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FTC refers TikTok complaint to Justice Department

OUR TAKE This lawsuit could have far-reaching implications for TikTok’s future operational strategy and global impact, particularly in terms of handling user data and protecting the privacy of minors. The move of FTC shows serious concerns about TikTok’s efforts to protect the privacy of underage us…

FTC-refers-TikTok-complaint-to-Justice-Department

Headline

OUR TAKE This lawsuit could have far-reaching implications for TikTok’s future operational strategy and global impact, particularly in terms of handling user data and protecting the privacy of minors. The move of FTC shows serious concerns about TikTok’s efforts to protect the…

Context

OUR TAKE This lawsuit could have far-reaching implications for TikTok’s future operational strategy and global impact, particularly in terms of handling user data and protecting the privacy of minors. The move of FTC shows serious concerns about TikTok’s efforts to protect the privacy of underage users. –Revel Cheng, BTW reporter The FTC said Tuesday that it’s referred its complaint against TikTok and Chinese parent ByteDance to the U.S. Department of Justice.

Evidence

Pending intelligence enrichment.

Analysis

The FTC began its investigation following a 2019 settlement with Musical.ly, the predecessor to TikTok, that was related to violations of the Children’s Online Privacy Protection Act (COPPA). The FTC was probing to see if TikTok violated a federal law that prohibits “unfair and deceptive” business practices. The regulator said it’s transferring the case to the DOJ because the investigation “uncovered reason to believe named defendants are violating or are about to violate the law.” At a January Senate hearing, TikTok CEO Shouzi Zhou stated that the company employs approximately 40,000 people in its trust and safety operations. However, he also indicated uncertainty regarding the number of minors using the platform. A TikTok spokesperson said it’s been working with the FTC on the matter for over a year and is “disappointed” the agency decided to pursue litigation.

Key Points

  • The Federal Trade Commission said on Tuesday that it’s referred its complaint against TikTok to the Department of Justice.
  • The FTC was investigating TikTok and Chinese parent ByteDance over alleged faulty privacy and data security practices.

Actions

Pending intelligence enrichment.

Author

Revel Cheng (r.cheng@btw.media)· author profile pending