address CTV companies' use of ad-tech, with an eye toward antitrust, privacy, and consumer protection issues. The watchdog made similar requests to other government agencies, including the Federal Communications Commission, and the California Privacy Protection Agency.

The group's request for a crackdown comes just three weeks after the FTC reported that social media companies and some streaming video services threaten consumers' privacy by collecting a “staggering” amount of data.

That report -- “A Look Behind the Screens: Examining the Data Practices of Social Media and Video Streaming Services” -- examined data collection by some companies that offer streaming video, including YouTube and Amazon but not Netflix, Tubi, Hulu or other large streaming providers.

The Center for Digital Democracy on Monday also released the report “How TV Watches Us: Commercial Surveillance in the Streaming Era,” which criticizes the data practices of free ad-supported streaming services, such as Tubi, as well as paid services that offer cheaper subscriptions to viewers who accept ads.

“Millions of Americans are being forced to accept unfair terms in order to access video programming, which threatens their privacy and may also narrow what information they access -- including the quality of the content itself,” that report states. “Only those who can afford to pay are able to 'opt out' of seeing most of the ads--although much of their data will still be gathered.”

The authors add: “The capabilities of CTV also expose viewers to ads based on data profiles that can reflect highly personal and sensitive information -- related to health, financial history, race or ethnicity, and political interests.”

That report calls for new privacy laws that would require CTV companies to restrict the amount of data they gather about viewers.

“Data collection in CTV should be prohibited beyond what is minimally needed for the basic functioning of the service -- such as delivery of programming,” the report states. “The multiple methods used to surveil viewers--on sets, networks, devices and video apps--are excessive and should be stopped. Services should not be fully tied to data collection and advertising; subscriptions rates or fees should be fair and subject to regulation.”

In addition to the new report, the Center for Digital Democracy specifically argues in a memo to California officials that some CTV companies are likely violating that state's privacy law, which requires companies to allow consumer residents to opt out of targeted advertising -- meaning ads served based on data collected across different businesses.

That memo -- authored by someone described as a “leading privacy attorney” -- alleges that even though many streaming companies currently say they allow consumers to opt out of personalized ads, the companies' practices might not be sufficient to comply with the law.

“It is not clear whether these services are actually in substantive compliance with California law, including specifically the requirements that opt-outs be easy to effectuate and involve minimal steps, or that logged-in consumers be able to have choices honored across different devices,” that memo says.

“It is also unclear if third parties are appropriately honoring rights, or if companies are communicating opt-out rights with those they are required to,” the author continues. “Privacy policies are confusing and at times contradictory in their categorization of information. And even in instances where there may be technical compliance, it is unclear that consumers’ preferences and wishes are in fact being respected.”

California's attorney general has already warned streaming apps and sellers streaming devices that they must allow residents to easily opt out of the use of their data for advertising purposes.

“Consumers that are using a SmartTV should be able to navigate to the settings menu in a streaming service’s mobile app and enable the service’s 'Do Not Sell My Personal Information' setting,” Attorney General Rob Bonta's office stated in January.