The US Federal Trade Commission (FTC) has escalated its scrutiny of TikTok, referring a complaint against the social media platform and its Chinese parent company, ByteDance, to the Department of Justice (DOJ) for potential violations of children’s privacy laws. This referral follows an FTC investigation that suggested the companies may be violating or are poised to violate federal laws concerning children’s online privacy.
A TikTok spokesperson expressed disappointment with the FTC’s decision to pursue litigation, noting that the company has been cooperating with the agency for over a year to address privacy concerns. Despite these efforts, the FTC felt it necessary to involve the DOJ, citing public interest as a reason for the unusual step of announcing the referral.
The investigation centers on possible breaches of the FTC Act, which targets unfair or deceptive business practices, and the Children’s Online Privacy Protection Act (COPPA). COPPA regulates the collection, use, and disclosure of personal information from children under the age of 13 by online services.
The DOJ has not provided specific details on the referral but confirmed ongoing consultations with the FTC. This move intensifies the regulatory pressure on TikTok, which is already facing significant challenges in the US.
In addition to the FTC’s actions, TikTok is also under threat from recent US legislation. In April, President Joe Biden signed a bill that requires ByteDance to sell TikTok by 2025 or face a potential ban in the US. This legislation is based on concerns that TikTok might share user data with Chinese authorities, an allegation that TikTok has consistently denied. In response, TikTok filed a lawsuit in May to block the law, arguing that it infringes on free speech rights for the company and its American users.
The FTC’s complaint adds to the growing regulatory and legal challenges for TikTok in the US, as the company navigates concerns over data privacy and national security amidst increasing geopolitical tensions.
