FTC proposes barring Meta from monetizing kids’ data
Mark Zuckerberg, chief executive officer of Meta Platforms Inc., left, arrives at federal court in San Jose, California, US, on Tuesday, Dec. 20, 2022.
David Paul Morris | Bloomberg | Getty Images
The Federal Trade Commission proposed on Wednesday barring Facebook parent company Meta from monetizing kids’ data after it says the company violated a 2020 privacy order.
According to the FTC, an independent assessor found “several gaps and weaknesses in Facebook’s privacy program” that posed “substantial risks to the public.”
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The company had agreed to independent assessments of its updated privacy program as part of the 2020 settlement, under which Facebook paid a $5 billion civil penalty following an FTC investigation around the Cambridge Analytica data scandal. The FTC alleges Facebook also violated an earlier 2012 order by continuing to allow app developers access to private user information. Facebook allowed third-party apps to access user data until mid-2020 in some cases, the FTC alleges.
The FTC is also accusing Meta of violating the Children’s Online Privacy Protection Rule by misrepresenting parental controls on its Messenger Kids app. The COPPA Rule requires parental consent for websites to collect personal information from kids under 13. The FTC alleged that while the company marketed that the app would only allow kids to talk with contacts their parents approved, children were able to communicate with additional contacts in group chats or group video calls in some circumstances.
As a result, the FTC is proposing to strengthen the terms of the 2020 agreement to put additional restrictions on the company, which would apply to all of Meta’s services including Facebook, Instagram, WhatsApp and Oculus. The proposed terms include a blanket ban on monetizing data from users under 18. That means any data collected from these users could only be used for security reasons and any data collected while users are under age could not be later monetized once they turn 18.
The FTC also seeks to impose a pause on the company’s ability to launch new or modified products or services until the independent assessor confirms in writing that Meta’s privacy program is in full compliance with the terms of the agreement. Compliance with the 2020 order would also extend to any companies Meta acquires or merges with.
The proposal would also require Meta to get affirmative consent from users for future use of facial recognition technology.
The agency gave Meta 30 days to respond to the FTC’s findings. After Meta responds, the Commission will decide whether updating the 2020 order “is in the public interest or justified by changed conditions of fact or law.”
The Commission, which currently has no Republicans serving in what is usually a five-member panel due to recent resignations, voted 3-0 to approve the order to show cause.
Commissioner Alvaro Bedoya, a Democrat, released a statement saying that while he voted to order Meta to show cause for why the FTC need not modify its 2020 agreement, he has concerns about whether the alleged violations warrant a change, especially the blanket monetization ban.
“There are limits to the Commission’s order modification authority,” Bedoya wrote, adding that there needs to be “a nexus between the original order, the intervening violations, and the modified order.”
Facebook spokesperson Andy Stone called the FTC’s move a “political stunt.”
“Despite three years of continual engagement with the FTC around our agreement, they provided no opportunity to discuss this new, totally unprecedented theory,” Stone said. “We have spent vast resources building and implementing an industry-leading privacy program under the terms of our FTC agreement. We will vigorously fight this action and expect to prevail.”
WATCH: Facebook battles Apple over user privacy features in iOS update
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OpenAI CEO Sam Altman speaks during the Snowflake Summit in San Francisco on June 2, 2025.
Justin Sullivan | Getty Images News | Getty Images
OpenAI has been awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools.
The department announced the one-year contract on Monday, months after OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”
“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” the Defense Department said. It’s the first contract with OpenAI listed on the Department of Defense’s website.
Anduril received a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir and Amazon to supply its AI models to U.S. defense and intelligence agencies.
Sam Altman, OpenAI’s co-founder and CEO, said in a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event in April that “we have to and are proud to and really want to engage in national security areas.”
OpenAI did not immediately respond to a request for comment.
The Defense Department specified that the contract is with OpenAI Public Sector LLC, and that the work will mostly occur in the National Capital Region, which encompasses Washington, D.C., and several nearby counties in Maryland and Virginia.
Meanwhile, OpenAI is working to build additional computing power in the U.S. In January, Altman appeared alongside President Donald Trump at the White House to announce the $500 billion Stargate project to build AI infrastructure in the U.S.
The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annualized sales. In March, the company announced a $40 billion financing round at a $300 billion valuation.
In April, Microsoft, which supplies cloud infrastructure to OpenAI, said the U.S. Defense Information Systems Agency has authorized the use of the Azure OpenAI service with secret classified information.
A United Launch Alliance Atlas V rocket is shown on its launch pad carrying Amazon’s Project Kuiper internet network satellites as the vehicle is prepared for launch at the Cape Canaveral Space Force Station in Cape Canaveral, Florida, U.S., April 28, 2025.
Steve Nesius | Reuters
United Launch Alliance on Monday was forced to delay the second flight carrying a batch of Amazon‘s Project Kuiper internet satellites because of a problem with the rocket booster.
With roughly 30 minutes left in the countdown, ULA announced it was scrubbing the launch due to an issue with “an elevated purge temperature” within its Atlas V rocket’s booster engine. The company said it will provide a new launch date at a later point.
“Possible issue with a GN2 purge line that cannot be resolved inside the count,” ULA CEO Tory Bruno said in a post on Bluesky. “We will need to stand down for today. We’ll sort it and be back.”
The launch from Florida’s Space Coast had been set for last Friday, but was rescheduled to Monday at 1:25 p.m. ET due to inclement weather.
Amazon in April successfully sent up 27 Kuiper internet satellites into low Earth orbit, a region of space that’s within 1,200 miles of the Earth’s surface. The second voyage will send “another 27 satellites into orbit, bringing our total constellation size to 54 satellites,” Amazon said in a blog post.
Kuiper is the latest entrant in the burgeoning satellite internet industry, which aims to beam high-speed internet to the ground from orbit. The industry is currently dominated by Elon Musk’s Space X, which operates Starlink. Other competitors include SoftBank-backed OneWeb and Viasat.
Amazon is targeting a constellation of more than 3,000 satellites. The company has to meet a Federal Communications Commission deadline to launch half of its total constellation, or 1,618 satellites, by July 2026.
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