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FTC Takes TikTok Investigation to Justice Department Over Data Handling Concerns
The US Federal Trade Commission (FTC) has escalated its probe into ByteDance Inc.’s TikTok, referring a complaint to the Justice Department. This move marks a significant development in a government investigation that centers on the company’s management of user data.
Federal Law Violations Under Scrutiny
The FTC has been examining whether TikTok violated federal legislation designed to protect children online, as well as another law prohibiting "unfair or deceptive" business practices. FTC Chair Lina Khan publicly noted that preliminary findings suggest TikTok might be infringing, or is on the verge of infringing, the FTC Act and the Children’s Online Privacy Protection Act (COPPA).
Notably, neither TikTok nor the FTC have provided immediate responses to requests for comments regarding this investigation.
Ongoing Scrutiny and Legislative Challenges
This investigation is the latest chapter in a prolonged period of intense scrutiny for TikTok within the United States, largely due to the links between its parent company, ByteDance, and the Chinese government. Earlier this year, President Joe Biden endorsed legislation that demands TikTok’s sale within a year to avoid a sweeping ban, a measure currently being contested in the courts by the company.
Legislative Inquiries and Previous Penalties
In addition to the FTC’s probe, TikTok has faced queries from House lawmakers. In a recent letter, representatives urged the FTC to explore potential violations of child online safety laws by TikTok, particularly focusing on pop-up notifications that solicited personal information from users and urged them to contact Congress regarding the proposed TikTok ban.
This isn’t the first time TikTok has landed in hot water over user data. Back in 2019, the company paid a hefty $5.7 million to settle FTC's claims that it had unlawfully collected personal information from minors, marking the largest civil penalty ever imposed by the commission for a children's privacy case. Despite this settlement, the agency has continued its investigations into the company.
A Rare Disclosure by the FTC
In an unusual move, the FTC disclosed the referral of the complaint to the Justice Department. The commission stated that, although it typically keeps such referrals confidential, making this particular case public was considered to be in the public interest.
