Mark Zuckerberg, chief executive officer of Meta Platforms Inc., left, arrives at federal court in San Jose, California, US, on Tuesday, Dec. 20, 2022.
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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.”
Tesla is facing a federal investigation into possible safety defects with FSD, its partially automated driving system that is also known as Full Self-Driving (Supervised).
Media, vehicle owner and other incident reports to the National Highway Traffic Safety Administration showed that in 44 separate incidents, Tesla drivers using FSD said the system caused them to run a red light, steer into oncoming traffic or commit other traffic safety violations leading to collisions, including some that injured people.
In a notice posted to the agency’s website on Thursday, NHTSA said the investigation concerns “all Tesla vehicles that have been equipped with FSD (Supervised) or FSD (Beta),” which is an estimated 2,882,566 of the company’s electric cars.
Tesla cars, even with FSD engaged, require a human driver ready to brake or steer at any time.
The NHTSA Office of Defects Investigation opened a Preliminary Evaluation to “assess whether there was prior warning or adequate time for the driver to respond to the unexpected behavior” by Tesla’s FSD, or “to safely supervise the automated driving task,” among other things.
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The ODI’s review will also assess “warnings to the driver about the system’s impending behavior; the time given to drivers to respond; the capability of FSD to detect, display to the driver, and respond appropriately to traffic signals; and the capability of FSD to detect and respond to lane markings and wrong-way signage.”
Tesla did not respond to a request for comment on the new federal probe. The company released an updated version of FSD this week, version 14.1, to customers.
For years, Tesla CEO Elon Musk has promised investors that Tesla would someday be able to turn their existing electric vehicles into robotaxis, capable of generating income for owners while they sleep or go on vacation, with a simple software update.
That hasn’t happened yet, and Tesla has since informed owners that future upgrades will require new hardware as well as software releases.
Tesla is testing a Robotaxi-brand ride-hailing service in Texas and elsewhere, but it includes human safety drivers or valets on board who either conduct the drives or manually intervene as needed.
In February this year, Musk and President Donald Trump slashed NHTSA staff as part of a broader effort to reduce the federal workforce, impacting the agency’s ability to investigate vehicle safety and regulate autonomous vehicles, The Washington Post first reported.
Commander Jared Isaacman of Polaris Dawn, a private human spaceflight mission, speaks at a press conference at the Kennedy Space Center in Cape Canaveral, Florida, U.S. August 19, 2024.
Isaacman, who has close ties with SpaceX CEO Elon Musk, was at the White House in September for Trump’s dinner for tech power players. Musk did not attend.
Trump and Isaacman have had multiple in-person meetings in recent weeks to talk about the Shift4 founder’s vision for the space program, according to Bloomberg, citing a person familiar with the meetings.
After a fiery back-and-forth between Musk and Trump over government spending, the president pulled Isaacman’s nomination for the post, saying he was a “blue blooded Democrat, who had never contributed to a Republican before.”
“I also thought it inappropriate that a very close friend of Elon, who was in the Space Business, run NASA, when NASA is such a big part of Elon’s corporate life,” Trump wrote in a Truth Social post on June 6.
Trump named Transportation Secretary Sean Duffy interim head of NASA in July.
Isaacman, who declined to comment, was initially nominated in December to lead the space agency.
Isaacman is a seasoned space traveller, having led two private spaceflights with SpaceX in 2021 and 2024. Shift4 has invested $27.5 million in SpaceX, according to a 2021 filing.
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Isaacman stepped down as CEO from Shift4, the payments company he founded in 1999 at the age of 16, after his nomination was pulled, and now serves as executive chairman.
“Even knowing the outcome, I would do it all over again,” Isaacman wrote about the NASA nomination process in a letter to investors announcing the Shift4 change.
Now, it looks like he gets to do it all over again.
Tensions between Musk and Trump have cooled in the months since, but big challenges face the U.S. space program..
Trump has proposed cutting more than $6 billion from NASA’s budget.
As a result of Trump’s Department of Government Efficiency initiative, which Musk led in the first half of 2025, around 4,000 NASA employees took deferred resignation program offers, cutting the space agency’s staff of 18,000 by about one-fifth.
During the October government shutdown, NASA has made exceptions that allow employees to keep working on missions involving Musk’s SpaceX and Jeff Bezos’ Blue Origin.
An illustration photo shows Sora 2 logo on a smartphone.
Cfoto | Future Publishing | Getty Images
The Creative Artists Agency on Thursday slammed OpenAI’s new video creation app Sora for posing “significant risks” to their clients and intellectual property.
The talent agency, which represents artists including Doja Cat, Scarlett Johanson, and Tom Hanks, questioned whether OpenAI believed that “humans, writers, artists, actors, directors, producers, musicians, and athletes deserve to be compensated and credited for the work they create.”
“Or does Open AI believe they can just steal it, disregarding global copyright principles and blatantly dismissing creators’ rights, as well as the many people and companies who fund the production, creation, and publication of these humans’ work? In our opinion, the answer to this question is obvious,” the CAA wrote.
OpenAI did not immediately respond to CNBC’s request for comment.
The CAA said that it was “open to hearing” solutions from OpenAI and is working with IP leaders, unions, legislators and global policymakers on the matter.
“Control, permission for use, and compensation is a fundamental right of these workers,” the CAA wrote. “Anything less than the protection of creators and their rights is unacceptable.”
Sora, which launched last week and has quickly reached 1 million downloads, allows users to create AI-generated clips often featuring popular characters and brands.
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OpenAI launched with an “opt-out” system, which allowed the use of copyrighted material unless studios or agencies requested that their IP not be used.
CEO Sam Altman later said in a blog post that they would give rightsholders “more granular control over generation of characters.”
Talent agency WME sent a memo to agents on Wednesday that it has “notified OpenAI that all WME clients be opted out of the latest Sora AI update, regardless of whether IP rights holders have opted out IP our clients are associated with,” the LA Times reported.
United Talent Agency also criticized Sora’s use of copyrighted property as “exploitation, not innovation,” in a statement on Thursday.
“There is no substitute for human talent in our business, and we will continue to fight tirelessly for our clients to ensure that they are protected,” UTA wrote. “When it comes to OpenAI’s Sora or any other platform that seeks to profit from our clients’ intellectual property and likeness, we stand with artists.”
In a letter written to OpenAI last week, Disney said it did not authorize OpenAI and Sora to copy, distribute, publicly display or perform any image or video that features its copyrighted works and characters, according to a person familiar with the matter.
Disney also wrote that it did not have an obligation to “opt-out” of appearing in Sora or any OpenAI system to preserve its rights under copyright law, the person said.
The Motion Picture Association issued a statement on Tuesday, urging OpenAI to take “immediate and decisive action” against videos using Sora to produce content infringing on its copyrighted material.
Entertainment companies have expressed numerous copyright concerns as generative AI has surged.
Universal and Disney sued creator Midjourney in June, alleging that the company used and distributed AI-generated characters from their movies despite requests to stop. Disney also sent a cease-and-desist letter to AI startup Character.AI in September, warning the company to stop using its copyrighted characters without authorization.