FTC refers TikTok case to DOJ over alleged violations

The US Federal Trade Commission (FTC) has referred a fuss against TikTok and its Chinese parent firm, ByteDance, regarding potential infringements of children’s privacy to the Department of Justice (DOJ).

Investigation and Allegations

The Federal Trade Commission (FTC) has referred a case involving TikTok to the Department of Justice (DOJ), citing “reason to believe” that the company may be violating laws.

The FTC’s investigation focused on potential breaches of the FTC Act and the Children’s Online Privacy Protection Act (COPPA). COPPA regulates the collection and use of personal information from children under 13, while the FTC Act addresses unfair or deceptive business practices.

TikTok’s Response

TikTok expressed disappointment over the FTC’s decision to pursue litigation rather than continue cooperative efforts to resolve the issues.

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A spokesperson for TikTok stated, “We disagree with the allegations and have been working with the FTC for over a year to address its concerns. We’re disappointed the agency is pursuing litigation instead of continuing to work with us on a reasonable solution.”

DOJ’s Position

A DOJ spokesperson declined to comment on the specifics of the referral but confirmed ongoing consultations with the FTC. The referral highlights the increasing scrutiny TikTok faces in the U.S., particularly regarding user data privacy and security.

Legislative Context

This case is separate from recent U.S. legislation that could ban TikTok unless its parent company, ByteDance, sells the business.

President Joe Biden signed a bill in April giving ByteDance until 2025 to comply. This law addresses concerns that TikTok might share user data with Chinese authorities, an allegation TikTok denies.

TikTok’s Legal Challenge

In response to the legislative threat, TikTok filed a lawsuit in May aiming to block the ban, arguing that it constitutes an “extraordinary intrusion on free speech rights” for both the company and its 170 million American users.

Conclusion

The FTC’s announcement and subsequent DOJ referral mark significant developments in the ongoing scrutiny and legal challenges faced by TikTok in the U.S.

The outcome of these proceedings could have profound implications for the app’s future operations in the country.