Snap, Amazon.com-owned Twitch, Pinterest and Instagram are
the other companies which are all required to provide information such as ad
revenue and number of views including those in categories of products and
services more prone to deception.
The companies did not immediately respond to Reuters'
requests for comment.
The regulator is seeking to scrutinize and restrict paid
commercial advertising that is deceptive or exposes consumers to fraudulent
healthcare products, financial scams, counterfeit and fake goods, or other
fraud.
"Social media has been a gold mine for scammers who
tout sham products and other scams that have cost consumers enormously in
recent years," said Samuel Levine, director of the FTC's consumer
protection bureau.
"This study will help the FTC ensure that social media
and video streaming companies are doing everything they can to keep scammers
and deceptive ads off their platforms."
The order comes after the FTC asked Twitter to turn over
some internal communications related to owner Elon Musk and other detailed
information about business decisions as part of an investigation earlier this
month.
Last month, FTC voted to withdraw an antitrust complaint
challenging Meta Platforms's purchase of virtual-reality startup Within
Unlimited, officially closing the agency's case.
The FTC sued to block the deal last year, filing twin complaints in federal court and its in-house court. Following a December trial in a San Jose federal court, US District Judge Edward Davila found in favour of Meta, ruling the FTC didn't offer enough evidence to prove that the acquisition would harm competition in the nascent virtual-reality industry. © Reuters
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