Home FTC launches an inquiry into how Reddit licenses data

FTC launches an inquiry into how Reddit licenses data


  • Reddit faces FTC inquiry into AI content licensing practices amid IPO plans.
  • FTC inquiry disclosed in an amendment to Reddit's IPO filing on March 14.
  • FTC expresses interest in Reddit's user-generated content sharing for AI training.
  • As Reddit works on plans to go public this March, the Federal Trade Commission launches an inquiry into its AI content licensing practices.

    The social media company disclosed that they received a letter from the FTC on March 14, via an amendment to their IPO filing.

    The document goes on to explain the situation and the details: “For example, on March 14, 2024, we received a letter from the FTC advising us that the FTC’s staff is conducting a non-public inquiry focused on our sale, licensing, or sharing of user-generated content with third parties to train AI models.

    “Given the novel nature of these technologies and commercial arrangements, we are not surprised that the FTC has expressed interest in this area.”

    They go on to say that they “do not believe that we have engaged in any unfair or deceptive trade practices.”

    The letter sent to Reddit indicates that Federal Trade Commission staff are interested in meeting with the team to learn more about plans. The FTC is also said to intend to request information and documents as its inquiry continues.

    In a press release published on Feb 22, an agreement between Google and Reddit was announced. The data from the social media platform is to be shared with Google to train the tech giant’s AI model, with Google now having access to Reddit’s Data API.

    Reddit gears up for going public this month

    In the same month that the mega Google deal was announced, Reddit also shared news of an initial public offering of its stock. They are seeking a valuation of up to $6.4 billion.

    As detailed in a corporate filing, the company wants to sell around 22 million shares, priced between $31 and $34 each, raising up to $748 million in the process.

    According to the NASDAQ calendar showing public offerings, Reddit should be live on the New York Stock Exchange on March 21.

    Featured Image: Photo by Brett Jordan on Unsplash

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    Sophie Atkinson
    Tech Journalist

    Sophie Atkinson is a UK-based journalist and content writer, as well as a founder of a content agency which focuses on storytelling through social media marketing. She kicked off her career with a Print Futures Award which champions young talent working in print, paper and publishing. Heading straight into a regional newsroom, after graduating with a BA (Hons) degree in Journalism, Sophie started by working for Reach PLC. Now, with five years experience in journalism and many more in content marketing, Sophie works as a freelance writer and marketer. Her areas of specialty span a wide range, including technology, business,…

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