TikTok, the popular social media platform, is facing legal trouble as the U.S. Federal Trade Commission (FTC) has referred a complaint against the company and its parent company, ByteDance, to the Department of Justice. The investigation was initiated due to potential violations of the Children’s Online Privacy Act and allegations of “unfair and deceptive” business practices.
The FTC’s decision to refer the complaint to the Department of Justice indicates that they believe there is reason to believe that TikTok and ByteDance are violating or are about to violate the law. The agency has deemed it necessary to take this action in the public interest.
In response, TikTok issued a statement expressing their disappointment with the FTC’s decision to pursue litigation. They emphasized that they have been actively working with the FTC for over a year to address their concerns. TikTok also stated that many of the allegations made by the FTC are based on inaccurate information or have already been addressed. The company remains committed to protecting children and will continue to update and improve their product.
This is not the first time TikTok has faced legal consequences for privacy-related issues. In 2019, they paid a $5.7 million settlement to the FTC over allegations of illegally collecting personal information from children. The settlement set a record for the largest civil penalty ever obtained by the Commission in a children’s privacy case.
The recent referral to the Department of Justice adds to the mounting scrutiny TikTok is facing in the United States. In April, President Biden signed a bill that would potentially ban TikTok if ByteDance fails to sell it within a year. This action was taken due to concerns from U.S. lawmakers who fear that user data could be leaked to the Chinese government. In response, TikTok and ByteDance filed a lawsuit against the U.S. government, arguing that the law violates constitutional commitments to free speech and individual liberty.
The ongoing legal challenges and investigations surrounding TikTok highlight the increasing concerns over data privacy and the potential risks associated with foreign-owned social media platforms. As the situation unfolds, it remains to be seen how these issues will impact the future of TikTok and its relationship with the U.S. market.