Alphabet (GOOGL) YouTube is under final-stage investigation by the US Federal Trade Commission over whether it violated consumer protection laws when suspending user accounts, Bloomberg reported Thursday, citing people familiar with the matter.
The FTC inquiry, ongoing since last year, is examining whether YouTube misled users by presenting content policies that differed in practice, leading to bans or removals, the report said.
Investigators are focused on whether users were deceived into signing up under the belief they could post certain content, only to later have it taken down, according to the report.
A lawsuit is being prepared, though no wrongdoing has been formally alleged and the inquiry may close without enforcement action, Bloomberg said.
FTC did not immediately respond to requests for comment from MT Newswires. YouTube declined to comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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