Madam Chair and honourable members, thank you very much for your invitation.
I've had the opportunity to listen to some of the witnesses who have appeared before you. They delivered eloquent statements on the practices, usage and harms associated with social media, especially as it relates to content. Today, I'd like to draw your attention to something related to my area of expertise, namely the purpose of the economic model, including how it's designed and how it works.
I'd like to highlight four aspects. The first aspect is the importance of understanding economic models because these models provide leverage points for action. As you know, we went from a model where one purchased a product outright to one where a product is provided as a long-term service, and then to one where it's provided for free. Obviously, the free model must make money, and there are three main ways to do that when it comes to social media.
The first is advertising, which represents billions of dollars. Right now, all kinds of strategies are being deployed to blur content, to the point where readers wonders whether they're dealing with advertising, an influencer's material, or sponsorship. There lies the first problem, which is difficult to pin down, especially for young people.
The second aspect is microtransactions. On some platforms, influencers can ask their followers to send them money. This could be young children sending them their pocket money. Platforms will then take a percentage, which can be as much as 50%. On some platforms, such as Roblox, it can be as much as 70%.
There is also the commodification of personal data. As you know, there is a market for personal data, which circulates worldwide. I really want to stress this point on the collection of personal data about young people.
A large-scale harvesting of data is under way. Some of our work has focused on privacy terms and conditions for mobile applications, and currently, they don't comply with Quebec, Canadian or American legislation. There are all kinds of strategies to collect data, including through third-party companies, which are deployed on mobile devices at the same time as social media, and this data is circulated around the world. This comes with a number of risks, including identify theft and other long-term risks. If we start collecting data about our children when they're young, about their habits and how they live, imagine the type of profiling on them that can be done later when they apply for insurance, money for a house, or a job. They could be turned down because they have been profiled from childhood. There's a probability they will be deemed uninsurable, and they will not fully understand why.
Additionally, geolocation data is now being collected. This issue doesn't receive the attention it deserves. Geolocation data is often collected in a completely illegal manner because the geolocation of children is not allowed. However, there are a number of ways in which this is being done. The data is circulating and can end up in the hands of predators. Predators can find out where children live and go to school, and their lifestyle habits, and use this information to approach them on platforms, such as Roblox or other social media. This issue doesn't receive the attention it deserves either.
How is the data used in the data economy? Obviously, it's used to create profiles with the aim of carrying out targeted advertising. Young people are increasingly being singled out and pressured to consume more. There's a reason billions of dollars are being spent on advertising, because advertising works. Children, young people and young adults can be manipulated in their purchasing behaviour.
We're hearing about recommendation algorithms with increasing frequency. These infamous algorithms are becoming more and more sophisticated and specific, with the consequences that you all know. Young people are getting trapped in content pushed to them.
Now, there's a move to generative artificial intelligence where one needn't even create content. The content is generated automatically, which carries risks tied to personalized feeds, a key driver of social media retention. With generative artificial intelligence, we're now seeing extreme levels of personalization, along with all the risks that come with that. The rise of generative artificial intelligence has amplified existing problems, which, in my view, remain insufficiently regulated.
My third point is on the use of persuasive techniques to drive and boost profits on these platforms. What this means is that people use design strategies to influence the behaviour of young people, and it works.
One example of ways to keep people engaged is infinite scroll. The brain is not designed to process an infinite flow of content. It needs breaks, pauses and moments to stop. This infinite scroll plays on this cognitive bias.
Another example is the stimulation of content creation. These platforms don't create content. Users create content, as is the case with Airbnb and Uber, where users generate money for businesses. To nudge users to create content, there's a “like” button, and all it entails in stimulating the brain's reward system, including dopamine release. Platforms also exploit that factor.
Another tactic is to draw people back to the platforms through the infamous notifications, even on platforms aimed at toddlers.
There's also the issue of getting people to spend money using all sorts of strategies, including simplifying transactions to make it possible for people to spend money with two or three clicks.
The final example involves prompting people, including children, to view advertisements. On that note, I want to emphasize that dark patterns remain unregulated. It's now possible to manipulate interfaces to lead young people to take actions they hadn't planned on taking.
My fourth point is on a design aspect that has been magnified to a great degree, namely, gamblification. Betting and gambling are the most addictive activities. These platforms use betting and gambling strategies to keep users hooked for as long as possible. There is an increasingly grey area between gaming and gambling, which means gaming is now drifting into gambling. Skin betting and virtual item exchange are becoming more common, with influencers promoting this practice. Currently, gambling is being promoted among young people. This used to happen on the Twitch platform, but since it was banned, the practice has migrated to Kick, a platform where anything goes. Currently, young people, sometimes very young, are being introduced to gambling on this type of platform.
In conclusion, I'd like to say that social media, gaming and screens have very positive impacts. However, as you know, for our children and adolescents to benefit from these positive effects, we need comprehensive legislation and regulation. If it's safer upstream, young people will feel better downstream. We need to think about safety by design. We need to make these spaces safer from the design stage, and so companies have to be brought in to work with us.